02.08.202111:20 Forex Analysis & Reviews: Trading idea for gold

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Gold rallied on Thursday and Friday amid statements from the Fed and latest data on US GDP.

To be more specific, there was a deep correction in the market, which formed a very interesting level for trading.

Using Stop Hunting strategy, investors could take this opportunity to push prices even higher.

So, considering that gold has a three-wave pattern (ABC) where wave A represents the buying pressure last week, long positions could be built up in the market to provoke a 50% pull back from the current prices. Set stop loss at 1798, and then take profit on the breakdown of 1833.

(This idea uses both Price Action and Stop Hunting strategies)

Good luck and have a nice trading day!

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