FX.co ★ Trading tips for gold

Gold went into consolidation ahead of the FOMC minutes, which will be released today.

The following is a scenario that could happen if traders follow the stop hunting strategy:

Quotes are likely to decrease in the hourly (H1) chart.

Considering that recent price movements form a three-wave pattern (ABC), where wave A represents the bearish pressure on Tuesday and Wednesday, traders should enter the market by selling from current prices up to the 50% retracement level. Set stop loss at 1800 and take profit on the breakdown of 1770, 1763 and 1675.

The trading idea is based on the framework of "Price Action" and "Stop Hunting" strategies.

Good luck and have a nice day!