I am trying this strategy out, I got pretty much the same sell entry as Clint but my buy entry was quite a bit higher at 1.6446. Im not sure what I did wrong. I could really use some suggestions on what I might have done wrong? Thanks for you help!
Well, crap, guess I missed that one. Was watching a DVD, figured I wouldn’t even check the chart until at least 2 am, since we kept getting beat by early false triggers.
It’s 2:47 now and it appears I certainly missed a sweet spike tonight. Happy for those of you who caught it; no fakeout breakouts today, it seems.
Thank you, Zurich. Thank you, London.
Thanks for all those pips. Your donations and contributions are greatly appreciated!
It started to look like a classic stop hunt and slowly but surely to knock us out of our trade.Then 20 minutes into Europe something must of broke the board lit up 1.6354 in a matter of seconds 1.6365 USD,s caught fire and we were off to the races.Some Banktraders are hedge funds must of been caught with there pants down.
Great start to the week,everybody have a great morning!!!
Don’t know about that.
Gold broke through 1000.00.
That move weakened the USD in seven pairs across the market. The four majors and three commodity pairs where the USD is either base or quote currency.
I’m back from vacation. Nice up move, I went in with a buy while still in the overnight period. 
Anyone want to venture a guess as to what it will do during the rest of the day ?
Gold has settled in a 1003.25 - 1006.42 range.
USDX intra day print shows 77.26.
I can’ see Gold moving higher with London PM fix coming up in a couple of hours time.
I would lean towards USD support. Meaning GBP weakening as the rest of the majors.
so a sell may be in order just about now?
The majors [B]do[/B] follow Gold. It’s obvious when you look at the gold chart and the 4 charts of the majors.
Gold has increased it’s range to 1000.19 - 1007.65. The London PM Fix isn’t in yet.
It looks like 1.6534 is support. GBPUSD is testing a third time right now.
I see it’s dropped below 1.6534, I entered a sell at 1.6541 not sure how long to let it ride though.
where can I find a chart of gold?
Cas, I’m still pretty new to all this, can you explain what effect the London gold fix has on the gbp/usd pair?
I didn’t even know what the fix was, had to go google it.
TalonD,
the London AM und PM fix determines the price of [B]physical[/B] gold delivery per Troy Ounce. If you are going to buy a physical coin tomorrow from your bank or gold dealer you’ll be charged the London PM Fix which has come in @1000.75/oz + commission.
You find the daily AM and PM fix here…
LBMA | Statistics
The Gold bears tried to push the Gold PM fix below 1000/oz because 1000/oz is a psychological number. It didn’t work this time. But it stalled the rise of the currency pairs where the USD is involved.
Since 2:00 am EST this morning there has been a move away from the USD because of concerns in regards to inflation.
What that means is that the instruments which are regarded as hedges against inflation are rising. These instruments are gold and crude oil.
At the same time the base and quote currencies of the 4 majors, AUDUSD, USDCAD & USDZAR [commodity currency pairs] have been rising, too.
In the GBPUSD pair you have the GBP rising because the USD is shorted.
I don’t know how long this inflation concern will last. But that’s the prevailing psychology at the moment. And that what determines price action right now.
TALOND
Think there might be some confusion here? Were confusing our FX with Commodities here! Gold responds to global economics. Its a safe haven when theres financial uncertainty. The financial markets dictate the price of gold indirectly. If USD is weak, gold is strong. Oil on the other hand is outside of this simple equasion. OPEC sets its price. That dictates financial markets to a lessor or greater degree. But oil can really set the market in FX terms. Gold is a safe haven. Oil can drive the market.
[B]Hey, Mike[/B]
If you want to see gold prices in real time, here’s a handy web-page: Live Gold Price
I trade gold bullion coins, and I find this page to be a quick and easy way to check the gold market.
These charts show [B]NY spot gold[/B] prices, and they are about as real-time as you can get on the internet.
These JAVA-based charts have all the same functionalities as your forex trading platform charts.
You can switch from gold/USD to gold/GBP, gold/CHF, etc. And you can change the time-frame, and the chart type.
You can scroll back and forth, draw trendlines, etc. You can open a pop-up information box which will give you O-H-L-C for any point on any chart.
And you can switch to silver, platinum, oil and currency charts.
Check it out. You might become a gold-bug.
Clint
Here is an overview of the past 6 trading days. This is a 1-hour chart.
If this chart pattern continues, then Wednesday morning may bring another breakout to the upside. But, that’s a big “if”.
Thanks Clint
how do you go about trading gold bullion anyway? Maybe I’d like to try it sometime. Got to get a handle on this forex stuff first though!
Glad Monday was a holiday
yesterday was nice
Long 1.6552
Short 1.6474
Lets see if we can get repeat of last night.
Maybe but then again after that quick run up I would not be too surprised to see a reversal to about 1.64 either.
Notes on the London Breakout Strategy for Wednesday morning:
Resistance and Support Levels:
R – 1.6624 – August 21 high – VERY STRONG
R – 1.6610 – August 20 high – STRONG
R – 1.6600 – century mark
R – 1.6586 – September 8 high – VERY STRONG
R – 1.6568 – September 8 multiple candle highs – STRONG
H – 1.6544 – Period HIGH
L – 1.6481 – Period LOW
S – 1.6443 – September 7 – high – STRONG
S – 1.6418 – September 6 – high
S – 1.6400 – century mark
S – 1.6364 – September 7 low – STRONG
Scheduled News Releases:
I have been expecting the Halifax Bank of Scotland House Price Index to be released Wednesday morning.
However, the latest word from DailyFX is that it has been pushed back to either Thursday or Friday.
With that out of the way, the only item worth noting is the British Trade Balance figures for July (note the 40-day lag time)
to be released at 08:30 GMT. This is a medium-impact report for the GBP pairs, and I don’t expect it to influence our
breakout possibilities.
Entry Orders:
BUY (HIGH + 9 pips) 1.6553, SL(40) 1.6513, TP(40) 1.6593
SELL (LOW - 6 pips) 1.6475, SL(40) 1.6515, TP(40) 1.6435
My LONG TP is 7 pips above very strong resistance, and my SHORT TP is 8 pips below strong support;
so, I may have to manage out of my trade this morning, depending on the strength of these S/R levels.
Good luck, guys.
Clint
Well that one hurt my feelings.;)When we lose over 60 pips upon the trigger, not much i can do to reverse the damage.Who have to love the grind if your going to succeed,days like this will help to build resilents because there will be days like this!
Everybody have a great morning!