The upper gap is still wide open, the potential for gold to rise to 3330 to close the gap is very large, on small timeframes the base is formed, and if we pull back in this area a base is also formed, this is the characteristic of gold that I have observed for a long time, if there is a base drop at past prices then at this price the base rallies, most likely after this base is a rally as well, this illustrates the analogy as if the market traps traders who are against the direction with the formation of the base then he will take the opposite direction but the increase is still far away. But it's quite tricky too because usually it doesn't immediately break the base but there will be a fake breakout first upwards even though the direction is indeed upwards but the price is made as if he fake breakout upwards and invited the sellers to counter trend first.
to overcome this I take a buy stop or buy on strenght to let the price make a fakeout to the top first or can take a buy in the middle of the base area.
Buy stop
3290
SL: 3270 (200 pips)
TP: 3330
to overcome this I take a buy stop or buy on strenght to let the price make a fakeout to the top first or can take a buy in the middle of the base area.
Buy stop
3290
SL: 3270 (200 pips)
TP: 3330
Trade closed: target reached
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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.