Gold: Possible Trend Reversal Signal
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What do you think about such a short trade? The price reached SMA200, which is acting as the main trend line. If the price breaks it, we will get a trend reversal signal.
The trade looks rather risky, and we can easily exit from the market by stop. But if the price continues the downward movement, we will be able to get a good profit.
Here is an example of the short trade:
Sell below 1907.85
Stop above 1936.50
Profit Target at 1799.85
Risk per trade must be no more than 1-2% from the trading capital. It will be a good idea to use a trailing stop.
The alternative for this short trade will be a long position opened above the local downtrend line. For this, we will have to wait for a breakout above this line.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The trade looks rather risky, and we can easily exit from the market by stop. But if the price continues the downward movement, we will be able to get a good profit.
Here is an example of the short trade:
Sell below 1907.85
Stop above 1936.50
Profit Target at 1799.85
Risk per trade must be no more than 1-2% from the trading capital. It will be a good idea to use a trailing stop.
The alternative for this short trade will be a long position opened above the local downtrend line. For this, we will have to wait for a breakout above this line.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Nota
Now we have to watch for the price action at the downtrend line. If it can stop the buyers, we will have the same bearish setup. If the price breaks the downtrend line, it will be possible to think about buying.
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