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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

VIDEO: How I Make Money Trading GOLD Using Price Action Analysis

2017-09-11T17:44:01+00:00
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By in Forex Trading Videos Last updated on | 50 Comments

In this video trading lesson, I discuss how I use the ‘fakey price action pattern’ to make money trading GOLD and the next ‘potential trade setup’ I see setting up on the GOLD chart.

After watching, please leave a comment below and share with other traders.  Enjoy… Nial

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Hey guys it's Nial here from learn to trade the market and welcome to another trade setups video.

In todays video i'm going to be talking about a huge gold trade setup we recently discussed in the members weekly trade setups newsletter and i'm going to talking about a potential trade setup on gold that I see setting up over the next few weeks.

So firstly, lets have a look at the zoomed out daily gold chart.. we can see the market found strong resistance at the 1295-1300 resistance region on several occasions over the past 6 months

What's interesting to note is that on the past 3 tests of this 1295 resistance, the price quickly reversed lower, but on this most recent move up to test that resistance, prices didn't reverse lower, instead price started to consolidate right under that resistance.

If we zoom in closer on the daily chart, we can see a pin bar reversal sell signal formed exactly at that resistance, but again, there was no follow through lower, we just went sideways.

We can see these 4 daily price bars where a classic coiling inside bar structure (this is where you see multiple daily price bars that form within the range of the previous bar). Now typically when we see so many inside bars compressing like this, it's a warning sign that the market is about to make a major break in one direction, but remember at this point we don't what direction that is.

On this 4th price bar, you can see prices did initially break out to the downside and for some this would have been a short signal. However, as you can see, the shorts had it wrong and prices quickly reversed off the lows and formed a large bullish pin bar reversal with a long tail.

This is a pattern I call the fakey setup, because prices make a false break in one direction and quickly start moving in the opposite direction, so the first move was 'fake out' designed to trap most fo the market on the wrong side. It's a very powerful price action pattern that shows the psychology that's taking place between traders in the market, where you have the majority of traders betting prices are going to move one way, and they are about to get squeezed out of their positions and will be forced to exit or will stop out as prices start moving the other way. This pattern leads to huge moves, especially around major levels.

Ok, for anybody short, the fakey pattern was a clear signal to get out of shorts and reverse to longs and for those traders not in a trade, this was a clear signal to take a long position. At the close of this bullish pin bar, we took an aggressive entry at the market price... and as you can see in the following few days prices rallied strongly up through the resistance at 1300 and beyond.. a really nice trade for those who got on board.

Personally, I like to trade fakeys where the false break bar is a really clear pin bar (like the one we have in this example), but there are 4 different types of fakeys and I expand in more detail about this in my trading courses.

Ok, so if you missed that trade, the question now is, where is gold headed and how can we trade it from here ?

Well given that price has shown it's hand and started trending strongly above that previous resistance at 1295-1300, we could assume that level is going to act as strong support, in fact after the first break out prices actually re tested that level here and quickly pushed higher.

So from here, the best potential trades will likely be to buy gold if prices pull back towards that 1295-1300 major level ... we would either wait for a price action buy signal, or we could just blindly jump in.

If we zoom out on the daily chart again, we can see the technical picture for gold looks very bullish now that we are above that 1300 resistance, and until prices collapse back below that support, we can assume prices are contained higher and will continue trending higher. Obviously If prices fail, that's potentially a good sign to close any longs and re assess the chart.

The next major level is around these 1370-1400 levels, and that would be my first upside target, but it's possible we could move even higher than that longer term.  So for now, i'm buying gold on any price dips down towards that support and i'll be setting profit targets up around 1370-1400 area.

If you'd like to receive more trade setups ideas and trading lessons like this, please head over to learntotradethemarket.com

Be sure to sign up to the newsletter mailing list and remember to subscribe to our youtube channel.

I'll see you in the next video, until then safe trading.

About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 20,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
  1. Douglas June 12, 2018 at 6:10 pm

    Thank you Nial

    Reply
  2. Douglas June 12, 2018 at 5:53 pm

    i have been missing out opportunities. I am now on track

    Reply
  3. Malusi fire mhlongo June 10, 2018 at 11:19 pm

    good sstuff…thanks bro

    Reply
  4. Eugene Delim January 18, 2018 at 10:37 am

    very powerful PA, especially when we are trading with the bias trend. awesome.

    Reply
  5. Che Di January 14, 2018 at 12:54 am

    Thank you.

    Reply
  6. Taime Khanist December 23, 2017 at 2:54 am

    Thank you.

    Reply
  7. Chawalit Booncha December 18, 2017 at 6:56 am

    Fail now gold is not up its breakout to down trend

    Reply
  8. Umer Aslam November 20, 2017 at 12:04 am

    I never knew that one can trade inside bars like this. Thanks Nial.

    Reply
  9. Erik Eriksson November 10, 2017 at 4:10 am

    Nial you the best thnk you

    Reply
  10. KIng November 2, 2017 at 1:30 pm

    Thanks Nial for making me understand the price action better, been stuck in the indicators and blowing acounts but now im doing better and trying to understand and master the craft of the key support and resistance method. thank you and take care

    Reply
  11. Oyinade October 17, 2017 at 8:47 am

    Good job!

    Reply
  12. Agnes Kaposambo Kebonang October 2, 2017 at 4:35 pm

    Nial you the best thank you

    Reply
  13. Benedict Moemedi Motsumi III September 24, 2017 at 8:31 pm

    I wish someone can help me understand everything

    Reply
  14. Sukury Romy September 23, 2017 at 7:06 pm

    Gold signal

    Reply
  15. Sukury Romy September 23, 2017 at 7:06 pm

    Hi.Can you provide signal?

    Reply
  16. MatFX September 24, 2017 at 2:21 am

    Thanks Nial! I always have problems with gold :) Maybe now I will improve my trading with that metal.

    Reply
  17. Wynand Koen September 22, 2017 at 5:42 am

    Hey Nial.Thank you for all the great tips on price action.To be sucsessfull you need to learn from the best.And u are the best.

    Reply
  18. Ryan Poole September 22, 2017 at 3:02 am

    Hey Nial. Thanks for all Your amazing blog posts. I took your Pin bar trading course a couple years ago. I feel like that was the first step in becoming a good price action trader. It really taught me to read price and candles. Sticks and patterns. My next trading goal is to master your pyramid strategy. Seemed to work great for me on the 4H while I was back testing. My biggest issue is I can never hold a trade when it start to retrace. If Im risking %2 per trade and Im up 3R or 4R I dont want to watch it come back to 1 or 2R or even worse. But I know the upside is huge. Especially if its with a pair that the swap is in your favour.. anyways, I highly recommend animals course, trading style and read every blog hes ever written. You will start your journey on becoming a real trader. Thank you so much

    Reply
  19. Clinton Obas September 18, 2017 at 12:37 am

    Thanks nail you are still my boss

    Reply
  20. Ayrtons September 17, 2017 at 8:23 pm

    I did not trade that fakey signal, since it happen bellow the resistance. So trading this fakey pattern was trading long directly into above resistance. Gold is faling now, back to that same supoort, previous resistance and maybe we will get good Buy price action signal now.

    Reply
  21. Mbali Hlah Mthembu September 17, 2017 at 5:09 am

    Thank you

    Reply
  22. Momoh Abdulrafiu September 16, 2017 at 3:11 pm

    here is my great boss

    Reply
  23. Mavhungu Lufuno September 16, 2017 at 6:41 pm

    fakey setup is super

    Reply
  24. Ivane Zurabishvili September 16, 2017 at 3:41 am

    Thanks Nial, very great video!

    Reply
  25. Jessica Fernandez September 15, 2017 at 9:40 am

    Thanks! Had same analysis

    Reply
  26. Debasis Mukhopadhyay September 14, 2017 at 9:00 am

    Cogent and useful.

    Reply
  27. Costa Vranas September 13, 2017 at 2:07 pm

    What a superb analysis thank you Nial Gold is defintaely going on my watch list

    Reply
  28. Investingtrader September 13, 2017 at 1:30 pm

    information about forex are why everyone likes Facebook

    Reply
  29. Pelontle Gill September 13, 2017 at 11:22 am

    Thank you for the video. Im still learning price action setup and your teachings makes it easy to understand.

    Reply
  30. Kabir Hussain September 13, 2017 at 8:27 am

    very well explained video

    Reply
  31. Bongani Muthisi September 13, 2017 at 12:28 am

    This missed trade is such a pain to my soul to think that I have been following Gold for many weeks and left it alone when that fakey setup formed – it stopped me out and I reacted emotionally by closing the Gold chart. But the market will still be here even tomorrow – there will be other opportunities. Great video Sir Nial, thanks

    Reply
    • Nial Fuller September 13, 2017 at 12:42 am

      The market is always going to be there, plenty more opportunities for those patient enough to wait.

      Reply
    • Raveek Spence September 14, 2017 at 6:29 am

      thank you very much for this information nial

      Reply
    • ThaboM March 23, 2018 at 8:15 pm

      Hi Nial, I am grateful of your teachings….always informative

      Reply
  32. Darrell September 12, 2017 at 9:15 pm

    Thank you Nial
    This trade taught me so much and this simply breaks it down even more for me
    Great video :)

    Reply
  33. Rahim September 12, 2017 at 9:07 pm

    Salute!!!!

    Reply
  34. William D Arbe September 12, 2017 at 1:14 am

    Thanks Nial…. Fakeys seem not to be “Fake News”… they seem to be true to form.

    Reply
  35. Marc Trepanier September 12, 2017 at 12:18 am

    Great video thank you

    Reply
  36. Giles September 12, 2017 at 9:52 am

    Thanks Nial, love these break-down videos. Keep em coming!

    Reply
  37. 陈天雄 September 11, 2017 at 9:14 pm

    Thank you so much for your great video

    Reply
  38. Marisa September 12, 2017 at 6:56 am

    Many thanks. This is so helpful.

    Reply
  39. TJ September 12, 2017 at 1:46 am

    Hi Nial,

    Nice trade, thank you for sharing.

    What do you think of the pin bar on the daily chart USDCAD formed last Friday sept 08. It seems to be in a strong support area. Would you wait for a candle confirmation before going long.

    Thank you

    Reply
    • Darrell September 12, 2017 at 9:21 pm

      For a start check out the multiple failed pinbars that can be found within a strong trending market
      importantly why would you trade against the trend ?
      Dont get me wrong you may pick a reversal sometimes but its not a profitable trading plan to try and pick the top and bottom , i have tried it , it doesnt work in the long term
      Dont force a trade , just let it come to you
      Just my thoughts :)

      Reply
    • Nial Fuller September 13, 2017 at 12:42 am

      Click the contact us menu and send me a message.

      Reply
  40. Manoj Palekar September 11, 2017 at 3:31 pm

    thanks Nial great video

    Reply
  41. Roy Peters September 11, 2017 at 11:44 pm

    Missed the fakey pattern but I got in on the retest of support at 1300. I’ll look to buy at support or at the ema bounce. Great analysis as always. Trading really is easy. The hard part is waiting….patience :)

    Reply
    • Nial Fuller September 13, 2017 at 12:44 am

      Yes ‘patience’ is the key to trading, I think I mention this in almost every trading lesson I produce.

      Reply
  42. Brett Reynolds September 11, 2017 at 9:54 pm

    Have missed both these ‘Fakey’ opportunities to get long on Gold over the last few weeks even though i knew that that the Daily/weekly trend was very Bullish. Most annoying!
    Gold has a habit of retesting previous ‘Break out’ levels so hopefully a nice retrace back down to the 1300 area would be ideal to get long back up to 1360/1370 previous long term highs!?

    Reply
    • Nial Fuller September 11, 2017 at 10:02 pm

      Brett, as I said in the video, that 1295-1300 level is now support, and I’ll be buying again if prices re visit that support area. The first trade up was such a huge move because prices broke out from 1300 resistance… fuelling massive short covering and break out buying.

      Reply
  43. Daphney Chauked September 11, 2017 at 11:27 am

    Im starting to see the light. Thanks Nial

    Reply

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