XAUUSD Short - Great R:R
Updated
Keeping it simple - working with a Bullish Bat Harmonic Pattern.
*This is my observation, this is NOT financial advice.*
The XABCD Rules are as follows:
X-A = Swing Low to Swing High
A-B = Between a .382 to .5 retracement of Wave X-A - In this example, it is a .5
B-C = Between a .382 to .886 retracement of Wave AB - In this example, it is a .886, which is $1737.881 (it may go slightly higher than that price, but only by a wick, the candle-body must close below / at the .886)
C-D = A .886 retracement of the X-A leg, which would be roughly $1593 which would be our target in this case.
I also see this as a potential ZigZag formation so I have highlighted various targets on the way down as well (yellow rectangles).
For trading purposes. I would short between the .854 to .886 retracement of Wave A-B ($1735.12 - $1737.881) and set a stop loss roughly $1 above the previous high (placed at $1749) - risking less than 0.75% with a great R:R as you can see, worth a shot in my opinion.
Let me know your thoughts below!
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Thanks
*This is my observation, this is NOT financial advice.*
The XABCD Rules are as follows:
X-A = Swing Low to Swing High
A-B = Between a .382 to .5 retracement of Wave X-A - In this example, it is a .5
B-C = Between a .382 to .886 retracement of Wave AB - In this example, it is a .886, which is $1737.881 (it may go slightly higher than that price, but only by a wick, the candle-body must close below / at the .886)
C-D = A .886 retracement of the X-A leg, which would be roughly $1593 which would be our target in this case.
I also see this as a potential ZigZag formation so I have highlighted various targets on the way down as well (yellow rectangles).
For trading purposes. I would short between the .854 to .886 retracement of Wave A-B ($1735.12 - $1737.881) and set a stop loss roughly $1 above the previous high (placed at $1749) - risking less than 0.75% with a great R:R as you can see, worth a shot in my opinion.
Let me know your thoughts below!
If you enjoy my content, make sure to 'like' and 'subscribe' for more!
Thanks
Trade active
1st of 4 targets reached.
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