$100k Challenge - XAUUSD Short - E7 T2
Hey all!
Another trade set-up for the challenge: a short in Gold! 🥇
I've been monitoring the H4 chart as I saw strong consolidation patterns since early this month. As soon as I saw the market break the support area we had from H1 (which is actually turning more into an H4 support haha), I started to look for entry opportunities for a short, as the risk-reward for this trade is massive!
When zooming in for the H1 chart, we can see that the market broke with a lot of bearish strength the support zone, then retrace back to test the breakout, which showed massive presence of sellers as the market failed to print new highs, we then see some strong bearish bars getting printed as a rejection from the resistance, which have me the go-ahead to enter short.
Regarding risk and trade management, this is kind of a different scenario, as we have a ton of upside potential with no clear support area nearby. Since the closest zone is around the 2,200.00 mark, I decided to set the initial TP until that price range, and assess there depending on price action if taking this trade as a single TP play is best, or if it still makes sense to take partials there and leave the second half running.
On the fundamentals, I think the potential rate cut in the UK is setting the foundations to a shift from safe havens (such as Gold, bonds, and cash positions in safe-haven currencies) back to risk assets, which in this case can negatively impact the Gold price.
Anyway, I hope you enjoyed today's trade idea! Remember to follow so you can stay up to date!
Until the next trade:D
Another trade set-up for the challenge: a short in Gold! 🥇
I've been monitoring the H4 chart as I saw strong consolidation patterns since early this month. As soon as I saw the market break the support area we had from H1 (which is actually turning more into an H4 support haha), I started to look for entry opportunities for a short, as the risk-reward for this trade is massive!
When zooming in for the H1 chart, we can see that the market broke with a lot of bearish strength the support zone, then retrace back to test the breakout, which showed massive presence of sellers as the market failed to print new highs, we then see some strong bearish bars getting printed as a rejection from the resistance, which have me the go-ahead to enter short.
Regarding risk and trade management, this is kind of a different scenario, as we have a ton of upside potential with no clear support area nearby. Since the closest zone is around the 2,200.00 mark, I decided to set the initial TP until that price range, and assess there depending on price action if taking this trade as a single TP play is best, or if it still makes sense to take partials there and leave the second half running.
On the fundamentals, I think the potential rate cut in the UK is setting the foundations to a shift from safe havens (such as Gold, bonds, and cash positions in safe-haven currencies) back to risk assets, which in this case can negatively impact the Gold price.
Anyway, I hope you enjoyed today's trade idea! Remember to follow so you can stay up to date!
Until the next trade:D
Trade closed: stop reached:
Hey all!
Unfortunately, we got stopped in this trade idea. In H4, we had a doji-like formation where the upper wick hit our SL. When checking out the H1 chart, I do see a strong bullish close so I wouldn't discard the market going back to the range between the H1 and H4 areas marked.
I'll continue to monitor the pair in case we see a new entry opportunity:)
Unfortunately, we got stopped in this trade idea. In H4, we had a doji-like formation where the upper wick hit our SL. When checking out the H1 chart, I do see a strong bullish close so I wouldn't discard the market going back to the range between the H1 and H4 areas marked.
I'll continue to monitor the pair in case we see a new entry opportunity:)