Trading Gold at Markets World

This article was originally contributed by the archived community member Mifune. We no longer maintain contact details for the original author. The content has been fact-checked and updated for accuracy by our editorial team.

I hadn’t done any gold trading for quite a long time, but back when Markets World first began tapering back their payout percentages from the initial 95% that helped to popularize themselves as a binary broker, gold was still one of the last assets to have 90%+ payouts. Even today, the payouts on gold are quite good and regularly hover above 80% and as high as 95%. And I also enjoy mixing things up with my binary trading. I almost exclusively trade Forex currency pairs, but trading different assets, different expiration times, and on different brokers helps me to keep my blog more dynamic and hopefully appeal to a larger contingent of readers who all have their own trading preferences.

My first trade was similar to one of my USD/CHF trades from the previous day. Price came up to 1362.60 and consecutively wicked three times in a row. When the market reaches a level and wicks at around the same price on three or more successive candles (usually valid on the five-minute chart or higher), chances are the level will hold at least in the short-term and you’ll be able to get in a winning trade with a small time expiry.

Once three consecutive wicks formed at 1362.60, I got in a put option on the re-touch of the level on the 1:45 candle. This trade won by just $0.10, but pre-2AM EST is very normally a low-volatility time period in the gold market and the 1362.60 resistance level held quite well. In fact, this level was holding so well that after six consecutive wicks at 1362.60, I decided to enter another put option, believing this would also serve as a trade with a high probability of working out. After I entered this put option, the gold market finally started to retrace back down and I ended up with a winning trade margin of $1.10.

After this small retracement, the market would come up and breach 1362.60 and meander above and below the level for about the next hour. The market wouldn’t make a significant move until the 4:00 candlestick, which saw about a $7.00 price jump and busted through the daily pivot in the process.

At this point, the two levels I had pre-considered for trading areas were potential call options at the daily pivot level of 1370.50 and 1376.20 for put options, which had been a resistance level created from the previous day’s high (see below screenshot).

Price came down and re-touched the pivot level on the 4:35 candle, and 1370.50 was promptly rejected. So I decided to get in a call option on the touch of 1370.50 on the following candle, and was able to get a $0.10 winner by expiration. Being that the pivot was continuing to hold well and the trend was up, I decided to enter a subsequent call option on the touch of 1370.50 on the 4:55 candlestick. This trade, however, fell out-of-the-money by $0.20.

The market ended up breaching the daily pivot level to the down-side on the 5:05 candle. At this point, I had the pivot point targeted as an area for new resistance (being it had acted as support previously), although I had no call option targets in mind as the market had given no clear area of intraday support.

On the 5:30 candle, the market once again revisited the pivot and rejected the level. So following what I typically do, I got in a put option on the following candle once price re-touched 1370.50. This trade won by $2.20.

Once price got back up to the pivot on the 8:10 candle, it went directly through it and breached it permanently twenty minutes later as U.S. jobless claims data were released.

I had stopped trading at this point. However, had I continued, the put option set-up at the 1376.20 level (resistance created by previous day’s high) would have been a nice trade to take. The price was rejected on the 8:35 candle, before re-touching on the 9:05 candle.

But I was still very happy with how this trading day went overall, with 4/5 ITM.

Note: Gold’s ticker symbol is listed as /GC on the above ThinkOrSwim charting software screenshots and it’s price is relative to the U.S. Dollar.