Short Gold 4HR divergence. Rising wedge reversal
Here we can see gold has made a divergence on the 4 hr charts on the RSI and MACDH.
This is a nice sell just short of $2000. There is potential to ride this down over $150 to near the green support line if the wedge breaks.
We should be careful though as there are two support zones inside the wedge. If these break though they will act as good resistance for the wedge to properly break. Sometimes rising wedges continue to move up slightly before the break so placing a stop loss just above the psychological $2000 level might be a good idea.
Nice 1hr reversal candle a few hours ago (spinning top) so we may actually have the top without the wedge needing to go any higher. Also we had a fake breakout as expected of the double top. I know a lot of traders attempted to short an imaginary double top yesterday, which was a really bad idea. Double tops are only double tops when the neckline properly breaks.
Here on the daily charts we can see just how overextended gold is from its daily moving averages another great sign Gold may have topped out here.
Stop loss at $2002 take profits in first support zones then if possible all the way down at $1818
Please take time to leave a like if you don't mind and follow for regular updates on this trade on this post. Come back and check the post again to see how the trade progresses
This is a nice sell just short of $2000. There is potential to ride this down over $150 to near the green support line if the wedge breaks.
We should be careful though as there are two support zones inside the wedge. If these break though they will act as good resistance for the wedge to properly break. Sometimes rising wedges continue to move up slightly before the break so placing a stop loss just above the psychological $2000 level might be a good idea.
Nice 1hr reversal candle a few hours ago (spinning top) so we may actually have the top without the wedge needing to go any higher. Also we had a fake breakout as expected of the double top. I know a lot of traders attempted to short an imaginary double top yesterday, which was a really bad idea. Double tops are only double tops when the neckline properly breaks.
Here on the daily charts we can see just how overextended gold is from its daily moving averages another great sign Gold may have topped out here.
Stop loss at $2002 take profits in first support zones then if possible all the way down at $1818
Please take time to leave a like if you don't mind and follow for regular updates on this trade on this post. Come back and check the post again to see how the trade progresses
Comment:
Stop loss at $2010. Typo error
Trade closed manually:
I've closed this gold short with a stop loss at last weeks high at $1980 for a small loss and decided to wait on the sidelines for another signal. Really we should of sold stronger by now and Morgan Stanley has come out talking about inflation which has only served to boost oil further. Best to see what happens can always re-enter later. Its lily we will retrace but timing is everything, best to wait and see.
www.zerohedge.com/ma...-supply-drivers-seat
www.zerohedge.com/ma...-supply-drivers-seat
Trade active:
Here we can see another 4hr divergence and a head and shoulders on the 5 min charts, good enough for me to re-enter this gold short again
Trade closed manually:
Here can can see Gold made a fake break of the rising wedge bouncing strongly from support. This caused me to close the trade. Some profits were able to be taken at the break (I always take some profits at breakouts in case of takeouts), the rest of the trade was closed at breakeven.
This short trade is now invalidated unless a further signal comes
This short trade is now invalidated unless a further signal comes
About me: I'm a retail day trader (trading since 1993). Most ideas here are for short time frames and become profitable quickly. I take profits fast as things change fast. 1-2-1 mentoring sessions available.
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