GOLD👑 (XAUUSD) KEY LEVEL TO WATCH 👀AND WHY 15 MAY
Traders, in order to buy and sell, make decisions based on price history and use patterns to identify future price movements.
Successful pattern trading requires the acknowledgement of identifying trends, consolidations, support resistance levels and reversal to place stops and targets to forecast price movements.
Here i will discuss one of the key reversal patterns and present you examples of them:
The basic ABC pattern has been a continually reliable trading signal.
The ABC Chart pattern comes into many other patterns. If you look at the Elliott Wave, the beginning form of 0, 1, 2, (0A, 1B, 2C). The ABC is also named 1-2-3 waves. The ABC—exists in other patterns such as Gartley or the AB=CD, and can also be found in pennans, triangles, rectangles, head and shoulders, double tops, double bottoms.
Anybody can learn how to recognise this ABC pattern and then trade it. They can actually use this knowledge to create a dozen more patterns because of its basic structure, which exists in a dozen or so patterns.
Traders would be able to use the ABC Patterns knowledge in all market conditions across the board. That’s the critical part of trading success.
When you identify the ABC pattern, you can embed it into other patterns surrounding it. Those are the patterns. For example, the pattern with the highest success rate that I’ve got in my research is the 121 pattern, which is like two ABC one after the other . The 121 can be a continuous or reversal pattern, and when it forms, the success rate is high.
The ABC is one of the superior patterns to trade.
ABC BULLISH PATTERN
See example below:
another example fiferent market
Like I mentioned above, we can embed the ABC into other patterns surrounding it.
For example:
The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. These "Harmonic" patterns help traders to identify buying and selling opportunities in all markets and in all time-frames.
The AB=CD
Example below :
OK, you may be getting overwhelmed by these patterns.
Let's talk about DXY and why?
One of the most popular indices to watch for gold investors is DXY.
We all know or at last the majority of traders can use DXY in correlation with Gold, this means: if Gold price goes down, DXY price goes up.
Let me put this into context...
Yes, more patterns...
DXY Double Bottom:
Gold AB=CD Bearish
We have identified our patterns and their correlation with other markets.
Here, the analysis of gold could be beneficial in order to forecast the price movement.
Let's take it further... what about relative to Gold? What other market could help us put everything in context here?
HUI: again one of the most popular indexes to watch for gold investors, but different to DXY.
HUI which consists of a basket of 15 gold mining stocks. The index is positively correlated to gold.
This means if Gold goes down, HUI goes down.
What do we have with HUI in terms of patterns?
Well, since HUI relatively correlates in a similar manner, the price structures are very similar.
HUI Chart Below:
HUI chart we can identify a 121 pattern emerging, basically 2 abcs one after the other, with a price completion zone around 200.
​Let's take it further:
Silver 121 emerging below
This is my conclusion to look for beariness in gold next week from 15 may 23'
Gold AB=CD Bearish,
DXY Double Bottom
HUI 121 Emerging
Silver 121 Emerging
Successful pattern trading requires the acknowledgement of identifying trends, consolidations, support resistance levels and reversal to place stops and targets to forecast price movements.
Here i will discuss one of the key reversal patterns and present you examples of them:
The basic ABC pattern has been a continually reliable trading signal.
The ABC Chart pattern comes into many other patterns. If you look at the Elliott Wave, the beginning form of 0, 1, 2, (0A, 1B, 2C). The ABC is also named 1-2-3 waves. The ABC—exists in other patterns such as Gartley or the AB=CD, and can also be found in pennans, triangles, rectangles, head and shoulders, double tops, double bottoms.
Anybody can learn how to recognise this ABC pattern and then trade it. They can actually use this knowledge to create a dozen more patterns because of its basic structure, which exists in a dozen or so patterns.
Traders would be able to use the ABC Patterns knowledge in all market conditions across the board. That’s the critical part of trading success.
When you identify the ABC pattern, you can embed it into other patterns surrounding it. Those are the patterns. For example, the pattern with the highest success rate that I’ve got in my research is the 121 pattern, which is like two ABC one after the other . The 121 can be a continuous or reversal pattern, and when it forms, the success rate is high.
The ABC is one of the superior patterns to trade.
ABC BULLISH PATTERN
See example below:
another example fiferent market
Like I mentioned above, we can embed the ABC into other patterns surrounding it.
For example:
The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. These "Harmonic" patterns help traders to identify buying and selling opportunities in all markets and in all time-frames.
The AB=CD
Example below :
Let's talk about DXY and why?
One of the most popular indices to watch for gold investors is DXY.
We all know or at last the majority of traders can use DXY in correlation with Gold, this means: if Gold price goes down, DXY price goes up.
Let me put this into context...
Yes, more patterns...
DXY Double Bottom:
We have identified our patterns and their correlation with other markets.
Here, the analysis of gold could be beneficial in order to forecast the price movement.
Let's take it further... what about relative to Gold? What other market could help us put everything in context here?
HUI: again one of the most popular indexes to watch for gold investors, but different to DXY.
HUI which consists of a basket of 15 gold mining stocks. The index is positively correlated to gold.
This means if Gold goes down, HUI goes down.
What do we have with HUI in terms of patterns?
Well, since HUI relatively correlates in a similar manner, the price structures are very similar.
HUI Chart Below:
HUI chart we can identify a 121 pattern emerging, basically 2 abcs one after the other, with a price completion zone around 200.
​Let's take it further:
Silver 121 emerging below
This is my conclusion to look for beariness in gold next week from 15 may 23'
Gold AB=CD Bearish,
DXY Double Bottom
HUI 121 Emerging
Silver 121 Emerging
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