EDUCATIONAL DESCRIPTION:
we can clearly see a triangular pattern marked in purple on the chart, which formed by the two important uptrend (lime line) and downtrend (red line). we all know that a triangular pattern could be the reason for a sharp up or downtrend. this is because the high energy compressed at the end of the vertex of the triangle.
it is very important to know "why is there a high potential of strong movement at the vertex of the triangle?"
when a triangle is being formed, it means that the fight between the buyers and sellers is getting more intensifying and violent and each of them is trying to get rid of the triangle in their favor. the more close to the vertex of the triangle, the more violent war.
in such a situation on the chart, we should figure out which of those buyers or sellers are stronger.
in this case, we know the gold price is in the best price condition in her history, caused by economic war between East and West and on the other hand, the damn covid-19. so clearly buyers can kick the sellers.
so it can be expected the price goes up from the elliptic zone.
meanwhile, in my opinion, the best confirmation should be taken from H4 time frame.
good luck.
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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.