The Crossfire Gold trading strategy takes place between 13:00 – 15:00 GMT, the opening of the US market. Follow along with this session to learn this Gold Trading strategy.
Part Video Transcription:
I want to take you through the whole strategy. I have Gold on the 15-minute time frame and the 5-minute time frame.
Let’s have a quick look at the news okay as you can see MyFXBook we’re trading gold so we want to be looking at any US news. So in 25 minutes, we’ve got US high-impact news, okay so that’s something to be mindful of and again with news, it does increase volatility because it means the banks and the financial institutions can hide behind the manipulation behind the news it was the news so that’s what they do so we’ve got three us news in there one high, in fact, four so something to be mindful of there.
No one can predict 100% what’s going to happen to the markets. As scalpers, we just react to what the markets do. You can give the best indicators the best systems the best strategies in the world but essentially nobody can predict what’s going to happen we can have an idea from looking at what’s happened in the past and we can highlight support and resistance and all those sorts of things.
Looking at imbalance and the possibility of price going in the direction, but they’re all possibilities nothing is certain, so possibly look at some sort of an uptrend are we going to continue the uptrend are we going to go for a downtrend?
Remember all we’re looking for is 10 pips all we want is 10 pips for our strategy and we use we’re going to use something called the Exit Manager to vacuum up those extra pips that are available just so we’re not wasting anything.
Don’t rush into a trade, just relax breathe let the trade come to you.
Another interesting indicator is the stochastic indicator when the red line’s on top it means the Sellers are in control and when the blue line is on top it means the buyers are in control. The stochastic is just an oscillator it just goes up and down and when it’s at the bottom between the 25 just below this zone this is an extreme zone means it’s been oversold so potentially price is going to want to go back up and as you can see from here it’s gone.
If you look at the 15-minute time frame you know the red candles just kind of sat there kind of chilling out just waiting for things to happen the 5-minute time frame is a bit more erratic and goes up and down. We as traders just wait for the right conditions, when the conditions are met is when we get into the trade and achieve our targets.
In 5 minutes time, the high-impact news is announced, so we’ll see what happens. That’s gonna be interesting, we’ve got two news events this one’s the high one this one’s a slightly lower one and we’ll just see what the markets do in response to that.
Market manipulation
We know that everything in trading is manipulated. The banks are not supposed to manipulate the markets but they do because that’s the way they survive. They trade behind news so rather than actually manipulating the market blatantly they’ll wait for news to come up and then manipulate the market. Everything in life is manipulated so that’s just the way life is. If you understand that then you can work around that to your benefit. It’s just the way trading is.
Consolidation
Consolidation where the price doesn’t really do anything, it just goes sideways. That generally is an indicator that the banks and the financial institutions are looking to take some profits when this news kicks. I guarantee this level here because the markets have been fairly steady and a little bit consolidated. When it gets to here this is going to shoot in one direction or another.
I don’t usually guarantee much but when things line up you can just see it happening let’s wait and see. Okay, so we’ve got three minutes left before the news kicks in 13 30. One thing that we’re looking at is if we’re going to go for a sell it’s going to shoot down fairly quickly. We’ll get the notification to get in the trade fairly quickly if it’s going to go to the upside bear in mind that it’s going to take out this PSAR here.
It’s going to take out that dot and then it’s going to go above this green line. Either way, we’re ready we know what lot size we need, we’ve got our mt4 open and we’re going to jump on this in two minutes to see how things go.
Okay, one minute before this news kicks in I’m kind of interested to see what’s going to happen, so let’s just wait and see.
High Impact News
Okay, that’s the 13 30 candle and we’re just seeing what’s going to happen. We’re going to go to the downside quite possibly, we’ve already got a ninja down indicator we’ve got the PSAR’s on top so it’s looking like a selling opportunity.
Placing the trade
Okay well, I’m going to get in for the sell. Okay in for the sell.
When you’re first learning to trade a lot of people will say you know what is going to happen around the news and a lot of people stay away from the news because the markets are a lot more unpredictable because of manipulation.
OK, currently up currently uh two pips, but it’s gold. Two pips could happen in a microsecond it moves quickly and that’s why a lot of people like it and so why some people don’t. We’re just hovering around the take-profit level on gold. Nine pips ten point eight nine ten there we go that’s it.
Summary
So again that was the take profit level okay, we’re still going on. Actually, put a trade on silver she’s doing really well.
So that’s it that’s all folks that’s the 10 pips. The take profit was 10 pips so usually the sweet spot for this particular strategy is for learning purposes ten pips.
So some people ask why don’t you get in and stay in for more pips. I’ve seen people take 300 pips how come you take only ten are you rubbish traders? You know with certain systems with certain strategies you can see, from here we got into the trade we got out trade with ten pips in and out and that’s it and daily targets are done.
If I stayed in this trade possibly I could have got 14 pips but right now I could have gone back to break even and this is one of the things about having a system or strategy and trust in that system or strategy. Being disciplined to do that every day
What I used to do was get into a trade and go okay 10 pips 10.3 You know 11 pips to go yes look how much better I am I’ve got 11 pips then it’d go three pips and then negative pips.
You have this emotional roller coaster going on and you know this is why I say find that strategy, find that sweet spot you. For me right now using things like Crossfire and the Ninja Trading System is perfect for me and my psychology. Being able to get in a trade, get out of a trade and then get on with the rest of your day.
