XAUUSDđź‘‘ GOLD KEY LEVELS TO WATCH đź‘€ AND WHY
Updated
Hello traders and welcome,
Today, we are delving into the world of gold, and it's high time for a fresh analysis of this precious metal.
On its weekly chart, gold has formed an ABC or 123 pattern. Let's dive deeper into the concept of the ABC pattern:
Traders base their buy and sell decisions on the analysis of historical price data and the identification of patterns that help predict future price movements. To trade patterns successfully, it's essential to spot trends, consolidations, support and resistance levels, as well as reversals to establish stop-loss and take-profit levels.
In our discussion, we will zoom in on one of the primary reversal patterns and illustrate it with examples:
The basic ABC pattern has proven itself as a consistently reliable trading signal. This pattern is the building block of numerous other patterns. If you delve into the Elliott Wave theory, you'll find it as waves 0, 1, and 2 (0A, 1B, 2C). The ABC pattern is also commonly known as the 1-2-3 waves. It appears within other patterns such as the Gartley pattern, the AB=CD pattern, as well as within shapes like pennants, triangles, rectangles, head and shoulders, double tops, and double bottoms.
What's fascinating is that anyone can learn to identify and trade the ABC pattern. Furthermore, this knowledge is transferable to recognize and trade many other patterns because of its fundamental structure, which is present in several patterns.
Traders can apply their understanding of ABC patterns across different market conditions, underscoring its adaptability as a critical element of trading success.
Once you've pinpointed the ABC pattern, you can incorporate it into other adjacent patterns. A prime example of this is the 121 pattern, where two ABC patterns occur in succession. The 121 pattern can manifest as either a continuous or a reversal pattern and tends to have a high success rate when it takes shape. The ABC pattern is widely regarded as one of the premier patterns to trade, equipping traders with valuable tools for technical analysis.
For those eager to learn how to identify the ABC pattern, you can find a guide here: [ABC Pattern Identification](
Now, let's observe how this knowledge applies to the gold market. On the weekly gold chart, a bullish ABC pattern has materialized, with the C retracing to approximately 50%. In addition, a bullish AB=CD pattern has emerged, and the price is currently trading above the A point, affirming a potential completion of the ABC pattern.
We've identified an enticing long entry level at $1913.940, with the price trading above previous highs.
Furthermore, there's the exciting possibility of a new Wave 3, with a projected target at 162% of AB, which amounts to $2349.185. It's worth noting that potential resistance may be encountered along the way, particularly at the 62% AB level, at $2094.715.
In summary, the gold market presents an intriguing opportunity with the ABC pattern, and we've outlined key entry points and potential targets for your consideration. Happy trading!
Today, we are delving into the world of gold, and it's high time for a fresh analysis of this precious metal.
On its weekly chart, gold has formed an ABC or 123 pattern. Let's dive deeper into the concept of the ABC pattern:
Traders base their buy and sell decisions on the analysis of historical price data and the identification of patterns that help predict future price movements. To trade patterns successfully, it's essential to spot trends, consolidations, support and resistance levels, as well as reversals to establish stop-loss and take-profit levels.
In our discussion, we will zoom in on one of the primary reversal patterns and illustrate it with examples:
The basic ABC pattern has proven itself as a consistently reliable trading signal. This pattern is the building block of numerous other patterns. If you delve into the Elliott Wave theory, you'll find it as waves 0, 1, and 2 (0A, 1B, 2C). The ABC pattern is also commonly known as the 1-2-3 waves. It appears within other patterns such as the Gartley pattern, the AB=CD pattern, as well as within shapes like pennants, triangles, rectangles, head and shoulders, double tops, and double bottoms.
What's fascinating is that anyone can learn to identify and trade the ABC pattern. Furthermore, this knowledge is transferable to recognize and trade many other patterns because of its fundamental structure, which is present in several patterns.
Traders can apply their understanding of ABC patterns across different market conditions, underscoring its adaptability as a critical element of trading success.
Once you've pinpointed the ABC pattern, you can incorporate it into other adjacent patterns. A prime example of this is the 121 pattern, where two ABC patterns occur in succession. The 121 pattern can manifest as either a continuous or a reversal pattern and tends to have a high success rate when it takes shape. The ABC pattern is widely regarded as one of the premier patterns to trade, equipping traders with valuable tools for technical analysis.
For those eager to learn how to identify the ABC pattern, you can find a guide here: [ABC Pattern Identification](
Now, let's observe how this knowledge applies to the gold market. On the weekly gold chart, a bullish ABC pattern has materialized, with the C retracing to approximately 50%. In addition, a bullish AB=CD pattern has emerged, and the price is currently trading above the A point, affirming a potential completion of the ABC pattern.
We've identified an enticing long entry level at $1913.940, with the price trading above previous highs.
Furthermore, there's the exciting possibility of a new Wave 3, with a projected target at 162% of AB, which amounts to $2349.185. It's worth noting that potential resistance may be encountered along the way, particularly at the 62% AB level, at $2094.715.
In summary, the gold market presents an intriguing opportunity with the ABC pattern, and we've outlined key entry points and potential targets for your consideration. Happy trading!
Note
Note
Note
Note
Note
Note
Note
Note
Note
Stay tuned for more awesome gold setups as the price is already forming its next pattern!
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.