This is the movement I want to see before trading XAUUSD
XAUUSD is one of my favorite assets to trade alongside S&P500, Crude oil, and BTC.
I'm interested in the current zone because we are on the upper level of the range where the price has been moving since May 2021. It's from this type of situation where we tend to observe reversal movements or breakouts of the level for further bullish movements.
The filters I'm working on are for bullish continuations, which I want to see before trading.
a) Clear breakout of the current resistance level
b) After that, I want to see a 14 days correction, as you can see on the circle.
c) IF that happens, I will trade (maybe on a new local high) towards the next resistance level (previous all-time high); the expected risk to reward ratio of a setup like this can be around 2 to 2.5.
Now, I will wait for the price to fulfill my filters, and if that happens, I will trade. If that doesn't happen, I will stay on the sidelines.
Thanks for reading! Feel free to share your view and chars in the comments.
I'm interested in the current zone because we are on the upper level of the range where the price has been moving since May 2021. It's from this type of situation where we tend to observe reversal movements or breakouts of the level for further bullish movements.
The filters I'm working on are for bullish continuations, which I want to see before trading.
a) Clear breakout of the current resistance level
b) After that, I want to see a 14 days correction, as you can see on the circle.
c) IF that happens, I will trade (maybe on a new local high) towards the next resistance level (previous all-time high); the expected risk to reward ratio of a setup like this can be around 2 to 2.5.
Now, I will wait for the price to fulfill my filters, and if that happens, I will trade. If that doesn't happen, I will stay on the sidelines.
Thanks for reading! Feel free to share your view and chars in the comments.