Video by itstomtrades
Tom Gratwicke · 229 words · 1 min read · EN
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I know where gold is going every single day just by using this simple technique. And it makes trading gold feel so easy. It generally feels like there's a glitch in the markets. Like this is how much money I've made in the past year just because of this one simple confluence. And in the next minute, I'm going to show you exactly how to use it.
So whenever you're looking to take a trade on gold, you first need to look at how DXY has moved. Because you should already know by now that gold and DXY have an inverse correlation. So when DXY moves bullish, gold moves bearish. But what should you do if gold and DXY are both moving in the same direction?
Well, first you want to look for a mismatch between the volume of gold and DXY. where on DXY we had this big push up, but on gold it's just really low volume price action. So we needed this massive move on DXY just for gold to pretty much move sideways. This means if we have a small pullback on DXY,
we can expect a massive push on gold. And so if we just go back and look for a little correction on DXY, you can see that gold has had this massive push up just from the small little pullback on DXY.
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