VietnamGold
Short

GOLD - BREAK OUT OF TRIANGLE PATTERN

FX:XAUUSD   Gold Spot / U.S. Dollar
Gold             has been trading within range market, a symmetric triangle pattern to be exact. Elliot Wave theory says a triangle is overlapping five waves affair that subdivides 3-3-3-3-3. The chart shows how I draw those five waves pattern in the triangle. Wave 'e' seemed to end with a shooting star candle, which shows rejection from the resistance area 1355-1360. Gold             has tried that zone 3 times but failed. If the five wave pattern unfolds exactly as shown above, gold             will likely to move lower and break the support trend line .
Many people would wait for a break out to trade. But as I mentioned above, accordingly to Elliot Wave plus a shooting star candle appeared on the downtrend line, I would want to short this market with a tight stop loss. Once gold             breaks out to the downside, it will go quickly to the support around 1310.
Otherwise a daily close above 1350 would confirm a break out to the upside. That's where I want to put my stop loss.

Trade Plan:
- Sell 1 contract at $1346/oz.
- Stop loss above 1350 (on a daily close).
- Take profit 1310.

Stay Tuned.
Trade closed manually: Gold seemed to break out to the upside instead of downside. I have decided to close my trade at 1352 for a small loss.
Trade active: I have decided to re-enter my short at 1338 based due to a break out of the triangle as chart below. Stop loss 1348. Take profit 1310.
it was good analysis but using the rule of closed above/below would be better; sometimes/often the markets make some exhausts but in facts, there was rejection. Keep going your good works!
+1 Reply
Totally agree that using the rule of closed above/below would be a safer choice as I also mentioned in the post too. That you would place a trade once the direction is clear. However, the purpose here was trying to use Elliot Wave to predict the trend so I wanted to be a bit riskier. Thanks for your opinion.
Reply
Thank you for the update!
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out