Gold has been on a consolidation on the H4 chart for the last two trading days. However, the price pattern suggests that there is a strong possibility of getting a Double Top. If that really happens then the price would go towards the South by offering us some short entries. Let us have a look at the H4 Gold chart.
Gold Price Action Analysis – 8th Oct 2018
As we see that the price had rejections a number of times from a level of Resistance. The level of 1194.85 is the level of Support here, which has to be broken to confirm that it actually is a Double Top. By looking at the chart, the level of 1198.20 seems to be the level of Resistance that might play an important part. If that level is held and it produces an H4 Bearish Reversal candle and later we get an H1 breakout at the level of 1194.85, then the Gold price would go to the level of 1186.00. Let us have a look at the summary of the trade…
- Sell Stop Order: 1194.85
- Stop loss: 1198.20
- Take profit: 1186.00
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Many retail traders do not like trading on Gold. A common complaint for this is that Gold market can be very volatile. That is true, but at the end of the day when there is volatility, there are opportunities. We have to make sure that we choose the right time frame to trade on Gold. The H4 and H1 charts are good, but any lower time frames of Gold than H1 chart can hurt traders badly.
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