This is my very ambitious gold trade idea.
This may not happen for a while or may not happen at all something could happen that makes this trade invalid before it even starts to develop
So with this trade im still waiting for gold to stop consolidating
There are 6 main points of this trade.
1st point as seen on the chart Gold respects the "flag pattern" i.e bullish and bearish flag as seen the formation of the flag occurs before number 2 happens
2nd a huge bearish impulsive move making the price of gold plummet from around 1950 to 1850 3rd us the start of the consolidation as seen as well the consolidation is forming the bullish flag that caused a huge dump in the price of gold
4th is the very important zone of 0.5 fib not only that but in the higher time frame there is a solid form of resistance in that area i think this could server as a catalyst to push the price of gold to the downside and continue the bearish trend.
5th is the potential break of the bullish flag this could serve as fuel to the fire and cause long traders to finally switch and turn short this will only serve to push the price even lower
6th as many traders know the price of anything cant just push down indefinitely the price will have to retrace and this is where I think the retracement will end it will test the 0.382 fib zone a solid resistance which was once support and the trend line in the higher time frames.
If everything falls into place this trade has a 1-9 risk to reward
But we all know trading isnt this easy to be careful guys
Comment anything you agree with or anything you disagree with feel free to tell me how stupid my analysis is all feedback is welcomed
This may not happen for a while or may not happen at all something could happen that makes this trade invalid before it even starts to develop
So with this trade im still waiting for gold to stop consolidating
There are 6 main points of this trade.
1st point as seen on the chart Gold respects the "flag pattern" i.e bullish and bearish flag as seen the formation of the flag occurs before number 2 happens
2nd a huge bearish impulsive move making the price of gold plummet from around 1950 to 1850 3rd us the start of the consolidation as seen as well the consolidation is forming the bullish flag that caused a huge dump in the price of gold
4th is the very important zone of 0.5 fib not only that but in the higher time frame there is a solid form of resistance in that area i think this could server as a catalyst to push the price of gold to the downside and continue the bearish trend.
5th is the potential break of the bullish flag this could serve as fuel to the fire and cause long traders to finally switch and turn short this will only serve to push the price even lower
6th as many traders know the price of anything cant just push down indefinitely the price will have to retrace and this is where I think the retracement will end it will test the 0.382 fib zone a solid resistance which was once support and the trend line in the higher time frames.
If everything falls into place this trade has a 1-9 risk to reward
But we all know trading isnt this easy to be careful guys
Comment anything you agree with or anything you disagree with feel free to tell me how stupid my analysis is all feedback is welcomed