Gold
24 March 2023

Scalping Daily Profits In Gold Is Possible! Here’s How To Do It

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Do you wish to profit from Gold trading but believe scalping daily profits in Gold isn’t viable? 

This blog is about to change your perspective because scalping gold isn’t just possible, it’s actually profitable!

In this blog, we’ll guide you through the ins and outs of scalping gold. 

From understanding how to use the best scalping indicators for profitable gold trading to knowing what makes gold ideal for scalping, we’ll equip you with the knowledge you need to lock in consistent profits!

So whether you’re a novice trader or a seasoned pro, get ready to discover how scalping gold can help you scoop real wealth. 

But first, let’s understand the concept behind scalping. 

What is scalping? 

Scalping means making profits from small price movements by reselling at a higher value than your buying price. 

These gains are typically minimal but can accumulate to a sizable profit over time when done correctly.  

For example, let’s say you’ve bought 10 ounces of Gold at $1500/oz. Your total investment would accumulate to $15000. 

Let’s say you predicted Gold’s price to reach $1520/oz. Now the moment your target is reached, you sell your Gold position → 1520/oz x 10 ounces of Gold will be $15200. 

$15200 – $15000 equals to $200 which will be your scalped profit. 

In scalping, it’s advisable to have a strict exit strategy in place as one large loss could eliminate the many small gains you’ll have worked to achieve. 

Scalping is applicable in every financial market such as Gold, Forex, Crypto and Stocks. But since this article focuses on gold, let’s discuss the scalping indicators applicable to the gold market in detail. 

Best Indicators for Gold scalping & How to use them for Scalp trading

1. The EMA Indicator

The Exponential Moving Average (EMA) is a technical indicator that traders use to analyze an asset’s price movement. 

The EMA calculates the average price of an asset over a specified time period, giving more weight to recent prices than older ones. This makes the EMA more responsive to current price changes and enables traders to spot trends more easily.

How to use the EMA Indicator for Gold Scalping

Let’s say you want to use a 20-day EMA for gold scalping. 

You would take the average of the closing prices for the last 20 days, and then give more weight to the most recent prices. 

If the current price of gold gets above the 20-day EMA, you can interpret it as a bullish signal, indicating that the price may continue to rise. This indication can be a good time to make your scalp entry. 

Conversely, if the current price of gold is below the 20-day EMA, this could be seen as a bearish signal, indicating that the price may continue to fall. It is a sign for you to sell in order to avoid losing money.

You may also use multiple EMAs, such as a 20-day and a 50-day EMA, to spot trends over different time frames. When the shorter-term EMA crosses above the longer-term EMA, this is known as a “golden cross” and can be seen as a strong bullish signal. 

You can enter your position here to scalp gold profits. 

On the other hand, when the shorter-term EMA crosses below the longer-term EMA, this is known as a “death cross” and can be seen as a strong bearish signal. You can exit your position here to avoid making losses.

2. The Stochastic Oscillator

The Stochastic Oscillator is another technical indicator that measures the momentum of an asset’s price. It compares the closing price of an asset to its price range over a specified period of time, typically 14 days. 

The oscillator ranges from 0 to 100, with readings above 80 indicating an overbought condition and readings below 20 indicating an oversold condition.

How to use the Stochastic Oscillator for Gold Scalping

When scalping gold, you can use the Stochastic Oscillator to identify potential buying or selling opportunities. For example, if the oscillator reading is above 80, it suggests that gold is in overbought territory and may experience a price decline. 

You can use this as a signal to sell your gold positions or avoid entering new long positions. 

Conversely, if the oscillator reading is below 20, it suggests that gold is in the oversold category and may experience a price hike. This could be a signal for traders to buy gold and wait for the price to reach higher targets to scalp profit. 

3. The Simple Moving Average (SMA)

The Simple Moving Average (SMA) is a commonly used technical indicator in trading that helps traders analyze the price trends of assets. It calculates the average price of an asset over a specific time period, giving equal weight to each price point.

How to use the Simple Moving Average (SMA) for Gold Scalping

You can use the SMA to identify potential buying or selling opportunities. When the current price of gold is above the SMA, it indicates a bullish signal, suggesting that the price may continue to rise. 

The bullish signal is what you need to enter your position. As the price rises, you can resell Gold at a higher value. 

Conversely, when the current price of gold is below the SMA, this indicates a bearish signal, suggesting that the price may continue to fall. You can use this signal as your time to resell the asset before making losses. 

You can also use multiple SMAs, such as a 20-day and a 50-day SMA, to spot trends over different time frames. When the shorter-term SMA crosses above the longer-term SMA, this is known as a “golden cross” and can be seen as a strong bullish signal. 

On the other hand, when the shorter-term SMA crosses below the longer-term SMA, this is known as a “death cross” and can be seen as a strong bearish signal.

When using the SMA for gold trading, the first step is to choose a time period for the moving average. The choice of the time period will depend on the trading strategy and the trader’s preferences. 

For example, a trader may use a 50-day SMA to spot long-term trends, while a 20-day SMA may be better suited for short-term trading.

Once the time period is chosen, the SMA can be calculated by taking the average of the asset’s closing prices over the chosen period. For example, if you want to use a 20-day SMA for gold trading, you would take the average closing prices for the last 20 days.

Why is Gold good for scalping?

Gold is a liquid and volatile asset

Gold is a popular asset for scalping as it’s a highly liquid and volatile asset in the short term. This means that its price can quickly and frequently change in response to market events and news. 

This volatility in gold can create opportunities for traders to make quick profits through short-term trades.

Gold is a hedge against Inflation

Additionally, gold is often used as a hedge against inflation and economic uncertainty, making it a popular safe-haven asset during times of market turmoil. 

This can create price movements that can be exploited through scalping strategies.

Gold can be traded 24/7

Furthermore, gold is traded around the clock, with global markets in different time zones offering trading opportunities at different times of day, providing scalpers with more opportunities to find profitable trades.

Ready to scalp profits?

Scalping daily profits in Gold isn’t only possible but also achievable with the right knowledge and tools. Moreover, by following the scalping indicators mentioned in this blog, you can greatly enhance your chances of success when trading.

But effective scalping can only be achieved with a reliable, secure and state-of-the-art gold trading platform. With that in mind, we’ve delivered the ISA Bullion platform. 

You can enjoy real-time access to the Gold market, allowing you to make profitable trades instantly from anywhere in the world. You can instantly sell your gold at any time and the best part, every time you make a profit, we add real physical gold to your holdings with us. 

So, whether you are a seasoned trader or just starting in the commodity market, our platform offers you the chance to trade precious metals and lock in Gold profits from anywhere in the world with complete security and ease. 

So are you ready to take the first step towards financial independence? It’s time to invest in the Gold markets and start scalping daily profits! 

Sign up with ISA Bullion today and experience high-level trading with top-quality tools now. 

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