GOLD – 14/12/2017 – Trade Review
For anyone who follows our trade examples you will notice that all of them follow a very similar pattern. The recent trade in Gold is no different, this is a classic textbook setup for us and simply requires us to have the patience and wait for the market to set up in a way that aligns to our rules.
We can see that after a period of consolidation the market broke down with multiple days of selling. This momentum started to fade as price approached a support level at 1239.90. At this level a minor doji/pin bar formed followed by strong bullish candle, this confirmed our bias to the long side and meant we were now able to fine tune our entry on the hourly time frame.
On the hourly timeframe we can see MACD divergence across the lows followed by a higher low. This added to our theory that momentum to the downside was fading and a move to the upside was imminent.
After price broke the 50EMA we can see that price pulled back to prior resistance, this also coincided with the daily pivot point. We entered the market at this point with a stop below R1 and a target at a prior support zone.
This target was quickly hit for a 1.79R