Gold Train Off the Cliff to 1834
Multi Timeframe Analysis
Hint: Overextended, the gold train is about to take a detour down the cliff.
During times of turmoil and war, investors go to gold for safe haven preservation of capital. The precious metal thereby reached a high of 1975. Now it's due for a correction. If you're still going long, you'll be wrecked. My target price is 1834.
Basis:
1. The completed Bearish Anti Cypher harmonic pattern on the Weekly chart is likewise supported by bearish harmonic patterns on the Daily and 4H chart.
2. Similar to BTC, the money flow index had shifted to red
3. Strong support at the 1834 price. A confluence of volume profile and fibonacci derived from the Cypher pattern
4. Overbought on many timeframes.
5. Bearish Consumer Commodity Index, Money Flow Index, Chaikin Money Flow Index and On Balance Volume Hidden Divergence on the Weekly Timeframe.
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Market order position upon the confluence of valid entry rules on the 4H or 1H chart.
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line
Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.
About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow.
Hint: Overextended, the gold train is about to take a detour down the cliff.
During times of turmoil and war, investors go to gold for safe haven preservation of capital. The precious metal thereby reached a high of 1975. Now it's due for a correction. If you're still going long, you'll be wrecked. My target price is 1834.
Basis:
1. The completed Bearish Anti Cypher harmonic pattern on the Weekly chart is likewise supported by bearish harmonic patterns on the Daily and 4H chart.
2. Similar to BTC, the money flow index had shifted to red
3. Strong support at the 1834 price. A confluence of volume profile and fibonacci derived from the Cypher pattern
4. Overbought on many timeframes.
5. Bearish Consumer Commodity Index, Money Flow Index, Chaikin Money Flow Index and On Balance Volume Hidden Divergence on the Weekly Timeframe.
------
Market order position upon the confluence of valid entry rules on the 4H or 1H chart.
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line
Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.
About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow.