As I wrote on Twitter yesterday, Gold has possibly made a local bottom, completeing 3rd wave, and with increasing probability a correction (4th wave) is about to start.
Daily:
- Bearish strategic Ichimoku setup is valid until Price is below Kijun Sen and Kumo cloud.
- Heikin Ashi pattern signals possible start of correction. haDelta/SMA3 back above zero line
4H:
- Neutral Ichimoku may easily switch bullish if Price breaks and stays above the thin Kumo. We already have a weak bullish Tenkan/Kijun cross. Price is flirting with Kumo and 100 WMA
- Heikin Ashi has bullish bias and could turn more bullish above Kumo.
- Further confirmation of the counter trend trade idea requires Price breaking 1097, thus Chikou Span making a medium bullish cross above past candles too.
In case of confirmation possible target area is 1120-1130.
The trade idea is against the major trend (swing long only) so start it only with 0,5 trade unit. Conservative traders should wait for 4H break confirmation and rather buy the first pull back, keeping the minimum required 1:2 expected risk/reward ratio. If you enter the trade and Price goes up, don't forget to trail your protective stop.
Daily:
- Bearish strategic Ichimoku setup is valid until Price is below Kijun Sen and Kumo cloud.
- Heikin Ashi pattern signals possible start of correction. haDelta/SMA3 back above zero line
4H:
- Neutral Ichimoku may easily switch bullish if Price breaks and stays above the thin Kumo. We already have a weak bullish Tenkan/Kijun cross. Price is flirting with Kumo and 100 WMA
- Heikin Ashi has bullish bias and could turn more bullish above Kumo.
- Further confirmation of the counter trend trade idea requires Price breaking 1097, thus Chikou Span making a medium bullish cross above past candles too.
In case of confirmation possible target area is 1120-1130.
The trade idea is against the major trend (swing long only) so start it only with 0,5 trade unit. Conservative traders should wait for 4H break confirmation and rather buy the first pull back, keeping the minimum required 1:2 expected risk/reward ratio. If you enter the trade and Price goes up, don't forget to trail your protective stop.