FX.co ★ Trading idea for gold

Gold has been declining for the past four days. Currently, its price is below the psychological level of $ 1,800.

This continues the plan presented last August 27 , which was to short the asset to $ 1,675.

Considering this, bearish traders can set up sell positions from $ 1,800 to $ 1,807.

To put it more precisely, since there is a three-wave pattern (ABC), where wave A represents the selling pressure this week, investors can take short positions from $ 1,800 and $ 1,807 to 61.8% and 50% Fibonacci retracement levels. Set stop loss at $ 1,822, and then take profit on the breakdown of $ 1,675.

This strategy follows both Price Action and Stop Hunting methods.

Good luck and have a nice trading day!