Intraday Gold Trading on MCX (evening session)which charts to follow ?

#1
Hi Friends,

I trade commodities only in evening session, I have a question regarding trading gold. I use international charts to trade gold on MCX after 5 pm ( after currency market closes so that there is no disturbance of usdinr effect), but sometimes i see that MCX gold prices do not move exactly like the international gold prices even after 5 pm.. Would like to know from seniors and other gold traders , what charts do you follow to trade gold intraday . MCX charts are not correct because of usdinr effect , while mcx gold prices do not move in exact correlation to international prices.. What charts to follow in this case.
 

ashu1234

Well-Known Member
#2
Don't follow international chart for trading in mcx for the time being. Like today we got duty hike in gold and silver so there is noting we can do. Just follow mcx prices as it absorbs everything in its price, trying to break up components of mcx prices like dollar value, international price and duty hikes is useless.
 
#3
Don't follow international chart for trading in mcx for the time being. Like today we got duty hike in gold and silver so there is noting we can do. Just follow mcx prices as it absorbs everything in its price, trying to break up components of mcx prices like dollar value, international price and duty hikes is useless.

Thanks so much for your answer Ashu.
But we just cant follow MCX prices because they do not show the correct SR levels since the charts would be effected by usdinr from 9 to 5. suppose usdinr moved up by a percent and internatinal gold moved down a percent from 9 - 5 mcx gold prices would show no change and do not show correct SR levels... so if i am trading this chart after 5, that would be again incorrect.
 

ashu1234

Well-Known Member
#4
Thanks so much for your answer Ashu.
But we just cant follow MCX prices because they do not show the correct SR levels since the charts would be effected by usdinr from 9 to 5. suppose usdinr moved up by a percent and internatinal gold moved down a percent from 9 - 5 mcx gold prices would show no change and do not show correct SR levels... so if i am trading this chart after 5, that would be again incorrect.
USDINR and XAUUSD are always on FYI even after 5 on forward markets and so they are constantly priced in by the arbitrageurs. And 1% gold up and 1% currency down will give no change assumption is not right all the time as quantum of increase and decrease is not in tandem as one or other may go flat, may go with the same and may go in other direction so net effect can't be equated. So understanding whole parity won't help, just trade price swings for the time being.
 
#5
USDINR and XAUUSD are always on FYI even after 5 on forward markets and so they are constantly priced in by the arbitrageurs. And 1% gold up and 1% currency down will give no change assumption is not right all the time as quantum of increase and decrease is not in tandem as one or other may go flat, may go with the same and may go in other direction so net effect can't be equated. So understanding whole parity won't help, just trade price swings for the time being.
Ashu, Thanks for that info. Can you please explain how do you trade commodities so that it gives me an idea what charts to follow and what actions to take. Also what do you mean by trading price swings.
I have a scenario, Lets say there is a break of support in international charts and as well as as MCX chart, and i take a short trade. Now if the SL is hit in MCX chart and its far from hitting SL in internaional chart... What do you do in this case.( I am talking of a trade in night time when there is relatively less movement in usdinr)
 

ashu1234

Well-Known Member
#6
Ashu, Thanks for that info. Can you please explain how do you trade commodities so that it gives me an idea what charts to follow and what actions to take. Also what do you mean by trading price swings.
I have a scenario, Lets say there is a break of support in international charts and as well as as MCX chart, and i take a short trade. Now if the SL is hit in MCX chart and its far from hitting SL in internaional chart... What do you do in this case.( I am talking of a trade in night time when there is relatively less movement in usdinr)
Hi,
MCX gold has become verry choppy(too much noise) plus there is so much uncertainty with policies and usdinr intraday effect. So many times comex gold and mcx gold are moving totally in opposite direction. Have dealt with same kind of situation in recent expiry. Comex gold was stable in 1330-1340 range and we have continued spikes in mcx gold. I have posted the same in fxcommodities thread. At that time we have added position on every spike keeping comex stops in mind. Now you got to have solid reason and levels to do this kind of thing as you can't quantify the diversion, I've averaged shorts on every 150 rs move. I don't rely on any ready made system, mostly fundamentals to back entry and technicals to time the trade.
But honestly trading gold at mcx is not good idea, better to trade other commodities. Its all anticipation game so if you are seriously tracking all the things you will get hold in the due time.

And about swing trade, look at gold mcx charts (hourly). An hourly close below 28830 in Gold will give you move downside(time it with comex levels).
As that is a good swing level where price have found support, so you can simply trade on price action. Next swing points below are 28600 and 28280, you just have to watch price action on that points.
 

rajsumi121

Well-Known Member
#9
Hi,
MCX gold has become verry choppy(too much noise) plus there is so much uncertainty with policies and usdinr intraday effect. So many times comex gold and mcx gold are moving totally in opposite direction. Have dealt with same kind of situation in recent expiry. Comex gold was stable in 1330-1340 range and we have continued spikes in mcx gold. I have posted the same in fxcommodities thread. At that time we have added position on every spike keeping comex stops in mind. Now you got to have solid reason and levels to do this kind of thing as you can't quantify the diversion, I've averaged shorts on every 150 rs move. I don't rely on any ready made system, mostly fundamentals to back entry and technicals to time the trade.
But honestly trading gold at mcx is not good idea, better to trade other commodities. Its all anticipation game so if you are seriously tracking all the things you will get hold in the due time.

And about swing trade, look at gold mcx charts (hourly). An hourly close below 28830 in Gold will give you move downside(time it with comex levels).
As that is a good swing level where price have found support, so you can simply trade on price action. Next swing points below are 28600 and 28280, you just have to watch price action on that points.

In my view - don't go for comex chart in market time ( when mcx is open) ...just watch level of comex in morning ...and keep in mind ..don't compare price with comex while trading in mcx .:clapping: ( just my view with my very little knowledge) .:clapping:
 

ashu1234

Well-Known Member
#10
Dear Ashu,
pl.suggest good charting software for mcx commodities,
in which h4 and dialy time frame covers.

regards,

Srri.
HI,
You can go for Telequote, most brokerage house use it. Else go for Amibroker with data feed options available at low cost, that will serve the purpose.
 

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