This is how we will be trading XAUUSD. Full explanation.
Today we will share a pending setup we have on XAUUSD
Whenever the price has made content with the major support level around 1680, we have observed bullish impulses towards the following resistance levels. The extension of those impulses varies; however, the minimum distance was the last impulse (minor resistance zone). With that said, we expect a bullish movement towards 1950, with a break-even level (this means we move our stop loss to the entry point) on the mentioned minor resistance zone.
From a technical perspective, the price has broken all the descending structures (you can count three) and is currently above a resistance zone, now working as support. Last week we defined the scenario we wanted to see before trading, and now that filter has been fulfilled, and we will proceed with our plan.
On the 1H chart, you can have a better idea of the setup:
Our stop loss Will always be below the full structure, and our entry-level will be above "B." If the price keeps falling, we will keep moving our stop loss until our risk to reward ratio equals 1.8. Beyond that, we will cancel the setup.
The risk we will be taking on a setup like this is 3% of our capital on the stop loss, and the expected duration of the movement is between 25 and 35 days. The odds of this setup being successful is around 50% based on our historical track record. This is why it is so important to have Rist to rewards ratio ABOVE 1.8
Thanks for reading! Please share your view and charts in the comment box!
Whenever the price has made content with the major support level around 1680, we have observed bullish impulses towards the following resistance levels. The extension of those impulses varies; however, the minimum distance was the last impulse (minor resistance zone). With that said, we expect a bullish movement towards 1950, with a break-even level (this means we move our stop loss to the entry point) on the mentioned minor resistance zone.
From a technical perspective, the price has broken all the descending structures (you can count three) and is currently above a resistance zone, now working as support. Last week we defined the scenario we wanted to see before trading, and now that filter has been fulfilled, and we will proceed with our plan.
On the 1H chart, you can have a better idea of the setup:
The risk we will be taking on a setup like this is 3% of our capital on the stop loss, and the expected duration of the movement is between 25 and 35 days. The odds of this setup being successful is around 50% based on our historical track record. This is why it is so important to have Rist to rewards ratio ABOVE 1.8
Thanks for reading! Please share your view and charts in the comment box!
Comment:
The price is falling, so we need to rethink the setup. At the moment, we want to wait for a precise correction, or a confirmation that the price has started a new bearish trend