Hello traders , As I promised yesterday from today , will start to discuss a lot of things for GOLD pattern . Of course , I can’t give you all the info in one day but I think it will be very good practice for all of us to start to discuss a lot of things for the patterns of this metal .
On this example , let’s consider that we are in F position and we are thinking to open trade .
First of all , I will try to draw the trend - we realize we are on downtrend .Then I will see how is the cycle in the canal . For instance on this example the price touch Resistance in A then support on B then again touch Resistance on C . The normal path pattern on that moment is to make me to think the next level is to touch again support D.
So the pattern is going A to B. From B to C and from C to D & D to E .
So the options you have on F position is either to open sell position ( after confirmation ) up to specific value to support zone , or to wait to open Buy from support zone D .
On E position we have break out initially but seems like false break out cause the price decline again below the Resistance zone . On this point , I wouldn’t open any Sell position - I would be waiting to cross the G position and after . As long as I am above the G point , I start to think that we are still in Break out mode - so means that I don’t open any position .
Once we experience consolidation above the Resistance zone - I am waiting for the pullback over Resistance and I open position in the first bullish candlestick ( BUY ).
If this post was helpful for you , please share your comments and like . Thank you .
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.