Will GOLD Continue Pushing Up? BOS confirmation is the KEY!
Updated
Hello everyone:) Today I sensed an high quality opportunity on GOLD and will share with you all, hope you'll enjoy the analysis.- Strategy Explanation
Gold has been pushing up without any signal of slowing down, and we must follow the train. Remember trend is always our best friend. The question is how the uptrend will continue its way?
The answer is the upward Break of Structure(BOS) confirmation signal in relatively lower timeframe, we choose the 1H chart to analyze.
Locally on 1H chart, we are in a ranging area. In order to start seeking for LONG opportunities, we need to see current ranging area is broken and additional upward confirmation signal emerges, then we can be more confident in that the LTF trend will follow the strong HTF uptrend. Here I choose the 1H level at 2509.180 as the confirmation signal(Break of Structure BOS), since it's pretty easy to spot. Before this level is reached, we don't know what happens locally on 1H chart. It can be ranging more, or immediately pushing up now, or going back down to grab some liquidity and then pushing back up again, no matter what's the case, we do NOT care, because all we do is to wait for the BOS confirmation level to be reached, then we can be ready to BUY if it pullbacks to some reasonable entry point, examples shown on the chart.
A conservative Stop Loss can be set a 2495.290, you can adjust it according to your own style.
A conservative Take Profit at 2531.765, but personally I will exit if Double Top pattern emerges, since the uptrend is extremely strong, I want to let the profit run in this case.
I recommend to take more risk on this A+ setup LONG trade if it happens, simply because the TREND is on our side. This is the kind of trade that covers our losses and also increase our net profit.
- Cautions
If the "Caution level" at 2461.600 just below the 4H Order Block has been broken down, before our desired BOS confirmation occurs, we need to abandon this LONG idea, since the market will probably start ranging then.
If further down the "Trend reversal signal" at 2450.805 is broken down, we then need to be thinking about Short instead of Long, since the market condition has shifted.
Note
I marked the 4H purple are as "4H Order Block", that might be misleading, sorry. "4H Demand Zone" is a better name. Trade active
Gold Long now
Note
A short-term Buy Limit order on Gold can be ready, once it breaks up the new BOS level, and pullback a bit.
Note
1H Chart Gold, if today Friday the market starts ranging, then next week one more Buy opportunity can be seen something like this.
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