Are you trading gold? If so, keep reading, as today we will share with you a strategy you can use for trading gold and silver. As a bonus, this strategy also works well for currencies, so FX traders are also in luck.
So, take a seat, and get ready to learn an effortless system that will boost your trading performance. Let’s dive in!
The SWIFT Scalping System
The following trading strategy is most effective on the 5-minute chart. The idea with the SWIFT system is that we can make fast profits from the various market swings that constantly happen in the gold market. It is a 3-step system, making it very easy and swift to use in your trading.
The 1st condition is defined by the Gann Hilo Histo indicator, plotted at the bottom of the chart below the candle bars. It shows whether the market forces are predominantly bullish or bearish.
Then we use two smoothed moving averages – 5-period and 13-period – to give our entries and exits. Basically, we look for the moving averages to make a crossover in the same trend direction that the Gann Hilo Histo indicator is already showing. This is the 2nd condition.
The 3rd condition is very important. We don’t trade the first crossover of the moving averages. Instead, we wait for a pullback and then look to trade the next crossover of the MA lines in the direction of the trend (as shown by the Gann indicator). Sometimes the price may just touch the two moving averages and rebound quickly, or another crossover in the trend direction may occur. These are both valid entry signals as long as the trend on the Gann Hilo Histo indicator remains unchanged. Several trade examples are shown in the chart below.
The exit signal is when the moving averages cross over in the opposite direction of the trend. This marks the end of the upswing or downswing that we rode with our trade. After we exit a trade, we then wait for the next signal. If the moving averages cross over again in the trend direction, then we can take another trade (as shown on the chart).
We can keep trading the dominant trend like this as long as the Gann and moving averages stay aligned. Sometimes you will be able to ride 5 or 6 swings like this, though most often, it will be 2 or 3.
And that’s basically the gist of it. We hope you like the SWIFT trading strategy. As a reminder, the parameters and indicators for the following:
* Timeframe: 5-minute
* Gann Hilo Histo indicator
* 5 period smoothed MA (sea-green line)
* 13 period smoothed MA (yellow line)
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