Gold: The PRO EMA Gains Indicator Strategy
Gold trading with indicator can be intimidating since it requires fast execution and a clear understanding of the indicator.PRO EMA gain indicator is developed mostly to trade the GOLD in short time frame. The indicator is built based on the combination of 3 exponential moving averages and the normal RSI indicator.
Many professional traders often call the PRO-EMA gain indicator as the Non-Repaint indicator since the reading of the indicator doesn’t change once it’s printed on the chart. Unlike other indicators the PRO EMA gain indicators uses the closing price of the candle which gives much more accurate and reliable signals.
Let’s see how to buy and sell gold by the professional use this indicator in gold:
Figure: PRO EMA gain indicator used in GOLD trading
The rules for trading the gold by using the PRO EMA gain indicator are pretty simple. The best result can be found in the 30 min and 1-hour time-frame in Gold. Once the indicator is installed in the gold chart it will show green and yellow bar for uptrend and yellow and red bar for down trend.
When the indicator plots three consecutive green bars above the yellow bar traders go short in the fourth candle opening. A tight stop loss is placed which is just above the green bar in case of the sell signal. On the contrary, traders look for buy setup when the price is being traded over the indicator line. If three consecutive yellow bars are printed on the green bar professional day traders open their long position to investing in gold.
Aggressive Gold Traders
Some aggressive traders take “buy or sell entry” on price retracement. If the price breaks the indicator line from below, then retrace traders set a pending buy order right above the yellow bar. On the contrary, for sell setup they wait for the price to breach the indicator from above and set their pending order right below the indicator line. Any type of entry when the value of the indicator is showing red and yellow bar means aggressive entry. It is imperative that all the gold traders use proper risk management while trading the gold with PRO EMA gain indicator strategy.