XAU/USD & XAG/USD - Gold & Silver Traders Thread

There is support at 1230 and 1225.

The candles are important due to the fact that they show (like bar charts) where the PA may go down to.

But if you look at today, how many candle closes were there above 1245?Then look at how the line chart bounced off. That is resistance and was support.

every minor support created up or down a trade path cannot be used as solid.

It is the ones that are hard to break in EITHER direction that usually become S/R pivots for Gold.

Gold can easily Wipe out S/R levels even if decently strong on news.

Majors it will not - Unless already hovering around.

You need to look at a higher TF to see solid support and resistance

Find the levels the price either broke UP then tested down and stayed above -----
or broke down and couldnt break up.

But, you really should know this if you are trading live.

I am happy to give a lesson and all, but all of it really is YODD.

Just like taking trades. YOU have to know what you are comfortable with. And what you can afford. Always go with your sentiment if you think it is rght never anyone on a forum. Unless you have discussed it thoroughly.

You should read this entire thread all 28 or 30 pages because I think you have not...

. Skip anything by one member. Take a look at ALL Six Guns posts too

Thanks Xtrader - I do have some knowledge and trade reading charts (or trying to), fundamentals, and ichimoku elements. I guess we are always learning and re-freshing all the time. My cousin in America is a big time trader and has been trying to guide me for the past three years but he traded only fundamentally and I prefer intra-day. We clashed where he was talking VERY long term in his ideas and had no stop losses. It worked for him as the last bank balance I saw of his was $20mil but I just didn't have the bank balance to trade his way (no stop losses and glued to the screen 24/7. I am reading and learning from all here. My biggest hurdle to overcome is influence from some posts and patience

Hello FRIEND and Welcome,

That is an interesting post. I think you and the others can see here that I try to blend the best of both worlds. I do not trade solely on the charts nor do I trade solely on the fundamentals. The method I use is observation of the two mixed into an adaptable style.... AND I am firmly convinced this is the only way to trade successfully.

Fundamentals move the charts -----> when fundies and news are dead ----
Technicals move the charts -------

------->ONE does not exist without (the other) TWO <----------


I don't care what anyone says, you cannot successfully trade currencies or commodities without fundamentals and reading news.

I still encourage you to read this thread in it's entirety if you truly want to trade Gold.

Gold is not for everyone. It is very nutty at some points. Yet when I look back on a higher TF everything makes sense. And it is actually well behaved to solid tech levels. Your interest in this thread says something.
"I wan't to trade GOLD!"

--------------------------------------------------------------

People may say WHOA what do you mean Gold is well behaved? Welp, as much as it is the GLOBAL reserve currency it still is a rare metal an element on the periodic table and now ONE of the most Actively traded commodities.

Thus, it should always be respected.

Gold is one of the best conductors for certain applications, (there is likely Gold in your cell phone. It is beautiful, rare and a pain to find, yet easy to melt and form jewelry one of it's driving sectors. Coveted by many owned by some.

So, that example out of the way, the COMEX or NYMEX @ CME did not start because there were a bunch of traders that said " I wan't to speculate on gold, let's make an exchange to trade on"

More-so ---> The corn farmer produces a crop and their is a storm during the planting season. So his yield is not as much as he had hoped due to said storm. So when buying (selling season for the farmer) (there's an ex of bid/ask) comes around and the farmer wants to sell, he is left at a loss due to the major storm. Thus the price of corn may rise, and the farmer will lose money.

SO, how can the farmer insure (or Hedge his crop) by going on the "latter" created Futures exchange and locking in a price "in the Future" so that either way he or she is set into a profit.

Same goes for Gold. For Jewelers, Tech equiptment builders, the wealthy, (capital preservation - a hedge against a weakening USD, ETC etc etc.

________________________________________________________________

I am going to start posting the history and industrial applications of this metal.

It is surely interesting enough to trade solely and the clear performer out of the last quarter,, or Years!

Had you been long S&P or DOW for this long! Yikes!
X

Trading the markets fullstop fascinates me.



If you think about how many different systems traders follow avidly, it’s a wonder anyone makes money, let alone a living. Some just trade stocks, which in theory is the guts of the indicies, then there are different graphs, trading support, resistance, just trading with the current trend, moving averages, fib charts to add, Elliot waves, ichimoko elements, not to mention news and fundamentals; oh and I must add the big boys that play us traders like puppets. Then there’s hedging just to add into the trading soup. Within each system a trader is ready and waiting for their trade. If we are all using different techniques, and trading at the same time, then we all can’t be winners. So how is the money made? The answer to me is – Fundamentals will give the longer term direction, technicals only shorter term.

I’v tried out a few systems and some I could never make any logical sense from. Elliot Wave for example is too flawed in it’s advanced stages for me to bother with. The basics of a 1-5 wave pattern seems okay but there are too many variables with Elliot. Those trading it seem to “see things” I think. A wave to me may be 3 waves to you. Or someone else sees that wave 3 as a 5 plus an abc. Maybe I’m too ignorant to understand perhaps but keeping things simple/basic and keeping up with the news, I believe to be imperative to trading.

Gold in theory should be relatively easy to trade but isn’t due to the “big boys”. Both fundamentally and technically it is relatively straight forward but it’s correlation to the dollar, MM and indicies makes this metal volatile within a very short timeframe.

That’s why your post is relative X-Trade. The history of gold, it’s “Place”. We all see our trades go wrong at some point and we all are guilty of hanging on (me – I’m the worst offender), yet I have regretted not hanging on to my trades also. Now, I go back to the basics – In the big picture “what has changed” – “then don’t panic”. I use this strategy quite often now.

I do see that the posters here are trying to include both fundamentals and technicals and yes, that’s why you have caught my interest and I’ve been happily reading from afar. The world as we knew it is changing – gold will remain the same.

Lately it appears to me that regular market forces.. dow down, housing down, international monetary issue might be taking a back seat to some end of the year profit taking (pre-tax increases ) maybe with the idea of scooping up some beaten up equities... either way I see it resulting in a pop.

I sent you a PM but my "sent items" says 0. So not sure if I did it correctly.

I couldn't agree more. Alot of things that traders use feel pseudoscientific. I find that using things like elliot wave and sometimes fib levels that I'm simply retrofitting.

Ok so The big number today came out worse than expected, so far been as low as 36. Let's see what happens.

this was quite the hit

Damn

I held firm and opened several positions all the way down the 1230s, hope for a rebound now.

Looks like its not done yet.. i'll probably wait some more

Gold is correcting, Oil is down also.

NFP tomorrow and an already weak US unemployment claims number helping the EUR / GBP etc to rally. S&P down, Dow down.

I am holding out for a better price while doing a little scalping.

Not looking for any positions until next week.

Currently at the bottom of the past several day's range around 1230.

Below 1238/7 potential of test to 1225 and lower 1215.

it hit 1220

maybe steroidman had a point after all haha

Phew Man....

U must be having a tough time now

This week so far (High to low)

Oil has fallen about 8.5%

Silver has fallen about 6%

Gold has fallen about 3%

Stock Markets have fallen

Everything is falling... Does this mean everyone wants to sit on Cash ???

heh, my stops weren't hit, I trust gold and this has been a terrible day for all the markets

even if they do get hit I've already made more money this past week than I can lose

trying a long now @ 1221 with SL @ 1216

1218/9 looks like a decent support on an 8H Chart

After sitting in a tight range for 2 days and all the selloffs occurring this was on the table. Keep an eye out for 1215.

The secondary uptrend line intersects at appx 1215.

All commodities are getting hit as it's not just gold

Crude and Light crude are down over $2
http://www.marketwatch.com/story/job...000-2010-07-01