Binary Traders Nonplussed by Fluid Gold Prices

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Binary Traders Nonplussed by Fluid Gold Prices

10 year gold price

Binary traders who have exposure to gold, are currently at a loss to predict exactly how the price of the precious metal will move in the coming days.

Contrary indications in the markets are sending confusing signals about the fate of the yellow metal. While the U.S. economy appears to be regaining its balance after a long period of uncertainty, the Eurozone question still looms large with some analysts predicting that Portugal may be the ‘new Greece’ in this equation.

Given the economic issues that remain still unresolved and the fluctuating values of currencies, there is some question among gold binary traders as to what the future holds as far as price movement of gold is concerned.

The Link between Currencies and Gold

Traders should note that with currency values remaining fluid, it is virtually impossible to pinpoint how gold prices will move. In general, when currencies appear unstable, gold becomes a preferred investment venue. However, in the beginning of this week, gold prices edged lower following a gain in dollar value. In fact, the U.S. dollar touched its highest point in a month in this period.

Still, the markets did not witness the kind of movement towards cash based assets that it would usually see in stable economic conditions. According to experts, many investors were holding back to ascertain that the dollar would be able to sustain its gains before they moved out of gold and into cash assets.

Gold Recovers Lost Ground

Later in the week, gold regained its lost ground as the Euro gained support against the dollar. While some Forex activity was seen, there was not enough to show that investors are fully confident about currencies. Also, the market is likely to be subdued until the outcomes of the Fed Reserve meeting come to fore. This meeting will decide the direction in which interest rates will move this year.

If the Fed appears inclined to support its low interest rate policy for awhile yet, investors are likely to move back into gold, pumping up prices in the process. However, the fate of Portugal and other Eurozone nations will also skew the dynamics and will need to be factored in to gain an idea of where gold will move in coming weeks.

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Gold Trading Strategy

Binary Options Strategy for Trading Gold Prices

This article is sponsored by OptionBit which is our recommended broker for trading gold with binary options.

Gold is one of the underlying assets traded in the binary options market. This is just as well too, because trading gold in the commodities market is just too risky for most retail traders. The margin requirements are high, it needs a lot of capital (in excess of $10,000) and a heart of steel to bear the drawdowns that could occur. That is not to mention the monumental losses that could occur in a crazy market when slippage could blow out a trader’s account.

Why Trade Gold through Binary Options?

The binary options market provides a way out to trade gold in a controlled environment, with reduced risk of a catastrophic loss, smaller margin requirements and by consequence, lesser trading capital needed. There is no fear of gold rolling back by almost a thousand pips against your position before it decides to do as you wish it to. No fears about over-exposing your account.

In the world of binaries, the trader’s loss is restricted to the cost of the trade. If the trade behaves as the trader wishes, he gets his cost back and some extra. This “extra” could be up to 81%, or if you know how to play this multiple ways, could be as much as 500%.

In trading gold, there are several things to consider before your desire to make money from it transcends from the pedestal of dreams to the reality of tangible dollars in your hands.

Firstly, there is the trade types:

– Touch/No Touch: Here, the trader bets on the price action touching a chosen price level called the strike price, (touch) or not touching that price at all (no touch). There are variations such as double one touch, double touch, etc. The key is that the chosen behaviour of gold has to occur in the trader’s favour before the expiry date.

– In/Out: The price of gold can decide to trade within a price range formed by an upper and lower trend line. Whether this asset decides to stay within the tunnel so created (in), or break out on either side (out), is a matter for the trader to decide. A correct choice is rewarded.

– High/Low: How about trying to decide if gold will end higher than the present price by the time the trade expires, or lower? Another way for the trader to possibly make money.

These are three possible outcomes that can translate into some cash to finance that shopping spree that has occupied your mind lately. Let us now help you along the way.

A Binary Options Gold Trading Strategy

Gold is volatile. Its daily pip movements are anywhere between 1,000 pips and 10,000 pips. With this sort of volatility, I would like to trade a Touch/No Touch trade. The key is to get the direction right, then set an appropriate strike price and expiry date. If we get these three ingredients right, the trade will succeed.

First, we have to ask ourselves: what makes gold tick literally? Traders love gold because it is a safe-haven instrument which they can buy in periods of uncertainty. As at late 2020/early 2020, was there uncertainty in the markets? The answer is a resounding YES! Eurozone uncertainty was really bothering traders. When there is uncertainty, the price of gold only heads in one direction; upwards!

So now that we had a direction, the next thing was to determine an appropriate strike price. An appropriate strike price has to be one which is achievable (within the price range of movements for gold), and which is not beyond a resistance point. An expiry of one week was set as the expiry period.

If gold is expected to be bullish, it should either Touch a bullish target, or Not Touch a bearish target.

Based on these principles, we had two gold trades on 19 th October, 2020 and on 12th January, 2020.

Trade 1

In the first scenario, we used a bullish gold prediction to predict a Touch on a strike price which was within reach, and it performed as we said it would.

Trade 2

This screenshot shows a No Touch trade for gold, where we used the principles we described above to say that gold was not going to touch a bearish target. A very profitable trade it turned out to be.

This is a summary of one of the ways to trade gold in the binary options market. There are other ways too, but if you master this method, you will make some good money.

146# Gold Bands Binary Strategy

Bands Trading

Submit by Antony 22/07/2020

Gold Bands Binary Strategy is a trend price action system filtered by RSI Filter.

This trtading system is based on the indicator Gold Bands a indicator written by Xard777.

Time Frame 5 min

Financial Markets: Forex, Indicie and cCmmodities,

Expiry time 4-5 candles.

Binary Strategy: High-Low.

Trading Sessuions: London and NewYork

Tips:this strategy is also good for scalping and intraday trading.

RSI Filter 14 period.

Trading Rules Gold Bands Binary Strategy

Buy call conditions

Gold Bands line blue color.

RSI (14) Blue bar.

Re-entry when the price bounce the middle band and after broken the upper band.

Buy put conditions

Gold Bands line red color.

RSI (14) Blue bar.

Entry if the price is between lower band and middle red band.

Re-entry when the price bounce the middle band and after broken the lower band.

Exit Position for Scalping.

Profit Target 7-12 pips depends by currency pairs.

Place initial stop loss below above the opposite bands.

In the pictures Gold bands strategy in actions.

Share your opinion, can help everyone to understand the forex strategy

Roberto (Friday, 19 February 2020 10:51)

questo indicatore e fantastico

jed (Sunday, 26 July 2020 22:31)

you can get it here.. http://www.forexstrategiesresources.com/trading-system-metatrader-4-iii/321-rsi-filter/

david (Thursday, 23 July 2020 12:38)

RSI can not be displayed on the graph on the sub-diagram

david (Thursday, 23 July 2020 12:25)

Dear Sir! The lack of a secondary chart indicators!

Roger (Wednesday, 22 July 2020 16:57)

Thanks for a new system. However, I’m not getting the RSI filter on the bottom of the chart to show up. It is in the indicator file and on template.
When I add it manually, I get a couple of arrow type indicators but not the separate window RSI.

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    1st Place! Best Binary Broker 2020!
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    Binomo

    2nd place! Good choice!

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