Gold forex scalping strategy is a trading strategy on gold metal commodities. In the spot forex market, gold is one of the most profitable trading assets due to the high moving average of the daily price.
Due to the high volatility price, many traders then develop a scalping trading style to profit from short-term gold trading. Trading gold in the forex market, although risky, has the potential to provide higher gains than buying physical gold.
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- 1 What is scalping gold?
- 2 How to scalping gold
- 3 Scalping gold indicator
- 4 5-minute gold scalping strategy
- 5 Gold scalping ea
- 6 Gold scalping signal telegram Malaysia
- 7 Conclusion
What is scalping gold?
Gold in the forex platform has the symbol XAUUSD, where the price of gold uses USD as the counter currency. Maybe not all brokers support all gold, so you need to crosscheck your broker is available for trading XAUUSD.
Scalping gold is forex trading with a profit target of only tens of pips from a change in the price of gold. This is a short-term trading style where the trader opens a position and then closes it in just a few minutes or waits until a low-profit target is reached.
Because this is a short-term trade and a low-profit target, choosing a broker that offers low spreads on gold commodities is certainly more meaningful for scalping gold.
How to scalping gold
There are various kinds of gold scalping trading strategies, this will depend on the indicator equipment and time frame to determine a scalping trading plan. One of them is a trader who combines momentum indicators with trend indicators.
The trend indicator is to analyze the direction of price movement, while the momentum indicator is to find the right time for entry points.
Trend indicators include moving averages, parabolic SAR, ADX, MACD, and Bollinger Bands. Momentum indicators use oscillator indicators, such as RSI, stochastic, or CCI.
Some traders try to use a combination of trend indicators. For example moving averages, parabolic SAR and Bollinger Bands, or moving averages, Bollinger Bands, and ADX, etc. However, for momentum indicators, it is better to use one indicator, because it will be confusing to use two indicators at once.
Although scalping gold, it is better to avoid trading during high-impact news, it can affect the volatility of gold prices, especially on news for USD. It is possible to trade when the news makes a profit, but the risk of volatility and random movements often traps traders in making mistakes.
Scalping gold indicator
If we want to elaborate, there are actually many indicators that can be used for scalping gold. Some of the following indicators or tools may allow you to choose the most suitable and profitable indicator.
- Stochastic oscillator.
- Moving average MA or EMA.’
- Bollinger band.
- Relative Strength Index (RSI).
- Parabolic SAR.
- Price action candlestick pattern.
Using the Trendline for gold scalping by using a low timeframe. M5 or M15 is a common scalping timeframe to look for price conditions that move in the direction of the trend. Draw trendline by connecting low to low or high to high points to be used as a reference for resistance support.
This indicator is a leading indicator, giving signals before the trend is formed. The false signal bias of this indicator for scalping is fairly high, some traders use companion indicators such as MA or EMA for confirmation signals.
Traders can use SMA or EMA for scalping using M5 or M15 timeframes. It can use two moving averages with different settings. For example a period of 20 by 10, the signaling is generated from the crossover between MAs. But this is often a bit late because the moving average is a lagging indicator.
Using Bollinger bands for scalping gold is looking for movement during sideways conditions. At that time, the upper band and lower band lines work well to support resistance.
Relative Strength Index (RSI)
Using the RSI for scalping gold may not be the best option. Because this indicator less often gives overbought and oversold signals. However, traders prefer to use the RSI as a filter analysis by combining it with other indicators.
This indicator can be used for scalping gold. Signals are obtained through the appearance of dots above or below the price. Usually, the signal is confirmed if three dots appear from a price. The weakness of this indicator is that this indicator is often repainted, so maybe after a point appears it will disappear again when the price reverses.
ADX or the Average directional index is an indicator to measure the strength of the trend. Using ADX for scalping gold is looking for entry when the trend is strong.
Price action candlestick pattern
This is a way of scalping gold without using indicators. Traders only study price patterns which often repeat their own history. The essence of this strategy is to look for retracements when trending. Or look for trend reversals when a trend has gone too far.
Gold scalping indicator Tradingview
The Tradingview chart platform is a very popular platform and there are a lot of trading tools that serve to analyze price changes.
There are several gold scalping indicators on the Tradingview platform. For example, fractals, Bollinger band, ATR+VWAP, Rolling VWAP, and so on. You can learn one by one the scalping gold Tradingview indicators.
In addition, you can also share the idea of Scalping Gold trading, so that other traders can get an idea from your thoughts. Or you can also search for and learn gold scalping trading ideas on the Tradingview platform.
Best gold scalping indicator
Determining the best gold scalping indicator requires trial and error measurement of the accuracy of the indicator to find the best one.
In this case, traders can try to use a strategy tester by taking past price data and then testing the indicators one by one. This method is for the early screening of indicator testing. To test indicators in a strategy tester you have to choose indicators and not expert advisors.
If you have done the test and you compare the results, you will get a conclusion of the best indicator in the initial trial. Further keep in mind that this is only an initial test using past price data, and is not a representation of future prices. Next, you use the selected indicator for scalping gold on a real account.
5-minute gold scalping strategy
The 5-minute timeframe is the time frame most traders use for scalping. However, this timeframe is not the only basis of analysis, it requires the H1 timeframe to analyze the major trend.
The easiest way to scalp gold in a 5-minute timeframe is to use the Simple Moving Average indicator. You can add a MACD indicator for scalping gold as confirmation signals.
The indicator that needs to prepared is:
- Simple Moving Average period 20 and 10, apply to weighted close.
- MACD indicator standard setting.
How to trade
SMA here serves to analyze the trend of market trends. This indicator is plotted on the H1 timeframe, if the price is above both SMA lines, it means the trend is an uptrend. Therefore traders are prepared to look for long positions. The trick is to use MACD for signal confirmation.
On the other hand, if the price is below both SMA lines, traders are looking for short options using MACD for signaling.
1-minute gold scalping strategy
Some traders have developed scalping by using a 1-minute timeframe for gold scalping.
An important note is that this can be riskier especially for inexperienced traders. So in practice, it must use strict risk management and extra patience.
To try scalping gold on a 1-minute time frame, traders can try using several indicators such as the following:
- Exponential Moving average (EMA) period 50.
- Exponential Moving average (EMA) period 100.
- Stochastic oscillator (indicator setting 5.3.3).
The 50 EMA represents the moving average for the past 50 minutes, while the 100 EMA represents the average price for the past 100 minutes. The trading rule is to wait for the Stochastic to enter oversold or overbought a trading asset. If the indicator oscillator has shown an overbought or oversold area, then for the entry point, wait for the 50 EMA to cross the 100 EMA.
Scalping gold using WPR
WPR indicator is also one of the oscillator indicators. WPR is an acronym for William Percent Range. To start with, traders use two WPR indicators with a setting of 9 for fast WPR and 54 for slow WPR.
You can find this indicator on the MT4 platform. Both indicators are plotted on a 1-minutes timeframe, but you can also use a 5-minutes timeframe. The level settings were changed to 70 and 30 to determine overbought and oversold.
The trading rules are as follows:
- Open Buy if WPR fast and WPR slow both break level 30. And open Sell if WPR fast and WPR slow break level 70.
- Because scalping requires focus and concentration, if it turns out that the trend still continues, it is better to cut loss. Or place a stop loss according to the risk that you are ready to bear.
- It is possible to use the martingale, but this makes the risk higher if the trend continues in the long term. Due to volatility gold prices can move more than thousands of pips on a daily average.
If you have interested to use the WPR custom indicator, here is the file.
WPR fast reflects WPR period 9 and WPR slow reflects WPR 54. This indicator uses red and yellow signaling. How to trade is Buy if both indicators have appeared yellow. And sell if both WPRs have appeared red.
Gold scalping ea
Gold scalping ea is a trading robot designed to work on gold commodities or in the XAUUSD symbol. Some EA is created by the author with the intention for sale. But there are EA that is distributed for free but to use them, you must go through the requirements of registering with certain brokers through an affiliate link.
Until now you have not found a free and well-performing gold scalping EA.
At Forexcracked.com. There we found a gold EA with the name Gold Butterfly Scalper pro-EA which costs $399. But there it is distributed for free. But we have never tried it because to be able to use the EA, we have to copy the DLL to the MQL4 folder. However, the antivirus blocks the file which is considered to contain malware.
In the MQL5 market, there is one gold scalping EA with a price of $100. However, there is not a single trader’s review about this EA, so if someone wants to purchase an ea, they must be prepared with all the risks as well. Because gold is a very volatile commodity.
Gold scalping signal telegram Malaysia
Telegram channel has been used by many traders to create forex trading signal channels including for Gold. Here we quote from several sources for gold signals which include the top gold signal in telegram.
- @fxfixforexsignal. Subscriber 3.4k.
- @GoldSignalsDaily. Subscriber 6.972.
- @AltSignals. Subscriber 121.153.
- @APEX BULL FO®EX SIGNALS. Subscriber 52.208.
- @Fx London Signals 🇬🇧 (free). SUbscriber 14.594.
Scalping Gold requires special foresight and special skills because of its high level of volatility. It is possible to obtain high-profit potential, but the risk must also be measured in order to avoid large losses in one trade.
The gold scalping trading tip is to choose a market trend that is starting, it is often easier to make a profit in a short time.
Note: This article is for information and opinion only, does not constitute investment advice or solicitation. Forex, crypto trading, and CFDs are risky trading. Each investor is responsible for their investment.
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