Good afternoon gold gang!
Thought id jump on here to talk to you about basic market structure, as its the basis for any strategy and super important to learn.
We can identify that the market moves 3 ways ..
up trend
down trend
sideways (consolidation)
I prefer to trade when the market is trending in either direction. I determine this by looking at the monthly and weekly candles.
In a trending market, i am looking to identify areas that the market can reverse from. If we are making a higher high for example .. I can identify that price is likely to pull back down to the key level it started its ascent from. From there i can wait for confirmations on the lower time frame to take a trade in the direction of the trend.
obviously this doesnt work everytime .. news etc .. but its always good to have it in the back of your mind the phase of the market you are currently in.
you will find with my strategy .. that price will make new structure points around my key levels ( the ones i place on my chart)
Hope this helps some of you out .. back to basics is sometimes the way to go if you are getting overwhelmed with information
Have a great sunday and see you tonight for the outlook
tommy
Thought id jump on here to talk to you about basic market structure, as its the basis for any strategy and super important to learn.
We can identify that the market moves 3 ways ..
up trend
down trend
sideways (consolidation)
I prefer to trade when the market is trending in either direction. I determine this by looking at the monthly and weekly candles.
In a trending market, i am looking to identify areas that the market can reverse from. If we are making a higher high for example .. I can identify that price is likely to pull back down to the key level it started its ascent from. From there i can wait for confirmations on the lower time frame to take a trade in the direction of the trend.
obviously this doesnt work everytime .. news etc .. but its always good to have it in the back of your mind the phase of the market you are currently in.
you will find with my strategy .. that price will make new structure points around my key levels ( the ones i place on my chart)
Hope this helps some of you out .. back to basics is sometimes the way to go if you are getting overwhelmed with information
Have a great sunday and see you tonight for the outlook
tommy