Hey all!
New trade for the challenge! As usual, when getting into new positions the notes from the journal are a great way to share my thoughts about the trade decision, so, here they are, enjoy!
On a macro level, since the pandemic, Gold has struggled to make any significant long-term progress over the 2,000 mark, since then, it has been visited a total of 3 times, including the current one. A common characteristic is somewhat of a breakout followed by little to no continuation, returning below the area.
The last significant break above the 2,000 mark happened in early 2023, showing the same behavior, and recently the market has retraced to the same price range, showing initially strong bullish momentum which faded quickly as the market interacted with the resistance area.
From a shorter time frame (H4), we can see that the market failed to break highs and started to make some bearish progress, which I consider a good enough signal to enter the market.
Regarding targets, my first absolute profit target is down at 1,815, however, we do have the 1,900 range, which lines up with the 61.8% Fibonacci level, and it is a psychological price zone as well, so in case we see strong bullish behavior around that area, I’ll consider either a partial close (raising the TP1 there) or a complete exit of the position. On the stop loss side, I decided to place it about 1 ATR above the last swing high. As usual, the second take profit will remain open.
New trade for the challenge! As usual, when getting into new positions the notes from the journal are a great way to share my thoughts about the trade decision, so, here they are, enjoy!
On a macro level, since the pandemic, Gold has struggled to make any significant long-term progress over the 2,000 mark, since then, it has been visited a total of 3 times, including the current one. A common characteristic is somewhat of a breakout followed by little to no continuation, returning below the area.
The last significant break above the 2,000 mark happened in early 2023, showing the same behavior, and recently the market has retraced to the same price range, showing initially strong bullish momentum which faded quickly as the market interacted with the resistance area.
From a shorter time frame (H4), we can see that the market failed to break highs and started to make some bearish progress, which I consider a good enough signal to enter the market.
Regarding targets, my first absolute profit target is down at 1,815, however, we do have the 1,900 range, which lines up with the 61.8% Fibonacci level, and it is a psychological price zone as well, so in case we see strong bullish behavior around that area, I’ll consider either a partial close (raising the TP1 there) or a complete exit of the position. On the stop loss side, I decided to place it about 1 ATR above the last swing high. As usual, the second take profit will remain open.
