Reasons for entry:
1. XAUUSD has been consolidating the past week awaiting news for the US stimulus package.
On the 30M chart, a fractal has formed at around the same area where XAUUSD has consolidated down two previous times.
2. RSI and Stochastic (30M) both showing signs of over-boughtness (couldn't think of the right term.) further indicating that Gold could head back down towards the 0.5 daily fib level again.
We'll see how it goes.
1. XAUUSD has been consolidating the past week awaiting news for the US stimulus package.
On the 30M chart, a fractal has formed at around the same area where XAUUSD has consolidated down two previous times.
2. RSI and Stochastic (30M) both showing signs of over-boughtness (couldn't think of the right term.) further indicating that Gold could head back down towards the 0.5 daily fib level again.
We'll see how it goes.
Trade closed: stop reached:
Lessons Learnt:
1. Try only using signals from RSI and Stochastic from the 4H timeframe and above.
2. Wait for reasonable 4H (potentially 1H) close above recent support/resistance.
3. Ideally don't trade with big news announcements because too much volatility and the technical analysis starts to lose the probable edge.
1. Try only using signals from RSI and Stochastic from the 4H timeframe and above.
2. Wait for reasonable 4H (potentially 1H) close above recent support/resistance.
3. Ideally don't trade with big news announcements because too much volatility and the technical analysis starts to lose the probable edge.