Wednesday 6 June 2012

Gold trade update

Well I waited nearly 4 hours for this trade and was about to call it a day when I got the signal I was waiting for.  It would have been easier to just have an entry at 1641 with a stop loss a couple ticks above the swing high of the 5 min upthrust bar.  Anyway, I waited for a move out of the supply zone I had on the large (1K) volume chart and moved to the small (400) vol chart to look for the entry.

I was looking for a RPM down bar after a retrace and also, having MACD confirmation. It finally came at 17:45 BST and as I felt with the large volume from earlier this morning we would have a big fall.  And fall it did, back to the origin of the large move up from the overnight session.  You will notice I had the zone boxed on my earlier screenshots.  At this point I saw the first RPM 2 bar reversal and exited for a extremely mind blowing 214 ticks.  This is my trade of the year and dwarfs my 125 tick winners a few weeks ago.

This shows that patience works and also by not being distracted by the other instruments, I was able to focus on this trade.

Here are the charts






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