rhf_fx

Gold 180 pips Sells Breakdown 06/10/2020

FX:XAUUSD   Gold Spot / U.S. Dollar
A few hours ago, price came up to a very important resistance, which is highlighted on the previous gold chart posted.

We started to get multiple rejections from the 1919-20 area so I realised with confirmations, this was a very good selling opportunity.

After the multiple rejections I had seen enough to deduce that there was a very high probability that price would respect the resistance and come down to test support at 1907 and then 1900.

I took my entry on the 15m timeframe as the current candle broke the low of the previous candle which had respected resistance. The reason I entered on this candle was because it completed a liquidity grab up above resistance for price to come down, I have circled this.

My entry was priced in at 1918 due to the market's volatility , the entry was supposed to be as the previous low was broken, my stops were 50 pips at 1923, the reason for the large SL was purely due to the volatility of the market, and the red folder news which was about to come. If there was no news my SL would have been above the wick circled.

My TP was 1900 due to 1900 being a very strong key support zone , which price theoretically had to tap into based on price action and market structure.

The 1907-09 zone was mentioned as a potential rejection zone, I have circled this so partial profits were secured here and price then went down to TP at 180 pips.


This trade had very minimal drawdown and therefore no stress involved at all as we didn't see reds for very long.

Comments

it dropped heavily purely after news in USA. not a genuine technical movement
+5 Reply
rhf_fx qureshb
@qureshb, so by that logic price wouldn't have dropped without the news?
+1 Reply
excellent analysis 💯
Reply
rhf_fx HamQa
@HamQa, thank you
Reply
How low will it go you reckon?
Reply
rhf_fx LVANT2020
@LVANT2020, ended up dropping much further than expected in that period of time
Reply
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