GLD heading lower in the short term, but long may be setting up
2 days ago I posted about the longer term pattern in gold. I wanted to show what I'm seeing shorter term.
When I see patterns develop, I generally wait for them to develop to maturity before jumping into a position. Otherwise, the pattern I think I see, could actually be complete rubbish.
The chart here shows an example. -IF- this move up (a diagonal triangle) was an A or a 1, and -IF- the whole move is retraced a reasonable amount (confirming the first up wave is complete), and -IF- GLD then breaks above an area that makes me think it's heading for new highs, only then will I risk capital and enter long.
Ichimoku clouds offer really good dynamic support/resistance levels, and they keep me and my contrarian nature in check. So if price trades down near my target levels identified on this chart below 118, then I'll look for a reversal. When price breaks back above the cloud, then I can place my stop back below the cloud. With support underneath, and price moving in my direction, the "wind is at my back" so to speak.
Happy trading
When I see patterns develop, I generally wait for them to develop to maturity before jumping into a position. Otherwise, the pattern I think I see, could actually be complete rubbish.
The chart here shows an example. -IF- this move up (a diagonal triangle) was an A or a 1, and -IF- the whole move is retraced a reasonable amount (confirming the first up wave is complete), and -IF- GLD then breaks above an area that makes me think it's heading for new highs, only then will I risk capital and enter long.
Ichimoku clouds offer really good dynamic support/resistance levels, and they keep me and my contrarian nature in check. So if price trades down near my target levels identified on this chart below 118, then I'll look for a reversal. When price breaks back above the cloud, then I can place my stop back below the cloud. With support underneath, and price moving in my direction, the "wind is at my back" so to speak.
Happy trading
In particular, you should spend no time at all thinking about those rosy scenarios in which the market goes your way, since in those situations, there's nothing more for you to do. - William Eckhardt