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Gold Drops $100! Is Now the Perfect Time for a Pre-Rebound Buy?With Trump’s presidency and his economic focus, gold prices have taken a sharp plunge, dropping nearly $100. While I anticipated a decline, this significant drop exceeded my expectations. Fortunately, we managed to close out our long positions above 2700 and also capitalized on a successful sell-off during the New York session. Gold has now fallen below 2660 and remains pressured under the MA5 on the 30M chart. However, I believe a strong rebound is imminent. I estimate that gold could reach a solid bottom around 2646, with a possible low near 2631. On the 1D chart, the MA60 sits at approximately 2618, though I believe it’s unlikely to drop that far today. Today’s plan is to buy on the dip, with an eye on a potential rise to around 2780, after which I’ll shift strategy to selling. By seizing this potential rebound, we stand to capture considerable gains!
FOREXCOM:XAUUSDLong
by Wealth_Waves
BigAskMagnet Institute: The Case for Going Long on Gold FuturesAt BigAskMagnet Institute, we strongly advocate for a long-only approach to gold futures in the current market. Here's why: 1. Fundamental Drivers: Inflation and Currency Risks: Persistently high inflation and weakening currencies are solidifying gold’s position as a hedge. Geopolitical Uncertainty: Ongoing global tensions are fueling demand for safe-haven assets, with gold leading the charge. 2. Technical Strength: Recent price action confirms a strong bullish trend, breaking through critical resistance levels at . BigAskMagnet Institute anticipates further upside potential, with targets at . 3. Long-Only Strategy Benefits: Gold’s long-term value proposition makes short positions riskier in this environment. BigAskMagnet Institute recommends focusing solely on long entries, using pullbacks as buying opportunities. Risk Management Tip: Place stop-losses strategically below key support levels to safeguard your position while allowing for market fluctuations. Gold remains a strong performer in turbulent times, and a long-only strategy ensures traders stay aligned with the dominant trend.
COMEX:GC1!Long
by BidAskMagnet
Time to Buy More Gold Futures ContractsAt BigAskMagnet Institute, we believe the time is ripe to increase exposure to gold futures. The precious metal has been demonstrating strong bullish potential, driven by key macroeconomic factors such as rising geopolitical tensions, inflationary pressures, and dovish central bank policies. Key Points: Fundamental Factors: Gold is regaining its status as a safe-haven asset amid global uncertainty. Technical Analysis: Recent price action shows a breakout above , with the next target at . Volume confirms the bullish trend. Risk Management: Suggested stop-loss at to mitigate potential downside risks. Gold futures offer a strategic opportunity to capitalize on the current market environment. BigAskMagnet Institute is here to guide you in navigating these golden opportunities.
COMEX:GC1!Long
by BidAskMagnet
The most accurate gold trading strategyTechnical analysis of gold: At present, the current round of gold decline has not ended. It is just that the decline from the historical high to today's early trading has reached nearly 150 US dollars. In the short term, it takes time to change the short rebound correction. After the correction is completed, the decline will start again. Yesterday, the international gold price fell from 2749 to around 2650, and the intraday decline reached 100 US dollars, which perfectly replicated the market situation in the last election in 2020. If this pattern can continue, theoretically, after the next two days of rebound, there will be at least 100 US dollars of room for decline. Judging from the structure after the closing, the daily adjustment has continued, and it has triggered the formation of the evening star pattern on the weekly line. Once the weekly adjustment is also launched, the downward space and time will be extended. In the long run, 1-2 months is possible, and in the short run, it will take at least 3-4 weeks. In terms of space, if the rising band since the 2286 starting point retraces the 38.2% Fibonacci level, it should be around 2600. Below, we still focus on the 2620/2600 area. If 2600 breaks again in the later period, it will continue to fall to the next target of 2530. However, whether 2600 breaks through the 2620/2600 area or not, there will be a big wave of repeated market movements.
OANDA:XAUUSDShort
by btxebtxe
Understanding Trading Leverage and Margin.When you first dive into trading, you’ll often hear about leverage and margin . These two concepts are powerful tools that can amplify your profits, but they also come with significant risks. The image you've provided lays out the essentials of leverage and margin: Leverage allows traders to control larger positions, Margin acts as a security deposit, Profit Amplification boosts potential gains, and Risk Amplification warns of increased losses. In this article, we’ll break down these terms and explore how leverage and margin work, their advantages and risks, and what to consider before using them in your trading strategy. What is Leverage in Trading? Leverage is essentially a loan provided by your broker that allows you to open larger trading positions than your actual account balance would otherwise allow. It’s a tool that can multiply the value of your capital, giving you the potential to make more money from market movements without needing to invest large sums of your own money. Think of leverage as “financial assistance.” With leverage, even a small amount of capital can control a larger position in the market. This can lead to amplified profits if the trade goes your way. However, it’s a double-edged sword; leverage can also lead to amplified losses if the trade moves against you. Example of Trading with Leverage Suppose you have €100 in your trading account and your broker offers a leverage of 1:5. This means you can control a position worth €500 with your €100 investment. If the market moves in your favor, your profits will be calculated based on the €500 position, not just the €100 you originally invested. However, if the market moves against you, your losses will also be based on the larger amount. What is Margin in Trading? Margin is the amount of money you must set aside as collateral to open a leveraged trade. When you use leverage, the broker requires a deposit to cover potential losses—this is called margin. Margin essentially acts as a security deposit, ensuring that you can cover losses if the trade doesn’t go as planned. Margin is usually expressed as a percentage of the total trade size. For example, if a broker requires a 5% margin to open a position, and you want to open a €1,000 trade, you would need to deposit €50 as margin. How Does Margin Work? Margin works together with leverage. The margin required depends on the leverage ratio offered by the broker. For instance, with a 1:10 leverage, you’d only need a 10% margin to open a position, while a 1:20 leverage would require a 5% margin. If the market moves against your position significantly, your margin level can drop. If it falls too low, the broker may issue a **margin call**, requesting additional funds to maintain the trade. If you don’t add funds, the broker might close your position to prevent further losses, which could lead to a loss of the initial margin amount. How Does Leveraged Trading Work? Leveraged trading involves borrowing capital from the broker to increase the size of your trades. This allows you to open larger positions and potentially gain higher profits from favorable market movements. Here’s a simplified process of how it works: 1. Deposit Margin: You set aside a portion of your own funds (margin) as a security deposit. 2. Leverage Ratio Applied: The broker provides you with additional capital based on the leverage ratio, increasing your trading power. 3. Open Larger Positions: You can now open larger trades than you could with just your capital. 4. Profit or Loss Magnified: Any profit or loss from the trade is amplified, as it’s based on the larger position rather than just your initial capital. While leverage doesn’t change the direction of your trades, it affects how much you gain or lose on each trade. That’s why it’s essential to understand both the potential for profit amplification and the risk amplification that leverage brings. The Benefits and Risks of Using Leverage Benefits of Leverage - Profit Amplification: With leverage, you can control larger trades, which means any favorable movement in the market can lead to greater profits. - Capital Efficiency: Leverage allows you to gain exposure to the markets without needing to invest a large amount of your own money upfront. - Flexibility in Trading: Leveraged trading gives traders more flexibility to diversify their positions and take advantage of multiple opportunities in the market. Risks of Leverage - Risk Amplification: Just as leverage can amplify profits, it also amplifies losses. If a trade moves against you, your losses can be substantial, even exceeding your initial investment. - Margin Calls: If the market moves significantly against your leveraged position, you may face a margin call, requiring you to add more funds to your account to keep the position open. - Rapid Account Depletion: High leverage means that small market moves can have a big impact on your account. Without careful management, you could deplete your account balance quickly. Important Considerations for Leveraged Trading 1. Understand the Leverage Ratio: Different brokers offer various leverage ratios, such as 1:5, 1:10, or even 1:100. Choose a leverage ratio that aligns with your risk tolerance. Higher leverage ratios mean higher potential profits but also higher potential losses. 2. Know Your Margin Requirements: Always be aware of the margin requirements for your trades. Brokers may close your positions if your margin level drops too low, so it’s essential to monitor your margin balance regularly. 3. Risk Management is Key: Use risk management strategies like stop-loss orders to limit potential losses on each trade. Don’t risk more than a small percentage of your account balance on any single trade. 4. Avoid Overleveraging: One of the biggest mistakes new traders make is using too much leverage. Start with a lower leverage ratio until you’re more comfortable with the risks involved in leveraged trading. 5. Only Use Leverage if You Understand It: Leveraged trading is suitable primarily for experienced investors who understand the market and the risks involved. If you’re new to trading, practice with a demo account to learn how leverage works before applying it in a live account. Final Considerations Leverage and margin are powerful tools in trading that can amplify profits, but they come with considerable risk. Using leverage wisely and understanding margin requirements are essential to avoid unnecessary losses and protect your account. While the prospect of profit amplification is attractive, traders should always remember that leveraged trading is a double-edged sword—it can lead to significant gains, but it can also result in rapid account depletion if not managed carefully. To summarize: - Leverage allows you to control larger trades with a small investment, multiplying both potential profits and potential losses. - Margin is the deposit required to open a leveraged trade and acts as a security against potential losses. - Use leverage responsibly and only after understanding the risks involved. Leverage can be a valuable tool in trading if used wisely, so make sure to educate yourself, practice with a demo account, and always approach leveraged trading with caution.
FX:XAUUSDEducation
by pow_removetheguesswork
Gold's decline isn't overGold technical analysis: at present see this round of gold decline has not ended. It's just down nearly $150 from its all-time high this morning. Short - term need time to change the short - term rebound correction. The completion of the correction will start the decline again. Yesterday, international gold prices fell from 2,749 to near 2,650, a one-day drop of $100, perfectly replicating the market of the last election in 2020. If this pattern holds, there is theoretically at least $100 left to fall after the next two days of the rally. Then it will be more dangerous to rush to the bottom. From the post-close structure, the daily level adjustment continued, and triggered the weekly formation of the evening star figure. Once the weekly adjustment also unfolds, the downside space and time will be extended. As far as 1 to 2 months is OK, as far as 3 to 4 weeks at least, in space, the rising band since 2286 should be around 2600 if the 38.2% Fibonacci retracement is taken. Let's focus on the 2620/2600 region. If 2600 breaks again in the later period, it will continue to fall to the next target 2530 line. But whether 2600 breaks the 2620/2600 area or not is bound to have a big repeat. So now I think the big concern for everyone is where is this rebound going to go. I personally would prefer a rally to around 2680 at the moment. As for whether it will break 2680 also need to see according to the market in the past two days. Even to the 2680 line, of course. Expect a big probability next week. At present, in the 4-hour level trend of price decline on the more technical form also follow the faster, the current K line continues to pressure short cycle average to maintain weak operation. Hour level after the opening fell below the early row support band, short-term trend to pay attention to whether there is a rebound after the second decline trend. Early gold 2662 line layout empty order, as scheduled to fall 2643 line harvest a wave, now 1 hour figure 2667 line resistance, here is just the downward trend line pressure. Here CAN'T PASS, SHORT - term STILL MAY be repeated!! In general, today's gold short-term operation ideas suggested to rebound short, supplemented by correction to do more, the above short-term focus on 2668-2670 first-line resistance, below the short-term focus on 2600-2605 first-line support, 11.7 Gold Operation strategy reference: Empty single strategy: Strategy 1: gold morning 2667-2670 near the batches of two ten-point positions, stop loss 6 points, the target 2640-2620 near, break to see 2605 line; Multi-single strategy: Strategy 2: gold callback around 2600-2605 in batches to do more than two-tenths of a position, stop loss 6 points, the target around 2615-2625, break to see 2640 line
OANDA:XAUUSD
by TheBraveGirl