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Commodity Trading (Gold, Silver, etc) involves substantial risk of loss and is not suitable for all investors. Past
Performance is not necessarily indicative future results - Read Full Disclaimer
Objectives of Today's Presentation
Gold / Bullion
 How to use both Market Profile Charts and Order Flow Charts to trade Gold?
 How to use AMT Principles to trade Gold?
 Become adept at creating Intraday Opportunities using Market Profile Charts also execute them using Order Flow
Charts.
What's so special about Gold?
 Most importantly it has a sentimental value attached to it and people from India will identify with that feeling.
 Gold is traded all over the world same as Crude.
 In India people use it as a store of value to use in times of need.
 Gold has many technological applications as well as India has a huge Ornament and Jewelry Industry built around
it.
 Furthermore for traders like us it offers a great opportunity to trade a commodity which has good volatility also
provides many trade opportunities intraday.
Auction Market Theory for Gold?
Wyckoff Market Cycles
 In addition to Crude, Gold also is traded 24 hours in different countries.
 In Indian Markets that is MCX Exchange it is traded from 10:00 AM to 12:00 Am, that's 14 hours.
 There are huge GAPs on MCX charts because of the overnight moves in International Markets.
 But the good thing is that AMT Principles Remain The Same
o Most of all Supply Demand Dynamics are same for any instrument which has sufficient trading volumes.
o These Cycles keep repeating,
 ACC - MU - DIST - MD
 ACC - MU - ReACC - MU
 DIST - MD - ACC - MU
 DIST - MD - ReDIST - MD
 That means we can use Market Profile Chart and Order Flow Charts for trading Gold.
Lets Dive Into Some Examples
Example 1
Gold MP
The phase I have selected is a stretch of 4-5 days where prices is consistently moving lower. The chart alongside reveals a
few things,
 The trend is down which because VAP is developing progressively lower.
 It points to continuation because every time we leave a higher value area we are developing new value lower.
 Some intraday spikes up happening every now and then which we can trade using Market profile and Order flow
charts.
Example 2
In this example a nice short trade sets up, after a familiar pattern 'q', plays out,
 The 'q' denotes price away from value hence we get a snap back rally.
 Because the rally is very sluggish and we don't get any follow through to the upside resulting in a deeper cut.
 Continuation - Change is one of the most noteworthy principle while trading any markets.
Gold MP
Gold OF
Example 3
The down slide continues and Market Profile and Order Flow Charts pick out another trade for us,
 Prev day was a Double Distribution day also trading below the low of the D2 announced the intentions of the sellers
early.
 An attempt to re-enter the D2 fails as a result the buyers give up.
Gold MP and Of Combined
Example 4
On this day we open lower and formed a tight balance in early trade,
 An attempt to break down from the balance does not get any follow through.
 In fact it sets up a PL suggesting exhaustion on part of sellers.
 A rather nice setup on Order Flow Chart gives us the entry to play the spike up.
 But a trade against the trend needs to be monitored closely for resumption of original trend, and Order Flow charts
helps us in that regard too
Gold MP
Gold OF 1
Gold OF 2
Example 5
In our final example we continue the chart from previous example,
 The Order Flow Chart gave us a signal that the up move was just a spike.
 Which is evident from the zeros and trapped buyers seen on the chart.
 It served as both an exit signals for our contra-trend longs as well as a nice place to look for another with trend
short.
Gold MP and OF
Conclusion
 So as we saw on charts above, we can definitely use Market Profile Charts to trade Gold, and for that matter any
commodity like Silver or Crude Oil. (See here our post on How to Trade Crude Oil using Market Profile Charts?)
 They help us spot opportunities with excellent risk/reward characteristics.
 We can monitor market development better than any other tool and avoid the price traps which Smart
Money creates for Amateurs.
 Most of all it helps us to be in sync with the smart money and trade alongside them rather than against them, as we
all know trading against the Smart Money is a lost cause as well as capital.
Resources
Market Profile Charts prepared using Bell Market Profile and Bell Order Flow. (Which I personally use.)
Visit my Mentor Page on BellTPO.
Charting Platform is Ninja Trader 7 (Free).
Thank You

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How to trade gold or bullion using market profile and order flow

  • 1. Commodity Trading (Gold, Silver, etc) involves substantial risk of loss and is not suitable for all investors. Past Performance is not necessarily indicative future results - Read Full Disclaimer
  • 2. Objectives of Today's Presentation Gold / Bullion  How to use both Market Profile Charts and Order Flow Charts to trade Gold?  How to use AMT Principles to trade Gold?  Become adept at creating Intraday Opportunities using Market Profile Charts also execute them using Order Flow Charts. What's so special about Gold?  Most importantly it has a sentimental value attached to it and people from India will identify with that feeling.  Gold is traded all over the world same as Crude.  In India people use it as a store of value to use in times of need.  Gold has many technological applications as well as India has a huge Ornament and Jewelry Industry built around it.  Furthermore for traders like us it offers a great opportunity to trade a commodity which has good volatility also provides many trade opportunities intraday.
  • 3. Auction Market Theory for Gold? Wyckoff Market Cycles  In addition to Crude, Gold also is traded 24 hours in different countries.
  • 4.  In Indian Markets that is MCX Exchange it is traded from 10:00 AM to 12:00 Am, that's 14 hours.  There are huge GAPs on MCX charts because of the overnight moves in International Markets.  But the good thing is that AMT Principles Remain The Same o Most of all Supply Demand Dynamics are same for any instrument which has sufficient trading volumes. o These Cycles keep repeating,  ACC - MU - DIST - MD  ACC - MU - ReACC - MU  DIST - MD - ACC - MU  DIST - MD - ReDIST - MD  That means we can use Market Profile Chart and Order Flow Charts for trading Gold.
  • 5. Lets Dive Into Some Examples Example 1 Gold MP The phase I have selected is a stretch of 4-5 days where prices is consistently moving lower. The chart alongside reveals a few things,  The trend is down which because VAP is developing progressively lower.  It points to continuation because every time we leave a higher value area we are developing new value lower.
  • 6.  Some intraday spikes up happening every now and then which we can trade using Market profile and Order flow charts.
  • 7. Example 2 In this example a nice short trade sets up, after a familiar pattern 'q', plays out,  The 'q' denotes price away from value hence we get a snap back rally.  Because the rally is very sluggish and we don't get any follow through to the upside resulting in a deeper cut.  Continuation - Change is one of the most noteworthy principle while trading any markets. Gold MP
  • 9. Example 3 The down slide continues and Market Profile and Order Flow Charts pick out another trade for us,  Prev day was a Double Distribution day also trading below the low of the D2 announced the intentions of the sellers early.  An attempt to re-enter the D2 fails as a result the buyers give up. Gold MP and Of Combined
  • 10. Example 4 On this day we open lower and formed a tight balance in early trade,  An attempt to break down from the balance does not get any follow through.  In fact it sets up a PL suggesting exhaustion on part of sellers.  A rather nice setup on Order Flow Chart gives us the entry to play the spike up.  But a trade against the trend needs to be monitored closely for resumption of original trend, and Order Flow charts helps us in that regard too Gold MP
  • 13. Example 5 In our final example we continue the chart from previous example,  The Order Flow Chart gave us a signal that the up move was just a spike.  Which is evident from the zeros and trapped buyers seen on the chart.  It served as both an exit signals for our contra-trend longs as well as a nice place to look for another with trend short. Gold MP and OF
  • 14. Conclusion  So as we saw on charts above, we can definitely use Market Profile Charts to trade Gold, and for that matter any commodity like Silver or Crude Oil. (See here our post on How to Trade Crude Oil using Market Profile Charts?)  They help us spot opportunities with excellent risk/reward characteristics.  We can monitor market development better than any other tool and avoid the price traps which Smart Money creates for Amateurs.  Most of all it helps us to be in sync with the smart money and trade alongside them rather than against them, as we all know trading against the Smart Money is a lost cause as well as capital. Resources Market Profile Charts prepared using Bell Market Profile and Bell Order Flow. (Which I personally use.) Visit my Mentor Page on BellTPO. Charting Platform is Ninja Trader 7 (Free). Thank You