Potential Buy Stop at 1878.214
Multi Timeframe Analysis
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Monthly
The pair trended upward until July 2020 and retraced to monthly support at 1781.223. On Dec 2020 XAU impulsed northward but failed to break resistance. Now in range between strong M1 support and resistance
Weekly
The pair continues to range aimlessly since Dec 2020 between the monthly support and resistance. The 20 and 10 period EMA are compressed and directionless
Daily
The pair is likewise trapped in a range below strong daily resistance of 1871.444 as provided by the shaded zones. Because the Monthly chart indicates a weak drive to the upside, we are interested only in a long position after breach of this D1 resistance.
Recommendation
Monitor price action on the 4H chart for bullish ADX, MACD. When the price goes over the D1 20-period EMA you have a potential entry at 1878.214 for a risk free trade to the upside.
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Monthly
The pair trended upward until July 2020 and retraced to monthly support at 1781.223. On Dec 2020 XAU impulsed northward but failed to break resistance. Now in range between strong M1 support and resistance
Weekly
The pair continues to range aimlessly since Dec 2020 between the monthly support and resistance. The 20 and 10 period EMA are compressed and directionless
Daily
The pair is likewise trapped in a range below strong daily resistance of 1871.444 as provided by the shaded zones. Because the Monthly chart indicates a weak drive to the upside, we are interested only in a long position after breach of this D1 resistance.
Recommendation
Monitor price action on the 4H chart for bullish ADX, MACD. When the price goes over the D1 20-period EMA you have a potential entry at 1878.214 for a risk free trade to the upside.