How to read a gold signal

A complete gold signal tells you what to trade, where to get in, where you’re wrong, and where to take profit. Here’s a typical one, line by line.

XAUUSD BUY Entry 4,118.00 to 4,119.00 SL 4,109.00 TP1 4,128.50, TP2 4,138.50, TP3 4,150.00

Direction

Buy means you profit if gold rises; sell means you profit if it falls.

Entry

The price (or zone) to open at. With a zone, any price inside it is fine. If price has already moved well beyond the zone, don’t chase it: the stop is now further away and the targets closer, so the trade no longer offers the same risk and reward.

Stop loss

Where the idea is proven wrong. Place it with the order, not later. It caps your loss and is the number you size the trade from. Here the stop is about $9.50 below the entry zone: roughly 95 pips.

Targets

Most signals give two or three. A common way to use them:

1. At TP1, close part of the position (say half) and move the stop to entry. The rest of the trade is now risk-free, apart from slippage.
2. At TP2, close most of what’s left.
3. Leave a small piece for TP3 if you want to catch a bigger move.

See taking partial profits.

Placing it

1. Size the trade from your risk with the position size calculator.
2. Open a buy (or sell) at market if price is in the entry zone, or set a limit order at the entry.
3. Add the stop loss and the first target to the order.

After you’re in

Updates follow the same trade: “TP1 hit”, “move SL to entry”, “closed”. In the Gold Signals Daily VIP channel each one is posted as a reply to the original signal, so the whole trade reads top to bottom.