Gold is at an interesting crossroad.
It broke through its diagonal support on Friday the 25th of July.
Price is retesting previous support. Does it turn into resistance?
Further confluence is a head and shoulders of the H8 and H12, with the right shoulder coinciding with the retest of the diagonal.
Since I am long gold with my investments, I am hesitant to short gold through my trading business. However, if my pattern is available, I take the trade. This will be a very short term trade - a few days at most if the trade goes in my favour.
Risk/reward = 12.6
Entry price = 3382.5
Stop loss price = 3396.2
Take profit level 1 (50%) = 3230
Take profit level 2 (50%) = 3181
The risk reward is exceptionally high. However, I have taken a more conservative approach with my entry because of my apprehension to short gold. For this trade I will enter at the extreme end of the range in which I will look for entries. This is the reason for such a high RR. It might result in me missing an entry.
It broke through its diagonal support on Friday the 25th of July.
Price is retesting previous support. Does it turn into resistance?
Further confluence is a head and shoulders of the H8 and H12, with the right shoulder coinciding with the retest of the diagonal.
Since I am long gold with my investments, I am hesitant to short gold through my trading business. However, if my pattern is available, I take the trade. This will be a very short term trade - a few days at most if the trade goes in my favour.
Risk/reward = 12.6
Entry price = 3382.5
Stop loss price = 3396.2
Take profit level 1 (50%) = 3230
Take profit level 2 (50%) = 3181
The risk reward is exceptionally high. However, I have taken a more conservative approach with my entry because of my apprehension to short gold. For this trade I will enter at the extreme end of the range in which I will look for entries. This is the reason for such a high RR. It might result in me missing an entry.
Trade active
Trade opened. Moved entry slightly early. Risk reward is now 9.2, which is still exceptionally high but again it is because I have entered on the range extreme. Took a very conservative entry.Trade closed: stop reached
Trade closed at break even. Managed to follow my rules and once again my system protected my capital.
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.
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.