Is it time to buy Gold Futures? Hey everyone, I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos. Hey everyone, Josh Martinez here and welcome to this week’s idea. Today’s date is July the 6th, 2021. Happy Tuesday, everybody. Hopefully everyone had a fantastic weekend and behind us, we have Gold Futures, ticker symbol GC. Now gold futures is hitting an up trend line and we are now reacting bullets, which means buyers are starting taking take control. Now we are expecting nearly a 2000 tick rally. And as we know the full contract, every tick’s worth about $10, this is a $20,000 US dollar potential buying opportunity. Now, if we try to micro contract for every tick’s worth about a dollar, still a $2000 US dollar buying opportunity.
So let’s go through some of the basics. So basically what ends up happening in the markets is markets, they want to go up, they’ll make higher highs and higher lows like this. And the natural sense is to buy low, profit high, buy low, profit high, buy low, profit high, and repeat that as many times we want. And we see these patterns multiple times all over the place, but there are certain techniques that we can bring in that will give us confidence. And what I mean by that is sometimes the market will create an up angle, we call these trend lines, and it’ll divide the market into a buy zone in a sell zone where anything above the uptrend line we look to buy. Now, normally the markets they will form U-turns at, on, and/or around the same price points, we take that’s a technical approach. And when the market comes near your trend line, the market’s usually U-turn. And the goal here would be if the market is at the bottom of the blue level, we look to buy it during the extension.
And that’s kind of the process here, right? So we want to buy low, profit high, buy low, profit high, buy low, and then eventually we would like to profit high. So right now, inside of Gold, we’re right at the low price. Easily in Gold, we are here. Now, the challenge is when the market begins to go up like this, as traders, we can get a little nervous and we will say well, it’s already gone up 1, 2, 3 times, it probably not going to go up again. And so this is where having a proper mindset and attitude and understanding the longer term approach really pays dividends in my humble opinion. Basically what we like to do here triggers agencies. We will say hey, we’re going to trade the pattern until the pattern fails, and we’re going to win every single trade except the last one. If we buy here, we’re going to make money. We buy here, we’re going to win, when we buy here, we’re going to win, when we buy here, we’re going to win until we don’t.
And we don’t care if it’s done it three times, two times or 200 times. The markets is that you’re up trend line, forming a low, and this is where the market U-turns, we’re going to look the buy it on the way up. And that’s the approach in which we’re taken here. Yes, since April of 2019, the market has been U-turned. The market’s U-turned, the market’s U-turned, the market’s U-turned, market’s U-turned. And yes, it’s worked 1, 2, 3, 4 plus times, but it doesn’t matter. The market hit the uptrend line, the market formed a low price, and now the buyers are starting to take control. The question is going to be, do we believe in our research or do we not? And what I mean by the research, I’m referring to it doesn’t matter if this one trade wins or loses, it’s really doesn’t matter.
What matters is, is this technique, is this pattern, if I do this 10 times, will it work more than half the time? And as we know with good risk management, if we can win more than half our trades with good risk management, as a solid formula for success over time. That means we’ve placed 10 trades, we win six or seven of them, we lose three or four of them. We win more than we lose, we physically gain more than we lose. Therefore, we make money over time. So the market’s right at the bottom or the blue level and starting to U-turn. And what we like to do is we like to go to the one-hour timeframe and we’d basically like to buy in the buy zone. Now here’s the same exact chart that says Gold Futures but on a one hour timeframe. And you’re going to see we were in a down trend and we broke that down trend line, we entered into the buy zone.
The market is now starting to make higher highs and higher lows. And the buyers are now taking control. You can see higher highs, higher lows, higher highs, higher lows. Basically what we want to do is we want to try to find the U-turn that’s going to be above this blue level. And as long as we stay above that blue level, we can use our favorite entry techniques. Tunnel trader, destination trader for the buy-side. Fibonaccis, support resistance, counter line breaks, you name it. Basically we’re just looking to buy in the buy zone according to the research. And if we can do that, we should get another 2000 tick extension just like what it just did over here earlier this year. We’re looking for that to happen again. And that 2000 ticks could be worth over $20,000 US dollars for the full contract. Hey everyone, this is Josh Martinez, have a wonderful day and that’s this week’s idea.
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