Most of my analysis is on the chart.
Gold cleared previous resistance around 1395 with a strong and clear move to the upside.
I like to trade ABCD Patterns, my favorite thing to do is buy and sell the C legs. The first step for me is to have B make a new low or high, which in this case it has made a new high, showing bullish strength.
the next thing is I look for where I can enter on a pull back, In this case we have a nice point of control (red line) where price has been reacting in a bullish manner, I believe there is a lot money sitting there that can give us some sort of move up when/if we come back to this level.
I will be looking for a bullish harmonic patter to complete inside the bullish trendline, and right near that point of control 1392.82. Depending on the pattern I get, I'm going to be using a 15 pip stop give or take,
Take Profit will be for a measured move of the AB Leg, But I'll be watching to see how price reacts just before the D completion because if this plays out for us, We will then have a completed bearish Gartley Pattern. The .786 Retracement of the XA Leg is a spot to watch.
30 pip stop 4:1 Return
15 Pip stop 8:1 Return
-Enjoy
Gold cleared previous resistance around 1395 with a strong and clear move to the upside.
I like to trade ABCD Patterns, my favorite thing to do is buy and sell the C legs. The first step for me is to have B make a new low or high, which in this case it has made a new high, showing bullish strength.
the next thing is I look for where I can enter on a pull back, In this case we have a nice point of control (red line) where price has been reacting in a bullish manner, I believe there is a lot money sitting there that can give us some sort of move up when/if we come back to this level.
I will be looking for a bullish harmonic patter to complete inside the bullish trendline, and right near that point of control 1392.82. Depending on the pattern I get, I'm going to be using a 15 pip stop give or take,
Take Profit will be for a measured move of the AB Leg, But I'll be watching to see how price reacts just before the D completion because if this plays out for us, We will then have a completed bearish Gartley Pattern. The .786 Retracement of the XA Leg is a spot to watch.
30 pip stop 4:1 Return
15 Pip stop 8:1 Return
-Enjoy