TerryHarmonicTrading
Long

Gold - What is a RSI bamm? How to trade it?

OANDA:XAUUSD   Gold
Hey guys, after an uneventful 2 weeks, I am hoping next week the market sets us up with some quality harmonic patterns .

The top of my list for next week is gold             , where I see a bullish bat completing with a few other key criteria.

1. RSI Bamm present, W structure at oversold, retest the 50 lvl             and now back at oversold
2. Bullish bat completes at channel extreme

I will monitor the H1 chart for a double bottom/ rsi divergence before I go long on it.

I seldom trade Gold             , but when I see a good setup I will take it.

Do not use a pending order, wait for the clues I shared above and enter with precision.

Good luck and good trading guys!

Will be glad to explain anything.
Comment: Price is now stabilizing at the PRZ.

My gameplan:

Wait for the
1.RSI to get out from oversold
2. Price to retest PRZ
3. Wait for candlestick reversal at PRZ
4. Check for RSI divergence in H1
5. Enter
Comment: Price bashed through the PRZ on the 2nd retest, only go long if it goes above 1220. Likely heading further down.
Comment: This is the setup which must complete before I will go long.

I need it to form a inverted head and shoulders pattern and I will buy at the right shoulder.

If this does not happen, Gold will simply fall much further.

snapshot
l like RSI BAMM. Thanks a lot!
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@Charles.Yang, yup this theory is shared in his 2nd book. It is amazing and effective.
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you are one of the best traders in trading view, trading is to lose and gain, losing little and gaining big is the key of successful trader
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GoldHunter GoldHunter
@GoldHunter, I think 1200 is a turning point
snapshot

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@GoldHunter, thanks for the compliments, already a good 2 weeks with no good trades. I feel bad actually. I want to contribute to this community and help other traders. :)
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TerryHarmonicTrading TerryHarmonicTrading
@TerryHarmonicTrading, that is why i set the SL below 1200 as 1200 is a great support level. Allow it some room to breathe.
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GoldHunter TerryHarmonicTrading
@TerryHarmonicTrading, I think c point is invalid because the spike during US election made a new high, am I right ?
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GoldHunter GoldHunter
@GoldHunter, sorry I made a mistake
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@GoldHunter, for a pattern to be invalid, it has to break above point A. In this case, pattern is still valid. Probably takes alot of guts to take this trade. Let's see how the market opens first. I hope it gaps up.
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Hi Terry could you explain what RSI BAMM is?
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@trungle83, It is a condition in the RSI that signifies the end of a trend.

These are the conditions.

1. RSI must be at OB/OS
2. It must form a W or M structure at the OB/OS zone
3. The second peak/trough must be lower/higher than the first
4. Wait for the RSI to hit the 50 level
5. A retest of the OB/OS zone completes the RSI bamm

You can find more info in vol 2 of Scott Carney's book.
Feel free to drop me questions.
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Get in now? I'm in anyway.
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hi terry ,which price will be D point invalid ?
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@KhunHunSein, Pattern will only be invalidated if it hits the stop loss.

Right now price has done the 1st bounce, will monitor the 2nd test of the 1219 level for candlestick reversal or rsi divergence before I enter.
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archtree TerryHarmonicTrading
@TerryHarmonicTrading,

i think the second touch done
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@archtree, The 2nd touch broke below the PRZ zone.

This is the setup which must complete before I will go long.

I need it to form a inverted head and shoulders pattern and I will buy at the right shoulder.

If this does not happen, Gold will simply fall much further.

snapshot
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The_Duke TerryHarmonicTrading
@TerryHarmonicTrading, I wish I'd read your advice here before I took some other advice that Gold was a HUGE buy - which cost me - TWICE!
I like the way you explain the reasons behind your thoughts and pattern recognition and I'll be watching your TV comments and reviews much closer as well as checking out your website, cheers Terry.
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@The_Duke, thanks man, just sharing things I learnt from Scott Carney. Am still a student of this trading game every single day. Watch out for a great education video from me this weekend
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The_Duke TerryHarmonicTrading
@TerryHarmonicTrading, We are all students mate, but you're a few dozen (or hundreds) classes ahead of me :)
Currently watching the week 46 YouTube as we 'speak', and I'll look forward to your next issue.
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@The_Duke, thanks man, this weekend's video will be very useful in your learning. Keep in touch always and feel free to pm if you have any questions.
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This week's report is out, I will cover Gold, DXY and USOIL.

http://www.harmonicforex.com/terrys-weekly-forex-market-report/week48report
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