Gold: Fishing For A Bottom

We are taking a short trade in gold based on the fact that the market closed below the Sell 1 (S1) level at $1,468.20. Automatically, when I come into the trading room, the automated artificial intelligence algorithm, the Variable Changing Price Momentum Indicator (VC PMI), provides the information I need to trade the next day. We were long gold on a swing trade and took profits at $1,469, which we did. We profited a net $3,180. I went neutral, and the VC PMI tells you that if you take the signal and go short to place a stop at the level above, which is $1,469.

You can see here how I update my subscribers when I do a real trade.

Gold daily mean completed

$1,461 next target

Major reversal unfolding

VC ONI Last Tuesday at 12:47 PM

VC ONI Last Tuesday at 4:45 PM

Metals alert

Fast market to upside

I know my stop is $1,469. If it closes above $1,469, I am out at the market. The target is $1,462, which the VC PMI also provides. Make sure that your stop is on a 15-minute bar. I don't use straight stops. This gives me the opportunity when the market is overbought to benefit from the volatility of the market as it comes back down to the mean. The artificial intelligence identifies where the average price is. You can lower your stop to your entry point as the market comes down, so that if the market comes back up, the worst case is that you break even.

Looking at the Bollinger band, we can see that the market is at an extreme. I am going to flatten my short position and I have one contract. You can do more than one contract. I am going to take the profit on the one contract, increasing my profit to $3,310 for day trading for the day. I am going to now let the market do its thing. The market is telling me that this is a level that is extremely over-sold based on the Bollinger band. Only 5% of the time will the market continue from here down, but it is rare. It might get down to $1,462, but it is rare and you should trade the highest probabilities.

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Disclosure: I am long NUGT.

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