XAU - What's the next step?
*This is not a signal but an educational post*
*Continue till the end of the post to give you a smart hint will help you to scalp*
What happened with Gold? and what's the next step?
I think most of you know that the gold broke a massive resistance on the weekly chart, and after a good run in the last two weeks and breaking the resistance, we expected some cooling down and some correction, and after reaching 1910$ which is a good psychological resistance, it was time to correct and test good support on the 4h chart forming a wedge.
But suddenly at 15:00 In conjunction with us pre-market, we saw a sudden move trying to smash our support, then we saw a massive rejection, which was a sign to start running and breaking the wedge we see here.
How do wedges work?
Actually, a wedge is similar to any other pattern, it's a sign of changing of the direction, and when the price breaks the wedge strongly, then test it, we expect the price to go to the second top as a tp1 if it's a falling wedge, and to go to the second bottom in case of the rising wedge.
In such case, our tp1 was the area between 1901$ - 1902$, and it succeeded to reach it
And as a tp2, we then expect the price to visit the higher top from where the wedge started to form, and in such case it's 1910$. And this may be our second target.
But hold on! Anyone who has some knowledge in Elliot waves knows that every move contains of 5 small waves, and if you opened the 30min chart, you'll see that it already formed the 5 supposed waves, expecting a deeper correction to visit maybe the support of the trend before we can think of attacking 1910$.
So what's next?
We must watch this level 1905$ when the market opens, if it's broken to the upside, we expect the price to visit 1909$ - 1910$. But if no, then that means that we have formed 5 waves, expecting some correction contains 3 waves to 1900$ at least.
In the case of visiting 1910$, it may form there a double-top to make a deeper correction to test the broken resistance on the daily chart that we've mentioned before, or in case of breaking above it, then our way will be a bit easier to 1925$.
*Scalping Hint*
MA30 is so much respected on the 5min chart, you can scalp with the help of it. Stop dealing with it when you see the price isn't respecting it anymore!
Good Luck Guys!
Ciao!
*Continue till the end of the post to give you a smart hint will help you to scalp*
What happened with Gold? and what's the next step?
I think most of you know that the gold broke a massive resistance on the weekly chart, and after a good run in the last two weeks and breaking the resistance, we expected some cooling down and some correction, and after reaching 1910$ which is a good psychological resistance, it was time to correct and test good support on the 4h chart forming a wedge.
But suddenly at 15:00 In conjunction with us pre-market, we saw a sudden move trying to smash our support, then we saw a massive rejection, which was a sign to start running and breaking the wedge we see here.
How do wedges work?
Actually, a wedge is similar to any other pattern, it's a sign of changing of the direction, and when the price breaks the wedge strongly, then test it, we expect the price to go to the second top as a tp1 if it's a falling wedge, and to go to the second bottom in case of the rising wedge.
In such case, our tp1 was the area between 1901$ - 1902$, and it succeeded to reach it
And as a tp2, we then expect the price to visit the higher top from where the wedge started to form, and in such case it's 1910$. And this may be our second target.
But hold on! Anyone who has some knowledge in Elliot waves knows that every move contains of 5 small waves, and if you opened the 30min chart, you'll see that it already formed the 5 supposed waves, expecting a deeper correction to visit maybe the support of the trend before we can think of attacking 1910$.
So what's next?
We must watch this level 1905$ when the market opens, if it's broken to the upside, we expect the price to visit 1909$ - 1910$. But if no, then that means that we have formed 5 waves, expecting some correction contains 3 waves to 1900$ at least.
In the case of visiting 1910$, it may form there a double-top to make a deeper correction to test the broken resistance on the daily chart that we've mentioned before, or in case of breaking above it, then our way will be a bit easier to 1925$.
*Scalping Hint*
MA30 is so much respected on the 5min chart, you can scalp with the help of it. Stop dealing with it when you see the price isn't respecting it anymore!
Good Luck Guys!
Ciao!
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