December 5, 2012
- in Uncategorized by schooloftrade
Gold day trading plan
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| Gold day trading plan |
We can see
four distinct price-structure clues this morning on this 89range anchor chart
of gold. We can see the inside-day, the price-wedge,
big-round-number, and a bullish AB=CD Pattern.
Each of these clues tells me something different.
four distinct price-structure clues this morning on this 89range anchor chart
of gold. We can see the inside-day, the price-wedge,
big-round-number, and a bullish AB=CD Pattern.
Each of these clues tells me something different.
First, we
know the inside-day tells me we are still trading inside the range from yesterday. This ultimately means that traders buying and
selling agreed on value on Tuesday, and that value has not changed from one day
to the next. We can now make an educated
guess that we can buy at the lows and sell at the highs of the previous trading
range because the range of value has not changed.
know the inside-day tells me we are still trading inside the range from yesterday. This ultimately means that traders buying and
selling agreed on value on Tuesday, and that value has not changed from one day
to the next. We can now make an educated
guess that we can buy at the lows and sell at the highs of the previous trading
range because the range of value has not changed.
Second, the big-round-number
is going to keep us contained today around this 1700.00 area. Very sloppy around these big-round-numbers
for gold these days as traders use them as psychological levels of support and
resistance.
is going to keep us contained today around this 1700.00 area. Very sloppy around these big-round-numbers
for gold these days as traders use them as psychological levels of support and
resistance.
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| Gold day trading plan |
Third, the price-wedge
is going to be support right below us around the 1695.0 and 1685.5 for support. We want to buy-the-lows at support of this price-wedge. As price falls we are getting ready to take a
profit-target at the lows if we are short, and look to buy the lows as resistance. Look for the price-reversal at the lows of
any price-wedge for the high-percentage-trades.
is going to be support right below us around the 1695.0 and 1685.5 for support. We want to buy-the-lows at support of this price-wedge. As price falls we are getting ready to take a
profit-target at the lows if we are short, and look to buy the lows as resistance. Look for the price-reversal at the lows of
any price-wedge for the high-percentage-trades.
Last but not
least we know that the AB=CD Pattern is bullish which means price-action on
gold is likely headed down to the 1685.5 support which is also the lows of the price-wedge. As price is falling we are selling short,
never selling directly into resistance and then looking to buy at the
completion of the AB=CD Pattern at 1685.5
least we know that the AB=CD Pattern is bullish which means price-action on
gold is likely headed down to the 1685.5 support which is also the lows of the price-wedge. As price is falling we are selling short,
never selling directly into resistance and then looking to buy at the
completion of the AB=CD Pattern at 1685.5
