Gold: How to Trade in Bullish Market
Gold is running up to ATH at 1920.80, and it looks like this high will be reached. The price broke 1800.00, another important resistance level. We did not get a reversal signal, so we can't think about selling right now. At the same time, we have the confirmation that buyers are strong, and they are going to continue the uptrend.
How can we trade in such market conditions?
The price is forming a double top. This chart pattern belongs to a reversal group of patterns. It tells us that the price can move down to 1800.00 support and SMAs.
If the price can stay above the support zone formed by SMA50 and 1800.00 level, we will use a reversal signal for buying.
If the price drops below the support zone, we will watch for the price action at SMA100 and SMA200. Reversal signals from these SMAs will be good for buying as well. You can see how the market gave us interesting buying opportunities from SMAs in the past. The same setup we should use for future trades.
Stop orders for all long positions must be placed below SMAs and the local swing low. The profit target can be 1815.50 resistance. Risk per trade must be no more than 1-2% from the capital.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
How can we trade in such market conditions?
The price is forming a double top. This chart pattern belongs to a reversal group of patterns. It tells us that the price can move down to 1800.00 support and SMAs.
If the price can stay above the support zone formed by SMA50 and 1800.00 level, we will use a reversal signal for buying.
If the price drops below the support zone, we will watch for the price action at SMA100 and SMA200. Reversal signals from these SMAs will be good for buying as well. You can see how the market gave us interesting buying opportunities from SMAs in the past. The same setup we should use for future trades.
Stop orders for all long positions must be placed below SMAs and the local swing low. The profit target can be 1815.50 resistance. Risk per trade must be no more than 1-2% from the capital.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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