we have just breached the 50% retracement zone and hit the trendline.......I know some feel oil will go up and up but its not a 5th wave as the 4th wave went too low and closed below the peak of wave 1....
SHORT NOW
TAKE PROFIT 35.81.....
excellent risk reward ....
SHORT NOW
TAKE PROFIT 35.81.....
excellent risk reward ....
Comment:
Also just completed an AB=CD pattern, so more confirmation if needed.
Comment:
Guys....there are 2 fundamentals to trading....
1. Plan the Trade
2. Trade the plan.
IT was clear that we had many reasons to short gold around the 45.50 area yesterday, which is when I posted this idea and many other traders had similar thoughts.....If you are new to trading you need to know how to trade your plan, this is where you will lose money, and none of the traders on this website will hold your hand minute by minute as its not physically possible to be at a computer 24/7.
TRADING THIS PLAN
The price double topped and dropped to 45.27....at this stage the idea was working......however price then broke up through the neckline which invalidated the short....and any shorters should close their positions when this happens, this way we break even and don't lose.
Once the price had broken through the neckline, Mohammed questioned when he should short, I explained price was in a box, at this stage direction was neutral so not to short unless it dropped under the box. Price then broke up out of the box, at this stage the trader should be looking for the next area of resistance for a short on the chart as RSI on 4hr was very high (overbought), The next obvious area to short was 45.90 as strong resistance here.....I shorted at 45.86 and closed my short this morning at 45.47.....
THE NEXT MOVE
I feel its likely price will try to double top....we need to be looking for a lower high...so if price is unable to break the 45.90, then this will confirm the reversal in trend. The safest place to short will be when price breaks the neckline and retests...I will post another chart...
1. Plan the Trade
2. Trade the plan.
IT was clear that we had many reasons to short gold around the 45.50 area yesterday, which is when I posted this idea and many other traders had similar thoughts.....If you are new to trading you need to know how to trade your plan, this is where you will lose money, and none of the traders on this website will hold your hand minute by minute as its not physically possible to be at a computer 24/7.
TRADING THIS PLAN
The price double topped and dropped to 45.27....at this stage the idea was working......however price then broke up through the neckline which invalidated the short....and any shorters should close their positions when this happens, this way we break even and don't lose.
Once the price had broken through the neckline, Mohammed questioned when he should short, I explained price was in a box, at this stage direction was neutral so not to short unless it dropped under the box. Price then broke up out of the box, at this stage the trader should be looking for the next area of resistance for a short on the chart as RSI on 4hr was very high (overbought), The next obvious area to short was 45.90 as strong resistance here.....I shorted at 45.86 and closed my short this morning at 45.47.....
THE NEXT MOVE
I feel its likely price will try to double top....we need to be looking for a lower high...so if price is unable to break the 45.90, then this will confirm the reversal in trend. The safest place to short will be when price breaks the neckline and retests...I will post another chart...
Comment:
Comment:
Ptice likely to go up and try to retest 45.90 when it hits the PINK
Comment:
Comment:
Price just bounced off the trendline, trendline work like electric fences......reasonfor big spike is it just broke the resistance line from 45.90.....im holding my long from 45.33....to 45.89...
Comment:
I just closed the long at 45.82......such a fast spike can burnout and fall quickly so I decided to cash in
Comment:
Comment:
Now is not the time to short, this could be a bullish continuation and you get stung.....everybody wants to short at the high but we don;t know this is definitely the high......we need to see the neckline broken....see chart for details.....
Comment:
Comment:
Its very important in trading not to get too attached to the trend you are backing, let the chart tell you what to do, you don't have to be a bull or a bear, to win at trading you have to be both, its about making money not being a fortune teller..
Comment:
Comment:
Looks like it will soon break the trendline support and form a Head & Shoulder top.....still do not trade this as it could bounce above our neckline for days and still breakout to the upside....
Comment:
Comment:
Price broke up again.......this is a very steep channel we are in....at some stage it will reverse, look at the last wave up to the left of the screen, if this was a long term sustainable rally it would have pullbacks......the bulls must think Christmas has come early and will start cashing in ....we have one more reversal point at 46.85 (the .618 fib)...I will be selling there on the top trendline..... depending on price action......it may reverse earlier than this of course.........
Comment:
Comment:
Its dropped out of the channel...so bulls are weakening...I think it will try to make a higher high, I will be shorting at 46.85...
Comment:
A short and reversal is still a possibility.....
A short and reversal is still a possibility.....