XAUUSD 0.08% going short, 4H CHART! I am ALREADY in the trade. I did enter the position right after the bearish engulfing candlestick formation, with a stop-loss on 1258,90 and TP 1240. You can see exactly how I positioned myself on the red-green box!
ANALYSIS : We have a resistance line which is between the fib levels 50% and 61,8% level, so not only do we have a resistance line but also the fib levels that are hard to get through. Which signals strong resistance, besides we have the RSI that just passed the 70 line and went back down. Indicating that buyers are losing control. The reason I go against the semi-bullish trend right now is because the currency pair is overbought at the moment, dont call tops during an uptrend if it is not overbought! We can see confirmation by seeing that the RSI went below the 70 line on the RSI , and the most important signal: Price action is indicating bearish direction at the resistance level! The bullish momentum is fading away, got a bearish engulfing formation and after that a doji appears as well, which indicates indecision. This indecision doji is, after the bearish engulfing pattern, another confirmation that the bulls have lost their momentum. Putting my stop loss on the high of the green candle on the bearish engulfing formation pair. Putting my TP on the support level , however if you are going short. DO IT NOW. TAKE NOTICE: Close your position before the USD CB 0.07% Consumer Confidence-news. These news will make a high impact on the market, since the USD currency has been getting a lot of bad rates recently, there is big chance that we will get bad rates once more. Which will result into the XAUUSD 0.08% going UPWARDS, and since we are going short we do not want to take that risk. So close the short position before the release of the CB 0.07% Consumer Confidence-news tommorow!
ANALYSIS : We have a resistance line which is between the fib levels 50% and 61,8% level, so not only do we have a resistance line but also the fib levels that are hard to get through. Which signals strong resistance, besides we have the RSI that just passed the 70 line and went back down. Indicating that buyers are losing control. The reason I go against the semi-bullish trend right now is because the currency pair is overbought at the moment, dont call tops during an uptrend if it is not overbought! We can see confirmation by seeing that the RSI went below the 70 line on the RSI , and the most important signal: Price action is indicating bearish direction at the resistance level! The bullish momentum is fading away, got a bearish engulfing formation and after that a doji appears as well, which indicates indecision. This indecision doji is, after the bearish engulfing pattern, another confirmation that the bulls have lost their momentum. Putting my stop loss on the high of the green candle on the bearish engulfing formation pair. Putting my TP on the support level , however if you are going short. DO IT NOW. TAKE NOTICE: Close your position before the USD CB 0.07% Consumer Confidence-news. These news will make a high impact on the market, since the USD currency has been getting a lot of bad rates recently, there is big chance that we will get bad rates once more. Which will result into the XAUUSD 0.08% going UPWARDS, and since we are going short we do not want to take that risk. So close the short position before the release of the CB 0.07% Consumer Confidence-news tommorow!
Comment:
Looking for a LOW DOJI CLOSE on the daily chart as well, looks like we're going to get it. This indicates a little more longterm short than I was personally expecting!
Trade closed: target reached:
FORGOT to update! I actually later on noticed a support level that appeared a little bit earlier than my original TP. Around 40 pips difference, so I closed on 90 pips profit! Right after that it just BOUNCED up and it has already gone up by half. Made the right decision, hehe you can never be too thorough with the key levels!