Gold Just Completed a Bearish AB=CD Pattern (To The Pip So Far!)
The price actually came .1 pips away fro, the entry point (GC contract). After a large bullish run it appears to me gold is starting to slow down. I am looking for a chance to enter short based on price action in the 1230-1237 range. I will do my best to update when I have entered. Good luck!
Comment:
Price is now 1234.4 -- this is why you wait for confirmation.
If you waited until now to enter as opposed to having a limit order at the completion point, you have saved yourself more than half of the risk in this trade!
Another way to think about the same point: if you had planned on shorting one contract at the completion point but instead waited, you can now trade two contracts for the same total risk! And if the pattern works out, you will make twice as much for the equivalent risk.
Patience is a virtue as they say. I am still watching for a bearish signal.
If you waited until now to enter as opposed to having a limit order at the completion point, you have saved yourself more than half of the risk in this trade!
Another way to think about the same point: if you had planned on shorting one contract at the completion point but instead waited, you can now trade two contracts for the same total risk! And if the pattern works out, you will make twice as much for the equivalent risk.
Patience is a virtue as they say. I am still watching for a bearish signal.
Comment:
Trade closed manually:
Hit my stop yesterday for a few pip gain (shown in update above). Waiting for the next opportunity which presents itself.
Just noticing the confluence with the Butterfly pattern identified by @neimiyu -- thanks for sharing your chart!