Breaking down James Storm's trade Breaking down James Storm's 300 pip Gold trade.
This Gold trade is based off of a few important things:
1. Fibb
2. Trendline
3. Key levels of Support and Resistance.
The entrance was stated to be around 1645 and TP target was 1675.
The entrance matches up with the 38.2% Fibb retracement.
Also, check the candles here:
I would almost call the two candles following the drop into this area as a Tweezer Bottom (the second candle close is a bit higher than the first candle's open).
The next candle is an inverted hammer.
This is followed by a Bullish Engulfing.
These four candlestick patterns are all potential indicators of Bullish movement ahead AND that the bears are losing out. Shorts are leaving the game and Buys are entering.
Why would 1675 be a good potential TP?
Several reasons:
1. It's the -27% Fibb target
2. It's the upper side of a strong level of Support and Resistance
3. It's a clean round number in an increment of 25. Gold often likes 25, 50, 75, and 100.
Bro's a fantastic trader.
