XAU/USD Short - 15/30m - Post NY Open - May 16 2023
On the long term bullish 4H PF, price broke and retested a major support turned resistance at NY open. This tells us that gold is bearish despite the news at 8:30 which produced the big jump up. After the retest, price was bound to go down and touch the red parallel which is where we put our TP. Our entry was after price broke the base of the retest to ensure minimum drawdown. The SL was above the retest base to ensure plenty of room if price decides to push up one last time.
Another PF (purple) was drawn for a short term bearish outlook which agrees with the bias of the 4H PF. The major support of the short term PF also agrees with the support of the long term PF which creates our confluence. As seen, there were further break and retests for more trades which is where the second trade was taken.
1st trade was a 1:2 and no partials were taken. 2nd trade was also a 1:2 and was entered on the break of the white dotted line. From here, we can clearly see that price is breaking and retesting supports on the 3D plane. The second trade entry was similar to the first one in the sense that the entry was at the break of the retest base with an SL above the base with the TP being the same place as the first trade. Both hit TP and we can see that price starts to consolidate after signaling a support has been reached.
Another PF (purple) was drawn for a short term bearish outlook which agrees with the bias of the 4H PF. The major support of the short term PF also agrees with the support of the long term PF which creates our confluence. As seen, there were further break and retests for more trades which is where the second trade was taken.
1st trade was a 1:2 and no partials were taken. 2nd trade was also a 1:2 and was entered on the break of the white dotted line. From here, we can clearly see that price is breaking and retesting supports on the 3D plane. The second trade entry was similar to the first one in the sense that the entry was at the break of the retest base with an SL above the base with the TP being the same place as the first trade. Both hit TP and we can see that price starts to consolidate after signaling a support has been reached.