Gold trading strategy
Well Now that you have just gone through the Gold spread betting example , I will now show you two different Gold Trading strategies. Gold like many commodities are still traded using Pivot Points.
There are two types of strategies one can use to trade gold. They are both commonly used but the trick to success is know what kind of market you are current in. Well I guess this applies to all strategies. Let me elaborate further, If there has been strong news in the market regarding inflation, prices on commodities or about the economy not doing to well, many will find refuge in Commodities, as especially gold, is seen as a safe have. In this case Trading a commodity break out strategy would be beneficial. You could expect to trade a Gold break out strategy even if there is economic data or if Ben Bernanke is speaking and you expect the data or Bernanke to speak about quantative easing. This will probably affect the gold market. In this case you are anticipating a dramatic move in the Gold market and thus can use the Gold Break out trading strategy. As you can see from the Graph below, this would mean taking advantage of sudden movements like the one below.
Gold Break Out Strategy
Gold Pivot Point Strategy
Instead if on the other hand there is no news expected in Gold, or the market has already made a drastic move and the commodity is currently retracing, You can use a Gold retracement strategy, Using Pivot points to trade Gold.
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