Gold is currently moving higher however, looking at the , we can see that the last down move on gold created a lower low. While that lower low was not significantly lower, it is still a sign of weakness & should be noted. We learned in Section 1 & 2 of my "How to read structure tutorial", when we should begin to look for a trend reversal & the simple method I use to identify that point within the trend. We also learned that we should not take any trend trades if price action does not have a dominant trend direction, plus my methods to avoid trading ranges & much much more.
(Click on the "how to read structure tutorial" charts at the bottom of this idea if you would like to learn more.)
As of right now I am neutral on gold however there are some setups that may provide good trading opportunities in the weeks ahead & It is important to always stay ahead of any market you are planning to trade. Speculating on where price may go in the near future along with important price levels will allow you to plan your potential trades in advanced . Although we do not know 100% where price will go, we can still speculate & create a plan for those potential trades therefore we know exactly what we will do if those setups occur.
The Main chart in this idea is showing a Symmetrical on the weekly chart. We also have a Pattern on the that is in confluence with the price of the weekly Symmetrical Triangles upper (1276). I feel this is a high probability setup therefore I am planning to enter a short position using the Aggressive entry (shown below). I will be sure to update this idea upon entry of that position. Thanks Traders! I hope this idea was helpful and educational! Please comment below if you have any questions regarding these setups & feel free to share your analysis as well.
Pattern. Entry, Targets & Stops.
Important High & Low To Watch + .
Section 1 of "How to read structure tutorial" (Click on Chart to go to the tutorial)
Section 2 of "How to read structure tutorial" (Click on Chart to go to the tutorial)
As you can see, all 3 Conditions were met therefore we began looking for long entries. Price gave us a beautiful bullish engulfing candle right in our buy zone (support) after 3 daily closes above the upper trend line.. This was a great two target trade and I hope others were able to capatilize on it using there own criteria for entry. I am now short gold and will be publishing a seperate idea regarding that trade as soon as possible. I am expecting a pullback to $1300-$1310 before the next leg higher ($1400?). Thanks traders and i hope this was helpful!