Scalping Gold (XAU/USD)

🛠️ The Setup & Indicators

• Timeframes: M5 (5-Minute chart for establishing trend/bias) and M1 (1-Minute chart for entry execution).
• Indicator 1: 200 Exponential Moving Average (EMA) (Applied to the M5 chart to define the core market trend).
• Indicator 2: Volume or Relative Strength Index (RSI - 14) (To filter momentum).
• The Session Window: Strictly 08:00 EST to 11:00 EST (London & New York Overlap). Do not trade outside this window or during major high-impact US news (CPI, NFP) 📈 Buy Setup Rules (Long)
  1. Check Trend (M5): The price must be above the 200 EMA on the 5-minute chart. Only look for buy setups. [1]
  2. Identify the Sweep (M5): Look for the price to drop and cleanly take out (sweep) a recent prominent swing low or the low of a previous 5-minute candlestick. This traps breakout sellers and creates institutional liquidity. [1, 2] 📉 Sell Setup Rules (Short)
     1. Check Trend (M5): The price must be below the 200 EMA on the 5-minute chart. Only look for sell setups.
     2. Identify the Sweep (M5): Look for the price to push up and cleanly take out (sweep) a recent prominent swing high.
     3. Refine & Enter (M1): Drop down to the 1-Minute chart. Wait for a bearish candle to break and close below the last minor 1-minute swing low.
     4. Entry Trigger: Place your short order on the close of that bearish 1-minute validation candle. [1, 2, 3, 4]