We have a double top followed by break of structure to the downside, followed by a retrace to 0.618 fib - which gives us an opportunity to get short with 2618 strategy.
I trade this setup without waiting for confirmation by, for example, engulfing. However, I put my entry higher than 0.618 to get better risk to reward.
Target just above a previous structure,...
As USD trembles, XAU makes its path upwards. I will enter above 0.618 fibo (see chart). Entering late will give me a better risk to reward ratio, sure, it does also decrease my chance of getting involved - but I will live with that.
Trend + structure were broken on the downside, which adds to the case with this 2618 trade.
Order is set, lets hope we get filled!
See description on the chart.
As for the placement of stops and targets;
I see these two as completely different trades with each rule set.
Hopefully, we get filled with the gartley before taking both targets.
Alternatively, we shoot upwards, continuing our bullish journey. After all, we're in a bullish channel. :)
Inside a forming bullish pennant we find a opportunity to get long with retest of trendline/lower pennant line which should act as resistance, together with the completion of a Cypher-pattern.
I entered 0.95435 with target at 0.95633
Stop loss below previous support.