Today we are looking at XAU/USD on a 4h chart with a major confluence, I'm loving the look of this shorting opportunity already!
There is so much going on in this chart, I will start by going into the longer time frames then finish off with our entry. If you look at the chart shown below we have recently broken out of our range on the weekly, this has given us our major support level on the 4h chart.
Now going into the 4h chart we have a bearish gartley with our D point just below the trendline making it the perfect reversal zone, this adds extra confirmation to this trade.
The measurements for a valid gartley are detailed below. B: 0.618 C: 0.382 - 0.886 D: 1.272 - 1.618 Final X to D: 0.786
Coming back into our original 4h chart we have our weekly trendline acting as a major support level, solid PRZ zone with everything indicating a short position and RSI becoming overbought... We're in for a huge trading opportunity.
It looks like one more leg up remaining to 1270 area or may be limited to 1264 (weekly R2). The support is 1245 area.Breaks below 1240 invalidates this view.
LewisGlasgow
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I'm thinking the same although we have hit the resistance at 1260, we shall see if it pushes further.
blake200
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i like this. very nice
LewisGlasgow
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Thanks Blake, absolutely loved this trade... Held it all the way down to 1230
Mr.Alias
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when is a good time to short it ?
LewisGlasgow
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We have a perfect hanging man candlestick on the 4h chart which indicates a reversal, I would enter after this closes.