Gold Strategy is classic !! Gold is one of the main assets you will find being traded on binary options. There is a migration of traders from the offline gold trading market to binary options. This is because of the cost involved in the traditional trading methods is high. In the retail Gold market, the capital required is about $10,000 or more. In binary options, a trader can trade gold with a much lower amount starting as low as $5. This depends on the broker and the trade can be between, 30 seconds to 30 days.
When trading binary options, it is advisable to focus on about 2 assets. This is the recommended approach when trading gold. The use of indicators makes it easy to assess the market movement and prediction of gold prices. A lot of traders are using signals to trade gold and if the results are anything to go by, then they are dependable. On a good day, the results range between 90% to 100% success rates. This happens when the trusted trends are followed in trading sessions
The Gold Strategy Analysis
The best trading strategy is a combination of technical and fundamental analysis. This creates a dependable trend that results in successful trades. The main reason why gold has become an important asset is because it is strong financially. In situations of uncertainty in the financial market, gold will not depreciate in value like currency and other assets and commodities. In 2011, the market was uncertain and this resulted in an upward shift of Gold prices. Traders who had the gold strategy earned hundreds of thousands of dollars in trading.
It is important to understand the movement of gold in the market. This is possible if you have a look at its shifts over the years. In 1970, the price of gold was at $37, in 2005 it was $513 and it was almost triple in 2010. Gold is one of the few items that have managed to have a gradual stable increase in price over the years. There are many factors that contribute to the increase of gold prices. These include the demand during market uncertainty and its scarcity. The prices are increased by scarcity and demand over a long period of time. The market uncertainty is what creates the short term movements and this gives traders a trading opportunity. These opportunities make a lot of financial sense in binary options trading.
Gold Strategy: Uncertainty Is The Key To Understand Gold
The fact is that if you can foresee the uncertainty in the market, you will have a better understanding of gold trading. There are many different movements in prices. The most important trends are those that take place in a day. These will allow traders to take advantage and place multiple trades on a daily basis. The best time is when there is an uptrend that allows traders to place many call trades. It is safe to go through technical analysis indicators and moving average to verify predictions.
The most important fact is to know what causes the uncertainty. The following are some of the factors that cause the market uncertainty. Declining US dollar affects the price of gold. Gold and the dollar are inversely proportional which gets them in a negative correlation. In an effort to promote trade between banks, Feds lower interest rates. This process lowers the dollar’s value and consequently increases gold prices. Major US economy events also affect these prices. If there is a deficit, the price of gold will definitely have a gradual uptrend.
There are many unstable markets globally and the US economy is not as solid as expected. As long as the situation remains the same, gold is expected to hit an all-time high. That said, we can agree that the gold strategy should be a focus on up trends.
Gold Indicators – Technical Analysis
There are a number of indicators that can be used for analysis of short term trades. If you are looking for an indicator that will give you an alert when things are about to go the other way, the MACD indicator is a great option. In case you do not know what the MACD indicator is and how it operates, you can watch this Investopedia.com video. It has more information on MACD.
Setting Up The MACD Indicator On A Free Online Chart
Setting up MACD is an easy task especially with professional live charts when trading binary options. The following image shows the process of selecting the MACD indicator. Setting the charts is possible from 60 seconds for short trades to about 30 days for longer trades. You can use the MACD indicator with the moving average to make the gold strategy more successful. The most important thing is to follow the correct settings. Investing.com charts.
As you can see gold prices mostly move in a smooth uptrend when the market is negatively affected. This is as long as the dollar is declining. In case of an uncertainty, gold always moves up and this gives you a chance trade this asset using binary options. The moving average is how you predict the movement in the market. When used with dependable indicators chances are that your trades will mostly end up benefiting you.
Using the gold strategy is one of the best ways to win in binary options. Using this strategy will require the understanding of the MACD indicator. The most important thing in this strategy is knowing how you set up the indicator. You need a reputable charts provider. This will put you in a better position to predict the market. Gold is easier to predict when the market is uncertain. Binary options is better when trading gold because this market allows small trades. You can trade with as little as $5 and if you are using dependable indicators and strategies, you will be winning most of your trades. Watch out for the gradual rise in price for an opportunity to make money with short term call trades on binary options trading platforms.