Gold broke out of a h4 triangle, came back to the break of structure to retest with a W and rally. Now we can look to buy gold on 1h structure upon bullish price action in this area, using small lot size with tight risk management since SL will need room for the trade to play out. Risk to reward is 1:1.45 if we follow the broken triangle formation rules.
Confluences:
- Gold still has room before reaching next daily zone and daily uptrend channel
- Gold made a strong rejection off triangle formation on 4h
- W pattern made on 1h with broken neckline, wait for retest and determine possible buy
- EMA/SMA cross
- ADX bullish
Two things must happen for this trade to work, price must pullback to retest some type of key level or structure, personally I do not want to chase price and face drawdown. The second thing is a candle reversal pattern must appear on minimum 15m timeframe and 1h would be most reliable.
Disclaimer: I do not want anybody to take this trade based only off my analysis, please do your own analysis as this is a learning experiment to hold myself accountable for trade ideas and learn the markets in the process. Constructive feedback is always welcome, we should create an environment where we can all learn form each other, since we all strive for the same goal of financial freedom. Happy trading everybody!
Confluences:
- Gold still has room before reaching next daily zone and daily uptrend channel
- Gold made a strong rejection off triangle formation on 4h
- W pattern made on 1h with broken neckline, wait for retest and determine possible buy
- EMA/SMA cross
- ADX bullish
Two things must happen for this trade to work, price must pullback to retest some type of key level or structure, personally I do not want to chase price and face drawdown. The second thing is a candle reversal pattern must appear on minimum 15m timeframe and 1h would be most reliable.
Disclaimer: I do not want anybody to take this trade based only off my analysis, please do your own analysis as this is a learning experiment to hold myself accountable for trade ideas and learn the markets in the process. Constructive feedback is always welcome, we should create an environment where we can all learn form each other, since we all strive for the same goal of financial freedom. Happy trading everybody!