[TW] 29-8-2011 XAU/USD Long by Melchsee

Trading Discussion
1

XAU/USD H4

Hi guys,
here’s my contribution back to where i started learning to trade at babypips. :33:

I’m looking to Long on XAU/USD this week.

However, i expect a pullback down at Resistance before shooting back up by end of the week.
If it drops past Entry 1 i’ll hold up alittle longer to Entry 2 before entering.

Stop Loss at 50 pips. Take Profit at 1900. Trailing Stop 50 pips.

Comments :

Last week Gold broke through its ED Channel going down after the publication of Fed Bernake’s speech at Jackson hole. By close to the end of the trading day the chart formed a tweezer bottom candlestick bouncing the price back up.
However, i expect it to be short-lived. Stochastic on the chart already at overbought zone. Therefore a quick profit could be made by setting a Sell Limit entry at $1835. Keeping it tight, TP at 1800 (Psychological Zone) , SL at $1850 (Minimal Psychological Zone).

Thanks all !

Additional Comments :

trade was triggered this week. I’m still holding on to this trade and moved my stop-loss for a risk free trade.

my Short which was triggered $1825 just a few pips below resistance and hit TP at $1775 pips . Entry 1 has yet to be triggered. Should a strong candle close above resistance zone. I expect the market to rally upwards to he $1850-$1900 zone. Hope you guys made some profit here.

Happy pipping!

2

Pull back predicted correctly. Now only to wait for the opportunity for XAU/USD to continue its trend upward !

3

Hm, good luck with your trade. If I look at the weekly, we are still a hell of a lot overbought. Almost 2 beta. Anywhere around 1600 and below would be a better price to buy in my opinion. Not sure if it goes that low soon, though.

4

weekly and monthly has been overbought for quite sometime it might have a drop back down further past 1700.
My consideration of entry point 1 is that before you enter make sure that the candle completes itself before going long.

If it goes past Entry point 1 it will make to Entry point 2. If it goes past Entry point 2. This trade will be invalid and i will be shorting it instead. :slight_smile:

5

trade was triggered this week. I’m still holding on to this trade and moved my stop-loss for a risk free trade.

my Short which was triggered $1825 just a few pips below resistance and hit TP at $1775 pips . Entry 1 has yet to be triggered. Should a strong candle close above resistance zone. I expect the market to rally upwards to he $1850-$1900 zone. Hope you guys made some profit here.