XAUUSD 28 August 2024
This is a continuation of my idea from 26 August 2024. We entered in that initial position at $2511 and we have placed those positions in a breakeven(profit) price of $2520, with a target price of $2540. We kept those trades active to capture any further upside risks. If price retraces to $2520, these trades will close and we shall recalibrate our trade with the following new idea.
Trade Setup:
1. 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:
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:
1. 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.
2. The overall trend is upward, and the recent pullback offers a favorable entry.
3. Fibonacci Levels: The entry level near $2,520 is also close to the Fibonacci retracement level, offering additional confluence.
Conclusion:
This setup provides a favorable reward-risk ratio while following the overall bullish trend. If the price doesn't reach the entry point, it's important not to chase the trade but rather wait for the conditions to align as per the plan. Adjust the stop losses accordingly to protect your gains as the trade progresses.
Trade Setup:
1. 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:
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:
1. 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.
2. The overall trend is upward, and the recent pullback offers a favorable entry.
3. Fibonacci Levels: The entry level near $2,520 is also close to the Fibonacci retracement level, offering additional confluence.
Conclusion:
This setup provides a favorable reward-risk ratio while following the overall bullish trend. If the price doesn't reach the entry point, it's important not to chase the trade but rather wait for the conditions to align as per the plan. Adjust the stop losses accordingly to protect your gains as the trade progresses.
Note
Buy limit order is active at $2520. 
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