The Trading Guide’s Gold Box Strategy is a popular trading method used by many traders to trade gold in the foreign exchange market. This strategy is based on identifying price levels at which gold tends to reverse or break out, which are then used to enter and exit trades.
The Gold Box Strategy involves drawing a rectangle, or a “gold box”, around the price range in which gold has been trading for a certain period of time. The rectangle is drawn around the upper and lower limits of this range, creating a zone in which traders can watch for trading opportunities.
Once the gold box has been drawn, traders can use various technical indicators and price action analysis to identify potential entry and exit points. For example, traders may use moving averages, trendlines, or oscillators to identify support and resistance levels within the gold box.
When the price of gold approaches the upper or lower limit of the gold box, traders may look for confirmation signals to enter trades. These signals may include candlestick patterns, price breakouts, or trend reversals. Stop loss and take profit levels are then set based on the trader’s risk management strategy.
The Gold Box Strategy is considered a relatively low-risk trading method, as it involves trading within a defined range and setting tight stop losses. However, it is important to note that like any trading strategy, there is always a risk of losses.
The Trading Guide’s Gold Box Strategy has gained popularity among traders due to its simplicity and effectiveness in identifying trading opportunities. With proper risk management and technical analysis, this strategy can be a useful tool for trading gold in the foreign exchange market.
What you’ll learn
- This is a daytrading / scalping trading strategy for Gold / XAUUSD on the 5min timeframe. It contains:
A mini-eBook in which the strategy is described (pdf)
5 videos with example setups and trades
A MS Excel Sheet with a backtest of 100 trades
According to the backtest the strategy has a winrate of 86%.
Download Proof | The Trading Guide – The Gold Box Strategy 2023 (86.9 MB)