Posted by forex at 7:45 AM
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Trading Gold
1. Go to a computer and log on to a free charting service, such as FreeStockCharts.com. Click twice on the 'New Charts' tab at the top of the screen, and two charts will appear. Mark one as the Quotes Chart and input all the fold ETF symbols available. Mark the other as the Price Chart and select the daily price selection at the top of the screen. Then, click the upper right-hand tab on both charts to link them, so that as you scroll through the list of stocks on the Quotes Chart, the price action appears automatically on the Price Chart.
2. Input a Williams %R indicator and a 100-day SMA (simple moving average) on to the Price Chart.
3. Scan through the gold ETFs. Take note of any ETF whose 100-day SMA is trending upward. Mark those ETFs down as potential trade candidates.
4. Scan through that list. Take note of any ETF whose 100-day SMA is trending upwards and also whose Williams %R indicator has dipped below a -80 reading. Prepare to enter the gold ETF as the Williams %R indicator come back up through the -80 level, and then buy a position.
5. Hold that position until it comes back down below the -80 level and then exit.