This chart outlines a Gold (XAU/USD) sell trade setup, based on a bearish double top pattern. Here’s a breakdown of the idea:
Double Top Pattern:
The chart highlights "TOP 1" and "TOP 2" at the same resistance level, indicating potential price exhaustion.
This is a classic reversal pattern, often leading to bearish momentum after the second top fails to break higher.
Entry Zone 3230
The trade is triggered at the resistance level after the second top, shown with a red arrow.
The price is currently approaching or at this level, suggesting the trader is anticipating a rejection and a move down.
Stop Loss (Red Zone):3247
Placed above the resistance line and recent highs, protecting the trade in case price breaks out upward instead of reversing.
Take Profits:
TP1 (Take Profit 1): 2:1 Reward-to-Risk Ratio — a safer exit, targeting a moderate price decline.
TP2 (Take Profit 2): 3:1 Reward-to-Risk Ratio — targeting a deeper move, likely to a previous support level marked by a blue horizontal line.
Trade Logic:
Price action bias: Repeated failure to break resistance = bearish bias.
Structure: Lower highs and signs of weakening bullish momentum.
Risk management: Well-defined stop loss and clear reward targets, with a risk-to-reward ratio that favors the trade.
Double Top Pattern:
The chart highlights "TOP 1" and "TOP 2" at the same resistance level, indicating potential price exhaustion.
This is a classic reversal pattern, often leading to bearish momentum after the second top fails to break higher.
Entry Zone 3230
The trade is triggered at the resistance level after the second top, shown with a red arrow.
The price is currently approaching or at this level, suggesting the trader is anticipating a rejection and a move down.
Stop Loss (Red Zone):3247
Placed above the resistance line and recent highs, protecting the trade in case price breaks out upward instead of reversing.
Take Profits:
TP1 (Take Profit 1): 2:1 Reward-to-Risk Ratio — a safer exit, targeting a moderate price decline.
TP2 (Take Profit 2): 3:1 Reward-to-Risk Ratio — targeting a deeper move, likely to a previous support level marked by a blue horizontal line.
Trade Logic:
Price action bias: Repeated failure to break resistance = bearish bias.
Structure: Lower highs and signs of weakening bullish momentum.
Risk management: Well-defined stop loss and clear reward targets, with a risk-to-reward ratio that favors the trade.
Trade active
This setup gave us 100 pips profit and still running for our target 
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t.me/GoldenpipsFXtrader
t.me/GoldenpipsFXtrader
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.
Thank you for visiting us! Join us for more trading insights and signals.
t.me/GoldenpipsFXtrader
t.me/GoldenpipsFXtrader
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.