All info and explanations can be found on the chart. I literally do all of this for free, a thumbs up would be really appreciated if you like my work.
Trade closed manually
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The bearish scenario is activated, and we see that directly after the market opened, strong bearish candles were printed.
However, the momentum was not strong enough to push down all the way to the support zone. I suggested a take profit of around $1718, but the price didn't go lower than $1721.
Since the price already moved up again after that point, I suggest you close the trade while we're still on a marginal profit and prepare for the next move.
I charted the new idea here:
The technicals of this point are no longer valid, and since we have seen a bearish momentum it's time to move to a short set-up. However, to maximize the risk reward of such a set-up, we should aim to get our buy in as high as possible. Read more about it in the new idea.
I copied your chart and saw that gold is range trading between its 100 and 200 ema. Is that significant in anyway or is kinda just a coincidence?
Trading-Guru
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@michaeltaps, I guess I should say: "Depends who you ask". But since you're asking me ;) I will say it's coincidence. I did a lot of backtesting with several trading methods and found that EMA crosses and EMAs as support or resistance have very little predicting power. Horizontal zones are much stronger, and RSI Divergences are in the top categories. This is from my personal experience of course, I checked this over thousands of potential trades (simulation) but perhaps I didnt use the optimal settings.
michaeltaps
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@Trading-Guru, Okay great, thank you for the explanation.
climateking
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thanks for the idea.. I will be monitoring
Trading-Guru
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I will be posting more of these regularly, so follow me to find out about great trading opportunities
Trading-Guru
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How would you have charted this? Feel free to post a link to your own idea here as well