XAUUSD 09 October 2024
Based on the analysis of the 1H and 1D fractals, here’s a suggested intraday short (sell) trade setup:
1. Fractals and Trend Analysis:
1D Chart: The price has broken down from its recent highs and seems to be retracing after a long bullish trend. The fractals indicate that the upward momentum might be slowing, with the price nearing a recent high resistance zone around $2,660.
1H Chart: The fractals show a significant break of structure to the downside around $2,640, and a retracement up to $2,622. This area is a confluence of the Fibonacci retracement and resistance from the previous breakdown.
2. Entry Price:
Sell Limit Order: $2,630.00
This price level is near the Fibonacci retracement and confluence zone, providing an optimal low-risk entry. It also allows for an entry close to where resistance is expected based on the 1H and 1D charts.
3. Stop Loss:
Stop Loss: $2,640.00
The stop loss is placed slightly above the recent high on the 1H chart, above the resistance zone and Fibonacci confluence area. This ensures your trade is protected from a false breakout.
4. Take Profit:
Take Profit Price: $2,600.00
This is set at the support zone observed from the recent 1H chart. The price has previously found support here, so it's a realistic target while keeping the reward-to-risk ratio favorable.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,630 to $2,640).
Reward: $30 per ounce (from $2,630 to $2,600).
Risk-to-Reward Ratio: 1:3
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
When the price reaches $2,615.00, adjust the stop loss to $2,630.00 (break-even).
When the price reaches $2,605.00, adjust the stop loss to $2,615.00 to lock in profits.
Continue trailing the stop loss by $5 increments as the price approaches the target of $2,600.00.
Final Trade Setup:
Entry Price: $2,630.00 (Sell Limit)
Stop Loss: $2,640.00
Take Profit: $2,600.00
This setup aims for a lower-risk entry, high reward-to-risk ratio, and follows the general downtrend on the 1H and 1D charts.
1. Fractals and Trend Analysis:
1D Chart: The price has broken down from its recent highs and seems to be retracing after a long bullish trend. The fractals indicate that the upward momentum might be slowing, with the price nearing a recent high resistance zone around $2,660.
1H Chart: The fractals show a significant break of structure to the downside around $2,640, and a retracement up to $2,622. This area is a confluence of the Fibonacci retracement and resistance from the previous breakdown.
2. Entry Price:
Sell Limit Order: $2,630.00
This price level is near the Fibonacci retracement and confluence zone, providing an optimal low-risk entry. It also allows for an entry close to where resistance is expected based on the 1H and 1D charts.
3. Stop Loss:
Stop Loss: $2,640.00
The stop loss is placed slightly above the recent high on the 1H chart, above the resistance zone and Fibonacci confluence area. This ensures your trade is protected from a false breakout.
4. Take Profit:
Take Profit Price: $2,600.00
This is set at the support zone observed from the recent 1H chart. The price has previously found support here, so it's a realistic target while keeping the reward-to-risk ratio favorable.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,630 to $2,640).
Reward: $30 per ounce (from $2,630 to $2,600).
Risk-to-Reward Ratio: 1:3
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
When the price reaches $2,615.00, adjust the stop loss to $2,630.00 (break-even).
When the price reaches $2,605.00, adjust the stop loss to $2,615.00 to lock in profits.
Continue trailing the stop loss by $5 increments as the price approaches the target of $2,600.00.
Final Trade Setup:
Entry Price: $2,630.00 (Sell Limit)
Stop Loss: $2,640.00
Take Profit: $2,600.00
This setup aims for a lower-risk entry, high reward-to-risk ratio, and follows the general downtrend on the 1H and 1D charts.
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