I've been getting some questions about my XAUUSD breakout trade that I posted last week. With this chart I try to explain to you what happened and what is to be expected. We started off with the breakout of the trendline. We all know that price doesn't just keep moving in one direction, so we can expect a retracement after the breakout, which is point C. Where is point C likely to be? Either the 38.2% or 61.8% Fibonacci retracement. These areas area also previous structure areas. We can then copy the AB move and project that, starting at point C. From there we can see our short target.
Thank you for sharing