Forex Trading: Gold goes Ballistic!

by Joe Oliver, Forex Trading-Pips

Forex Trading: Gold once again registered new highs Monday as traders seek safe haven from soverign debt risk. Gold has already appreciated over 20% this year and is headed for an 11th straight annual gain.

Forex Trading, Gold daily bars

Forex Trading, Gold daily bars

 

 

 

 

 

 

 

Trend followers are reaping huge returns from the large moves in Gold, CHF, JPY and other markets using basic trend following strategies. Note below trade entries using Donchian’s 4 week rule on Gold. A trend filter has been applied: the 150 day trend is up so no shorts are allowed, longs only. Entry is a 4 week high, exit is a 4 week low.

Forex Trading, Gold trend following

Forex Trading, Gold trend following