XAUUSD 26 August 2024 - NY Session
Major Trend: Uptrend on the 1D chart
Entry:
Type: Buy Limit Order
Entry Level: $2,514.50 (Above recent high as shown on the 1H chart)
Reasoning: This level is slightly above the current resistance, indicating a breakout continuation in alignment with the higher timeframe trend.
Stop Loss:
Level: $2,500.00
Reasoning: Place the stop loss below the recent low and key support level to limit risk. This gives a buffer below potential volatility spikes.
Take Profit (TP):
Level: $2,540.00
Reasoning: This level is could be the next significant resistance zone for the ATH price based on historical price of $2530, offering a reward-to-risk ratio of more than 1.5. This level might witness liquidity, attracting potential sellers.
Trade Management:
Trailing Stop: Adjust the stop loss to break even at $2,520.00 once the price reaches $2,530.00. This protects the position as it gains in profit.
Targeting Profit Zones: If the price reaches $2,530.00, consider trailing your stop further to lock in additional gains.
Risk-Reward Ratio:
Risk: $14.5
Potential Reward: $25.50
RR: 1.75
Rationale:
The trade is aligned with the daily trend, utilizing fractals and resistance break levels as points of confluence.
Final Notes:
Consideration 1: Monitor closely around the $2,540.00 level as price action could reverse sharply due to profit-taking or liquidity hunts.
Consideration 2: We will reassess the price action for new opportunities if price hits $2540 before our buy limit order is filled.
Consideration 3: This trade sets us up for a good run for a potential new ATH. If price falls below $2500, we shall accept the loss. The risk is acceptable for the potential reward.
Entry:
Type: Buy Limit Order
Entry Level: $2,514.50 (Above recent high as shown on the 1H chart)
Reasoning: This level is slightly above the current resistance, indicating a breakout continuation in alignment with the higher timeframe trend.
Stop Loss:
Level: $2,500.00
Reasoning: Place the stop loss below the recent low and key support level to limit risk. This gives a buffer below potential volatility spikes.
Take Profit (TP):
Level: $2,540.00
Reasoning: This level is could be the next significant resistance zone for the ATH price based on historical price of $2530, offering a reward-to-risk ratio of more than 1.5. This level might witness liquidity, attracting potential sellers.
Trade Management:
Trailing Stop: Adjust the stop loss to break even at $2,520.00 once the price reaches $2,530.00. This protects the position as it gains in profit.
Targeting Profit Zones: If the price reaches $2,530.00, consider trailing your stop further to lock in additional gains.
Risk-Reward Ratio:
Risk: $14.5
Potential Reward: $25.50
RR: 1.75
Rationale:
The trade is aligned with the daily trend, utilizing fractals and resistance break levels as points of confluence.
Final Notes:
Consideration 1: Monitor closely around the $2,540.00 level as price action could reverse sharply due to profit-taking or liquidity hunts.
Consideration 2: We will reassess the price action for new opportunities if price hits $2540 before our buy limit order is filled.
Consideration 3: This trade sets us up for a good run for a potential new ATH. If price falls below $2500, we shall accept the loss. The risk is acceptable for the potential reward.
Note
Gold has reached $2525. Before price reaches $2530, we have shifted our stop loss to the breakeven point at $2515. Note
As of 28 August 2024
Trend Analysis:
Daily Chart (1D): The price is in a strong upward trend, approaching a key resistance level around $2,526.435, which has been tested multiple times. The fractals indicate a continuation of the upward movement, but there's caution at the resistance zone.
Hourly Chart (1H): The fractals show a breakout above previous highs, followed by a pullback to a support zone around $2,515. The price has since rebounded, confirming this level as support.
2. Entry (our 2nd layer of entry since our initial positions are in BE):
Entry Type: Limit Order.
Entry Price: $2,520 (A pullback to this level would be ideal as it aligns with the 1H chart support zone and previous resistance turned support).
3. Stop Loss:
Stop Loss Level: $2,510 (Placed below the recent low on the 1H chart to minimize risk).
4. Target:
Target Price: $2,540 (This target is near the next resistance level identified on the 1H chart, providing a good reward-risk ratio).
Reward-Risk Ratio: 2.0 (Targeting $20 move against $10 risk).
5. Trailing Stop Loss:
Once the price reaches $2,530, adjust the stop loss to $2,520 to lock in some profits.
If the price continues to $2,535, move the stop loss to $2,525.
6. Trade Justification:
Confluence: The entry price is aligned with a support level on the 1H chart and a previous resistance on the 1D chart, providing a low-risk entry.
The overall trend is upward, and the recent pullback offers a favorable entry.
Fibonacci Levels: The entry level near $2,520 is also close to the Fibonacci retracement level, offering additional confluence.
Note
Position closed at $2520. We update this plan in our trading idea for 28 August 2024
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