Gold Trading Report
Date: August 15, 2024
Instrument: Gold (XAU/USD)
Timeframe: Daily Chart
Trade Type: Short Position (Pending Order at 2277.50)
1. Market Analysis:
Pattern Observed: An ending diagonal has been identified on the daily timeframe, signaling a potential trend reversal.
Pattern Characteristics: The ending diagonal typically appears in the final wave of a trend, often indicating exhaustion before a reversal. The pattern is characterized by converging trendlines that suggest a weakening bullish momentum.
2. Trade Setup:
Pending Order Placement: A pending short order has been placed.
Entry Level: The order is set at 2277.50, to capture the downside momentum when it start.
Stop Loss: The stop loss is placed above the recent high at 2511.78, to protect against a potential continuation of the bullish trend.
Take Profit: The target is set at 2278.00, ideally at a key support zone or the previous wave low.
3. Risk Management:
Position Size: The position size is calculated to risk no more than 1-2% of trading capital, aligning with proper risk management practices.
Risk-Reward Ratio: Aiming for a risk-reward ratio of at least 1:2, ensuring a favorable outcome even if the trade does not go as planned.
4. Outlook:
Bearish Bias: The ending diagonal suggests a bearish bias, with expectations of a trend reversal upon the pattern's completion. If the breakout occurs as anticipated, there could be significant downside potential.
Market Sentiment: The broader market sentiment is mixed, with gold facing both bullish and bearish pressures. The completion of the ending diagonal could tip the balance in favor of the bears.
Instrument: Gold (XAU/USD)
Timeframe: Daily Chart
Trade Type: Short Position (Pending Order at 2277.50)
1. Market Analysis:
Pattern Observed: An ending diagonal has been identified on the daily timeframe, signaling a potential trend reversal.
Pattern Characteristics: The ending diagonal typically appears in the final wave of a trend, often indicating exhaustion before a reversal. The pattern is characterized by converging trendlines that suggest a weakening bullish momentum.
2. Trade Setup:
Pending Order Placement: A pending short order has been placed.
Entry Level: The order is set at 2277.50, to capture the downside momentum when it start.
Stop Loss: The stop loss is placed above the recent high at 2511.78, to protect against a potential continuation of the bullish trend.
Take Profit: The target is set at 2278.00, ideally at a key support zone or the previous wave low.
3. Risk Management:
Position Size: The position size is calculated to risk no more than 1-2% of trading capital, aligning with proper risk management practices.
Risk-Reward Ratio: Aiming for a risk-reward ratio of at least 1:2, ensuring a favorable outcome even if the trade does not go as planned.
4. Outlook:
Bearish Bias: The ending diagonal suggests a bearish bias, with expectations of a trend reversal upon the pattern's completion. If the breakout occurs as anticipated, there could be significant downside potential.
Market Sentiment: The broader market sentiment is mixed, with gold facing both bullish and bearish pressures. The completion of the ending diagonal could tip the balance in favor of the bears.
Note
Trade Type: Short Position (Pending Order at 2485.64)
Entry Level: The order is set at 2485.64
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.
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.