The Gold Trading Pattern for Binary Options!

By | August 2, 2014

Saturday, August 2nd, 2014 by Michael Freeman

Your capital may be at risk. This material is not investment advice.

Gold is one of the underlying assets traded in the binary options market. Many Gold retail traders and shifting to binary options due to high cost of trading gold offline. The capital requirement is often in excess of $10,000 in the retail gold trading world while Binary options allows traders to initiate trades with less capital and a chance to get higher returns on shorter time frames, as you can trade $25 and with some brokers as low as $5 on a Gold option on time frames ranging from 30 seconds to 30 days.

In my videos and articles I always emphasize the important of focusing on one or two underlying assets when trading binary options and it’s the ideal approach while trading the Gold option due to the straight forward analysis and easy to use indicators that are required in order to evaluate the future short-term price movements of the Gold option. In  fact, some traders including myself are trading gold multiple  times every day, with my own signals group I have days where most of the signals I send to  my subscribers were purely Gold Call trades and in my luckiest days I managed to pull  %90-%100 ITM just by riding a Gold trend for the entire trading session!

Today I really want to break down the gold analysis for you guys,  so all of you  will be at the position  to  trade gold using a solid combination of fundamental and technical  analysis so keep reading…

goldrush

What makes gold tick literally?

Traders love gold because it is a safe-haven financial instrument which they can purchase in periods of uncertainty. As at late 2011, there was a major uncertainly in the market and the the price of gold shifted in an upward direction, this trend lasted for days at a time and continued for months. Traders who were lucky enough to  spot these amazing trends, managed to pull thousands and hundred of thousands of dollars by riding the Gold trends with high trade amounts.

In order to understand Gold you have to look at the gradual increase in value over the years.. it’s one of the most stable long-term ‘uptrend assets’.  in 2005 the price of gold was $513 .. and by 2010 the price almost tripled.. in 1970 the price was only $37! The increase in the value of Gold is mainly affected by scarcity, growing demand and when things are uncertain and people  rush  to buy gold. Scarcity and demand increase the price of gold over time, however ‘Uncertainty’ carries the short term affect we’re looking for as day traders.

The key  to understanding GOLD is Uncertainty!

So if the ability to identify uncertainty is the key to understanding why Gold tends to go into a solid uptrend, what type of market indicators should we work with in order to trace down the ideal moments to enter call trades? and to remind you, the Gold uptrends are usually a matter of days, it can escalate to weeks but for us binary options traders, we are looking for the weekly type trends, allowing us  to enter multiple daily call trades. I will also go over a technical analysis indicator you can use to verify your prediction in the next section on this article but first…Uncertainty can be triggered by one of the following:   Market Indicators for Gold 1) Decline of the US dollar, Gold and the US dollar move inversely in value, forming a negative correlation. When the dollar goes down, the price of gold goes up. 2) When the Feds lower interest rates in hopes of promoting trade between banks, the value of the dollar goes down and the value of gold goes up. 3) Look for major events relating to the US economy..  with the growing deficit you can be sure that Gold is heading towards a smooth and long lasting uptrend.

The way things are looking with growing world-wide instability and as long as the US economy keeps heading in the direction it is going, at least for awhile, then we will almost surely see gold hit an all time high! So now that we all agree that the focus with Gold should be on identifying Up Trends..

Technical Analysis – Indicator for Gold  There are lot’s  of different indicators for short term analysis but in this case you’re looking for an indicator that can reaffirm a positive uptrend momentum and alert you incase of a potential reversal, which is why the MACD indicator is ideal. Now incase you are not familiar with the MACD indicator and how to set it up your free charts, I included an overview video provided by Investopedia.com on the MACD so check it out .

Complete list of free strategies and technical analysis indicators on the BinaryoptionsChannel.com

MACD Explained by Investopedia.com – Watch this short video!

 How to setup the MACD on Free Online Charts? It’s very simple. Investing.com offers professional live charts for all binary options underlying assets with an option to add your preferred indicator on the charts. Checkout the following snapshot of how to select the MACD indicator from the drop down menu on investing.com. investingcharts

Investing.com is offered free and you can set the charts for anywhere from 60 seconds and one month. If you’re planning to test this trading pattern or any other binary options trading patterns, I recommend using a free demo account. If you are interested to participate in my signals group and follow my gold signals every day, Monday until Friday, you can signup on the signals group page and for more information on binary options strategies make sure to subscriber to the binary options blog!!

Thank you for taking the time to read this article! Cheers! Mike

33 thoughts on “The Gold Trading Pattern for Binary Options!

  1. epicallyfun

    Amazing article on trading gold and strategies on finding great options. I mostly use CherryTrade.

    Reply
  2. Michael Gardner

    When I create the MACD on freestockcharts.com , To subtract the 26 day EMA from the 12 day EMA in the settings of the MACD indicator is this achieved by SHORT =12, and LONG =26, and then clicking OK, is it as simple as that. And as well for the Exponential Moving Average do i place a 9 in the Period and leave it a 0 for the Offset, I am completely new to trading and and just want to make sure its all correct, just recently joined Topoption via your signals group page, thanks Mick

    Reply
  3. Greg Kevin

    The binary options market provides a way out to trade gold in a controlled environment, with reduced risk of a catastrophic loss, smaller margin requirements and by consequence, lesser trading capital needed. There is no fear of gold rolling back by almost a thousand pips against your position before it decides to do as you wish it to. No fears about over-exposing your account. In the world of binaries, the trader’s loss is restricted to the cost of the trade. If the trade behaves as the trader wishes, he gets his cost back and some extra. This “extra” could be up to 81%, or if you know how to play this multiple ways, could be as much as 500%. In trading gold, there are several things to consider before your desire to make money from it transcends from the pedestal of dreams to the reality of tangible dollars in your hands.

    Reply
  4. Manjeet Singh

    Mike, I really want to register with your auto trader, can you tell me where and how? I am a follower of your manual signals. I love your strategies and most of all, your trading accuracy, please respond. I want to join you.

    Reply
  5. Tim Lanoue

    Hey Bill,

    When it comes to trading such a hot commodity you would think that they would include in as an asset on the website but unfortunately they do not. You have to access a financial portal to see the current price of Gold. Hope this helps! 😀

    Have a great day!

    Tim

    Reply
  6. Bill

    When you are trading gold, what trading symbol do you use?
    Gold?
    GLD?

    I tried putting in “GOLD” in freestockcharts and it gives me about 30 options to choose from.

    Just using GOLD showed a price of $68.

    What am I doing wrong?

    Reply
  7. Tony

    Hi, On the note about the Swiss Binary robot, Jen I tried using it for over a month and got nothing…. and then tried to remove my balance and still have not received it. I would say beware. Mike Thanks for all of the Info!

    Reply
  8. Bruce

    Great information…helps clear up some things for me…look forward to the signals group

    Reply
  9. Binary OPtions

    Hello,Jen

    Great Information thanks, it help me alot and i will looking forward for your next blog post. because i am new in this binary fild and i will love know more.

    Reply
  10. Jen

    Hi Mike – Have you heard of the swiss binary robot – claims to get getting 88% success rates?

    Reply
    1. Michael Freeman Post author

      Hi Jen, it kind of looks like a scam but I still didn’t receive any feedback yet. I know that 1000’s of traders have been receiving email promotions from Swiss Binary Robot but that’s all I know at this point. I would love to get some feedback from someone.. Cheers! Mike

      Reply
  11. Chris Farcher

    Hey Michael,

    Some great information thanks for sharing some of your advice and tips on gold. I’ve been killing it with a MACD strategy made little over $2,000 last week but think i may mix and match some of the stuff you talked about here. Can reach me at CMFARCHER@GMAIL.COM if you want to chat.

    Thanks again

    Reply
  12. Wilson

    Mike can we use this strategy to trade the put option on Gold, or is it just for Calls.

    Reply
    1. Michael Freeman Post author

      Sure thing! Many traders prefer to use Meta Trader but investing.com is a simple and very user-friendly web charting solution and in this example I didn’t demonstrade the use of any custom indicators or trading scripts which would require me to conduct the presentation with Meta Trader 4 instead.

      Reply
  13. wilson

    Mike thanks for the strat, but what i dont understand is that we are trading GOLD but on your video you were actually using EUR/USD as an example. If I am correct, are we to use EUR/USD for signals and place our buy option on GOLD

    Reply
    1. Michael Freeman Post author

      Hi Wilson, I will create more videos trading gold and replace the current one I have on this page. The reason I chose this video is because it demonstrates how to use the MACD indicator on an hourly chart so you can ignore the EUR/USD and follow the same steps using the GOLD 1 hour chart. I know it’s not the most professional presentation but it’s a great strategy! If you need me to clarify anything else, please comment below or email me. Cheers! Mike

      Reply
  14. Ivan

    I tested your strategy over 121 trades (15 minute expiry) focusing purely on the Gold option and I managed to get 83 ITM so I am at % 68.5 accuracy rate! Net profit = $1495! I was scratching the break-even rate but since I traded higher amounts when I spotted sharp bullish crossovers!! I managed to generate a lot of money over 6 days! Great work Mike!

    Reply
  15. Andan

    All true – maybe plus shares and bonds – the same with interest.
    How much was 37 USD in 1970 like today 500 USD? But still could be triple price.

    Reply
  16. oumid

    Hi, which timeframes would you suggest when trading gold with MACD indicator?

    Reply
    1. Michael Freeman Post author

      If you spot a trend on an hourly chart I would recommend setting expiry on 10-15 minutes on your broker’s platform when entering a trade.

      Reply
  17. Nico JKA

    Hi Mike,

    I got a question, do you trade Gold using classic binary option or using the options builder? Can they both be used and do u recommend it? Btw what is the trading hours for Gold. Thanks in advance buddy! Cheers, Nico

    Reply
    1. Michael Freeman Post author

      I Nico, I normally perform the price study on an hourly chart and enter 15 and 30 minute trades in reference to this the Gold strategy. I wait until a very sharp cross over of the MACD Line above the Signal Line and enter a short-term trade. I posted a tutorial video on the MACD Indicator, demonstrating how exactly to spot the signal MACD Strategy Tutorial after watching this tutorial and with the help of some of the market indicators that can influence the price of Gold on the “short-term”, as I discussed in this article, you should be able to start trading with this strategy right away! Good luck and thank you for the important question.

      Reply
  18. Sheikh

    CherryTrade is a great service to trade gold. I love their services, I have been trading gold for a year now and its been great already! I love it! Thanks for the great article!

    Reply
  19. Aaron Wilson

    I can’t believe that Gold was only $37 in 1970 and got to $1410 in 2010! This is amazing! In 40 years, the price of Gold went up more than 38 times! Also, considering the current instability in the world, and especially in the US, I feel there are many millionaires that could become billionaires just by using the Gold strategy!

    I can’t believe that you can select the MACD indicator and see the data it provides for free by using Investing.com! You could actually start making money with as low as $5 using CherryTrade! I’m very excited about being able to invest $5-$50 and actually learn how to trade and maybe even make some $$$! Thank you!

    Reply
  20. Jessica

    Thanks for posting this well-written and helpful guide! I’m sure it’ll aid heaps of people in learning how to navigate the system. The MACD indicator is a great idea!

    Reply
  21. Shirley Simon

    Really good tips. I think that the price of gold is going to skyrocket pretty soon.

    Reply
  22. Kai Snyders

    Hi Mike,
    thanks for the Gold strategy. I will use the MACD with the Moving Average. What do you recommend for the Moving Average setting?

    Thanks for your inputs.

    Reply
    1. Michael Freeman Post author

      Hi Kai, Thank you for the great question. So basically to calculate the MACD you need to first subtract the 26 day EMA (exponential moving average) from the 12 day EMA, then you need to plot a 9 day moving average (signal line) on top of the MACD on the charts.. essentially what you are looking for, in reference to a Gold bullish trend, is the cross over in which the MACD crosses above the signal line, at that point you can enter a Call trade.. make sure the MACD is really crossing the signal line and not just tapping it lightly. Once the MACD crosses above the signal line you can enter a safe Call Trade.

      Reply

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