Trade of the week-massive gold short not to be missed!
Hi team,
Gold was my trade of the week last week too.
We hit TP one, and then saw reversal.
So we have already made some profit from this pair!
Analysis:
Now things are aligning really nicely for the excellent risk reward ratio sniper trade!
Last week the analysis was of an ascending wedge, but now we can see that what we are actually moving through is an ascending ABCDE Elliott wave correction.
There are multiple confluences here:
One.) We are expecting a tabletop which is usually a sign of reversal
Two.) We expect to see the last phase of the Elliot wave correction at the same time as the double top
Three.) We hit both a strong resistance level, and a strong daily Fibonacci level, and the daily descending timeframe channel
News:
This is another big week for US dollar news, which always impacts gold. For this reason it is really important that we get to the best possible entry, to mitigate the effect of news impulses and spikes.
There is some moderate impact news from the USA on Monday, but the big hits will come on Tuesday, Wednesday and Friday. Expect some volatility on Tuesday until Powell speech is done. The greatest volatility will come on Wednesday, when we see core inflation statistics released.
I expect this may be the week we start to see initiation of the US tapering program.
There is also some big news on Friday, but it is likely not to be of serious impact if the trade is running by then.
For the most part the news shouldn’t be an issue, unless it is at our point of entry. This is where sensible risk management is an absolute mast.
We can take advantage of spikes in the news around our area of interest to gain a slightly better entry for short.
But we should always make sure we keep our lot sizes small, and our risk management in the forefront of our mind at all times.
Trade Plan
This will obviously depend at the time we reach our area of interest.
If it is not during high news volatility, then we can enter as charted. If however it was within a few hours either side of one of these major news events, it will require close observation on the smaller timeframe to look for best possible entry, possibly on a new spike. Personally I will be using 1/4 of my usual lot size to allow for accommodation of margins during periods of volatility this week.
The analysis – just like all of my other gold analysis to date – is sound. But gold is a volatile market that moves very quickly, and is intricately linked for better or worse with US Federal reserve decisions and news.
So let’s try and take advantage of a good set up, without exposing ourselves to frustrating losses on news spikes.
Good luck and trade safe!
DrBear
Gold was my trade of the week last week too.
We hit TP one, and then saw reversal.
So we have already made some profit from this pair!
Analysis:
Now things are aligning really nicely for the excellent risk reward ratio sniper trade!
Last week the analysis was of an ascending wedge, but now we can see that what we are actually moving through is an ascending ABCDE Elliott wave correction.
There are multiple confluences here:
One.) We are expecting a tabletop which is usually a sign of reversal
Two.) We expect to see the last phase of the Elliot wave correction at the same time as the double top
Three.) We hit both a strong resistance level, and a strong daily Fibonacci level, and the daily descending timeframe channel
News:
This is another big week for US dollar news, which always impacts gold. For this reason it is really important that we get to the best possible entry, to mitigate the effect of news impulses and spikes.
There is some moderate impact news from the USA on Monday, but the big hits will come on Tuesday, Wednesday and Friday. Expect some volatility on Tuesday until Powell speech is done. The greatest volatility will come on Wednesday, when we see core inflation statistics released.
I expect this may be the week we start to see initiation of the US tapering program.
There is also some big news on Friday, but it is likely not to be of serious impact if the trade is running by then.
For the most part the news shouldn’t be an issue, unless it is at our point of entry. This is where sensible risk management is an absolute mast.
We can take advantage of spikes in the news around our area of interest to gain a slightly better entry for short.
But we should always make sure we keep our lot sizes small, and our risk management in the forefront of our mind at all times.
Trade Plan
This will obviously depend at the time we reach our area of interest.
If it is not during high news volatility, then we can enter as charted. If however it was within a few hours either side of one of these major news events, it will require close observation on the smaller timeframe to look for best possible entry, possibly on a new spike. Personally I will be using 1/4 of my usual lot size to allow for accommodation of margins during periods of volatility this week.
The analysis – just like all of my other gold analysis to date – is sound. But gold is a volatile market that moves very quickly, and is intricately linked for better or worse with US Federal reserve decisions and news.
So let’s try and take advantage of a good set up, without exposing ourselves to frustrating losses on news spikes.
Good luck and trade safe!
DrBear
