Ripple and Gold - Interesting Combination!First of all, I would like to thank @TradingView for this chart combination!
As you clearly see, on Daily timeframe XAUXRP is sitting around a strong rejection/resistance area (11k to 13k in red)
So a bearish movement would be expected from here, knowing that this instrument can still dive in inside the red zone before going down, but it is a good area to start to look for potential reversals.
For XAUXRP to go down, there are three scenarios:
1- GOLD DOWN, and RIPPLE UP (best case scenario)
2- GOLD UP, and RIPPLE UP but with Ripple moving up more aggressively.
3- GOLD DOWN, and RIPPLE DOWN but with Gold moving down more aggressively.
How to trade it?
Well it depends on your trading style/plan. but here is what I am waiting for as per my trading plan:
ON M30: (left chart) XAUXRP is forming a trendline in gray. but it is not valid yet, so I am waiting for a third swing to form around it, to consider it valid and then sell on its break downward.
The stop loss goes above the last swing high, and we always target double our stop loss size to have an edge over the market.
Meanwhile, until the sell is activated, XAUXRP would be overall bullish and can still dive in inside the red zone before going down. that's the power of waiting for a confirmation and trigger.
and of course, as XAUXRP approaches the lower blue support, we will be looking for buy setups.
