Prep for the Drop: SELL Gold
Multi Timeframe Analysis
Trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the D1 master trend.
Recommendation:
XAUUSD failed to pierce the previous high of 17580 and continued to trend down on the 4H chart as well as the master Daily trend.
The pair trended upwards from April 13 to 14 correctively due to inflation news. This move is also to trap retail traders into thinking the bearish trend had ended and grab liquidity from their stop losses.
Now we see the pair had started it's move downward again/
Consulting the Commitment of Traders reports last Tuesday, Gold maintains 189k net positions from 167k signifying continued bearish pressure
As the daily and 4H downtrend looks forthcoming, I’m looking at short opportunities.
Take a Short market order position upon the confluence of valid entry rules on the 4H or 1H chart.
Potential take profit is at the Strong Market Structure line which also coincides with the 61.8 fibonacci retracement line- a confluence of events!
Note: I fully expect XAUUSD to drop to 1680, pierce it, and rebound upwards later in the quarter.
-=ENTRY RULES=-
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish. The MACD should have dropped below zero signifying a bearish environment. Price has dropped below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is above the 50 signal line
I publish ideas on this Premium Account : www.tradingview.com/.../TradeassociatesLLC/ Follow me on both channels for updates.
Trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the D1 master trend.
Recommendation:
XAUUSD failed to pierce the previous high of 17580 and continued to trend down on the 4H chart as well as the master Daily trend.
The pair trended upwards from April 13 to 14 correctively due to inflation news. This move is also to trap retail traders into thinking the bearish trend had ended and grab liquidity from their stop losses.
Now we see the pair had started it's move downward again/
Consulting the Commitment of Traders reports last Tuesday, Gold maintains 189k net positions from 167k signifying continued bearish pressure
As the daily and 4H downtrend looks forthcoming, I’m looking at short opportunities.
Take a Short market order position upon the confluence of valid entry rules on the 4H or 1H chart.
Potential take profit is at the Strong Market Structure line which also coincides with the 61.8 fibonacci retracement line- a confluence of events!
Note: I fully expect XAUUSD to drop to 1680, pierce it, and rebound upwards later in the quarter.
-=ENTRY RULES=-
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish. The MACD should have dropped below zero signifying a bearish environment. Price has dropped below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI is above the 50 signal line
I publish ideas on this Premium Account : www.tradingview.com/.../TradeassociatesLLC/ Follow me on both channels for updates.