29.01.202112:20 Forex Analysis & Reviews: Trading idea for gold

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Gold closed with a pin bar yesterday, which left the bulls a chance to hide their risks behind a double bottom, in particular, at 1833.

In fact, during the US session, quotes underwent a good pullback, thereby opening the opportunity to set up shorts in the market.

On the trading chart, gold has formed a three-wave pattern (ABC), where wave "A" is the bearish initiative observed yesterday. Taking this into account, short positions may be opened from 1850, the target of which is a 50% Fibonacci retracement. Limit risks to 1860, and then take profit at 1830.

Of course, traders need to carefully assess the situation before placing any position. Trading is very precarious, but is profitable as long as the correct strategy is used.

The idea above follows the Price Action and Stop Hunting methods.

Good luck!

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