Shorts on XAUUSD Following Bearish News DayExpecting a nice retracement on the Daily candle to form a lower high and then an extension to the downside to form a new Lower Low.
The Fib has been used for the 5th Feb Daily candle and we are targeting two entries
The 5m/1hr DBD
The 61% Fib Level
The DBD:
The Drop-Base-Drop (DBD) was identified on the 1hr timeframe using the QuantumTrader Indicator, I then highlighted it and went to the Lower TF Charts, Spotted another DBD on the 5m chart and decided to use it as my "Sniper Entry" for the trade. This zone is also within the 50% fib zone so gives me higher confidence in the trade.
The RR is 1:2.9 and is targeting a 216 pip move
The 61% Fib Level:
This Fib Level is for my second entry and relies on the daily candle retracing to 61% of the previous day's price, to then find resistance and reject to form a new lower high and lower low. This trade has a higher RR at 1:5.32 and targets a large 244 pip move to the downside.
Both trades have TP1 set at the 27% fib extension level, anticipating a continuation down to from new Lower Highs and Lower Lows on the Daily XAUUSD Chart
