XAUUSD (Gold) is heading towards 1849 due to extended Fifth
Updated
Hi trader,
today I want to discuss a 1:2 RR trade on current XAUUSD movement and my thoughts about why I choose this trade.
Gold's price action is in a clear impulse since we have multiple confirmations for it, just like volume or Fib-Levels that are reacting exactly like they have to react when it comes to an Elliot Wave Impulse.
However, Gold managed to cross the 0.618 extension Fib. This is given due to the fact that wave 1 and wave 3 are nearly equal in length. This usually leads to an extended fifth wave, since one wave has always to be extended.
We broke above 0.618 and managed to close there. So, whats next?
In this case a usual fifth wave target would be the 1.618 extension for wave 5, that is measured from the bottom of wave 1 to the bottom of wave 4.
We are confident with this analysis and chose to long on every dip we see until we reached our target.
This is not financial advice.
RL from RT-Trading
today I want to discuss a 1:2 RR trade on current XAUUSD movement and my thoughts about why I choose this trade.
Gold's price action is in a clear impulse since we have multiple confirmations for it, just like volume or Fib-Levels that are reacting exactly like they have to react when it comes to an Elliot Wave Impulse.
However, Gold managed to cross the 0.618 extension Fib. This is given due to the fact that wave 1 and wave 3 are nearly equal in length. This usually leads to an extended fifth wave, since one wave has always to be extended.
We broke above 0.618 and managed to close there. So, whats next?
In this case a usual fifth wave target would be the 1.618 extension for wave 5, that is measured from the bottom of wave 1 to the bottom of wave 4.
We are confident with this analysis and chose to long on every dip we see until we reached our target.
This is not financial advice.
RL from RT-Trading
Trade closed: target reached
What a trade.
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