Fib study not included in published chart...will try and re post. Further to my ongoing posts re. XAUUSD, here is today's 30m chart on the yellow stuff. Two sessions ago I suggested I might be inclined to short a count trend rally back into resistance. At that point I made reference to the OTE Short Sweet Spot (or a 70.5% retracemnt of the previous move). After making a move to lower lows gold did indeed bounce right back up to both the current OTE Short sweet spot (1242) but also ran to the trend line. At this point she seems to have stalled and I am waiting for some sort of price pattern to emerge to trade off. Once could have blindly sold the OTE ss level (and you would have taken a total of $10 heat) but I personally like to have a price pattern to short against (like the last short setup was off a H&Sh). Regardless, the bounce has come and it is once again time to get very interested in the short side of gold again.
Comments
isomorph
⋅
got you, thanks. not to nitpick because not sure if it was a typo: 62.8% and not 61.8%; 76.8% and not 78.6%? why the diff?
CRInvestor
⋅
lol...you're right...its been a long day and just typed that quick....good catch though
isomorph
⋅
i got a couple of questions for you:
1- what is OTE and SS?
2- why don't you consider the RSST cluster in the 1254.0/1258.0 area as a potential starting point for your short? (just looking at how the market is behaving after each single pull back up (basically goes into range until the next jump up and no reversing as of yet (15.00 EST) it seems that the bullish pressure hasn't quite exhausted itself yet)
CRInvestor
⋅
1. OTE SS stands for Optimal Trade Entry Sweet Spot and is the mid point of the 62.8 to 76.8 Fibs......Of course I see TradingView has forgotten to include that Fib study.....ugh...nothing I can do about that but repost....
2. There are a million different 'things to consider' in this game. Is this model I use 100% accurate....NO....and certainly no claims by myself to that effect. The way I see gold atm, if one was to 'day trade' it, one has to pick levels to trade against. Clearly this is a trade against the 1254.65 highs not being broken. And as with all trades, reward to risk is always an issue.