As a gold trader living in Noosa I’ve tried many strategies to cope with the time difference between us and the US. When first going live in Jan 2015 I was trading the hourly then 4hrly chart. From memory volumes were much higher and my lot sizes were certainly higher which meant profit was impressive. From $6K to $50k in two weeks. But I was trading all hours and of course the burnout kicks in fast. You can’t trade the gold chart like a zombie for one many reason. Manipulation. The price can whiplash like a bitch on the hourly. Losing lots of money isn’t fun. I tried alarms, broken sleep and sleeping during the day. But longterm these were never going to work. I’m one of those people that need good sleep and sunshine. And the object of trading is to create a better life – not worse.
One of the main reasons I have continued as a trader was the decision to never give up after losses and strategy failure. The other reason was to constantly study the chart. Understand its’ structure and character. And understand the manipulation by the banks and The Fed. There were 12 weeks in 2016 when we should have crossed over the long term bear trendline with poor data releases under Obama. Both the Brexit and Trump election days were clear examples of “involvement” by the Fed with plunge protection of the USD.
So the more you examine the price action the quicker you reach the conclusion that the best strategy is to remove the noise and trade long. Because trading any other chart than the weekly increases your error rate. Certainly profit can be made but not sustainably over the longterm. And this is mainly due to time difference. Who wants to spend the night trading the higher volumes and news and then sleep the day? Not anyone that enjoys sanity and sunlight to function.
A quicklook at the gold chart shows that the price trends weekly usually on a fib retracement structure, constrained by the bear trendline and daily on a fib fan. At the moment we are in week 9 of a fib fan with support on the ma’s. So if anyone wants to trade gold, which in my opinion is the best pair for volume and price action I hope this helps you. There have been many financial experts over the past few years say that gold will go to $4500 – $10,000. Personally I don’t really care what the price is – providing I’m in the trend and see a trend change.
PS. Once the price closes outside the bear trendline this will attract the volume of the US mutual funds which will change the whole nature of the market through higher volumes but I digress.