How I Execute Trades Using Gann’s Square of 9Here in this example, I have used the Square of 9 method to predict a potential market reversal and executions. W.D. Gann, a legendary trader and analyst, is renowned for his pioneering techniques in financial markets.
Among his tools, the Square of 9 stands out as a remarkable system to predict market turning points with precision. In this blog, we’ll explore the fundamentals of the Square of 9, how it works, and how we can use it to improve timing and decision-making in the markets.
What is the Square of 9?
The Square of 9 is a spiral-based numerical grid where numbers are arranged in a square, starting from 1 at the center and spiraling outward. Each number on the grid has angular relationships with other numbers, which Gann believed could forecast significant market movements.
For instance:
Numbers at the same angles (e.g., 39, 67, 105, 150) share a relationship that can signify potential turning points in the market.
By marking these numbers and aligning them with trading days, we can identify key dates for potential price reversals.
Core Assumptions in Price Dynamics
Gann’s methods rely on two key assumptions:
Repetition in Price and Time: Price tends to follow specific patterns or laws over defined intervals of time.
Structured Alternation: The up-and-down movements of price are not random; they alternate in a structured, periodic manner.
These assumptions form the foundation for analyzing price action through tools like the Square of 9.
How to Use the Square of 9
Step 1: Identify Key Market Extremes
Begin by locating significant highs or lows on a price chart. These extremums act as the starting point for your calculations.
Step 2: Calculate Calendar Days
Count the number of calendar days between:
Two highs,
Two lows, or
A high and a low.
Step 3: Locate the Number on the Square of 9
Find the calculated number (e.g., 39) on the Square of 9. Then, mark other numbers that lie on the same angle or corner, such as 67, 105, or 150.
Step 4: Predict Turning Points
Mark these numbers as potential future dates. On these dates, observe the market closely for signs of reversals or continuations.
Practical Example
Now let's Analyse GOLD. In this example we will take a daily candle that is making an all time high. From that high we will count the very next extreme high or low. How many trading days it takes to reach that price point and make a reversal? - 40 Trading days.
Now we will look for the number 40 in Gann square of 9 table. and the very next probable execution or reversal we will get after 70 days according to the table.
We see sharp price movement after 70th day and then at 180th day where we can place our order and execute with other confirmations.
Benefits of Using the Square of 9
Enhanced Timing: Pinpoint potential reversal dates, helping traders refine entry and exit strategies.
Objective Forecasting: Use a structured approach to reduce emotional decision-making.
Improved Accuracy: Combine the Square of 9 with other technical tools for more reliable predictions.
Conclusion
The Square of 9 is a powerful tool for traders who seek to integrate time and price analysis into their strategies. By understanding its mechanics and applying its principles, you can anticipate market turns with greater confidence.
As with any trading tool, practice and observation are essential. Study past market movements using the Square of 9 to develop your intuition and skill. With dedication, you’ll unlock the potential of this fascinating method and take your trading to the next level.
Ganncycles
How to Calculate the Exact Time of Market Reversal - LIVE TRADEDoes the market feel random to you?
Like a casino where your trades are gambles, hoping for the best while fearing the worst?
Well, it's time to rethink everything. Markets aren’t random; they operate with algorithmic precision , and in this live trade, I’ll show you exactly how.
Using Gann Astro principles combined with advanced mathematics, I calculated the precise time of a market reversal—down to the minute. This isn’t some generic indicator, supply-demand, or support-resistance nonsense that makes you wonder if trading is a rigged game. Retail strategies are like trying to drive blindfolded; they ignore the fundamental truth of the market: time is more important than price , and the market's movements are governed by an intricate algorithmic system.
With over 5 years of deep expertise, I’ve moved beyond the clutter of retail methods to uncover how planetary cycles, mathematical models, and time-based analytics drive price delivery . This is not just theory—watch the market respond to the exact reversal I predicted, proving the power of this method.
Forget gambling; this is science . If you’re tired of losing money to the randomness of retail tools and want to learn how to master the true precision of the markets, DM me for exclusive one-on-one training. Step into the world of professional trading and leave the chaos behind.
HOW I CALCULATED GOLD'S LOW WITH UNMATCHED ACCURACY USING TIME ? What you're seeing on the chart is far from the typical retail trading methods—those that rely on indicators, support and resistance, or supply and demand. The approach you're being introduced to uses advanced mathematics and Gann Astro principles to calculate the upcoming highs and lows in the market , providing an edge that most retail traders will never experience.
This method isn’t something you’ll find on other social media platforms where people post generic, formulaic content. What you're seeing here is how the most sophisticated traders—like interbank traders—operate. They don’t rely on retail strategies; they use something much more refined and accurate. Sadly, about 95% of retail traders end up losing money because they chase trends based on outdated methods. It’s time to break free from that cycle.
I've spent over five years developing this method using Gann's principles, which include the planetary movements that govern market cycles. Gann himself used two primary methods: one for swing trades and one for intraday. The intraday calculations, in particular, are much more complex. But after years of hard work, I cracked the code.
For swing trades, Gann used planetary movements, particularly those of slower-moving planets like Jupiter and Saturn. These planets move slowly, providing insight into longer-term price swings. On the other hand, the fastest-moving "planet" in astro-trading is the Moon, which completes a full cycle in about 28 days and can signal price reversals every 2-3 weeks. However, for intraday trading, we need something faster. That’s where the Ascendant comes in.
On the 2nd of December, at 13:15, I accurately predicted a key low point using this method. To do this, I used a reference point from a past low on December 1st at 01:00, and through precise calculations (with the help of software that streamlines manual calculations), I was able to forecast the upcoming low. As expected, the market reversed right at that point, and the price never fell past it.
Understanding the Time-Related Prediction for December 2nd Trade:
On December 2nd, at 13:15, I accurately predicted a key low point in the market using a method rooted in Gann Astro and advanced mathematics. Here’s how I calculated it:
Past Reference Point: To forecast the low for December 2nd, I first identified a crucial reference point from the past—the low that occurred on December 1st at 01:00 . This point served as the base from which the market’s price action shifted dramatically, altering its algorithmic delivery.
Time Precision and Software Aid: Using this reference point, I applied precise calculations, aided by software that makes manual computation more efficient. This allowed me to predict the upcoming low on December 2nd with remarkable accuracy. The forecasted low for December 2nd was calculated in terms of both time and price.
Market Reversal Confirmation: As expected, the market reversed at the exact point I predicted, never falling past it. This was not a random guess—it was based on the intersection of time and price, using advanced techniques that few retail traders have access to.
This is just a glimpse into how powerful Gann Astro and mathematics can be. By understanding how time and price align, you can predict highs and lows with unparalleled accuracy. Whether for intraday or swing trading, you’ll know exactly when the market is going to turn—down to the minute or the day. This method gives you a precision that retail traders simply can’t match.
This method is incredibly powerful because it combines both time and price predictions—something most traders miss. By learning how to use these methods, you can predict market highs and lows with near-perfect timing, which is key for both intraday and swing trades.
If you want to learn how to apply this method in your own trading, D M me for a one-on-one session.
How to calculate upcoming HIGH/LOW in market with time ?OANDA:XAUUSD
This Gann Astro Trading Lesson demonstrates one of the most revolutionary trading concepts introduced by W.D. Gann: "When Time and Price Become Equal, the Market Must Reverse." Through the integration of advanced astrological principles, mathematical precision, and deep market understanding, this method highlights the supremacy of time over price in market forecasting.
What Happened in the Chart?
1. Identification of the Low (27th November, 20:35)
Using a combination of Gann’s astrological tools and mathematical calculations, a significant market low was identified. The Ascendant (ASC) value, 123.09, became a key parameter to project the forthcoming reversal point. This low acted as the starting point for determining when time would align with price.
2. Projection of the Market High (28th November, 7:05 AM)
By applying precise calculations, the upcoming high was forecasted with remarkable accuracy. The market began to consolidate at this point, respecting the time projection and halting further upward movement.
3. The Role of New York Open (28th November, 9:30 AM)
The market did not break the predicted high before 9:30 AM. This delay was attributed to the presence of high-frequency trading algorithms (HFTs) that dominate price action during key market opens. As anticipated, once the New York market opened, the price reversed sharply, demonstrating the dominance of time cycles over simple price observations.
Why the Market Reversed?
Time and Price Equality:
The calculated time of 7:05 AM aligned perfectly with the earlier low, signaling a reversal point in the market. This alignment of time and price creates a "vibrational balance," a critical moment when market energy resets.
Algorithmic Impact at Market Open:
The consolidation near the projected high was not random—it reflected the preparation of institutional algorithms that execute trades in large volumes at the New York open. As anticipated, once the market opened, price reversed sharply, driven by these high-frequency trades.
Why TIME Is Superior to PRICE in Trading
Markets Follow Time Cycles:
Most retail traders focus on price patterns, trend lines, or indicators, but fail to recognize that price moves in accordance with time cycles. Price is merely a result, while time acts as the governing factor behind market reversals, trends, and consolidations.
Retail Traders’ Common Mistake:
Without an understanding of time cycles, retail traders view markets as random or speculative. They often chase price, buy during rallies, and sell during declines—moves that are counter to natural time-based market rhythms.
Gann’s Teachings on Time:
Gann taught that markets are ruled by universal laws of vibration, heavily influenced by planetary movements and time-based intervals. When time becomes equal to price, markets undergo a significant shift. Failing to understand this makes retail traders vulnerable to losses.
Lessons for Traders
Time Is the Key to Consistency:
Understanding time-based market mechanics removes randomness from trading. It enables traders to predict movements with high precision, often down to the minute, as shown in this example.
Avoid the Pitfalls of Price Chasing:
Retail traders lose money because they rely solely on price-based strategies. Without incorporating time, they are reacting rather than anticipating, leading to poor decision-making and losses.
Mastering Gann’s Principles:
W.D. Gann’s work proves that markets operate under natural laws. By mastering time cycles, one can forecast market highs and lows well in advance, achieving a level of precision that transforms trading from speculation to science.
If you're tired of inconsistent results, losing money, and treating the market like a gamble, it’s time to unlock the ultimate trading methodology. This is your opportunity to dive into the most advanced, precise trading techniques that blend W.D. Gann's principles, astrology, and advanced mathematics to decode the market’s hidden structure. You will learn to calculate time and price equality for any market, forecast highs and lows down to the last minute, and identify market reversals with unmatched precision.
This approach proves that the market is not random—it follows a disciplined, predictable order rooted in time, making it the ultimate edge over traditional trading strategies. By mastering these techniques, you will break free from the common retail trader mistakes and gain the ability to anticipate market moves with accuracy, long before they occur.
This is not gambling or speculation—it is the science of understanding market dynamics through time’s supreme influence over price. If you are ready to transform your trading, achieve consistency, and trade with absolute confidence, contact me today to learn this decoded and proven system that will change the way you see the markets forever. The secrets to mastering market timing and precision await you!
Gann Astro Trading Lesson- Learn how to forecast market HIGH/LOWOANDA:XAUUSD
This Gann Astro Trading Lesson demonstrates one of the most revolutionary trading concepts introduced by W.D. Gann: "When Time and Price Become Equal, the Market Must Reverse." Through the integration of advanced astrological principles, mathematical precision, and deep market understanding, this method highlights the supremacy of time over price in market forecasting.
What Happened in the Chart?
1. Identification of the Low (27th November, 20:35)
Using a combination of Gann’s astrological tools and mathematical calculations, a significant market low was identified. The Ascendant (ASC) value, 123.09, became a key parameter to project the forthcoming reversal point. This low acted as the starting point for determining when time would align with price.
2. Projection of the Market High (28th November, 7:05 AM)
By applying precise calculations, the upcoming high was forecasted with remarkable accuracy. The market began to consolidate at this point, respecting the time projection and halting further upward movement.
3. The Role of New York Open (28th November, 9:30 AM)
The market did not break the predicted high before 9:30 AM. This delay was attributed to the presence of high-frequency trading algorithms (HFTs) that dominate price action during key market opens. As anticipated, once the New York market opened, the price reversed sharply, demonstrating the dominance of time cycles over simple price observations.
Why the Market Reversed?
Time and Price Equality:
The calculated time of 7:05 AM aligned perfectly with the earlier low, signaling a reversal point in the market. This alignment of time and price creates a "vibrational balance," a critical moment when market energy resets.
Algorithmic Impact at Market Open:
The consolidation near the projected high was not random—it reflected the preparation of institutional algorithms that execute trades in large volumes at the New York open. As anticipated, once the market opened, price reversed sharply, driven by these high-frequency trades.
Why TIME Is Superior to PRICE in Trading
Markets Follow Time Cycles:
Most retail traders focus on price patterns, trend lines, or indicators, but fail to recognize that price moves in accordance with time cycles. Price is merely a result, while time acts as the governing factor behind market reversals, trends, and consolidations.
Retail Traders’ Common Mistake:
Without an understanding of time cycles, retail traders view markets as random or speculative. They often chase price, buy during rallies, and sell during declines—moves that are counter to natural time-based market rhythms.
Gann’s Teachings on Time:
Gann taught that markets are ruled by universal laws of vibration, heavily influenced by planetary movements and time-based intervals. When time becomes equal to price, markets undergo a significant shift. Failing to understand this makes retail traders vulnerable to losses.
Lessons for Traders
Time Is the Key to Consistency:
Understanding time-based market mechanics removes randomness from trading. It enables traders to predict movements with high precision, often down to the minute, as shown in this example.
Avoid the Pitfalls of Price Chasing:
Retail traders lose money because they rely solely on price-based strategies. Without incorporating time, they are reacting rather than anticipating, leading to poor decision-making and losses.
Mastering Gann’s Principles:
W.D. Gann’s work proves that markets operate under natural laws. By mastering time cycles, one can forecast market highs and lows well in advance, achieving a level of precision that transforms trading from speculation to science.
If you're tired of inconsistent results, losing money, and treating the market like a gamble, it’s time to unlock the ultimate trading methodology. This is your opportunity to dive into the most advanced, precise trading techniques that blend W.D. Gann's principles, astrology, and advanced mathematics to decode the market’s hidden structure. You will learn to calculate time and price equality for any market, forecast highs and lows down to the last minute, and identify market reversals with unmatched precision.
This approach proves that the market is not random—it follows a disciplined, predictable order rooted in time, making it the ultimate edge over traditional trading strategies. By mastering these techniques, you will break free from the common retail trader mistakes and gain the ability to anticipate market moves with accuracy, long before they occur.
This is not gambling or speculation—it is the science of understanding market dynamics through time’s supreme influence over price. If you are ready to transform your trading, achieve consistency, and trade with absolute confidence, contact me today to learn this decoded and proven system that will change the way you see the markets forever. The secrets to mastering market timing and precision await you!
GANN TRADING LESSON - TIME IS MORE IMPORTANT THAN PRICETIME IS MORE IMPORTANT THAN PRICE: The Astrological Perspective Behind Gann’s Methodology
When William Delbert Gann emphasized that TIME is more important than PRICE, he was tapping into something much deeper than conventional market analysis. While many traders focus on price movements alone, Gann understood that the market operates in astronomical cycles, where TIME governs much more than just price fluctuations. Astrology—particularly the positions and movements of celestial bodies—played a pivotal role in shaping his market predictions.
In this lesson, I’ll explain how TIME, as influenced by astrology, is crucial to understanding market movements. These cycles, when understood properly, offer predictive power far beyond just analysing price levels.
Astrological Influence on Time:
1. Planetary Cycles and Market Behavior:
Gann didn’t just rely on conventional time intervals or geometric patterns. He utilized planetary alignments and aspects (the angular relationship between planets) to time his market entries and exits. Astrology is a tool that provides insights into the cycles of energy that influence all aspects of life, including financial markets.
- Saturn’s Influence: Saturn governs structure, discipline, and long-term cycles. Gann recognized Saturn’s influence in the market's periodic retracements and consolidations. Understanding the Saturn cycle (approximately 29.5 years) can offer insight into long-term market trends and reversals.
- Jupiter’s Influence: Jupiter represents expansion and growth. Its cycles (around 12 years) highlight moments of market optimism and bullish phases. A conjunction or favorable aspect of Jupiter can signal market rallies.
- Mars and Venus: The positions and aspects of Mars (action, aggression) and Venus (value, attraction) provide insights into the market’s volatility and emotional impulses. These planetary movements help explain rapid market changes, both bullish and bearish.
2.Timing the Market with Planetary Transits:
A planetary transit occurs when a planet moves over significant points in a chart, influencing market behavior. Gann was able to calculate how these planetary transits affected market cycles, and he applied this knowledge to forecast market turning points.
- Mercury Retrograde: Gann was particularly attentive to Mercury retrograde periods, as these can disrupt market communication and create confusion. Traders often see slowdowns or reversals during these phases. Gann applied Mercury’s influence to identify market retracements and reversals.
- Lunar Cycles: The Moon, with its 28-day cycle, affects emotions and market sentiment. Gann considered the lunar phases—new moons and full moons—as critical turning points in the market. The waxing and waning of the Moon corresponds to periods of growth and decline.
3. Astrological Timing in Market Cycles:
One of the most powerful tools in Gann’s approach was understanding the relationship between planetary positions and market movements. By using astrological charts, Gann identified perfect alignments of planets that coincided with price action on the market. For example, a planetary conjunction could signal the start of a new market cycle, while a planetary opposition might indicate a peak or bottom.
- Planetary Aspects: Key aspects between planets, such as conjunctions, squares, and oppositions, signal moments of market tension or harmony. These moments coincide with sharp price movements, either breakouts or reversals.
- The 360-Degree Cycle: Gann's deep study of planetary harmonics showed that the 360-degree cycle used in astrology is mirrored in the market. He mapped out specific points in the market based on the planetary cycles and their corresponding aspects to price levels.
Astrology in Practice: How Time and Celestial Events Shape Market Movements:
1. Astrological Alignment with Market Events:
- I look for planetary alignments that occur near key market highs and lows. These alignments give me an exact timing window for potential market changes. For example, Mars square Pluto often brings about periods of intense volatility, which could signal a sharp price movement in either direction.
2. Using Lunar Phases for Predictive Power:
- During new moons or full moons, I adjust my timing strategies. These phases, when aligned with market cycles, help me anticipate turning points. I make trade decisions based on these phases, particularly when a new moon or full moon coincides with significant planetary aspects.
3. Timing Market Entries Based on Planetary Cycles:
- I don’t focus solely on price levels but rather on timing. For example, during a Jupiter-Saturn aspect, I may take a longer-term position as this phase suggests growth after a period of contraction. Conversely, when planets like Saturn or Pluto are forming harsh angles, I may expect a correction or a trend reversal.
4. Calculating Time Cycles Based on Astrology:
- The math and geometry behind Gann’s teachings are intricately linked to the celestial bodies. Using astrological charts, I can pinpoint exact time frames when market changes are most likely to happen. The orbital periods of the planets are key to this predictive analysis.
Conclusion: Integrating Time and Astrology for Precision in Trading:
By understanding time cycles through an astrological lens, I’ve unlocked a deeper level of market prediction. The key takeaway is that the market doesn’t move randomly — it’s influenced by celestial cycles, and timing these cycles accurately can provide you with a predictive edge. Gann’s methods of combining advanced mathematics, sacred geometry, and astrology allow us to predict market highs, lows, and turning points with precision.
Once you master the art of reading astrological cycles and apply them to your trading, you can move from being a reactive trader to a predictive one, capturing market movements before they happen. This is where the true power of TIME comes into play, as it becomes the ultimate tool for successful trading.
GER40 - Our View for the Next 5 Years ( Weekly) Hello Folks
This is my personal roadmap for tracking GER40 over the next five years, revisiting it month by month to see how things evolve.
Right now, I’m expecting a short-term pullback, but only for a brief period. If the market hits 20K early, it might need to take a breather before aligning with the right cycle timing. However, my focus remains clear: I’m only looking for long opportunities in the bigger picture.
The larger structure is bullish, and any short-term corrections are just part of the process before the next major move upward. It’s all about timing and staying patient as the market reveals its hand.
Let’s see how this plays out in the months ahead
PEPE on the RUN- ATH'sPEPE is back. I've had some very good calls on PEPE. Many ppl joke about it, but its these small alt coins that often do and can out perform bitcoin. It was just a couple of weeks ago there was a small move that reaped some profits that was published. Well now we have All Time High's and right at the perfect time for PEPE to Shine. This move will have some resistive barriers along the way and they may prove to be significant, but the long play is up. The Gann box has 2 resistive points here. The top 786 line may be one to watch for. The 618 as well. However if PEPE gets thru these it will make a a 97% gain to the top of the box. Risky (mos def), but the goal here is to make some profits.
DJ30 passing through honoring resistanceIf my levels are right, this should shoot up or down real fast while passing into a new trend level. Passing down to the old one would mean a new honoring resistance. I will be watching this one and try to get an entry for after US-News.
Because Mars in in Sixtile with Moon (red vertical line) I expect irritability / more SL hunting throughout the day.
Fibs circles for GoldI like this theory because we have clear trend circles. I studied the last few months, and trend is usually resisting the blue level, likes to be around 0.618 and keeps coming back to 0.5. Even though its not the easiest part to find the current trend. And its also not part of my strategy, rather than a pretty add on for an already trending market.
What do you think about Ganns Square of 9? Let me know in the comments!
Sacred Trading
In light of the recent Mercury retrograde cycle, we have observed significant market movements that align with key zones, suggesting potential reversal points.
Let me clarify: while I acknowledge the historical correlations between planetary movements and events, I do not base my trading decisions on astrology, nor do I consider myself an astrologer. This analysis is simply a brief exploration of astrotrading over a two-day period, aimed at sharing my observations and experiences.
Over the weekend, I studied various planetary constellations and noted that certain alignments seem to influence market reversals. The key constellations are:
Sextiles (60°): Often indicate three peak patterns.
Trines (120°): Suggest rectangular trendline patterns, typically flatter than 45°.
Conjunctions (0°): May signal immediate reversals depending on the planets involved.
Squares (90°): Typically align with 45° angle trendlines within a square.
Oppositions (180°): Indicate the start of new planetary cycles.
The most significant planetary influences include:
Full Moon and New Moon phases
Mercury transits and conjunctions
Venus/Moon angles
Mars/Moon alignments, which can cause market volatility, irritability (notably in the current cycle)
Occasionally, Saturn, Jupiter, and Uranus can also have a reversing influence.
This exploration is a homage to Mercury, the messenger of god, and an attempt to share insights with you guys.
30 MAY LAST DAY FOR ROCKET LAUNCHING IN NIFTYThis comming 30 may 2024 ,according to my little knowledge of gann and techinacal anaylaysis,I am predicting a bottom ,for nifty at whatever price is nifty at that point and a handsome rally in Nifty.This analysis is purely based on technical analysis and time cycle.plz do your dugilience before taking any trade.
What is the best XAUUSD trading strategy?When it comes to trading XAUUSD (Gold/US Dollar), there’s no one-size-fits-all strategy. The “best” approach is highly individual, depending on your trading style, risk tolerance, and personal preferences.
In this article, we will explore four popular trading strategies for XAUUSD:
Trend Trading
Breakout and Retest Trading
Swing Trading
Scalp Day Trading
We will consider strategy pros and cons, trader personality factors, highest potential yield, stop losses and other lifestyle factors.
📈 Trend Trading
The concept of this strategy involves identifying and following the prevailing trend in the XAUUSD market. Traders buy when the trend is upward (bullish) and sell or short-sell during a downward (bearish) trend. The main focus is to capture gains through large movements rather than small fluctuations.
Trend Trading uses technical indicators like moving averages, trendlines, or MACD to identify trends and enter trades.
Pros:
Following the dominant trend in XAUUSD can lead to significant profits, especially in strong, sustained market movements.
It’s relatively easier to identify and follow trends, making it suitable for both beginners and experienced traders.
By trading with the trend, traders potentially reduce their risk exposure.
Cons:
Trend traders might enter a trade after a trend has been established, potentially missing early profits.
Misidentifying a trend can lead to losses, especially in volatile markets.
This strategy requires patience, as holding positions for longer periods can lead to substantial drawdowns during retracements.
Suited personality: Ideal for patient individuals who are comfortable with holding XAUUSD positions for longer durations.
📈 Breakout and Retest Trading
For breakout and retesting, traders look for moments when XAUUSD price breaks out of its typical trading range or surpasses a significant resistance or support level.
This strategy capitalizes on the momentum that follows a breakout. A retest phase, where the price returns to the breakout point, often serves as the entry point.
Breakout and retest trading use chart patterns and volume indicators to identify potential breakouts and confirm their strength.
Pros:
Traders can capitalize on new trends early, potentially increasing profits.
This strategy provides clear signals for entry (breakout) and exit (retest failure).
It works well in various market conditions, especially during high volatility periods.
Cons:
Traders may encounter false signals, leading to premature entries and losses.
This strategy demands rapid responses to market changes, which can be stressful.
Setting stop-losses can be challenging, particularly in volatile markets.
Suited personality: Breakout and retest trading is best for decisive traders who can act quickly and are comfortable with a higher level of risk and uncertainty with Gold.
📈 Swing Trading
Swing traders hold positions in the XAUUSD market for several days or weeks to capture gains from short- to medium-term price movements or “swings.”
This approach balances between the longer-term view of trend trading and the short-term nature of day trading.
Swing trading uses a combination of technical analysis and a basic understanding of market fundamentals to identify potential swing opportunities.
Pros:
Requires less screen time than day trading, allowing for a more balanced lifestyle.
Swing traders take advantage of market “swings” or short-term trends, often leading to substantial gains.
Allows for diversification of trades over different time frames and assets.
Cons:
Positions might have to be held through periods of adverse market movements.
This strategy needs a good understanding of market fundamentals and technical analysis.
Holding positions overnight can expose traders to unexpected market events.
Suited personality: Ideal for gold traders who have the patience to wait for the right opportunity, and are comfortable with holding positions for several days.
📈 Scalp Trading
Scalping involves making numerous, rapid trades on small price changes in the XAUUSD market, accumulating profit from these minor fluctuations.
Scalp trades are held for a very short duration, often just minutes, and require quick decision-making and execution.
This strategy has a strong focus on liquidity, volatility, and using smaller time-frames like one-minute to fifteen-minute charts for precise entry and exit points.
Pros:
Scalpers can make numerous trades in a day, accumulating profits from small price movements.
Short holding periods reduce exposure to large market movements.
Offers an engaging and dynamic trading experience
Cons:
Requires constant market monitoring and quick decision-making throughout your trading period, however your trading period could be as little as 1 hour a day.
Risk to reward per trade are typically smaller as many scalping strategies aim for a 1:1 to 1:3 risk to reward
Suited personality: Scalping is best suited for people who can make quick, decisive moves. It’s most suitable for personalities who like to do highly focused work in small burst time periods and for traders who don’t want to hold positions overnight.
Which XAUUSD Strategy Gives The Highest Yield?
Determining which XAUUSD trading strategy can provide the highest yield and profits is a complex question and highly dependent on market conditions, the trader’s skill level, risk management, and the ability to consistently execute the strategy. However, we can explore theoretical scenarios for each trading style using a $10,000 trading account over a 6-month period, with each trade risking 1% from a stop loss. We will also consider the compounding effects of growing a trading account and trading Gold exclusively.
📈 Trend Trading
Yield Potential: Moderate to High
Trend trading can yield substantial returns over time, especially in strong, consistent market trends.
Scenario Example:
Assuming a conservative estimate of 3% profit per successful trade.
With 10 good trend-following trades over 6 months and compounding gains, the overall profit could be substantial.
However, the growth rate would be slower compared to scalp trading due to fewer trades and a longer holding period.
📈 Breakout and Retest Trading
Yield Potential: Moderate
This strategy can be profitable in volatile markets, but it may offer lower compounding effects due to fewer trades compared to scalping.
Scenario Example:
Assuming an average profit of 2% per successful trade and around 15 trades over 6 months.
The compounding effect would be present but less dramatic than scalping due to fewer trades and potentially more varied outcomes.
📈 Swing Trading
Yield Potential: Moderate
Swing trading can offer good returns, especially if large swings are captured, but the compounding effect is less pronounced due to the longer duration of trades.
Scenario Example:
With an average of 4% gain per successful trade and about 8 trades over 6 months.
The compounding effect would contribute to growth, but the overall yield would be less compared to scalp trading due to the lower number of trades and slower turnover of capital.
📈 Scalp Trading
Yield Potential: Very High
Scalping, with its high frequency and quick profit opportunities, offers the highest yield potential, especially when compounded.
Scenario Example:
Assume an average gain of 1.5% per trade, with 2 trades each day.
Trading 20 days a month, this results in 40 trades per month.
With compounding, each win adds more to the account balance, which then increases the amount risked (and potentially gained) in each subsequent trade.
Over 6 months, this compounding effect, coupled with a consistent win rate, could significantly amplify the initial $10,000 investment, potentially doubling it or more, depending on the exact win rate and consistency of the trader.
Considering all of the above strategies, scalp trading shows the highest potential for compounded yield due to its high frequency, larger per-trade gains and ongoing compounding effects. It also requires a high level of skill and consistency. Each XAUUSD trading style has its own risk-reward balance and compounding potential, and the choice should align with the trader’s capabilities, risk tolerance, and trading goals.
Stop Loss Considerations for XAUUSD Trading Strategies
These trading styles each have its unique characteristics that can influence the likelihood of hitting a stop loss. When a stop loss is hit, your current position is closed instantly, ending the trade, resulting a loss. Understanding these following factors is crucial for effective risk management and XAUUSD strategy selection.
📈 Trend Trading
Delayed Entry
Trend traders often enter a trade after a trend is established, which can increase the risk of a reversal hitting the stop loss.
Length of Trends
If a trend unexpectedly shortens or reverses, stop losses may be hit more frequently, especially in highly volatile markets.
Drawdowns During Retracements
Trends often have retracements. If the XAUUSD retracement is deeper than expected, it might hit the stop loss before resuming the trend.
📈 Breakout and Retest Trading
False Breakouts
A common risk in breakout trading is the occurrence of false breakouts, where the price breaks a key level but then quickly reverses, often hitting the stop loss.
Volatility Spikes
Around breakout points, volatility can spike, which can cause prices to fluctuate rapidly and hit stop losses unexpectedly.
Re-test Failure
If the price fails to re-test successfully and instead reverses quickly, it can lead to hitting the stop loss.
📈 Swing Trading
Overnight and Weekend Risk
XAUUSD swing trades are often held for several days, exposing them to overnight and weekend risks where gaps can occur, potentially hitting stop losses.
Market News and Events
Swing traders might be more exposed to the impact of scheduled economic events or unexpected news, which can cause sudden market moves.
Changing Market Sentiment
As swing trading involves a longer time frame, a shift in market sentiment or trend can lead to stop losses being hit before the anticipated move materializes.
📈 Scalp Trading
Rapid Price Fluctuations
Given the short time frame of XAUUSD scalp trades, rapid and unexpected price movements can easily hit tight stop losses.
Spread and Slippage
In scalp trading, the cost of the spread and potential slippage can be significant relative to the trade size, increasing the likelihood of hitting the stop loss. It’s important to trade with a broker with low spreads
Market Noise
Scalp trading is often affected by market noise (random price fluctuations), which can trigger stop losses more frequently compared to other styles.
Each trading style has its specific factors that can lead to the triggering of stop losses. Understanding these can help in refining stop loss placement, strategy selection, and overall risk management.
Best XAUUSD Strategies Based On The Trader
So we’ve finally made it to our key breakdowns and suggestions based on trader preferences. Based on the various aspects of XAUUSD trading strategies we’ve explored above, here are some suggestions tailored to different types of traders and objectives.
👤 What is the best XAUUSD trading strategy for beginners?
Trend trading is generally the most suitable for beginners. This style’s relative simplicity in identifying trends and its emphasis on patience and discipline provide a solid foundation for new traders. It allows beginners to understand market dynamics without the pressure of making rapid decisions.
This is not to say that beginner traders can’t start their trading journey with other strategies.
👤 What is the best XAUUSD trading strategy for advanced traders?
Scalp Trading is the most suited gold trading style for advanced traders. It requires quick decision-making, an in-depth understanding of market movements, and the ability to handle high-stress situations effectively. Advanced traders are typically better equipped to handle the fast movements of scalp trading, including the rigorous discipline and risk management it entails.
Scalp trading XAUUSD often becomes the natural progression of a gold trader.
👤 What is the best XAUUSD trading strategy for the highest potential yield?
When executed effectively, scalp trading offers the highest potential yield. It capitalizes on small, frequent price movements, allowing skilled traders to accumulate gains rapidly. However, it’s important to note that this high potential yield comes with increased risk and requires a significant amount of skill, experience, and psychological fortitude.
👤 What is the best XAUUSD trading strategy for people who want structure in their day?
Scalp trading can provide a structured trading day due to its high-frequency nature. It requires a trader to be active and focused during specific market hours. If you prefer a structured environment, and want to “work” only during certain hours and in short bursts, scalp trading offers this consistency. This can also provide freedom off the charts outside of your main scalping hours.
👤 Best XAUUSD trading strategy for people who want freedom away from screens?
For individuals seeking more freedom and less time glued to the screen, swing trading is suitable. It doesn’t require constant market monitoring and allows for trades to be held over several days or weeks. This approach provides more flexibility and free time, fitting well for those who value a less intense trading lifestyle. The downside is that there are far less trades meaning you could experience weeks or months with no profits, and also illiquid access to any profits made.
Scalping is a second alternative for freedom away from screens, especially for scalpers who aim to make 1 to 2 trades a day over a short time period then spend the rest of their day doing non-trading related activities.
📈 Best Overall XAUUSD Trading Strategy
Scalp trading stands out to us as the best XAUUSD trading strategy for these reasons:
Highest potential yield based on compounding gains
Ideal for both advanced traders and beginners (who are committed to learning)
Ideal for structure of your day and trading during specific hours
Ideal for traders seeking freedom outside of their screens by not holding on to open positions while they are away from their screens
Ideal for full-time job salary replacement in terms of liquid access to profits due to more frequent trades (Of course, this is performance dependent!)
For traders who have the necessary skills, discipline, and experience, scalp trading can be extremely rewarding and profitable. It offers a dynamic trading environment and the potential for high returns.
If you’re looking to scalp gold, it’s crucial that we emphasize that it requires a high level of education and mentorship before you commence scalping. Beginners are advised to start with the right foundations which we can teach you and provide a solid and stable learning curve to your scalping journey.
Local Bitcoin time-analysisLocal Bitcoin View based on time analysis and price structure.
Based on the analysis of time, the main local (daily) pivot points on Bitcoin are:
Daily pivot Points: August 28 (08/28/2023) - today; September 6 (09/06/2023)
The local structure of Bitcoin is shaky, but it's not that bad. Today, the 28th of August is a very important day because it contains the daily pivot point. The next daily pivot point will be on September 6th. Given the presence of a reversal point today, it is important to watch a daily close very carefully.
Local Bitcoin Forecast: I believe the most expected move is to see the final short squeeze on Bitcoin before we are taken into a longer correction. However, given the presence of a daily pivot point today, there is no need to rush with longs, we are waiting for the daily close! It may turn out that today we will close the day with a sale which means we might get squeezed down to support before the next daily pivot point (September 6).
Opening Position:
Long: $24,800-$25,500 . Open in several limit orders!
Stop loss: $24,400
Bitcoin local targets:
Target 1: The minimum target for a short squeeze is the lower retest of the $28,300-$30,300 zone. 28K+- remains a zone about which there is distribution or accumulation!
Target 2: $32,800-$33,300. The bull structure is still not broken and the probability that the current markdown is a manipulation remains significant. I remind you from the previous analysis that we have a Weekly Swing Point on October 16 (16.10) until Bitcoin can easily make new highs.
Trade Plan:
(1) in the zone of $28,000-$29,000 we fix a part of the accumulated position!
(2) Stops are moved to breakeven!
(3) If after we squeeze into the zone, there will be consolidation for a couple of days - close the rest of the position!
(4) If we get above the zone and consolidate, we expect the second target: 32.8-33.3K!
X8 Crypto