GOLD (XAU/USD) | Approaching the Selling area!
Hi,
The Gold price has started to approach one of the possible short-term reversal areas. Several criteria matching each other and they make up a crossing area.
At the moment, the XAU price is trying to break above the down-trendline which is pulled from this year's high (red dotted line). It is great because, then the breakout momentum may drive the price to the high-probability reversal area and we may get another criterion to the list - retest the trendline...
Here are the criteria:
1. Fibonacci retracement 38%
2. Fibonacci retracement 62%
3. Minor black trendline, waiting for a third touch.
4. 2x AB=CD
5. The orange horizontal line is a super-strong support level which now becomes a super-strong resistance level.
6. Just a little bit above the apex is channel projection (blue lines)
7. Fibonacci Extension 127%
8. ...and the round number 1,500.
9. As said, after the break above the down-trendline we may get another criterion. If the price breaks above the important trendline then usually it has a tendency to retest those breakout areas. So, the red area should be good enough to go back down to retest that trendline.
10. Wait for a bearish candlestick formation from the marked area. It increases your success rate enormously. Yes, you may get much fewer trades but they are also much more successful and wait for those patterns 4H+ timeframes.
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Happy holidays,
Vaido
The Gold price has started to approach one of the possible short-term reversal areas. Several criteria matching each other and they make up a crossing area.
At the moment, the XAU price is trying to break above the down-trendline which is pulled from this year's high (red dotted line). It is great because, then the breakout momentum may drive the price to the high-probability reversal area and we may get another criterion to the list - retest the trendline...
Here are the criteria:
1. Fibonacci retracement 38%
2. Fibonacci retracement 62%
3. Minor black trendline, waiting for a third touch.
4. 2x AB=CD
5. The orange horizontal line is a super-strong support level which now becomes a super-strong resistance level.
6. Just a little bit above the apex is channel projection (blue lines)
7. Fibonacci Extension 127%
8. ...and the round number 1,500.
9. As said, after the break above the down-trendline we may get another criterion. If the price breaks above the important trendline then usually it has a tendency to retest those breakout areas. So, the red area should be good enough to go back down to retest that trendline.
10. Wait for a bearish candlestick formation from the marked area. It increases your success rate enormously. Yes, you may get much fewer trades but they are also much more successful and wait for those patterns 4H+ timeframes.
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Happy holidays,
Vaido
Trade stängt: Stopp nått:
Here is a perfect example of - WHY you should wait for a bearish candlestick pattern!