In today's post, I will speak about my plan in case of a bearish resolution in gold.
The first thing is the formation I want to see before trading. I have defined 2 conditions. a) I want to observe a clear ABC pattern. b) The price must get close to the resistance level.
IF those conditions happen, I would be interested in developing setups below B (that's my confirmation level). That means that I set pending orders below that level, so my entry gets triggered if the price reaches it. (Entry Level)
My stop level will be set above C and take profit on the support zone.
It's important to say that I'm not expecting a bearish movement or a bullish movement. My approach is about getting ready for possible outcomes and letting the market decide what the correct direction is. The market is ALWAYS right.
At the moment, I'm focusing on the bearish side because if I want to develop bullish setups, I must wait for the price to break the current descending channel. So, as the bearish scenario is more imminent, I'm posting my plan here. I will update this idea if the price makes the desired formation or invalidates this view.
@Vibranium_Capital, haha, your comments make my day! Thanks for being here all the time.
ThinkingAntsOk
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@TruckingAngler, Hi mate! Thanks for asking. The next thing I will be waiting for is an ABC pattern. At the moment, I only observe A. Anyways; I promise to make an update on this post either if I set pending orders or if my view is canceled.