In the last video review on Gold, we posted why we think that price will drop in the early period of trading using Price-Volume analysis and we seem to get it right.
Price ,held below 1375, dropped which gave us an opportunity to access our position ( we sold at 1355).
We therefore have a decision to make. Close our position or hang on.
We have this strong bias that price will fall to 1300 and 1250 at a very near time. We adjusted our SL to 1365 as we await which of the scenarios below will be satisfied.
Let me present two scenarios.
The chart above shows a complete ending diagonal pattern with a truncated 5th wave. We have this some of the times and given that price is overbought, a proper break below will be required to join the bearish move.
On the other hand, price could rally as the 5th wave tries to break above the ending price level of the third to give an ''non-truncated'' 5th wave as the chart below indicates.
The rally should be held below 1386 and 1390. Any break above will invalidate the pattern and we have to drop and re-analyze.
If price gets to this level, we will set other trading tools in motion as we be more aggressive in our entry in order to get a very good R/R,minimum of 1:3.
A conservative approach will be to wait for a proper break out of price below the diagonal support line.
Patience is required in trading and we will hope we have enough of it.
Please drop your comment, let's know your view. You can also post your own charts and we discuss together.
You can share this post with your friends using the social media share icons below.
Thank you and have a happy trading.
Price ,held below 1375, dropped which gave us an opportunity to access our position ( we sold at 1355).
We therefore have a decision to make. Close our position or hang on.
We have this strong bias that price will fall to 1300 and 1250 at a very near time. We adjusted our SL to 1365 as we await which of the scenarios below will be satisfied.
Let me present two scenarios.
The chart above shows a complete ending diagonal pattern with a truncated 5th wave. We have this some of the times and given that price is overbought, a proper break below will be required to join the bearish move.
On the other hand, price could rally as the 5th wave tries to break above the ending price level of the third to give an ''non-truncated'' 5th wave as the chart below indicates.
The rally should be held below 1386 and 1390. Any break above will invalidate the pattern and we have to drop and re-analyze.
If price gets to this level, we will set other trading tools in motion as we be more aggressive in our entry in order to get a very good R/R,minimum of 1:3.
A conservative approach will be to wait for a proper break out of price below the diagonal support line.
Patience is required in trading and we will hope we have enough of it.
Please drop your comment, let's know your view. You can also post your own charts and we discuss together.
You can share this post with your friends using the social media share icons below.
Thank you and have a happy trading.
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