Good to be back after a while. Looking at gold here and we are seeing 2 really well defined bullish harmonic patterns formed right near the previous structure support. First, we have the bullish Cypher pattern, which is very close to being complete. Notice that the D leg is below the B point, which keeps the pattern valid. Second, we have the bullish crab pattern, which completes a bit further away from the Cypher pattern, thus giving us even a better risk to reward ratio. We also have harmonic ABCD move completing very close to the Cypher completion point (78.6%). The stop level is the same for both harmonic patterns, but it is not a fixed one for you guys. It might be too tight of a stop for some or too large for others. So, feel free to move the stop loss level based on your personal risk appetite. All the targets are color coded for both patterns. See the chart above for more details.
Make sure to always focus on the risk that you are willing to take, rather than the reward, it really makes a huge difference in your trading performance and especially in your trading psychology.
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
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Trade ativo
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UPDATE #1: Long based on Cypher pattern is active now.
Comentário
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UPDATE #1: Target #1 achieved. Stops move to break even.
Trade fechado: objetivo atingido
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UPDATE #2: Break even stop loss hit. Long positions are now closed.
I'm all for buying gold long term, but I'd use a way lower stop...a bit scary to long here in my humble opinion.
moneymaking
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Hey mate, definitely agree with you. This is mostly short term. I really want strong pullback before getting into it long term. And will only add to it once it breaks the 200 MA on the weekly time frame.
IvanLabrie
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The short term long worked well though. I just shorted the top, let's see if it works.
moneymaking
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Yeah, i know right. Pretty pain free trade. Nice, hold it till my break even stop, hehe :)