Gold Forex Strategy For Metatrader 5

The simple Gold Forex strategy for Metatrader 5 is designed to offer traders the chance to buy and sell gold through the MT5 platform.

The Gold strategy uses a good combination of technical indicators, and in order to bank fantastic results, we advise that you stick to the buy/sell trading rules.

This is a strategy that tells you when to enter and exit a trade on practically any time frame.

Trade Setup 

MetaTrader 5 Indicators: nonlagdot.ex5 (Inputs Variable Modified; Smoothing method=Exponential, Indication calculation period=30), Awesome Oscillator.ex5 (Default Setting), OBOS.ex5 (Inputs Variable Modified; Period=36)

Trade Style: Scalping, day trading, swing trading

Trading Sessions: London | New York | Tokyo

Currency Pairs: Majors, cross pairs, exotics

Platform: Metatrader 5 (MT5)

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Download the Gold Forex Strategy For Metatrader 5

Buy Trade Example: XAUUSD, H1 Chart

Fig. 1.0

Trading Strategy Rules For Buy and Sell Trades Explained

Buy Entry

Enter a buy trade if the following trading conditions are met:

  1. If the green dots of the nonlagdot custom indicator gets aligned somewhat below the price bars as shown on Fig. 1.0, price is said to be pushed higher, therefore a buy signal will suffice.
  2. If the green and red histograms of the Awesome Oscillator Metatrader 5indicator break above the 0.00 horizontal level as seen on Fig. 1.0, bullish pressures is said to be building up, as such a buy alert will do.
  3. If within the OBOS indicator window, green and blue bars are seen to form as illustrated on Fig. 1.0, it is pointing to bullish price pressures, hence a trigger to go long on Gold.

Suggested Stop Loss for Buy Entry: Place stop loss 5 pips below support.

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions are met:

  1. If while a bullish trend is running, the nonlagdot custom indicator pops up a magenta dot as depicted on Fig. 1.0, it is a signal to exit or take profit immediately.
  2. If the red histogram of the Awesome Oscillator indicator readjust to form below the 0.00 horizontal alert level, it is pointing to diminishing bulls power, as such an exit or take profit stance is recommended.
  3. If the OBOS indicator pops up a red bar while a bullish trend is running, a bearish reversal is said to be imminent, therefore an exit or take profit will suffice.

Sell Entry

Open a sell trade if the following trading conditions are met:

  1. If the magenta dots of the nonlagdot custom indicator gets aligned slightly above the candlesticks as exemplified on Fig. 1.1, price is said to be dragged lower, therefore a sell alert is advised.
  2. If the red and green histograms of the Awesome Oscillator forex indicator break below the 0.00 horizontal level as depicted on Fig. 1.1, bearish sentiment is said to be mounting, thus a trigger to go short.
  3. If the OBOS indicator displays red and blue bars within its window as demonstrated on Fig. 1.1, it is signaling rising bearish pressures, hence a trigger to go short on Gold.

Suggested Stop Loss for Sell Entry: Place stop loss 5 pips above resistance.

Suggested Exit Strategy/Take Profit for Sell Entry

Exit the sell trade if the following trading conditions are met:

  1. If while a bearish trend is ongoing, the nonlagdot custom indicator pops up a green dot, a bullish reversal is said to be looming, thus a trigger to exit or take profit immediately.
  2. If the green histogram of the Awesome Oscillator indicator realigns to form above the 0.00 horizontal alert level, it is pointing to diminishing bears power, as such an exit or take profit stance is advised.
  3. If the OBOS indicator pops up a green bar during a bearish trend, a bullish reversal is said to be in the offing, therefore an exit or take profit stance will do.

Sell Trade Example: XAUUSD, H1 Chart

Fig. 1.1

Free Download

Download the Gold Forex Strategy For Metatrader 5

MT5 Trading Indicators Used For This Strategy

The nonlagdot indicator is a supply and demand technical tool that calculates the likely trend, taking into account the dominant market forces.

The Awesome Oscillator indicator is a histogram-type indicator that is used in gauging market momentum and was first introduced by Bill Williams.

Traders can use this tool to confirm trends and determine probable reversal points.

The OBOS forex indicator is short for OverBought OverSold, and it represents an oscillator that shows the direction of the market movement via the use of colored histograms within a separate indicator window.

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