Gold Short Scalps 3rd Week of January 2022
30 minute chart on gold last week, where multiple shorts were able to be played out. The circles marked on a resistance show price have grabbed liquidity and rejected the area 5 times in hindsight. To the left we see a blue bullish candle, in which price had pushed all the way up. The nature of price action is the continuous higher highs and higher lows to make up an uptrend and lower lows and lower highs to make up a downtrend. Understanding this allows me to anticipate a short(sell position) scalp after a big push to the upside. In the middle of the chart we see a bullish breakout to the upside and then 2.5 hours later a sudden drop all the way back down; this was due to news. It's noteworthy to keep an eye on news and fundamentals when trading gold in fact any pair for that matter but xauusd ( the ticker for gold) is a very volatile pair. Furthermore, in anticipation of a sell position at the levels where we have multiple circles at, you would've needed candles to close in your direction before taking your bias position. And so I had taken one trade for 50 pips after the massive bearish candle in the middle of the chart, I waited for a retest at the resistance level, remember in a downtrend, candles need to make lower lows and lower highs, so basically I waited for price to make a lower high at the resistance price have rejected twice, and traded it down all the way to support. This scalp could have been executed two times after at the last two highlighted circles, where price rejected the level for a total of 5 rejection. Again these are all scalp positions because if we look at the larger time frames like the daily timeframe , we can see gold is still in a bull trend and simply making a higher low. This is my take on last week's movement.
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