XAUUSD 2 October 2024
Based on the charts, here's a new trade idea:
Trade Setup: Intraday Long Trade (Buy)
1. Fractals and Trend Direction:
1D Chart: The overall trend remains bullish, but there’s a minor pullback from the recent highs. There is still strength in the market, and it's at an important support zone.
1H Chart: The price is consolidating and forming higher lows. The last fractal low is around the $2,645 level, signaling a potential bullish continuation.
2. Entry Price:
Buy Limit Order: $2,650.00 This is close to a confluence level of support (previous low and Fibonacci retracement). If the price dips to this level, it's likely to bounce, offering a good risk/reward ratio.
3. Stop Loss:
Stop Loss Price: $2,640.00 This level is below the previous fractal low on the 1H chart, providing a tight risk while allowing enough room for minor fluctuations.
4. Take Profit (Reward-Risk Ratio of 2.5):
Take Profit Price: $2,675.00 This target is set just below a resistance level from the recent high. It's also near a liquidity zone where sellers may enter, making it an ideal point for taking profits.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,650.00 to $2,640.00).
Reward: $25 per ounce (from $2,650.00 to $2,675.00).
Risk-to-Reward Ratio: 1:2.5, which is favorable.
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
If the price reaches $2,660.00, move the stop loss to break even at $2,650.00.
Once the price hits $2,665.00, adjust the stop loss to $2,660.00 to lock in profits.
Continue trailing the stop loss by $5 increments to protect profits as the price moves toward $2,675.00.
8. Volatility Consideration:
Recent price action has shown volatility swings of around $20-$30. This setup adjusts for this volatility, with a $10 stop loss and $25 target, ensuring the trade is not too tight.
Final Trade Details:
Entry Price: $2,650.00 (Buy Limit)
Stop Loss: $2,640.00
Take Profit: $2,675.00
If the price breaks below $2,640.00, the trade idea will be invalidated.
Trade Setup: Intraday Long Trade (Buy)
1. Fractals and Trend Direction:
1D Chart: The overall trend remains bullish, but there’s a minor pullback from the recent highs. There is still strength in the market, and it's at an important support zone.
1H Chart: The price is consolidating and forming higher lows. The last fractal low is around the $2,645 level, signaling a potential bullish continuation.
2. Entry Price:
Buy Limit Order: $2,650.00 This is close to a confluence level of support (previous low and Fibonacci retracement). If the price dips to this level, it's likely to bounce, offering a good risk/reward ratio.
3. Stop Loss:
Stop Loss Price: $2,640.00 This level is below the previous fractal low on the 1H chart, providing a tight risk while allowing enough room for minor fluctuations.
4. Take Profit (Reward-Risk Ratio of 2.5):
Take Profit Price: $2,675.00 This target is set just below a resistance level from the recent high. It's also near a liquidity zone where sellers may enter, making it an ideal point for taking profits.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,650.00 to $2,640.00).
Reward: $25 per ounce (from $2,650.00 to $2,675.00).
Risk-to-Reward Ratio: 1:2.5, which is favorable.
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
If the price reaches $2,660.00, move the stop loss to break even at $2,650.00.
Once the price hits $2,665.00, adjust the stop loss to $2,660.00 to lock in profits.
Continue trailing the stop loss by $5 increments to protect profits as the price moves toward $2,675.00.
8. Volatility Consideration:
Recent price action has shown volatility swings of around $20-$30. This setup adjusts for this volatility, with a $10 stop loss and $25 target, ensuring the trade is not too tight.
Final Trade Details:
Entry Price: $2,650.00 (Buy Limit)
Stop Loss: $2,640.00
Take Profit: $2,675.00
If the price breaks below $2,640.00, the trade idea will be invalidated.
Trade active
We have shifted our SL to BE
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.