Gold Ways to enter a trend with higher probability and accuracy

We recently posted about Gold and how to execute with better entries off of using price structure and patterns.

The last comment we made is that we would be keeping a close look at Gold for any pullbacks that could show good price structure for potential buying signals inline with the current underlying bullish trend.

We have zoomed into the 15 Minute chart to give you more detail in the price action that you cannot always get on the higher time frames. As you can see from the chart the pull backs have not been deep, but good enough that we have clearly seen two bullish price patterns complete at the lows of each pullback.

Both of these patterns were 3 drive bullish patterns where on the 3rd drive lower, price began to trade higher thus completing the potential patterns.

Just seeing these patterns alone, even when inline with the current underlying direction is not enough, so to help us in our execution we look to find a higher inner trend line in the hope that this too will break to the upside which can help strengthen the pattern while also pin pointing an exact entry level on the retest on the top of the trend line.

Risk management - For these trades it's made easier to know where to place a stop loss because we are trading the pattern so placing it just below the 3rd and final drive is all we need to do which allows for a pretty tight protection level. On the upside, because we are in a strong trend we would look to scale out profits along the way while also looking to trail your stop loss as price moves higher.

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