XAUUSD 4 September 2024
Trade Setup:
Instrument: XAU/USD (Gold Spot vs. U.S. Dollar)
Trend Direction:
1D Chart: The daily chart shows a pullback from the recent highs around $2,525, and the price is currently sitting near $2,488. The next key support is around $2,470 to $2,475. The overall trend is bullish, but we are seeing a retracement.
1H Chart: The hourly chart reflects a recent lower high and lower low structure. The price action suggests continued downward pressure, but the price is nearing a potential support zone around $2,475.
Fractals and Levels:
Support Level: The $2,475 zone is the next significant support based on both the 1D and 1H charts.
Resistance Level: The $2,500 to $2,505 area represents a significant resistance zone where price could face liquidity.
Fibonacci Levels: The 61.8% retracement level near $2,490 could provide a short-term bounce or resistance point.
Volatility Consideration: Price volatility has been moderate, so distances between entry, stop-loss, and take-profit levels will be adjusted accordingly to manage risk effectively.
Trade Idea:
Entry Price: $2,475 (This level is near the support zone and offers a low-risk entry for a potential bounce back or retracement).
Stop Loss: $2,465 (Placed just below the support level to minimize downside risk).
Take Profit: $2,500 (This is within the resistance zone, and the Fibonacci level aligns with a high-liquidity area where retracement is expected).
Reward-Risk Ratio:
Risk: $2,475 (Entry) - $2,465 (Stop Loss) = $10
Reward: $2,500 (Take Profit) - $2,475 (Entry) = $25
Ratio: $25 / $10 = 2.5 (which meets the requirement of more than 1.5).
Trailing Stop Loss Adjustment:
First Adjustment: Once the price reaches $2,485, move the stop loss to break even at $2,475 to eliminate risk.
Second Adjustment: When the price reaches $2,490, adjust the stop loss to $2,480 to lock in some profits.
Final Adjustment: If the price approaches $2,495, move the stop loss to $2,485 to secure further gains.
Execution:
Order Type: Place a limit buy order at $2,475.
Target Price: $2,500.
Stop Loss: $2,465.
Trade Probability:
Given the current retracement and the proximity to a support zone, this trade has a good probability of success if the price holds the $2,475 support level. However, if the support level is broken, a deeper correction may occur, and it would be advisable to avoid this trade until more favorable conditions arise.
Instrument: XAU/USD (Gold Spot vs. U.S. Dollar)
Trend Direction:
1D Chart: The daily chart shows a pullback from the recent highs around $2,525, and the price is currently sitting near $2,488. The next key support is around $2,470 to $2,475. The overall trend is bullish, but we are seeing a retracement.
1H Chart: The hourly chart reflects a recent lower high and lower low structure. The price action suggests continued downward pressure, but the price is nearing a potential support zone around $2,475.
Fractals and Levels:
Support Level: The $2,475 zone is the next significant support based on both the 1D and 1H charts.
Resistance Level: The $2,500 to $2,505 area represents a significant resistance zone where price could face liquidity.
Fibonacci Levels: The 61.8% retracement level near $2,490 could provide a short-term bounce or resistance point.
Volatility Consideration: Price volatility has been moderate, so distances between entry, stop-loss, and take-profit levels will be adjusted accordingly to manage risk effectively.
Trade Idea:
Entry Price: $2,475 (This level is near the support zone and offers a low-risk entry for a potential bounce back or retracement).
Stop Loss: $2,465 (Placed just below the support level to minimize downside risk).
Take Profit: $2,500 (This is within the resistance zone, and the Fibonacci level aligns with a high-liquidity area where retracement is expected).
Reward-Risk Ratio:
Risk: $2,475 (Entry) - $2,465 (Stop Loss) = $10
Reward: $2,500 (Take Profit) - $2,475 (Entry) = $25
Ratio: $25 / $10 = 2.5 (which meets the requirement of more than 1.5).
Trailing Stop Loss Adjustment:
First Adjustment: Once the price reaches $2,485, move the stop loss to break even at $2,475 to eliminate risk.
Second Adjustment: When the price reaches $2,490, adjust the stop loss to $2,480 to lock in some profits.
Final Adjustment: If the price approaches $2,495, move the stop loss to $2,485 to secure further gains.
Execution:
Order Type: Place a limit buy order at $2,475.
Target Price: $2,500.
Stop Loss: $2,465.
Trade Probability:
Given the current retracement and the proximity to a support zone, this trade has a good probability of success if the price holds the $2,475 support level. However, if the support level is broken, a deeper correction may occur, and it would be advisable to avoid this trade until more favorable conditions arise.
Trade closed: target reached
Target of $2500 reached. Trade closed. 
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.
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.