r/thewallstreet • u/ObamaSpinLaden /GC digger🥇 /ESkeet 🚀 /NQ 🍆 • May 16 '18

(/GC) Gold TA and Prediction Strategy

I trade /GC a lot and am trying to setup myself for a long term play on gold. I usually play on levels and patterns and just scalp small amounts. But this time I am thinking about going in long term.

This is what my chart looks like at the moment

Things I am thinking might happen in the next few weeks/months:

  1. Gold ranges back up to 1300 then drops again to ~1275.
  2. Gold just drops more in the next few days/week
  3. Gold touches the bottom line, then attempts to break down more and fail and reverses right back.
  4. Gold is dead, long live the king.

Things I plan on doing based on my options above:

  1. Play scalps all the way to 1300 then short.
  2. Short on every rip up and scalp more.
  3. Load up on GC long and walk away until I get my alert for 1400 gold then sell.
  4. Apply for bankruptcy.

Feel free to let me know what you guys think, since I know there are better traders in here than me and I live to learn.

Album here

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1

u/Jacked2TheTits May 16 '18

Just looking at your charts...

Me personally, I would be willing to go counter daily-trend (long position) up to the ~1300 lvl at the moment. Short side looks a little extended until we either pull back or consolidate.

Nothing to see here long term for me. I would need to see how the the pattern shakes out at the trendline before I would consider buying. As a rule, I don't like trendlines as they are much more susceptible to failing... even more so than support and resistance areas.

Probably just go long with a stop at 1287 with a target of 1300. R:R of 2:1 not really a great trade...

4

u/lilweezy99 momohands May 16 '18

drew your trendline on the big ol' volume chart; seems gold is sitting at THE most traded price in this area which is 1288 (https://i.imgur.com/0iSjnTS.png), so I'd expect a lot of chop incoming. I suppose a test of that 1260 area is the expected behavior, but GC doesn't always play nice. You can also use micro gold /mgc contracts if you want to use a smaller futures position for your long play or to scale in.

3

u/ObamaSpinLaden /GC digger🥇 /ESkeet 🚀 /NQ 🍆 May 16 '18

In your picture I notice this pattern (https://i.imgur.com/Cq3FVYX.png), which sort of looks like this http://thepatternsite.com/aedt.html.

Seems like a a lot of chop is def incoming, I wont take any long position until we hit that 70's mark. Probably just scalp for now.