XAUUSD push lower to 1710.00 handle
Updated
Hi all,
Damn it's been a while, I'm back (hopefully) LOL
This trade will be a pending order and my entry is as illustrated on the trade idea.
My explanation:
The last few days XAUUSD has been creating this downwards moving ranging pattern which you can easily identify HH/LL/HL/LH etc.
On the daily timeframe what I had done is taken my fibonacci tool and drew it from 1680.00 handle and 1834.00 handle, this is so that the % pullbacks are easily identifiable on a bigger timeframe, we have also identified a liquidity zone/psychological price zone @ 1740.00 which aligns up perfectly with my 64.8% fib level, over the years the 50% and 64.8% fib level has shown great strength which indicates to market traders that this is an area of interest for financial banks and institutions.
We also use the 50 moving average and the 200 moving average to show us momentum within trends and negative/positive markets, on the hourly the 50 moving average also aligns up with the 64.8% fib level / key price zone (1740.00) and liquidity zone all in one go.
This gives me enough understanding/reasoning to short this trade at 1740.00 with a decent RR.
Entry: 1740.00
Stop loss: 1743.521 (35 pips)
Take profit: 1710.00 (300 pips)
These are my reasonings, I have a good RR ratio and enough confirmations to be confident with this trade idea.
Thank you
*Please understand, this isn't no financial advise. Just analysis, I would want to share, take at your own risk.*
Saif.
Damn it's been a while, I'm back (hopefully) LOL
This trade will be a pending order and my entry is as illustrated on the trade idea.
My explanation:
The last few days XAUUSD has been creating this downwards moving ranging pattern which you can easily identify HH/LL/HL/LH etc.
On the daily timeframe what I had done is taken my fibonacci tool and drew it from 1680.00 handle and 1834.00 handle, this is so that the % pullbacks are easily identifiable on a bigger timeframe, we have also identified a liquidity zone/psychological price zone @ 1740.00 which aligns up perfectly with my 64.8% fib level, over the years the 50% and 64.8% fib level has shown great strength which indicates to market traders that this is an area of interest for financial banks and institutions.
We also use the 50 moving average and the 200 moving average to show us momentum within trends and negative/positive markets, on the hourly the 50 moving average also aligns up with the 64.8% fib level / key price zone (1740.00) and liquidity zone all in one go.
This gives me enough understanding/reasoning to short this trade at 1740.00 with a decent RR.
Entry: 1740.00
Stop loss: 1743.521 (35 pips)
Take profit: 1710.00 (300 pips)
These are my reasonings, I have a good RR ratio and enough confirmations to be confident with this trade idea.
Thank you
*Please understand, this isn't no financial advise. Just analysis, I would want to share, take at your own risk.*
Saif.
Trade active
Trade closed manually
Trade was closed as it fell and then rose and hit breakeven.
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