12.03.202113:15 Forex Analysis & Reviews: Trading idea for gold

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Gold's three-day bullish momentum has formed a good stop level for sellers - at $ 1,740.

Taking this into account, another price increase could be triggered, as long as traders follow this strategy:

Since the quotes form a wave pattern (ABC), in which wave is the upward movement observed on March 9, 10 and 11, traders can open long positions in the market, the aim of which is to set off a 50% retracement from $ 1.705. Place limit at $ 1,687, and then take profit as soon as the price reaches $ 1,742.

The reward-to-risk ratio of such a transaction is 3: 1. It also follows the classic Price Action and Stop Hunting methods.

Good luck!

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