XAUUSD on Sell Mode ! Says Technical Pattern. This trade idea is a classic bearish breakout from a rising/symmetrical triangle, using the triangle’s height to project the short target and take‑profit zone.
What the triangle shows
- Price has been in an uptrend, then starts compressing between a rising support line and a relatively flat/slowly descending resistance line, forming a large triangle on your higher timeframe XAUUSD chart.
- As the swings get smaller and approach the triangle apex, a breakout is expected; in your annotation, the bias is downside (“Sell is very much possible”) because the structure is a maturing consolidation after a strong prior leg up and is stalling near resistance.
Sell entry logic
- The aggressive entry is to sell once price decisively breaks and closes below the rising lower trendline of the triangle, ideally with increased volume or strong bearish candles to confirm that buyers have lost control.
- A conservative approach waits for a break below the trendline, then a retest of that broken support (now resistance) and rejection, entering short on that retest with a tight invalidation above the retest high or back inside the triangle.
Stop loss placement
- The protective stop is typically set above the most recent swing high inside the triangle or just above the upper triangle boundary, so that if price re‑enters and closes back into the pattern, the bearish thesis is invalidated.
- Because this is a higher‑timeframe pattern, the stop distance can be large; position sizing must therefore be reduced so that the percentage of account risk per trade stays within your predefined limits.
Target and take profit levels
- The “length of triangle = profit levels” label reflects the standard measured‑move technique: measure the vertical height of the triangle at its base (distance between initial high and low that formed the boundaries) and project that distance downwards from the breakout point.
- Your yellow horizontal line and the “Take profit levels” annotation mark this projected objective; partial profits can be taken at intermediate supports, with the final target near the full measured move, and a trailing stop used if momentum is strong.
How to frame the full trade
- Direction: Short XAUUSD when the lower triangle boundary breaks and confirms, as your chart suggests.
- Execution plan:
- Entry: Break and close below triangle support (or retest failure).
- Stop: Above recent swing high/upper boundary.
- TP: Project triangle height from breakout to set main target, manage risk‑reward so that the
trade offers at least a 1:2 or better payoff in line with your strategy rules.
