- Gold/USD is showing continual downward pressure finishing a ABC of the ABCD Fibonnaci pattern. Its currently held up in a Cumulus Cloud formation but moving lower (which has turned to a bullish stratus, sign of indecision & consolidation) - The C of the ABCD peaked just above the 61.8% Fib level and is now moving down to its previous low - We have confluence on the D level from March of 2015 - A break of the previous low Fractal @ 1175.53 will confirm the Downward pressure we are monitoring - Short term downside target of $1150.00
Stop loss? Looks interesting but I can't tell what signals you have had in the past with this methodology. Were you buying the pullbacks into A? Were you selling the rallies into C? I'd love to know more.
KingdomRichOffical
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Hi Tim! I'm currently not in a trade on the Gold/USD as of yet, it has to breakout of the Cloud first before I actually enter. However if I were in the market, my stop would be above the Kijun-Sen (not shown) of the Ichimoku system. So the ABCD pattern is an alternate use of the Fibonacci Retracement indicator. A&B are drawn from the high to low (normal use of the Fib retracement). C is the 50% to 61.8% and if price is haulted there I am expecting price to move to D. D is a -27% or -61.8% extension
I trade the Ichimoku as a stand alone system. The ABCD pattern as a Forecasting guide to plot risk to reward etc. With the D area I look for confluence for hire chance of profitability.