**Drag chart across to view text **Ascending wedge arrow should be "descending wedge" TECHNICAL
Reason 1:
Pattern: Ascending wedge 1. Broken out of ascending wedge sideways 2. Retested ascending wedge upper descending trend line on 15/06/2018 during selloff
Reason 2: -RSI oversold at similar levels to in the past
Reason 3: -At lower limit of daily bollinger band
FUNDAMENTAL
-US trade war escalating with china, canada, france
Still fairly new to trading, appreciate any comments, tips etc. Just an idea. I am not advising to place a trade
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Looking like may be forming an ascending triangle reversal pattern on the 30 minute timeframe with resistance @ 1282.00 (Physchological level?) Setting a buy stop order 10 pips above @ 1282.10, SL @ 1276.9, TP to be updated, as if there is a breakout to the upside, move expected to be very bullish over the long term from personal research.
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Doji candle also formed within the selloff, at the resistance level of the possible ascending triangle reversal
@CAPTAIND33, cheers captiain, appreciate the comment! :)
hubert_miranda
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oh and i forgot the main thing that speaks against a breakout is the fact that price closed below the low from which the breakout that you labeled occurred. That alone makes a bullish breakout scenario impossible
FTE1995
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@hubert_miranda, appreciate the constructive criticism hubert. More learning needed clearly! cheers :)
FTE1995
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@hubert_miranda is this in your opinion still a valid area for a long position?
hubert_miranda
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@JamesEvison, No I am in a short position since 1298. Price should fall at the very least 1240. It could realistically fall as low as 1100. So I am not interested in long position immediately. but will be a bit later... but need more price action to form first
hubert_miranda
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@JamesEvison, Cheers :-)
hubert_miranda
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What you have drawn is not a real wedge. there is an internal structure it has to have in order to be able to call it truly a diagonal (wedge) and it only appears in certain places within a trend. Gold is not at that place right now. I also don't see it as breakout of the ascending wedge because the price-action you are considering to be a breakout is a corrective formation (i.e. choppy sideways 3-wave swings.. especially when you look at it on 4 hour or 1 hour chart). The so-called 'retest' has much more momentum in it than the 'breakout', so that means sellers have much more control in this situation than buyers... just some thoughts to consider