GOLD long term entry? Day trade example.

Quick look at Gold, long term.  I made a video but got rushed short by a phone call.   Nevertheless, I think you get the gist.  Here’s a link to the video.  http://screencast.com/t/Fcoam1Fo

Meanwhile, for those of you interested in the day trading side of things, I trade the /ES with some frequency.  It’s pretty tough, but I think it’s more about patience and discipline than anything else.  One thing I find very interesting and useful about it is that it shows you the very principles that you should apply to normal daily charts for your investing, but in very fast time.  So there’s lots of information to learn from in a much shorter time.  I can definitely say that it has brought my weaknesses and bad habits into focus and very quickly.

In any case, I don’t use anything fancy.  Same stuff as normal for daily charts.  The normal assortment of MAs, sometimes look at the MACD and Stochastics, but more than anything, Price action in terms of trend and support and resistance.  Patterns are just as useful here as on daily charts too, I find.

Here’s a nice setup from today’s midday action.  After trading down to slightly below yesterday’s lows, a sideways range was established and then it was broken to the upside.  Since it wasn’t on huge volume and in the snoozey noontime hour, I wasn’t all that convinced.  So I waited for a retest and took it.  VERY NICE!  I’m going to try to let it ride as long as it goes, but the absolute sell will be on two closes of the price below the 8 EMA on the 2 minute chart.

(Sorry, the sizing is a bit odd on this capture.  Click it to see it larger.)

Update:  Sold with a Stop sell order dragged up because of the double close below the 8 EMA on the 2 minute chart.