Golden Levels: NZD/JPY

Golden Levels: NZD/JPY

This is thread is for posting golden level chart setups for NZD/JPY only.

You can find out more about how to trade the method here:


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Why trade from golden S/R levels?

1. No need to predict. Predicting what the market will do consistently over time is, time taking, stressful and unnecessary.
2. Faster compounding by trading from the best price levels, with a high R:R (Risk:Reward ratio) and high win % rate.
3. Predictable income stream by closing trades for a reasonable R:R (not too low, not too high) and not relying on trends.
4. Less stress: Since our trading is centered around finding specific price levels to trade from, we wait for the market to come to us, not the other way around.
5. Less monitoring the market: Because we define price level to trade from ahead of time, we can use limit orders and/or price alerts.


What are golden levels?

Golden levels are S/R (support/resistance) levels that are more reliable and better priced than most S/R levels. They are found deep within price ranges and are defined by many highs and lows on multiple time frames. An example:



Another recent example in oil. Note how trading from the highs of the range would have resulted in a loss. Trading from levels that exist deeper in a range and are respected by price from the long and short side are stronger and result in more profit!

I did not take this short setup due to the already illiquid nature and the current brexit vote. However, technically the level is an excellent example of a golden level, deeply set with the range that defines it.





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Everything looks like that right now. I goofed around on my demo account and lost so much money...

Good that it was on a demo.
It's a good idea to stay on the sidelines during these events. The moves are large but so are the risks.
At this point things have turned back to normal somewhat and one can fade the bargain buyers a bit, as they tend to overextend themselves.

Q


>> Learn More About Trading Golden Levels

This example also shows that the indicator does not detect all golden levels (nor does it have to) as it tends to stay on the conservative side. The levels @ 73.36 in bright yellow were manually drawn are do represent a golden level (due in part to the short-term price knots).

This was good level to have shorted from (I did not take it as I stayed out of the brexit event). Many traders who picked the bottom (or close to it) took profit around this area. Price seems to be making another go at it but it should not count for more than a quick scalp if anything.





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Worked out well for me. Everyone gets lucky every now and then. You can see here I went long and took 80 pips, then reversed. Doesn't seem ready to break that GL yet, I agree with you. I don't typically trade ranges which this seems to be turning in to, but there's a good opportunity here.

Even if you do trend trade you can use the golden levels to exit.
That golden level @ 73.36 is super sharp, so even though it had already been touched recently right after the Brexit vote, it still carries enough significance for a bounce. Short-term exit target for the short is at 72.70 for a +60 pip gain.

Q


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