Intraday trading with platinum

In this article we give you an example of the intraday plan on platinum.

Choose of instruments for intraday trading

CFD on precious metals are specified as XPTUSD_m (platinum). Usually platinum is compared with gold within frame of prices, because these metals are in one circle. But the factors determining their prices are quite different. By comparing spread of these contracts, we can conclude that gold is more beneficial in terms of speculations because its spread is rather lower.

The image 1 shows the range in which price consolidates with the beginning of 2014 and Lows have slightly grown. Thus, we will consider intraday trading on this instrument.

Example of application of indicators in intraday trading

We will apply RSI indicator, track divergence and use Moving Average with 21 period (МА-Simple) and 9 period (МА-Exponential) as additional signals. The work is done in two directions, from long and short. Once we have found divergence on 1 hour frame, get the first Open signal, wait when Moving Averages with different periods cross.

RSI helps to define trend quite well and once trend line is broken, we receive the first Close signal. Cross of Moving Averages confirms Close signal or reversal. (watch Image 2)

a) Pink arrows show divergence of oscillator and price chart.

b) Red circles illustrate movement of price on reversal or when Close signal is here to come.

What impacts price of platinum

The factors impacting the price of platinum include physical demand of jewelry makers, auto industry (accelerators of discharge gas and fuel cells), medicine.

According to statistics, application of platinum for speculation on exchange is nothing more or less than 5% from above-mentioned factors. Therefore, we can conclude that platinum is purposed for long-term investment made by conservative traders with big deposit.