Trade Setup for Descending Channel in XAU/USD (Gold)
**📉 Bearish Trade Setup (Sell Strategy)**
Since the price is trending within a descending channel, the best trade approach is to **sell at resistance** and **target support levels**.
**📌 Entry Points:**
🔹 **Sell Entry #1:** Near the upper boundary of the descending channel (~3,020 - 3,030).
🔹 **Sell Entry #2:** If price retests and fails to break above the 21 EMA (~3,015 - 3,018).
**🎯 Target Levels (Take Profit - TP):**
✅ **TP1:** 3,000 (Psychological level and lower channel support)
✅ **TP2:** 2,980 (Next major support zone)
✅ **TP3:** 2,960 (Extended target if the trend continues)
**🔒 Stop Loss (SL):**
🚨 **SL Above 3,035-3,040:** If price breaks out above the descending channel, it invalidates the setup.
**📊 Trade Confirmation:**
✅ **EMA Rejection:** Watch for price rejecting the **21 EMA (Blue Line)** as resistance.
✅ **Volume Analysis:** Look for increased selling volume when price approaches resistance.
✅ **Bearish Candlestick Patterns:** Such as **bearish engulfing, shooting star, or evening star** near resistance.
**📈 Alternative Bullish Setup (If Trend Breaks Upward)**
If price **breaks above 3,040 with strong volume**, it could signal a trend reversal. In this case:
🔹 **Buy Entry:** After a confirmed breakout & retest above 3,040.
🎯 **Targets:** 3,060 - 3,080.
🚨 **SL:** Below 3,030.
**Conclusion:**
🔻 **Primary Strategy: Sell on Rallies within the Channel.**
🔺 **Alternative Plan: Wait for a Bullish Breakout Before Buying.**
📉 **Stay disciplined with Stop Loss & Risk Management!*https://www.tradingview.com/x/eIpoUy1f/
**📉 Bearish Trade Setup (Sell Strategy)**
Since the price is trending within a descending channel, the best trade approach is to **sell at resistance** and **target support levels**.
**📌 Entry Points:**
🔹 **Sell Entry #1:** Near the upper boundary of the descending channel (~3,020 - 3,030).
🔹 **Sell Entry #2:** If price retests and fails to break above the 21 EMA (~3,015 - 3,018).
**🎯 Target Levels (Take Profit - TP):**
✅ **TP1:** 3,000 (Psychological level and lower channel support)
✅ **TP2:** 2,980 (Next major support zone)
✅ **TP3:** 2,960 (Extended target if the trend continues)
**🔒 Stop Loss (SL):**
🚨 **SL Above 3,035-3,040:** If price breaks out above the descending channel, it invalidates the setup.
**📊 Trade Confirmation:**
✅ **EMA Rejection:** Watch for price rejecting the **21 EMA (Blue Line)** as resistance.
✅ **Volume Analysis:** Look for increased selling volume when price approaches resistance.
✅ **Bearish Candlestick Patterns:** Such as **bearish engulfing, shooting star, or evening star** near resistance.
**📈 Alternative Bullish Setup (If Trend Breaks Upward)**
If price **breaks above 3,040 with strong volume**, it could signal a trend reversal. In this case:
🔹 **Buy Entry:** After a confirmed breakout & retest above 3,040.
🎯 **Targets:** 3,060 - 3,080.
🚨 **SL:** Below 3,030.
**Conclusion:**
🔻 **Primary Strategy: Sell on Rallies within the Channel.**
🔺 **Alternative Plan: Wait for a Bullish Breakout Before Buying.**
📉 **Stay disciplined with Stop Loss & Risk Management!*https://www.tradingview.com/x/eIpoUy1f/
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.