GOLD Short

Gold/U.S. DollarFXCM

Description

⋅ Oct 10, 2014 1:59 AM

Overall trend is still down.

There is a resistance zone in H4 (not key from daily perspective) where there were multiple rejections - look at the three bearish pin bars.

Waiting for a re-test of the recent pin bar to go short. Logical place for SL is above 1240.

Comments

TimDj

⋅ Oct 13, 2014 6:17 AM

dear, what target?

Casey_Yeo

⋅ Oct 13, 2014 7:13 AM

Will decide my target once I got the sell signal to short. Most likely slightly above the key support zone.

veronica75

⋅ Oct 10, 2014 4:04 AM

Thanks Casey!

veronica75

⋅ Oct 10, 2014 3:07 AM

That make sense. I will look for those directional changes. Do you focus on the daily chart to get these levels and then you drill down to short times, for example 4 and 1 hr?

Thanks Casey!

Casey_Yeo

⋅ Oct 10, 2014 3:14 AM

Start with weekly, then daily. I prefer daily signals but do take H4 as well. Never want to touch H1.

Casey_Yeo

⋅ Oct 10, 2014 2:40 AM

Those two lines are what I believe as key levels. To me, key levels are zones where price reacted and changed directions. When price changes directions, it represents a shift in demand vs supply. Just my thought and belief.
Back to the daily, please observe and note the time taken for price to move down and back up to the same level. It has moved up in less than half the time taken to move down from the same level. That's a warning sign if you intend to short.

veronica75

⋅ Oct 10, 2014 2:04 AM

Casey as I mentioned before, I am on the learning stage of trading, and one of the issues that I have is to identify key support levels. This is a critical part for the pure price action trader. Your advice on how to identify key levels would be greatly appreciated. Have a nice night!