Hello friends, I suppose you can see this simple Bullish Flag pattern in the Gold chart. So, trading this pattern is quite simple.
Ideally, the price should break out from the Flag and rally strongly almost equal to the length of the Flag Pole.
However, I believe XAUUSD is facing some resistance at the Upper Trend Line(TL) of the Bullish Flag. So, there's a possibility of a drop to the Lower TL of the flag at 1565. So, we might be able to make some money by Selling at 1618 area with TP at 1570.
This is not a guarantee of course. Gold may simply break the Flag and rally towards 1700. Price breaking out of the flag strongly will be a clear
Buy Signal.
On the other hand, if Gold drops towards 1565-1574 first and the lower TL provides support, we can buy there will TP at 1620 and also 1700 provided price breaks out of the Flag.
Both the scenarios have been indicated clearly with the help of arrows in the Chart.
Ideally, the price should break out from the Flag and rally strongly almost equal to the length of the Flag Pole.
However, I believe XAUUSD is facing some resistance at the Upper Trend Line(TL) of the Bullish Flag. So, there's a possibility of a drop to the Lower TL of the flag at 1565. So, we might be able to make some money by Selling at 1618 area with TP at 1570.
This is not a guarantee of course. Gold may simply break the Flag and rally towards 1700. Price breaking out of the flag strongly will be a clear
Buy Signal.
On the other hand, if Gold drops towards 1565-1574 first and the lower TL provides support, we can buy there will TP at 1620 and also 1700 provided price breaks out of the Flag.
Both the scenarios have been indicated clearly with the help of arrows in the Chart.
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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.