The Perfect Setup Unfolding: Don’t Miss This High-Prob Trade
Aktualisiert
IWhat’s Changed and What to Look for Now?
1. Structure and Pattern Focus: Wedge and Correction Identified
The yellow descending lines still highlight a wedge-shaped correction after the price made an upward impulsive move. Wedges often act as continuation patterns, meaning the trend (in this case, bullish) is likely to resume once the wedge is broken.
Price has already broken out of the wedge and pulled back, hinting that the market might continue upward after this slight retracement.
🔍 What to Do:
If you spot a wedge breakout like this, wait for a retest—which seems to be forming now—before entering the trade. This increases the chance of entering at a safer spot rather than chasing the move.
2. Identifying the "Potential Buy Zone"
You have a Potential Buy Zone marked around the 2,636–2,647 range, which aligns with both:
Key Fibonacci levels: 61.8% and 78.6% retracement levels.
Demand area: The price previously bounced from this region, showing there’s buying interest.
📝 What to Do:
Watch for price action signals within the buy zone, such as:
Pin bars (candles with long lower wicks).
Engulfing candles (strong green candles that close above the previous red ones).
Mini flags or pullbacks to signal buyers stepping in.
3. Set Entry and Stop-Loss Levels Smartly
If you enter within the buy zone, place your stop-loss below the 78.6% Fibonacci level (around 2,620). This ensures you’re protected if the trade goes against you.
Target One: 2,675.051
Target Two: Around 2,700
These targets are based on previous highs and Fibonacci extensions (-27.2% and -51.8%).
🔍 Pro Tip:
Always plan 2:1 or 3:1 risk-reward ratios. In this case, the stop-loss is relatively tight compared to the potential reward, making this a high-reward trade setup if price respects the buy zone.
4. Using "The Rule of Three" to Confirm the Setup
Based on the Rule of Three, you should always have three confirmations before entering a trade. In this scenario, here’s how it applies:
First confirmation: Price has entered the Fibonacci zone and buy zone (2,636–2,647).
Second confirmation: A bullish reaction or candlestick signal forms (like a pin bar).
Third confirmation: If price breaks above a mini-flag or consolidates slightly above this zone, it’s a strong sign to enter the trade.
5. What to Watch for as a Beginner
If price touches the buy zone and starts to show signs of rejection (like a wick or small bullish candles), that’s your signal to consider entering.
Be patient: If the price doesn’t give a clear signal, stay on the sidelines. Waiting for a proper entry reduces losses from impulsive trades.
How to Back-Test This Setup:
Look at past trades where the price pulled back into a similar buy zone with Fibonacci overlap.
Record how often these setups worked and whether waiting for the confirmation signals improved your success rate.
Summary for New Traders
This chart is a great example of a continuation setup:
Trend identification: The trend is still up, with a correction (wedge).
Entry zone: The buy zone is based on Fibonacci and prior support.
Wait for confirmation: Use candlestick patterns or break/retest setups.
Targets and stop-loss: Define a stop below the buy zone, and target the next highs (2,675 and 2,700).
This is an excellent opportunity to practice patience and discipline—wait for the right signals, and trade according to the plan. Use small positions if you're new, or try this setup in a demo account to build confidence!
1. Structure and Pattern Focus: Wedge and Correction Identified
The yellow descending lines still highlight a wedge-shaped correction after the price made an upward impulsive move. Wedges often act as continuation patterns, meaning the trend (in this case, bullish) is likely to resume once the wedge is broken.
Price has already broken out of the wedge and pulled back, hinting that the market might continue upward after this slight retracement.
🔍 What to Do:
If you spot a wedge breakout like this, wait for a retest—which seems to be forming now—before entering the trade. This increases the chance of entering at a safer spot rather than chasing the move.
2. Identifying the "Potential Buy Zone"
You have a Potential Buy Zone marked around the 2,636–2,647 range, which aligns with both:
Key Fibonacci levels: 61.8% and 78.6% retracement levels.
Demand area: The price previously bounced from this region, showing there’s buying interest.
📝 What to Do:
Watch for price action signals within the buy zone, such as:
Pin bars (candles with long lower wicks).
Engulfing candles (strong green candles that close above the previous red ones).
Mini flags or pullbacks to signal buyers stepping in.
3. Set Entry and Stop-Loss Levels Smartly
If you enter within the buy zone, place your stop-loss below the 78.6% Fibonacci level (around 2,620). This ensures you’re protected if the trade goes against you.
Target One: 2,675.051
Target Two: Around 2,700
These targets are based on previous highs and Fibonacci extensions (-27.2% and -51.8%).
🔍 Pro Tip:
Always plan 2:1 or 3:1 risk-reward ratios. In this case, the stop-loss is relatively tight compared to the potential reward, making this a high-reward trade setup if price respects the buy zone.
4. Using "The Rule of Three" to Confirm the Setup
Based on the Rule of Three, you should always have three confirmations before entering a trade. In this scenario, here’s how it applies:
First confirmation: Price has entered the Fibonacci zone and buy zone (2,636–2,647).
Second confirmation: A bullish reaction or candlestick signal forms (like a pin bar).
Third confirmation: If price breaks above a mini-flag or consolidates slightly above this zone, it’s a strong sign to enter the trade.
5. What to Watch for as a Beginner
If price touches the buy zone and starts to show signs of rejection (like a wick or small bullish candles), that’s your signal to consider entering.
Be patient: If the price doesn’t give a clear signal, stay on the sidelines. Waiting for a proper entry reduces losses from impulsive trades.
How to Back-Test This Setup:
Look at past trades where the price pulled back into a similar buy zone with Fibonacci overlap.
Record how often these setups worked and whether waiting for the confirmation signals improved your success rate.
Summary for New Traders
This chart is a great example of a continuation setup:
Trend identification: The trend is still up, with a correction (wedge).
Entry zone: The buy zone is based on Fibonacci and prior support.
Wait for confirmation: Use candlestick patterns or break/retest setups.
Targets and stop-loss: Define a stop below the buy zone, and target the next highs (2,675 and 2,700).
This is an excellent opportunity to practice patience and discipline—wait for the right signals, and trade according to the plan. Use small positions if you're new, or try this setup in a demo account to build confidence!
Trade geschlossen: Ziel wurde erreicht
Gold Hit our predicted Buy Area and immediately moved away from our area for 145 pips late yesterday evening till this morning. Trade geschlossen: Ziel wurde erreicht
All Targets have been Reached on gold! If you have the ability to hit the replay button on the chart above it is worth it to see how this played out.
This page is designed to:
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
Verbundene Veröffentlichungen
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.