Gold correcting as projected

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
87 2 0
I was looking for a correction/consolidation for Gold             and we see this correction currently in progress. For my previous post see below:

I like to see a bullish break out for a buy opportunity with target the upper non horizontal trend line as shown by means of the green arrow.



Gold didn't give us the buy signal. I mentioned the lower time frames yesterday in terms of an aggressive buy entry. This was perfect for day trading but one of the rules I always use is that this trade shouldn't result in a loss anymore due to the clear structure and channel. I didn't give that buy signal here on Tradingview because that kind of trades need real time trade management. However the test of the upper channel line should have been the sign to either take profit and wait for the break or move stop loss to break-even.

I will elaborate on these kind of strategies and entry signals on my website next month.
The key for now is to understand the possible change in short term structure. We see price still within the channel and therefore can be considered corrective. However I personally think something else might be going on due to the new leg lower. In terms of wave patterns we see 5 waves lower within the channel. 5 is an impulsive number and this 'Flag' might very well be a leading diagonal for the next impulse lower. We were looking for a continuation lower of larger degree, I only wanted to see a last leg higher to test the upper trend line which is based on the daily time frame. But in trading we have to adjust to the situation and not all trades present an ideal set-up.
What my plan will be is wait and see how this current move unfolds on the 4 hour time frame. If we see indeed a 5 wave pattern lower within the channel followed by a 3 wave correction I think the next move will be lower towards 1020 or maybe 1000.

I will update Gold once the structure shows a clear direction in terms of what's next. Selling low is not what I am interested in and therefore I let gold go for now waiting for more clarity and a high probability trade.

Keep an eye on Gold, the consolidation might be close to its end. Lower time frames presented more aggressive entry.
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