The chart you've shared is a technical analysis of the Gold Spot (XAU/USD) on a 1-hour timeframe, showing a bearish channel setup with a short trade idea. Here's a breakdown of the trade plan illustrated:
1. Bearish Channel
Price action is trending downward within a well-defined descending channel.
Multiple touches on the upper and lower bounds of the channel confirm its validity.
2. Trade Setup
Entry Level: Just below the upper boundary of the channel (around $3,260).
Stop Loss Level: Above the recent high and channel top (around $3,290–$3,300).
Take Profit Level: Near the lower boundary of the channel (around $3,160).
3. Strategy Implication
The strategy aims to capitalize on the continuation of the downtrend.
The trade assumes price rejection at the channel resistance.
Risk-Reward
The chart reflects a favorable risk-to-reward ratio, with the stop loss relatively tight compared to the take profit level.
If you’d like, I can help calculate the exact risk/reward ratio or backtest this pattern. Let me know how you’d like to proceed!
1. Bearish Channel
Price action is trending downward within a well-defined descending channel.
Multiple touches on the upper and lower bounds of the channel confirm its validity.
2. Trade Setup
Entry Level: Just below the upper boundary of the channel (around $3,260).
Stop Loss Level: Above the recent high and channel top (around $3,290–$3,300).
Take Profit Level: Near the lower boundary of the channel (around $3,160).
3. Strategy Implication
The strategy aims to capitalize on the continuation of the downtrend.
The trade assumes price rejection at the channel resistance.
Risk-Reward
The chart reflects a favorable risk-to-reward ratio, with the stop loss relatively tight compared to the take profit level.
If you’d like, I can help calculate the exact risk/reward ratio or backtest this pattern. Let me know how you’d like to proceed!
Trade active
TRADE ACTIVETrade closed: target reached
all hit target
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.
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.