For a bearish engulfing candle in a downtrend, the stop-loss is placed just above the high of the engulfing candle.
Engulfing candles show a powerful change in direction.
The powerful aspect of the Engulfing Pattern is that it signifies a strong likelihood of reversal in the market. The buyers or sellers have been been aggressive enough to bring back the price to a level beyond the extreme level of the previous day.
Gold has a sesonal tendency to peak in late January after the holiday season.
Gold tends to post seasonal bottoms in late July or early August.
Look to go long a gold about November 19 until about December 4.
Gold posted an interim high on December 3.
Also take a look at the correlation between the USDJPY and the price of gold.
last Daily LH around 1217
Ranges can be lucrative, as they offer trades with relatively low risk compared to the potential reward if the range continues. They look simple, but can be tough to trade in real-time. View support and resistance as price areas, not specific prices, because rarely will price stop and reverse at the exact same level(s) as before. An...
Market close/open. It’s a good idea to avoid these or be wary around these times. At market close a number of trading positions are being closed. This will lead to volatility in the currency markets which can then cause price to move erratically. The same applies at market open. A lot of people are opening positions as they didn’t want to hold them over the...
Why is gold correlated to yen?
In reality, there is no proper explanation to this. Although the fact that gold and yen both share the status as a safe haven does in a way validates this correlation. But it is merely scratching the surface. Correlations in the markets come and go. A more recent example that traders can recollect was the short term correlation...
Price Alerts
These allow you to respond to price movements as they happen. They create instant buy and sell signals across all markets. Some providers will also allow you to choose between price level alerts and price change alerts, which will automatically reset once triggered.
Ascending triangle: this is a bullish continuation pattern. It must have at least two highs and two lows that you can connect with trend lines. The upper trend line must be horizontal; the lower trend line must be a diagonal one.This being a bullish pattern we must make sure first that the most recent impulsive move on the 4h chart is also a bullish one.
If the market had committed a significant move in some direction
during the day, there would be a high probability of some extension
in the same direction during the next day. The same assumption can
also be used for analysis of weekly and monthly charts.
A trendline is like a borderline between the market territory and
open space. Right ahead of an ascending...
All the necessary elements are present...After breaking the neckline...
Drawing trend lines and horizontal supports and resistances will be
the next step. Identification and allocation on the chart of possible
horizontal and inclined channels limited by two trend lines is also
very important. Such lines should be drawn only according to certain
strict rules....
good looking set up...
On the break of a trendline and major zone like the one shown on this chart, a
short position should be established.
Analysis of daily charts is similar to analysis of weekly charts. The dif-
ference between them is basically that a smaller time interval allows you
to define critical levels and zones more precisely and accurately, to plan...
