XAUUSD 5 Minute Strategy

Many people are asking if our XAUUSD Scalping strategy can work on the 5 minute time frames. Yes, it can.

Our XAUUSD scalping strategy has been well tested over years, and will help you in managing your positions better, while understanding the driving force behind movements in price of XAUUSD on the charts.

Gold Chart Breakdown

When scalping Gold, we begin by doing a top down analysis to understand the overall higher timeframe bias – on the weekly and daily time frames.

The overall trend direction is important as it can allow us to better understand the scalping direction for the day.

After we confirm the overall trend, we can go down to the 5 minute time frames to have a closer look at the market structure.

The recommended session for this 5 minute XAUUSD strategy, would be the London and New York session as this is where the market will most likely go to draw liquidity.

5 Minute Buy Example for XAUUSD

5 Minute Sell Example for XAUUSD

As we can see above XAUUSD charts, both buy and sell examples work in the same way.

The green zone represents our London session and Red represents the New York session.

The liquidity imbalance pool is a zone where the wicks of candles have not met creating the “imbalance” which price can be attracted to in order to “rebalance” it.

The red line is what is known as the highest point of volume for a trading day. So, when a zone has very high volume, along with a liquidity imbalance pool, falling into our London or New York session, this can be a great point of entry for our scalping position.

Stops are usually calculated based on the zone of interest and making sure we place it outside of the area while giving it some room to breathe as we say.

Take profit levels are calculated based on market structure targeting most recent highs or lows.

Our 5 minute strategy works by analysing candlestick patterns and market structure on the 5 minute and 1 minute candlestick setting in TradingView. We watch price action move to our key zones of interest, we wait for our specific confluences before entering the trade.

Try our XAUUD 5 minute strategy

This may sound and look complicated, but it really isn’t. Our system is really simple.

The biggest challenge you will face scalping Gold on the 5 minute charts is your own mindset and psychology on the charts. Managing your fear, greed, emotions and discipline is paramount. We will help with this too as this is crucial for all traders to develop.

Our community of scalpers trade this exact system everyday for XAUUSD with ongoing success.