GOLD Short Term Swing Trade
Analyzing Gold has led me to see a play that could potentially be worth 500 pips. After analyzing the current market price, and the price cycle that has unfolded over the last few weeks, we have broken below the current POC or Point of Control, which we are currently sitting under. If price respects the point of control, and there is not enough volume to break through the POC, we could see a move to the downside, which would put us back at the previous point of control. I have decided to hedge this trade with a favorable setup that should play out nicely. Took a market execution BUY order of $1492.00 even. From there, I set a sell limit order at $1485.00. If price decides to move up towards the POC, I am already in position, and will be profitable on the way up. If we decide to break down from this level, I have my sell stop already in place and will automatically be triggered on the way down. Although the BUY position will be in drawdown, the delta between the two positions will only be about .5% and the S/L for the BUY position will be closed out at 1475.
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