Buying and selling gold is something that attracts the attention of many traders. Due to the ease of trading Gold through Forex brokers, many people think of trading this popular commodity. If you intend to venture into this market, read below some valuable tips that we have separated for you:
It has a large daily variation: variations of 800-1000 dollars are not uncommon and the average of a day with a small variation is 300 dollars. For the Melbourne Gold Exchange this is important.
It is volatile: it can easily vary from 80 to 100 dollars in a few minutes. Major reversals are common. An operation that looks good can quickly become a loss. It’s the speed at which the market can move and change direction requires very good pre-planning and very quick decision-making. If you wait too long to see if the price will revert after touching Support or Resistance you could end up losing all of your profit. The price often breaks through the Support or Resistance levels after a brief pause, making your profits even greater,
Double personality: gold can also move long distances without “looking back”. Even though breaks are made at important technical levels, pullbacks often do not occur. Until the movement ends it is difficult to say when the gold is going “from one side to the other” swinging and when it is running
It respects support and resistance levels well: this is an excellent feature. Gold can be traded using technical analysis in an accurate and consistent manner. Pivots, trend lines, moving averages, Fibonacci levels and other technical indicators are constantly respected. If you intend to trade gold, we suggest taking a look at FxPro which is one of the best brokers in the world and offers excellent spreads on the market.
Waiting for candles to close is mandatory: especially for entrances. The price can reverse a great distance a few minutes before the closing of an hourly candle. Being anxious and using a candle that is not yet closed can be a big mistake,
Reversal candles are extremely accurate: especially when they occur at horizontal levels and often result in movement over a considerable distance, usually to the next level. The longer the timeframe, the better the movement,
It moves well throughout the day: the only time that gold does not move well is in the last hours of the New York (NY) session and the first hours of the Asian session. When Tokyo opens the gold it can already be operated. Movements during the Asian session are less than those in the European session movements in the US section are generally even greater. The biggest movements of all occur almost always in the London NY intercession when both markets are open,
The price action dominates: one of the best ways to know what the next move will be is to simply analyze the price action. If gold moves out of a consolidation area after a “quiet” period, the movements are usually quite consistent.
Who has never heard of gold as one of the most profitable investments of the moment? With the multiplication of sites specializing in the purchase of gold, it is understood, in fact, that the price of gold has not finished rising and that speculating about its variations can become very profitable in the short, medium and long term.