GOLD : Long trade with LuBot
Hi Traders,
today I am sharing a trade setup that I entered into my portfolio using the LuBot indicator. Below I explain the reasons.
1. The indicator shows one last Long signal so I decide to follow bullish trades only.
2. The main trend of the last few months is up so I prefer to follow the operations in Trend
3. In the last few days we have seen a short-term negative trend that brings the price action to the ema100 which acts as support, generating a bullish reversal candle
4. From February 7 to today LuBot shows continuous signs of reversal. We are therefore in an area of strong oversold.
Although the trade could have a strong probability of success, I prefer to remain cautious and place a stop loss immediately below the low of the daily candle with a lower risk than that usually used.
Although we are in an uptrend, the swing highs and lows are decreasing and we could still see a negative trend development. We must always be ready for any situation.
In this regard, I have entered a very tight Take Profit, on the closest resistance area that matches the ema21.
I then insert Buy stop entry on the break of the high of the Daily candle.
The signal setup that I used for this analysis is:
Swing Signals, signal style = 1, limit signals type 3.
In this way I have a broader view of the signals that appear only when there is a change of direction to follow and never entering directly on the signal.
today I am sharing a trade setup that I entered into my portfolio using the LuBot indicator. Below I explain the reasons.
1. The indicator shows one last Long signal so I decide to follow bullish trades only.
2. The main trend of the last few months is up so I prefer to follow the operations in Trend
3. In the last few days we have seen a short-term negative trend that brings the price action to the ema100 which acts as support, generating a bullish reversal candle
4. From February 7 to today LuBot shows continuous signs of reversal. We are therefore in an area of strong oversold.
Although the trade could have a strong probability of success, I prefer to remain cautious and place a stop loss immediately below the low of the daily candle with a lower risk than that usually used.
Although we are in an uptrend, the swing highs and lows are decreasing and we could still see a negative trend development. We must always be ready for any situation.
In this regard, I have entered a very tight Take Profit, on the closest resistance area that matches the ema21.
I then insert Buy stop entry on the break of the high of the Daily candle.
The signal setup that I used for this analysis is:
Swing Signals, signal style = 1, limit signals type 3.
In this way I have a broader view of the signals that appear only when there is a change of direction to follow and never entering directly on the signal.
LuTrader Garage : linktr.ee/LuTraderGarage
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.