Despite majority of my analysis are in stocks, I am a forex and commodities trader as well. Gold is one of the assets I love trading the most, an asset that has been very good to me in the past.
What am I watching at this moment?
My approach to trading Gold is something like a swing trading approach, with lots of scaling in to a position. I am usually looking for bounces and breaks from support or resistance lines, retests of Fib levels and moving averages.
Currently, Gold is trying to break it's resistance level which was holding good in the past. Level sitting at around $1976.5-1978. I will be waiting for the break of this price level for entry.
What will happen when the break occurs?
I will be long, for sure. When you look at the H4 chart of XAUUSD pair, you can clearly see makings of HigherLow and HigherHigh's, which are pointing that after a big price decline from ATH, Gold price is finally reversing and becoming bullish.
Stop Loss and Take Profits?
My stop loss will be set right below the previous support level, sitting at around $1972 price level. My take profit level will ultimately be the ATH(all time high) price, sitting at around $2066.
Adding to the position?
If the price of Gold keeps rising, I will surely monitor the charts to see where I will be able to add to my positions. The first area is just around the $1983.5 price level.
Second area, will surely be the break of resistance sitting at $2003 price level, and so on.
Of course, every trade I make or position I take is risk adjusted. I never risk more than 1% of my entire account on any position when it comes to Forex or Crypto.
Of course, as always, please do your due diligence when investing and trading.
What am I watching at this moment?
My approach to trading Gold is something like a swing trading approach, with lots of scaling in to a position. I am usually looking for bounces and breaks from support or resistance lines, retests of Fib levels and moving averages.
Currently, Gold is trying to break it's resistance level which was holding good in the past. Level sitting at around $1976.5-1978. I will be waiting for the break of this price level for entry.
What will happen when the break occurs?
I will be long, for sure. When you look at the H4 chart of XAUUSD pair, you can clearly see makings of HigherLow and HigherHigh's, which are pointing that after a big price decline from ATH, Gold price is finally reversing and becoming bullish.
Stop Loss and Take Profits?
My stop loss will be set right below the previous support level, sitting at around $1972 price level. My take profit level will ultimately be the ATH(all time high) price, sitting at around $2066.
Adding to the position?
If the price of Gold keeps rising, I will surely monitor the charts to see where I will be able to add to my positions. The first area is just around the $1983.5 price level.
Second area, will surely be the break of resistance sitting at $2003 price level, and so on.
Of course, every trade I make or position I take is risk adjusted. I never risk more than 1% of my entire account on any position when it comes to Forex or Crypto.
Of course, as always, please do your due diligence when investing and trading.