Bearish Cypher Pattern On Gold + Trend Line Confluence
Gold is currently moving higher however, looking at the daily chart , we can see that the last down move on gold created a lower low. While that lower low was not significantly lower, it is still a sign of weakness & should be noted. We learned in Section 1 & 2 of my "How to read structure tutorial", when we should begin to look for a trend reversal & the simple method I use to identify that point within the trend. We also learned that we should not take any trend trades if price action does not have a dominant trend direction, plus my methods to avoid trading ranges & much much more.
(Click on the "how to read structure tutorial" chart at the bottom of this idea if you would like to learn more.)
As of right now I am neutral on gold however there are some setups that may provide good trading opportunities in the weeks ahead & It is important to always stay ahead of any market you are planning to trade. Speculating on where price may go in the near future along with important price levels will allow you to plan your potential trades in advanced. Although we do not know 100% where price will go, we can still speculate & create a plan for those potential trades therefore we know exactly what we will do if those setups occur.
The weekly chart below is showing a Symmetrical Triangle Pattern & We also have a bearish Cypher Pattern on the daily chart that is in confluence with the price of the weekly Symmetrical Triangles upper trend line (1276). I feel this is a high probability setup therefore I am planning to enter a short position using the Aggressive Cypher Pattern Entry. I will be taking up a small initial position using the Aggressive Entry & may add to that position using the Conservative entry if gold reaches those levels. I will be managing this position on a lower timeframe & plan to trail my stops if target 1 is reached.
The chart below shows how I will be trading a breakout of the Symmetrical Triangle.
How to read structure tutorial Section 2
(Click on the "how to read structure tutorial" chart at the bottom of this idea if you would like to learn more.)
As of right now I am neutral on gold however there are some setups that may provide good trading opportunities in the weeks ahead & It is important to always stay ahead of any market you are planning to trade. Speculating on where price may go in the near future along with important price levels will allow you to plan your potential trades in advanced. Although we do not know 100% where price will go, we can still speculate & create a plan for those potential trades therefore we know exactly what we will do if those setups occur.
The weekly chart below is showing a Symmetrical Triangle Pattern & We also have a bearish Cypher Pattern on the daily chart that is in confluence with the price of the weekly Symmetrical Triangles upper trend line (1276). I feel this is a high probability setup therefore I am planning to enter a short position using the Aggressive Cypher Pattern Entry. I will be taking up a small initial position using the Aggressive Entry & may add to that position using the Conservative entry if gold reaches those levels. I will be managing this position on a lower timeframe & plan to trail my stops if target 1 is reached.
The chart below shows how I will be trading a breakout of the Symmetrical Triangle.
How to read structure tutorial Section 2
Giao dịch đang hoạt động:
Hey Traders, Gold is starting to look weak here & is giving us some indications that a possible trend reversal is under way. So far we have a lower high followed by a lower low therefore one more lower low would be my confirmation of a trend reversal..
Đóng lệnh: đạt mục tiêu:
Hey Traders, we are officially out of the Bearish Cypher pattern trade. We were able to get filled at 1274.00 & Target 1 was successfully reached at 1252.00! Stops were rolled to my entry price after target 1 was reached to limit my risk & lock in profits. Unfortunately Target 2 was not met and we were stopped out on that position at break even however we brought home a nice profit with target 1 & managed the trade according to our plan so all in all, this was a good trade!
Bình luận:
Gold is attempting to breakout of its Weekly Symmetrical triangle formuation. Those of you who follow me know that we have been watching this formation for some time & have been planning how we will trade it in advanced. All of our decisions for trading a breakout of the Symmetrical triangle have already been made in advanced by looking at hypothetical trade setups (See top chart in description above for Conditions that must be met in order to look for entry). By speculating on where price may go in the future, we are able to minimize our emotions & eliminate most of the decision making process. Gold has broken above the upper trend line of the symmetrical triangle pattern however all of the conditions listed on the chart above MUST be met before looking for entry reasons. Lets keep an eye on this and see if gold can manage to get a Weekly Candle Close that is clearly above the upper trend line. A Weekly Candle Close above the upper trend line would be extremely bullish however if this does occur, I will be more interested to see if we can get some follow through to the high side on the next candle open. I hope this was helpful & I will be sure to continue updating this idea as the setup on gold progresses! Thanks Traders!
