In this chart I have a very good example by using Stan Weinstein's Stage Analysis method from his classic book Secrets for Profiting in Bull and Bear Markets.
The Gold on the 4H chart
Stage2 is finished when the price did not make a new HH
also the price break the last HL under MA
Stage3 is sterted by retesting the last HL and formed a new LL
Stage4 is started by breaking the last LL under the MA
I have a sell order at 2027.77....
Let us see...
The Gold on the 4H chart
Stage2 is finished when the price did not make a new HH
also the price break the last HL under MA
Stage3 is sterted by retesting the last HL and formed a new LL
Stage4 is started by breaking the last LL under the MA
I have a sell order at 2027.77....
Let us see...
Trade closed: stop reached
So the short is closed with profit ...