Part 1. Let's just say Gold is going down...What next?
Let's just ignore the fact that Gold may or may not bounce up from here but focus on high probability areas to exit if we're holding positions right now OR we're looking for areas to enter that provide the best risk to reward.
In this chart, I've kept it simple but there are plenty of clues to giving us that extra bit of juice to pin point those levels with high probability.
For this chart i've used a simple Harmonic AB=CD pattern, Fibonacci Ratio Analysis and good old trend line and structural analysis.
At a high level, we can already pinpoint several zones where there is strong ratio confluence. If you're trading multiple contracts with the intent of securing profits at various price levels, then these ratio levels can provide some additional support.
As always...dig down into the 4 hour and 1 hour charts for more price action analysis.
Have a great day
If we want to take it to the next level, we can start applying advanced patterns that will enable us to build a stronger case for entry/exit.
**See my idea on XAUUSD 4 Hour Chart**
In this chart, I've kept it simple but there are plenty of clues to giving us that extra bit of juice to pin point those levels with high probability.
For this chart i've used a simple Harmonic AB=CD pattern, Fibonacci Ratio Analysis and good old trend line and structural analysis.
At a high level, we can already pinpoint several zones where there is strong ratio confluence. If you're trading multiple contracts with the intent of securing profits at various price levels, then these ratio levels can provide some additional support.
As always...dig down into the 4 hour and 1 hour charts for more price action analysis.
Have a great day
If we want to take it to the next level, we can start applying advanced patterns that will enable us to build a stronger case for entry/exit.
**See my idea on XAUUSD 4 Hour Chart**