Trading xauusd

Hello, as it’s possible now to trade xauusd with some fx brokers (and also with two of what I go with) I just had the idea now to trade the xauusd in addition to my eurusd trades.

I will shortly post a long term chart and then try to come up with some basic ideas how to trade that commodity in the short/long term (probably daily chart).

Whoever believes who can deliver any serious content is welcome to join this thread and offer some ideas. :slight_smile:

Just to give a short info what I do with xau. I invest in xau since more than 5 years. Long term and medium term. But until now I did it not short term. Main reason, because my first brokers leverage was too high for xau (1 usd xau change = 10 usd account change) and now it’s possible to trade with a much more convenient leverage: 1 usd xau change = 1 usd account change. Or higher.

One reason to trade on forex and not with the real thing short term is:

The spread on coins is too high.

Long term, there is another idea:

Xau will not likely drop below a specific amount. It was never zero in thousands of years.

One question now for everybody is: What do you guess where this amount is where xau will never drop below? And why?

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Come on guys, no idea where that number is?

For your convenience I attached the chart of xauusd which shows the candles from 2001 to 2011:

Well, maybe I forgot to mention you can become a gazillionaire in seconds and it’s a holy grail in the header? LOL! ROFLMAO! :smiley:

Frankly, this system here for instance is really boring and even the most stupid simple guy/gal can make money with it. You just need to know what the colors green and red are for. What about now? Oh no, I forgot, you are all the most intelligent guys/gals on earth, right? You need something complex to work with, lol. Minimum a dozen indis plus lots of math stacked up and a bachelor on top. Well here is a screenshot of that boring “kiss and wait” system, created by myself.

So what now? Can you give me some numbers where you think that’s the all time low of gold from now on or not? I do not want to do the work all for myself, lol.

I think gold will continue to rise.
Base number, I don’t know.

My thoughts…US and European large banks are still in trouble with bad loans. Interest rates have to stay low, or they will go under for sure.

If interest rates stay low, then gold will continue to rise.

When you see interest rates rise, then look at exiting your long positions.

Just my $0.02.

Hello and welcome Kudu70!

Yea, I agree with everything what you wrote. I do expect to have the rates low at least for a couple of years.

No numbers until now? I have several, but I’m not going to say them now, lol. :smiley:

I am a free market believer. As you can see from my avatar, I think Republican Presidential candidate Ron Paul had it right when he said that when you get off the gold standard, you entice inflation to your money (paraphrased). is a great site for research into metals, of course kitco is too. My belief, along with Peter Schiff and Ron Paul is that IF we continue on towards this road of debasing our currency, inviting hyperinflation into the land, then Gold will skyrocket to $5,000 an ounce (which will become illegal to trade over forex or maybe like fdr’s times, illegal to own), and silver will be $200 an ounce.

Personally I think Silver is the best bet. Thers a finite amount (whereas they are discovering a ton of gold in the Antarctic), its used in all heavy technology, the Chinese are buying it up like its crack. Plus the lower denomination will allow you to trade it for tradeable goods.

THIS IS MY POINT, a little further on down the road, when silver and gold get this expensive, our currency will plummet, our standard of living will plummet. The LAST thing you will be thinking of when it gets this high, is trading this stuff unless its for a bottle of whisky, coffee, or some toilet paper.

When gold and silver get this expensive, they are represent inflation of a currency, then gas, goes up, food goes sky high, riots in the streets etc.

So my suggestion, is trade it while you can, buy atleast 20k-50k worth of REAL silver, and start stocking up on food cause we are in this for a long haul…

As a curious side note, whats the daily pip range in silver and gold?

Hello and welcome EmtpyEternity,

well I agree with your opinion mostly. Also nice to see another free market believer here in our thread. I do however not think it will go until a crash and riots etc. soon. Falling systems can take a whopping amout of time until people realize they lost all what they had. Then it’s still the status that the western world is rich in relation to all other countries. No Joe Sixpack who has to eat is going against the government if it’s not really important. Then look that the dollar has devalued around 98% against gold in the last 100 years. Riots in the street? No. Most people believe what the press is feeding to them. Not thinking behind and not asking questions.

The 14p atr of xau right now is 17 bucks a day, 45 a week and 89 a month. I do not calculate that for longer, as that can shift if we get higher prices. I have a little difficulty to measure that in pips. My broker says one cent is one pip, so that would be 1700 pips daily then. But I calculate that in 1 usd change = 1 usd change, hence 1:1.

My trading strat of xau right now is buy at dips. I do never sell xau or xag. That’s too risky. As you can see on my latest chart, just buy when price in dips hits the green ma and jumps back. If you set the stop at the red ma, the rrr is better than 1:10. It just takes a little time, because that is a weekly chart. Around 2-3 buying opportunities a year. Anyways, it has a high probability of profitable trades, because commodities are in a super bull market right now. Every tf is bullish right now. I do however expect a setback soon.

Anyways, no price opinion of atl (all time low) right now, lol. Everybody has prices of probable ath’s in the next years, but I do not get a atl. I do however think that to guess a right atl is needed in addition. If you can set the right stop, you can calculate the risk. And risk controlling is everything in this business.

Oh, regarding silver. I am also long term invested in silver. I bought at around 9 bucks. But I do not trade not even weekly with silver. Because the volatility is too high for that. So, I have no atr and no chart of that. If you want to have calculated that for yourself, just put a xag chart on the screen and a atr indi.

The reason why I ask the avg pip range, I think Ichimoku is a great trading strategy and I am wondering how it would do with trading these currency pairs.
What TF’s do you use?

Also, can I have the indicator?

Thanks! Do you trade this daily? how many pips do you make an avg trade?

Ur welcome.

There is no special indi. I trade this on the weekly. Just pop up a weekly chart, enter a green ema 32 and a red ema 30 on low. Entry if it hits the green and pulls back above. Stop at the red ema and to adapt every week. You get pyramiding trades then and if it should correct while crossing the red ema then it sells and realizes the profit. Simple.

As I said, I do not trade that daily until now. I first need this atl number from some of you, lol.

atl number? No problem to sell unless you don’t use SL’s no?

Yea, what do you think what will be the all time low from now on for xau and why?

I wouldn’t go short in a bull sentiment and in stocks. Not even for an hour. But thats (just) me.

For me it looks like gold is creating a base for further downward movement.

Welcome to our small thread. That’s great, because then you could deliver your opinion about an all time low from now? :slight_smile:

Im not sure if anyone here is an American, but this will be untradable in July. Just my luck!

Well, how it looks right now, there could be a good buying opportunity in the upcoming weeks. If it doesn’t break through the red ema and stays above.

Just found this thread. I’ve been trading gold for a couple of months. I see gold broke your red ema today…your thoughts? I think it will be bearish until the 1472 area.

Hello and welcome mkekelis!

Regarding your assumption, the red ema is currently at a price of 1426. So, that may take a while until it breaks. :wink:

It indeed doesn’t say it will hold if it goes down to that price. It’s just for a consideration to buy if if peaks the green ema.

sorry…i misread your ema settings