XAUUSD 3 September 2024 - NY Session
Trend Direction:
1D Chart: The higher timeframe (1D chart) shows a consolidation phase after a strong upward move, with price currently trading near the upper part of the range.
1H Chart: The 1H chart indicates that price has recently found support near the $2,490 area and is moving towards a resistance zone around $2,510.
Fractals and Levels:
Support Level: The $2,490-$2,495 zone, which aligns with a strong support area and is reinforced by the 1H and 1D fractals.
Resistance Level: The $2,510-$2,515 area, which corresponds to a previous resistance zone and is a potential target for a retracement.
Fibonacci Levels: The 50% retracement level lies close to $2,505, providing a confluence with the resistance area.
Volatility Consideration: The recent price action suggests moderate volatility. Stop-loss and take-profit levels will be adjusted accordingly.
Trade Idea:
Entry Price: $2,495 (This is within the support zone and offers a low-risk entry point).
Stop Loss: $2,485 (Placed just below the support level to protect against downside risk).
Take Profit: $2,510 (This aligns with the resistance zone and is near the 50% Fibonacci retracement level, where high liquidity and potential retracement are expected).
Reward-Risk Ratio:
Risk: $2,495 (Entry) - $2,485 (Stop Loss) = $10
Reward: $2,510 (Take Profit) - $2,495 (Entry) = $15
Ratio: $15 / $10 = 1.5
Trailing Stop Loss Adjustment:
First Adjustment: If the price reaches $2,500, move the stop loss to break even at $2,495 to eliminate risk.
Second Adjustment: When the price reaches $2,505, adjust the stop loss to $2,498 to secure some profits.
Final Adjustment: If the price approaches $2,508, move the stop loss to $2,502 to lock in further gains.
Execution:
Order Type: Place a limit buy order at $2,495.
Target Price: $2,510.
Stop Loss: $2,485.
Conclusion:
Given the current technical setup, it offers a good opportunity to capture gains within the range-bound movement. However, if market conditions change, it would be better to avoid the trade.
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