FX.co ★ Trading tips for gold

Yesterday's decline in gold quotes led to the formation of absorption pattern in the daily (D1) chart, which points at a potential further decline in the market.

Similarly, the three-wave pattern in the hourly (H1) chart, which has targets at daily highs, also points at a continued decrease in prices.

And considering that recent price movements form a three-wave pattern (ABC), where wave A represents the bearish pressure yesterday, traders should enter the market by selling from current prices up to the 61.8% and 50% retracement levels. Set stop loss at 1800 and take profit on the breakdown of 1772, 1764, 1754.

This trading idea is based on the "Price Action" and "Stop Hunting" strategies.

Good luck and have a nice day!