Gold: Trend Reversal and 2000$ As Reachable Target

If you trade Gold, you have an amazing opportunity to catch a possible trend reversal based on a very solid reversal pattern. I'm talking about the double bottom, which gives the exact entry point. If we follow this pattern, the breakout above the local swing high between 2 swing lows will give a trade opportunity.

But I would like to combine this pattern with MAs and the descending price channel in order to get additional bullish signals supporting a new bullish trend.

So, how to trade?
If the price breaks SMA50 and the main downtrend line, it will give 2 bullish signals. The breakout can be used for buying with stop orders below the local swing low and the profit target at SMA200 and 2000$.

If the price bounces from 1670$ one more time, it will be possible to open long positions using the reversal setup. Stop orders for such trades have to be placed below the support and the local swing low. We will use the same profit targets.

Search for exact trade setups using the daily and hourly timeframes. Risk per trade must be no more than 2% of the capital.

By the way, could you catch an amazing reversal from 1670$ support? That trade opportunity had to be clear for those who had spent time and efforts to get knowledge about trading! I hope you did it and now you have a very good profit!



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.

Comment:

With the right knowledge, you could catch this trade from the support!
With 2% risk per trade, you would make 8% of the profit!
The question is, do you have such knowledge which allows getting benefits from such and other trade opportunities?