Gold - Can it get to $2000 ? Using price to help your accuracy
Gold on the higher time frames has been in an ascending channel after its parabolic rise of late. Many traders are hoping for it to get the the $2000 mark which can make for exciting times for the yellow metal but as traders we shouldn't get caught up in the emotion of this occurrence.
It's easy to jump into a move too early especially when we have a bias for any financial instrument we are looking to trade, but its this euphoria that can cause a lot of damage to traders because they don't want to be wrong and they stay in a trade with their heart and shut off their head telling them that they should get out.
Only once the trade has ended do we clearly see the signs.
So with this said, we have been watching Gold very closely of late and tried to do a number of things that can help your probability.
Once we know the general direction and structure of the current market environment we can go down to our lower time frames like the 15 Minute chart to see the price action up close, because its the lower time frames that can really help with your accuracy.
Accuracy is very important because even if your wrong you wont have to throw a lot of pips away in the process to see if your analysis was right. Also the lower time frames can really help you see smaller price patterns that the higher time frames sometimes can't.
As you can see from the chart, price made its way down to the previous lows and rejected higher creating a triple bottom structure. What we liked about this area was in the way price got there because price also formed a bullish 3 drive pattern on its way down to the triple bottom low showing a pattern within a pattern with both indicating continuation to the upside you can see on the higher time frames.
When trading, the more signals we can see lining up together the greater the conviction that price can go in that direction and in this case we saw price continue in its uptrend for a manageable profitable trading opportunity.
It's easy to jump into a move too early especially when we have a bias for any financial instrument we are looking to trade, but its this euphoria that can cause a lot of damage to traders because they don't want to be wrong and they stay in a trade with their heart and shut off their head telling them that they should get out.
Only once the trade has ended do we clearly see the signs.
So with this said, we have been watching Gold very closely of late and tried to do a number of things that can help your probability.
Once we know the general direction and structure of the current market environment we can go down to our lower time frames like the 15 Minute chart to see the price action up close, because its the lower time frames that can really help with your accuracy.
Accuracy is very important because even if your wrong you wont have to throw a lot of pips away in the process to see if your analysis was right. Also the lower time frames can really help you see smaller price patterns that the higher time frames sometimes can't.
As you can see from the chart, price made its way down to the previous lows and rejected higher creating a triple bottom structure. What we liked about this area was in the way price got there because price also formed a bullish 3 drive pattern on its way down to the triple bottom low showing a pattern within a pattern with both indicating continuation to the upside you can see on the higher time frames.
When trading, the more signals we can see lining up together the greater the conviction that price can go in that direction and in this case we saw price continue in its uptrend for a manageable profitable trading opportunity.