FX.co ★ Trading tips for gold

Gold rose during today's Asian trading session. This bullish momentum can be taken as basis when entering the market.

Since a three-wave pattern (ABC) developed, where wave "A" represents the buying pressure, traders can enter the market by taking long positions to the 50% retracement level. Stop loss could be set at 1624, then exit the market on the breakdown of 1635 and 1683.

This reversal is not accidental, but caused by USD/JPY testing the important psychological level of 150, which was prompted by the currency intervention of the Bank of Japan.

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

Good luck and have a nice day! Don't forget to control the risks.