Two setup possible based on harmonic pattern strategy
Updated
Actual condition of market can give us two incredible setup. the first one will be a buy until price reach point D (completion of harmonic pattern) then a short will be possible at the moment price will reach the blue box
to describe better the first setup :
prince bounced strongly on demand zone(red box) meaning buyer has succeed in defending this level. now bears must take profit since they failed to break through this support area, this will engage a continuation of this trend reversal : the bullish momentum should increase
The plan will be to wait for a retest before entering in order to catch the next wave (lower timeframe will be useful for this, ideally h4).
And, If price dont retest there will always have nice trend continuation setup
winning rate of first setup may be around 70% , second setup may be around 90%
Good luck !
to describe better the first setup :
prince bounced strongly on demand zone(red box) meaning buyer has succeed in defending this level. now bears must take profit since they failed to break through this support area, this will engage a continuation of this trend reversal : the bullish momentum should increase
The plan will be to wait for a retest before entering in order to catch the next wave (lower timeframe will be useful for this, ideally h4).
And, If price dont retest there will always have nice trend continuation setup
winning rate of first setup may be around 70% , second setup may be around 90%
Good luck !
Note
this was for tecnical analysis.now if we check the fundamental, we notice fed printed 300 trillion in just on year (till march 2020), representing 20% of total monetary mass according to his politics of "infinite" quantitative easing
since then, the price of gold dropped strongly of 300$. and this is normal since gold have a negative correlation with stock market
however, this dangerous situation of overprinting may cause an hyperinflation or even worst.
we could see more and more people rushing to buy precious metals since the confidence in this system had never been so low
Note
considering all this elements price of Gold is outrageously underevaluated while price of others asset is anormally high.Note
in conclusion : fed printed dollars like if it was toilet paper. what's coming should be nasty.lets have it clear, the situation cannot continue indefinitely. at a moment or another they would have to stop voluntarily or involuntarily(due to an economical collapse)
Now that you got some bribs of how our institutions are destroying our economy step by step, you should consider buy on Gold
I dont think this harmonic pattern will be a long term reversal, gold price should continue rushing. it will onl be a retest of lower lever before a stronger impulse
the 300 trillion dollars printed benefited to GAFAM, 401k of people, and some cryptomorrons. but at the end what will happen is that fiduciary money (paper) must loose its value due to anormal amount of supply.
This scenario took place many times in history , you could take some time to search about this subject its very interesting.
This is time for you to take real decisions concerning your portfolio that must impact your life in the following years.
God bless you
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