Following the previous XAUUSD post, the price pattern has completed the descending triangle formation and is reaching to the recommended TP2 zone, where traders should definitely start to take profits.
The reason why we should start scaling out of sell/short positions here is because there are a cluster from multiple indications on this demand zone at 1900 area including:
1) POC from fixed range volume profile of the previous swing low-swing high
2) 161.8 target from fibonacci after the consolidation of descending triangle formation
3) EMA-200 day period
Evidently, this demand zone is considered strong based on the cluster of 3 technical indications
There will likely be a technical rebound near this area, where we can trade against the trend for a very short trade. However, it would not be wise to place a trade right away.
The price actions should begin to form a range of consolidation and show a lower high first in 15m timeframe before placing a trade.
SL: at the lowest point in 15m timeframe
TP: at two cayenne lines are acting as minor resistances and should then be the TPs for this short trade plan: 1910, 1917 respectively.
Again, this short trade plan is trading against trend which can be very risky. Therefore, do not forget to put a stoploss and place in proper risk management on your positions as always
The reason why we should start scaling out of sell/short positions here is because there are a cluster from multiple indications on this demand zone at 1900 area including:
1) POC from fixed range volume profile of the previous swing low-swing high
2) 161.8 target from fibonacci after the consolidation of descending triangle formation
3) EMA-200 day period
Evidently, this demand zone is considered strong based on the cluster of 3 technical indications
There will likely be a technical rebound near this area, where we can trade against the trend for a very short trade. However, it would not be wise to place a trade right away.
The price actions should begin to form a range of consolidation and show a lower high first in 15m timeframe before placing a trade.
SL: at the lowest point in 15m timeframe
TP: at two cayenne lines are acting as minor resistances and should then be the TPs for this short trade plan: 1910, 1917 respectively.
Again, this short trade plan is trading against trend which can be very risky. Therefore, do not forget to put a stoploss and place in proper risk management on your positions as always
