First of all I would like to thank for all the support you give me.
At the second place I'd like to congratulate for all the traders who were able to stay in position in this topping process.
Those who were selling short today or in the last 2 weeks were selling short position with the big banks and funds.
Smartmoney exactly knew what would be the FED minutes news. So they were holding the price in the red channel pulling up again and again and selling more and more gold contracts to retail traders. They were making false breakouts , running the short's stops again and again...
Let's see the example.
You go long at the double bottom breakdown backtest 4th May. You set your stop at 1291 (SHORT1) and you get stopped out on the 6th of May. It's a big move so you go long because it looks price wants to break out. But it doesn't. Strong decline and you get stopped out on the 9th May.
OK. Now you wait a little bit because it seems the short is good. Gold seems to be topping. You find a nice entry point for your SHORT 2 on the 11th May at 1278$. You catch the exact top. It's printing a nice double top on the 12th May. Perfect. You feel the big money.... Stopping out on the same day...
You wait one more day. 13th May . Lower high at 1275. You sell again (SHORT 3), starting with a beautiful big red candle. You think it is really starting to fall now. And what happens? You are not only stopping out but breaking out of the blue channel on the 16th May. You are a sophisticated trader. When breakout occurs you trade the breakout. So you go long at 1286 (LONG2). And price immediately reverses and goes back into the channel. You freak out and stop out the long position.
Now it really seems that gold is short. It reversed back from the false breakout with strong volume. So you wait for the next day when price almost tagging the blue trendline. (May 17th) You go short (SHORT4) set your stop at the trendline and you get stopped out in the night.
So now it starting to look it can't fall. You read the news: Goldman is long, Soros is long. You decide to go all in at the next tag of the trendline (LONG3). And price breaking down. You are flat broke.
Gold's intermediate top and bottom is horrible, frustrating and killer. Smartmoney is doing everything to confuse you and stop you out. The only way to stay in a position if you set your stop at the highs. They are protecting that level very heavily because they don't want price to run away... Usually they have an important news - of which result they know already - where & when they want to be positioned in the good direction with the maximum position. But at the end they are making mistakes and we can catch them . :)
Like today....
At the second place I'd like to congratulate for all the traders who were able to stay in position in this topping process.
Those who were selling short today or in the last 2 weeks were selling short position with the big banks and funds.
Smartmoney exactly knew what would be the FED minutes news. So they were holding the price in the red channel pulling up again and again and selling more and more gold contracts to retail traders. They were making false breakouts , running the short's stops again and again...
Let's see the example.
You go long at the double bottom breakdown backtest 4th May. You set your stop at 1291 (SHORT1) and you get stopped out on the 6th of May. It's a big move so you go long because it looks price wants to break out. But it doesn't. Strong decline and you get stopped out on the 9th May.
OK. Now you wait a little bit because it seems the short is good. Gold seems to be topping. You find a nice entry point for your SHORT 2 on the 11th May at 1278$. You catch the exact top. It's printing a nice double top on the 12th May. Perfect. You feel the big money.... Stopping out on the same day...
You wait one more day. 13th May . Lower high at 1275. You sell again (SHORT 3), starting with a beautiful big red candle. You think it is really starting to fall now. And what happens? You are not only stopping out but breaking out of the blue channel on the 16th May. You are a sophisticated trader. When breakout occurs you trade the breakout. So you go long at 1286 (LONG2). And price immediately reverses and goes back into the channel. You freak out and stop out the long position.
Now it really seems that gold is short. It reversed back from the false breakout with strong volume. So you wait for the next day when price almost tagging the blue trendline. (May 17th) You go short (SHORT4) set your stop at the trendline and you get stopped out in the night.
So now it starting to look it can't fall. You read the news: Goldman is long, Soros is long. You decide to go all in at the next tag of the trendline (LONG3). And price breaking down. You are flat broke.
Gold's intermediate top and bottom is horrible, frustrating and killer. Smartmoney is doing everything to confuse you and stop you out. The only way to stay in a position if you set your stop at the highs. They are protecting that level very heavily because they don't want price to run away... Usually they have an important news - of which result they know already - where & when they want to be positioned in the good direction with the maximum position. But at the end they are making mistakes and we can catch them . :)
Like today....