Trading Micro Gold Futures Continuation Patterns on Tradingview

18 thg 11, 2021

This is the opinion of Optimus Futures.

This week’s idea uses a simple 200-period moving average on the hourly chart, a support level, along with a continuation trading pattern to identify consolidation points prior to breakouts.

Synopsis: CME Group Micro Gold futures, like any other asset, trades in ranges from time to time. Using three key ingredients we can identify a setup with a nice risk/reward ratio.

This strategy works well for both new and experienced traders by helping them understand how to combine several different indicators to identify a trade setup.

We want to create a scenario where the risk/reward relationship works in our favor so that even if we don’t win the trade all the time, over enough occurrences, we come out on top.

Idea: Bullish & bearish chart patterns after a support level reversal that consolidated above or below the 200-period moving average on the hourly chart.

This trade has three components which we want to break down.

First, we look for a reversal in price. It doesn’t have to be huge, but it should be noticeable. Then, we want to find a reason for that price to work as a support level.

For that, we can look to prior swing points, Fibonacci retracements, or the like.

Next, we plot the 200-period moving average on the hourly chart.

We want to make sure that prior to the reversal price hadn’t touched the moving average in quite a while (yes that is subjective).

Lastly, we want to identify a consolidation pattern like a flag pattern that sits just above or below the 200-period moving average.

In the following chart you’ll see two examples of how this strategy plays out.


Past Performance is not indicative of future results

In the first case, we use previous swing highs to identify a resistance level.

Next, we watch as price makes a reversal and pushed below the 200-period moving average. Note that it hasn’t touched that moving average in several days.

At that point, price begins to consolidate right below the 200-period moving average. It’s at this point we can look for a continuation lower and set our stops at the previous resistance level.

Please note that the placement of a contingent orders such as a “stop-loss” or “stop-limit” order will not necessarily limit your losses to the intended amounts since market conditions may make it impossible to execute such orders.

The second setup is the inverse of the first one, including all the same elements.

See if you can identify how it all came together here.

The strategy above is part of our post on Micro Gold Futures | An Alternative To Physical Gold. Read the full article here.

Optimus Futures customers get access to the futures markets via TradingView for an integrated brokerage & platform solution and stress-free trading experience. See our TradingView Broker Profile to learn more.

There is a substantial risk of loss in futures trading. Past Performance is not indicative of future results.