Let's look at the 4H time frame of Gold market. Firstly I would like to show you previous trading opportunities which could give good profit. Every time when price broke the signal lines we could open short trades. DMI indicator supported these breakouts and MACD confirmed the downward movements.
Now the price is at the weekly uptrend line. We should be ready to see a price reversal from this zone. The market forms a falling wedge which belong to a reversal group of chart patterns. If the price breaks the resistance line of the wedge, it will be a confirmation for further upward movement. We’ll be able to buy based on the breakout signal. Stop orders should be placed below the previous swing low. Profit targets can be not far from 1300.00 resistance level and the downtrend line.
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The price broke the falling wedge. The price reversal from the weekly uptrend line is confirmed.
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The market tried to drop below the uptrend line, but the bulls were strong and could push the price upward. We have a price reversal from the weekly uptrend line and the buy signal is workable now. Sell orders can be placed below the local swing low.
Thanks for your analysis. Your recent breakout trade ideas (USDCAD & USDJPY) were excellent. The DMI/ADX indicator seems to work well when there is confluence with other key factors e.g. RSI divergence, key structural level... With regard to this idea, the ADX is still showing strongish bearish movement. I also have a bullish view about gold. However, I am hesitant to take the trade because the dollar index is going so strong. Can you please share your thoughts about the DMI setting on this setup and if you consider where the DXY and the stock markets are at when you plan for gold trades? I have learned much from your posts. It would be much appreciated if you could put together an educational piece on breakout trading strategy, in the case of both reversal and trend continuation.
iamlocodoco
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this looks like BTC
fuzzdnb
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If we can close this month higher, so the 7 MA curves back up; then we are "gold".
torukojinnn
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Sir, are we shooting down now upto ? 1260 or 1250?
RicktheScientist
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thanks
tomg10
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thanks
MASOOD1364
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hi. where is your stop loss?
freedom15
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My friend we are forming a huge falling wedge which will result with a price explosion to the upside ! cheers !
DLavrov
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@freedom15, the falling wedge is an additional signal confirming the price reversal from the weekly uptrend line. But the market can break this line any time. We should not forget about it.