Fairly simple analysis, gold has landed on a weekly demand level (Rally Base Rally) with an awesome fakeout that most likely suckered in bears. I am entering at the .50% fib as I always do. Confluence: - Daily Support -BreakOut Trap -Weekly Demand Level -Under the market mean (20 and 10 MA) It's all about probability! Enjoy!
This is a wonderful chance to catch some nice profit! Looking at a conservative 1:3 Risk:Reward ratio; I am willing to move my TP to a 1:4-6. Entered at the .50 retracement of the daily rejection candle of the past highs (highlighted in circle). Remember guys, this game is all about probability and simplicity! Enjoy!
This chart is a great example as to why you must remain objective as possible when trading. Trade what you see and not what you think. The current trend is heading downwards, however it doesn't mean we can not catch a reversal highlighted on my chart. Price looks like it's heading towards weekly supply to get more steam; either way profits can be made!
Getting in at the .50 fib retracement. Bulls seem to be defending this support so I will be joining the party. -Potential Head and Shoulders -Clear defined Pinbar rejected from support -7 week bull run -Potential triple bottom on the monthly time frame -Bottom of the range 1:17 RR... 1:5 RR MINIMUM (targeting lower high)
With a weekly bias in favor of the bulls. I do not mind taking this trade at all. -Monthly Bias (Bullish) -Weekly Bias (Bullish) -Bullish Hammer/Pinbar off of broken resistance now made support -Closed above Mean Looking at a 1:5 RR which isn't bad. If the market decides to push further I do not mind looking at a 1:11 RR.
Starting from now on I am going to start getting into detail as to why I am taking these trades. 1. Weekly Rejection 2. Failed inverse head and shoulder 3. Mean Reversion 4. REJECTION On a serious note, if prices are being rejected with a confluence of many other factors, the odds are in the favor of sellers. Now, this isn't a guaranteed winning trade. Anything ...
I have been watching the stock market for a very long time and seeing it's movements is a sight to see. From hearing people getting whipsawed to people losing accounts due to their incompetence. Anyways.... the market can do 3 things. 1. Break highs sucker in bulls and drop like a rock. 2. Drop like a rock 3. Break highs, come back to resistance (beautiful ...