XAUUSD POTENTIAL SHORT OPPORTUNITY (1D&4H)
Updated
XAUUSD POTENTIAL SHORT OPPORTUNITY
I had been long in XAUUSD a few weeks ago after a decent buyer momentum move was shown to the upside on the daily time frame. After letting this momentum play out I was watching this commodity and its price seeing the buyers slowing down on the 1D timeframe chart and noticed that some seller strength was coming in. The market was showing me that the buyers were dying out and that seller interest and momentum was stepping in. After watching a price squeeze (AKA WEDGE PATTERN) on the daily timeframe play out and break to the downside it confirmed my bearish thoughts on this pair. Let's dive into it.
1D CHART:
* on this timeframe price was at market highs and was showing signs it was overextended
* the buyers had been slowing down and seller momentum started to kick in
*there was a break of the squeeze of price action to the downside, market confirming a possible bearish move
*price is overextended and showing it is more likely to make a move to the downside then to the upside
4H CHART:
* use this timeframe to get a more specific glance at what the market is trying to show us
*make sure price holds beneath the wedge on the timeframe so it is not a fakeout
*use this timeframe for good risk/reward setup as well as precise entry and exits
MAKE SURE TO ALWAYS USE PROPER RISK MANAGEMENT WHEN TRADING. NOT EVERY TRADE IS GUARANTEED TO SUCCEED AND IT IS IMPORTANT TO BE PREPARED FOR THE WORST CASE SCENARIO. NEVER RISK MORE THAN 2% OF YOUR WORKING CAPITAL PER TRADE TO PREVENT BLOWING YOUR ACCT. AND BEING ABLE TO TRADE MORE LONG TERM.
CHEERS!
I had been long in XAUUSD a few weeks ago after a decent buyer momentum move was shown to the upside on the daily time frame. After letting this momentum play out I was watching this commodity and its price seeing the buyers slowing down on the 1D timeframe chart and noticed that some seller strength was coming in. The market was showing me that the buyers were dying out and that seller interest and momentum was stepping in. After watching a price squeeze (AKA WEDGE PATTERN) on the daily timeframe play out and break to the downside it confirmed my bearish thoughts on this pair. Let's dive into it.
1D CHART:
* on this timeframe price was at market highs and was showing signs it was overextended
* the buyers had been slowing down and seller momentum started to kick in
*there was a break of the squeeze of price action to the downside, market confirming a possible bearish move
*price is overextended and showing it is more likely to make a move to the downside then to the upside
4H CHART:
* use this timeframe to get a more specific glance at what the market is trying to show us
*make sure price holds beneath the wedge on the timeframe so it is not a fakeout
*use this timeframe for good risk/reward setup as well as precise entry and exits
MAKE SURE TO ALWAYS USE PROPER RISK MANAGEMENT WHEN TRADING. NOT EVERY TRADE IS GUARANTEED TO SUCCEED AND IT IS IMPORTANT TO BE PREPARED FOR THE WORST CASE SCENARIO. NEVER RISK MORE THAN 2% OF YOUR WORKING CAPITAL PER TRADE TO PREVENT BLOWING YOUR ACCT. AND BEING ABLE TO TRADE MORE LONG TERM.
CHEERS!
Trade closed: stop reached
STOP LOSS WAS HIT. ON TO THE NEXT.
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