A Long Setup In Gold Exploiting An Irregular Correction

FX:XAUUSD   Gold Spot / U.S. Dollar
Some close ratio convergences sit in the trading zone.
I've been really conservative and waited for the initial 1 hour bounce off the area to support the trade.

This is the first time I'm trying to trade the end of an Irregular Correction.
Let's see how it turns out.

The Stop is one cent below the C leg low.
The initial target is at the previous high.
If it turns out to be true, higher highs are expected.
My trade has hit the stop but the setup for the irregular correction is still valid (it has bounced off 1.272 of the b leg now) and to add more synergy to the trade, a butterfly has also formed on the same spot
It's unfortunate that the trade has failed but it's more unfortunate to see such great harmonicity at 1276 has failed.

I hope it wouldn't get to a time that such failures become so common that it wouldn't be possible to trade Fibs at all.

Wish you all the best,
Davood Wadi
IvanLabrie DavoodWadi
Things work until they stop working.
Maybe they really are self fulfilled prophecies, and should the popularity of these patterns and fibs decline, so will their effectiveness?
Just an idea.

On the other hand, I'm looking at the 1250 level for a buy, targetting the recent highs initially.
+1 Reply
DavoodWadi IvanLabrie
The problem of the popularity is that it generates false signals.
You get the setup, get an initial reaction, it starts to rally for a while, then BOOM.
Thanks DW! I do learn a lot from your charts!
+1 Reply
It's an honor for me to be of any help yeru
Price moving lower => Making gold cheaper to buy => Adding to my position with the stop at 1275$ (No interest in the trade if 1275 is breached.)
+1 Reply
Nice, I expect 1350 to 1450 in the near short term.
+1 Reply
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