Gatos Gold Strategy (XAUUSD, H1)

A rule‑based H1 framework for trading gold ranges into trends.
We combine market structure, a lightweight momentum check, and level‑reclaim logic. The system avoids chasing—entries happen only after break + hold.

Tools

• Key levels: session highs/lows and prior day levels.
• Momentum filter: RSI(14) or MACD histogram above/below zero.
• ATR(14, H1) for stop/size; optional EMA20 as a management rail.

Market logic

Gold frequently forms tight boxes before impulsive extensions. Breakouts that hold above/below the box and align with momentum have the best follow‑through.

Setup checklist

1. Box: define the most recent range (at least 10–20 candles).
2. Break: full‑body close outside the box with small opposite wick.
3. Reclaim/Hold: next bar does not close back inside; momentum filter agrees.

Trigger

• Long: close above box high; then a retest hold or second close in the same direction.
• Short: mirror below the box low.

Entry

• Market on the confirm close or limit on a shallow retest of the broken level.

Stop Loss

• ATR(14) × 1.1–1.5 or just beyond the opposite edge of the box (wider of the two).

Take Profit / Management

• TP1: take 1/2 at 1.2R–1.6R.
• TP2: trail the rest behind EMA20 or micro swing lows/highs; reduce near session/weekly levels.

Filters & risk

• Skip news windows (NFP, CPI, FOMC; ±60 min).
• Avoid whipsaw days (alternating engulfings).
• Risk ≤ 0.5%; one active position per direction.