Last month I was stopped out on a bullish setup on gold, that was looking to get exposure to a new bullish movement above the previous all-time high zone. However, the setup didn't go as expected and my stop loss was triggered. Remember, always let your stop loss gently take you out of the market, and assume that controlled loss. Now is time to redefine the next possible setup I will be taking on the precious metal.
Current context:
a) The price is between a major Support and resistance zone, with inner support & Resistance level.
b) Regarding trendlines we can see two. A bullish trendline, and a bearish trendline. Both represent the levels where we can start thinking about new setups. In the meantime, while the price is between them, I will avoid trading.
Let's understand the possible two swing setups I'm interested in taking.
Bearish Setup:
Bullish Setup:
As you can see, both scenarios wait for the breakout of the descending trendline, followed by a retest. Positions get open on a new high/low. Stop loss is defined on the high/low of the retest. Target is defined on the next major support/resistance zone. All of them provide a risk to reward ratio above 2.
At the moment none of the two scenarios is defined, and patience is a key element to apply here. AVOID trading, if the price is not following the filters you have defined. That will help you improve the quality of the setups you get exposure to.
Thanks for reading!
Current context:
a) The price is between a major Support and resistance zone, with inner support & Resistance level.
b) Regarding trendlines we can see two. A bullish trendline, and a bearish trendline. Both represent the levels where we can start thinking about new setups. In the meantime, while the price is between them, I will avoid trading.
Let's understand the possible two swing setups I'm interested in taking.
Bearish Setup:
Bullish Setup:
As you can see, both scenarios wait for the breakout of the descending trendline, followed by a retest. Positions get open on a new high/low. Stop loss is defined on the high/low of the retest. Target is defined on the next major support/resistance zone. All of them provide a risk to reward ratio above 2.
At the moment none of the two scenarios is defined, and patience is a key element to apply here. AVOID trading, if the price is not following the filters you have defined. That will help you improve the quality of the setups you get exposure to.
Thanks for reading!