XAUUSD 4 October 2024
It's NFP today so let's keep our volume light :) Based on the fractals in the 1H and 1D charts, here is a potential intraday long (buy) trade setup.
1. Fractals and Trend Analysis:
1D Chart: The price is in a strong uptrend but showing consolidation near $2,658.00, which is currently a resistance level. A break above this level could signal a continuation of the upward trend.
1H Chart: The price has recently bounced off the $2,640 support zone, which coincides with a Fibonacci retracement zone. The fractals suggest short-term upward movement toward the $2,660-$2,670 range, which has been a resistance zone.
2. Entry Price:
Buy Limit Order: $2,650.00
This is close to the support level and Fibonacci retracement zone from the 1H chart. It provides an optimal entry point with lower risk.
3. Stop Loss:
Stop Loss: $2,640.00
Placing the stop loss slightly below the recent support zone at $2,640 protects the trade if the price reverses significantly.
4. Take Profit:
Take Profit Price: $2,680.00
This target is set at the upper boundary of the recent range and close to a high liquidity zone from the daily chart. The price may face resistance here, offering an optimal exit with a favorable reward-to-risk ratio.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,650 to $2,640).
Reward: $30 per ounce (from $2,650 to $2,680).
Risk-to-Reward Ratio: 1:3
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
When the price reaches $2,665.00, adjust the stop loss to $2,650.00 (break-even).
When the price reaches $2,675.00, adjust the stop loss to $2,665.00 to lock in profits.
Continue trailing the stop loss by $5 increments to secure further profits as the price approaches the target.
7. Volatility Adjustment:
The price has been fluctuating within a $15-$20 range recently. The stop loss and take-profit levels are designed to accommodate price volatility, allowing enough room for price action to develop without triggering early exits.
Final Trade Details:
Entry Price: $2,650.00 (Buy Limit)
Stop Loss: $2,640.00
Take Profit: $2,680.00
This trade setup provides a good opportunity for a profitable intraday trade in the direction of the major trend.
1. Fractals and Trend Analysis:
1D Chart: The price is in a strong uptrend but showing consolidation near $2,658.00, which is currently a resistance level. A break above this level could signal a continuation of the upward trend.
1H Chart: The price has recently bounced off the $2,640 support zone, which coincides with a Fibonacci retracement zone. The fractals suggest short-term upward movement toward the $2,660-$2,670 range, which has been a resistance zone.
2. Entry Price:
Buy Limit Order: $2,650.00
This is close to the support level and Fibonacci retracement zone from the 1H chart. It provides an optimal entry point with lower risk.
3. Stop Loss:
Stop Loss: $2,640.00
Placing the stop loss slightly below the recent support zone at $2,640 protects the trade if the price reverses significantly.
4. Take Profit:
Take Profit Price: $2,680.00
This target is set at the upper boundary of the recent range and close to a high liquidity zone from the daily chart. The price may face resistance here, offering an optimal exit with a favorable reward-to-risk ratio.
5. Risk-to-Reward Ratio:
Risk: $10 per ounce (from $2,650 to $2,640).
Reward: $30 per ounce (from $2,650 to $2,680).
Risk-to-Reward Ratio: 1:3
6. Trailing Stop-Loss Strategy:
Initial Stop Loss: $2,640.00.
When the price reaches $2,665.00, adjust the stop loss to $2,650.00 (break-even).
When the price reaches $2,675.00, adjust the stop loss to $2,665.00 to lock in profits.
Continue trailing the stop loss by $5 increments to secure further profits as the price approaches the target.
7. Volatility Adjustment:
The price has been fluctuating within a $15-$20 range recently. The stop loss and take-profit levels are designed to accommodate price volatility, allowing enough room for price action to develop without triggering early exits.
Final Trade Details:
Entry Price: $2,650.00 (Buy Limit)
Stop Loss: $2,640.00
Take Profit: $2,680.00
This trade setup provides a good opportunity for a profitable intraday trade in the direction of the major trend.
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.