Gold: Possible Reversal from Resistance
Atualizado
I wrote about possible trade opportunities in this market in the previous post. You can find it in the related ideas below this post. The idea was simple, we use the horizontal price channel and trade reversals. If the price breaks the borders of the price channel, we try to catch a new price movement. You can see how many profitable trades we could have following the reversal signals. Now the price reached the resistance level one more time, and we can expect the reversal signal as well.
Here is an example of a possible short trade.
Sell below 1812.65
Stop above 1817.25
Profit target at 1795.85
Risk per trade must be no more than 1-2% from the deposit.
Will buyers be able to break the resistance zone and push the price higher? Sure, they can do it. And if they are really strong, it will be possible to use the breakout signal for buying. Also, it is possible to get a false breakout, and after that, the price will move back to 1795.00 support. It does not matter how the market will move further. We build a plan based on the exact model, and we have to follow it. If the market gives us new information, we will build a new model and build a new plan.
As for the possible shot trade, I use the low of the candle and pending order. If the price breaks the resistance, probably the short trade won't be activated. But even if the price reaches the entry point and moves upward after that, the short trade will be closed by stop, and there is nothing wrong with it. Profitable trading is not about 100% win rate.
If you like my work, please support it by smashing the LIKE button. If you think that I'm wrong, you are welcome to share your ideas in comments! Thanks for your attention!
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.
Here is an example of a possible short trade.
Sell below 1812.65
Stop above 1817.25
Profit target at 1795.85
Risk per trade must be no more than 1-2% from the deposit.
Will buyers be able to break the resistance zone and push the price higher? Sure, they can do it. And if they are really strong, it will be possible to use the breakout signal for buying. Also, it is possible to get a false breakout, and after that, the price will move back to 1795.00 support. It does not matter how the market will move further. We build a plan based on the exact model, and we have to follow it. If the market gives us new information, we will build a new model and build a new plan.
As for the possible shot trade, I use the low of the candle and pending order. If the price breaks the resistance, probably the short trade won't be activated. But even if the price reaches the entry point and moves upward after that, the short trade will be closed by stop, and there is nothing wrong with it. Profitable trading is not about 100% win rate.
If you like my work, please support it by smashing the LIKE button. If you think that I'm wrong, you are welcome to share your ideas in comments! Thanks for your attention!
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
If you think that the short trade is a mistake and I had to open a long positions using the breakout signal, please, look at this chart. If we talk about buying, we had to do it following these 2 trade opportunities. The 1st one is a reversal from the bottom of the price channel. The 2nd is a continuation of a local uptrend in the 15m timeframe. Those 2 trading signals gave us good entry points. Now the market looks interesting for shorting. 
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