Gold has a Shooting Star on Daily
Updated
This comes from the basics of Technical Analysis and it is a powerful reversal signal especially if it is supported with a triple top resistance rejetion like in this case. Nevertheless caution is needed as in bigger timrframes Gold is in liftoff status. That means that if it doesn't unfold immediately(Wednesday tops) as it should then your stop will be used from the long term buying pressure as a propulsion fuel for the rocket.
Stop at last high and target the golden EMA(at or <$1200). Move stop to break even when Reward=Risk is strongly advised.
Stop at last high and target the golden EMA(at or <$1200). Move stop to break even when Reward=Risk is strongly advised.
Note
An update was due since Wednesday with this idea about the immediate unfolding. Well it isn't unfolding as it should. Of course it isn't only just in parameters but also in green most of the time. There are now proven solid foundations that still make the trade attractive and in the end it may be proven right but as long as there is the element of doubt it's no good for me.
And now I seriously doubt the resistance and dat Friday's shooting star to hold against the gigantic buying pressure of MN timeframe. Price should had already run down crying but so far there is methodical consumption of the very range the shooting star candle defined.
In conclusion my take is that this is another example of Technical Analysis fallacy and that now the scenario is changing to what I mentioned in my initial statement and I quote:"...your stop will be used from the long term buying pressure as a propulsion fuel for the rocket".
Hint: Today's candle looks like(it is) a rocket
Trade closed manually
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