Instead of calling Gold analysis, I would use the term of trading plan or trading journal to record my trades.
So please note: This is a personal journal only, but NOT a trading suggestion. Please control your own risk if you want to follow, we may have different risk preference and position management strategy.
Date: 2020/05/29
No plan, No trading
Entry reason:
Gold has been rejected once at 1725 and after one day it's testing the descending trendline again at 1720 (as time goes by, the price will decrease).
To be aware that if it can't break out in next 4 hours, a drop may happen and target 1707 area. 1713 was tested yesterday and the support power at this line will be weaker than yesterday.
Time matters
So here's my plan:
Short at 1720, SL 1725, TP 1707
Confidence level: 60%
Buy at 1705-1710, SL 1700 , TP 1735 1750
Confidence level: 55%
--------Previous trade update ------
Emotion level: Gold was doing a fake break out at 1725 but then a cross-line candle style give me some confidence to hold my short.
Result: 1724 ~ 1714 short. 1000 pips in profit.
------------wave analysis ---------------
There are 2 possible situations here:
-----
No.1 wave (v) is not completed at 1763. The previous rise is just wave (1) of v.
Currently gold is doing a retracement wave (2) in a descending wedge channel with an a-b-c-d-e pattern. Gold was also testing the previous wave (iv) channel upper line and seems the support is valid for now.
For this situation, the key resistence level is the upper line of the wedge channel which is 1720 area. Break out the channel will confirm the start of wave (3),
-----
No.2. Wave (v) is already completed at 1763. Now it's doing correction wave A and later B & C may happen and gives me opportunity to long and short again. Then the Gold will start a big fall to 1640 area.
However for this assumption, the end of A or B can not be predicted.
So please note: This is a personal journal only, but NOT a trading suggestion. Please control your own risk if you want to follow, we may have different risk preference and position management strategy.
Date: 2020/05/29
No plan, No trading
Entry reason:
Gold has been rejected once at 1725 and after one day it's testing the descending trendline again at 1720 (as time goes by, the price will decrease).
To be aware that if it can't break out in next 4 hours, a drop may happen and target 1707 area. 1713 was tested yesterday and the support power at this line will be weaker than yesterday.
Time matters
So here's my plan:
Short at 1720, SL 1725, TP 1707
Confidence level: 60%
Buy at 1705-1710, SL 1700 , TP 1735 1750
Confidence level: 55%
--------Previous trade update ------
Emotion level: Gold was doing a fake break out at 1725 but then a cross-line candle style give me some confidence to hold my short.
Result: 1724 ~ 1714 short. 1000 pips in profit.
------------wave analysis ---------------
There are 2 possible situations here:
-----
No.1 wave (v) is not completed at 1763. The previous rise is just wave (1) of v.
Currently gold is doing a retracement wave (2) in a descending wedge channel with an a-b-c-d-e pattern. Gold was also testing the previous wave (iv) channel upper line and seems the support is valid for now.
For this situation, the key resistence level is the upper line of the wedge channel which is 1720 area. Break out the channel will confirm the start of wave (3),
-----
No.2. Wave (v) is already completed at 1763. Now it's doing correction wave A and later B & C may happen and gives me opportunity to long and short again. Then the Gold will start a big fall to 1640 area.
However for this assumption, the end of A or B can not be predicted.
Trade active:
short opened at 1720
Trade closed: stop reached:
stop reached
