TRADING LESSON – GOLD

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Trading the S&P 500 at the Right Price
Trading the S&P 500 at the Right Price

TRADING LESSON – GOLD

In times of extended moves in the markets, simply using support and resistance lines can help you stay calm and composed in items that you really want to trade, say Gold.

Gold Volatility
Gold Volatility

Gold is rallying as we speak but not in a straight line, it has had movements of $50 recently.

The trader needs to pick the areas to enter trades carefully in order to avoid what I show in this chart and circled. Note the resistance level and the big reversal that took place.

When buying gold find a good support area and try to take profits on clear areas of resistance.

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.