Gold
11.14.24 yesterday I did a video on gold and I told you that gold would probably find a reversal pattern and go higher today. so far it has done that. I decided to show you what a stop would be so that you realize that I'm using about an $800 Stop which is not a small amount of money for people who are beginning to trade. this is important because I can get stopped out of the market on a small stop of $800 and then the market turns around and goes 1000 of dollars higher. but I am still going to have a small stop even if I get stopped out and if the market moves in a certain way I'll get back in for the same trade but it'll be on a new trigger and I'm not going to worry about the fact that I stopped myself out a little early. I decided to open up a new chart on gold and then I proceeded to tell you about how I use extensions in conjunction with 2 bar reversals. please spend some time looking at this and draw these patterns on your software. I decided to use a new chart to show you what happens in markets that will find you the trigger which is a long trade for me on this example.... and what to do when the market isn't quite ready to go in your direction and how you can exit the market.... and you might even be able to do it before it hits your initial stop so you might lose less than $800 but you're out of the market. the market does a bear flag.... you get out with some minor loss or Breakeven.... and then the market finds buyers using an extension..... and now you know this may be the time you get into the market.... and then you look for a two-bar reversal going in your direction Which is higher on this example. what I didn't tell you is that sometimes the market can give you two bear Flags and then on the third attempt after you've had two losses the market reverses and makes a huge move higher....... gold is one of those markets from my experience. I actually posted on that several years back and I'm too lazy to find it but it's there. A couple of years ago my two students didn't understand how to get into a market and manage the risk... to my liking.... so I decided to use a two-bar reversal because much of the time it's a two day reversal but it gives you a very clean signal. up until that time I could look at the market from my experience and know what it looked like but I couldn't convey it to my two students so it took me some time to figure out the 2 bar reversal... and there's another aspect of it that I would call opening price and I thought it was worth taking that approach because one of my students was up at the wee hours of the morning and not many cheating her time effectively and she couldn't see the patterns efficiently...... and so I tried show her a 2 bar reversal which I thought was easy but it took some time and this hypothetical trade on gold is an example.
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