I’m just updating the situation here I posted back about 10 pages in the thread. Charts above from that post. Here is how I am playing it, quoted from about 9 pages back
Here are the updated charts, notice there was another smaller successful Head and Shoulders on the 2nd chart a ways back:
Oh one more thing, there is a HUGE Head and Shoulders on the GOLD chart also, with a ridiculous target, and I am talking the Daily chart. If Gold breaks above 1760 and closes above, I am jumping in both feet.
The pattern started Nov 14 2011. The Neckline spanning all the way across is right at 1760. GLTA out there.
Hi JJ, yes Gold is definitely getting interesting.
I’ll attach a chart of how i would play it using Price Action. Bear in mind i am a very conservative trader and like to really stack the odds in my favour when taking a trade.
Firstly we can see that Gold appears to have resumed it’s bullish run so taking longs on the Daily would be in line with the overall and current trend.
Price has now moved up and tested what has been a fairly relevant Resistance zone. Rather than merely playing the breakout I will look for price to move a bit higher and then rotate nicely back to test the former Resistance and see if it is now acting as Support.
Hopefully we will then see a large Pin Bar or Bullish Engulfing Bar at this level as a signal for me to get in long. I’ve marked this level off my Daily time frame but when price rotates back to this zone I may even dial down to my intra-day 4 hour charts and see if I get a relevant PA signal.
I know Johnathon sometimes will go down to the hourly but for me personally 4 hours is as low as I like to go.
Attached is the chart, it is pretty self explanatory but if anyone has any questions just fire away.
Yeah, that there is a MASSIVE HEAD AND SHOULDERS Bottoming formation, with the “relevant zones” you have marked being the all important neckline, which broke about 10 minutes after I posted about it.
I am already long, and play these things much more aggressive since many times you do NOT get a pullback. Once it closes over the Neckline, which in this case was 1760, and on hourly normally good for me, I jump in and go for the ride.
I’m also not a big candle trader, too many times they turn out unreliable. I do look for hammers at the bottom, and shooting stars and/or hanging men at the top, but don’t take trades because of them. There has to be at least a couple more reasons, hopefully 3 or 4, on why I would take the trade and I certainly don’t wait for a candle to do it when the other things are in place. If the candle is there, at an important juncture, that is great and just puts another thing in your favour but for me personally, its one of the least important things I watch. Just my style that has developed over the years.
Cheers
p.s Note there is decent resistance at 1780 and it has already shot up to there and bounced off as I write this and put up what Johnathan would call a “pinbar”. It is also once again outside the BB and now heading back in. I won’t be at all surprised, if the whole thing reverses right here and and starts heading down, PAST the now the 1760 support level (I have a few reasons for my thinking here) and makes the whole thing a BIG fakeout. Just how these things go sometimes. At any rate, 1780 was my first target, I took 25% off the table, and moved my stop up to just under 1760 (it was already close, moved it closer). If it breaks above 1780 and closes above on the hourly, I will likely add to my position. If it breaks under 1760 and closes under it on the hourly, I’ll be shorting it.
