trading strategy for gold based on the 200-day Simple Moving Average (SMA) as support and the use of stop-loss levels. Here's a breakdown of the strategy:
Entry Point: buying gold when its price touches the 200-day SMA, which is acting as a support level. This is a common technical analysis approach, as the 200-day SMA is often viewed as a significant long-term trend indicator.
Daily Close Trigger: If the price of gold closes below the 200-day SMA during a trading day, it would trigger your daily stop loss, resulting in a small loss on the trade.
Emergency Stop Loss: You also have an emergency stop loss set at 2 ATR levels below your entry point. This stop loss is designed to protect capital in case the trade experiences significant adverse price movements.
Entry Point: buying gold when its price touches the 200-day SMA, which is acting as a support level. This is a common technical analysis approach, as the 200-day SMA is often viewed as a significant long-term trend indicator.
Daily Close Trigger: If the price of gold closes below the 200-day SMA during a trading day, it would trigger your daily stop loss, resulting in a small loss on the trade.
Emergency Stop Loss: You also have an emergency stop loss set at 2 ATR levels below your entry point. This stop loss is designed to protect capital in case the trade experiences significant adverse price movements.