26.03.202109:51 Forex Analysis & Reviews: Trading idea for gold

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold closed with a bearish pin bar yesterday, the tail of which updated the tops of the last two trading days.

If we look at it more closely, we will see that it formed during the US session, and left a very good entry point in the market - at 1719.

Taking this into account, gold bears can work for a further price decrease as long as they follow this strategy:

Since gold formed an ABC pattern, where wave A is the bearish initiative yesterday, traders can enter short positions, the target of which is to set off a 61.8 and 50% retracement from 1731-1733.

Place limit at 1742, and then take profit as soon as the quote reaches 1718.

Of course, risks should be monitored to avoid losing money. Trading is very precarious, but profitable as long as the strategy used is correct.

The plan above follows the classic Price Action and Stop Hunting methods.

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.