FX.co ★ Trading tips for gold

The gold market was bearish last Friday, perhaps because many long positions were closed due to it being the weekend. But this morning, prices bounced back by 50%, which opens new levels for short positions in the market.

Considering that there is a three-wave pattern (ABC) in which wave A represents the selling pressure in gold, traders should enter the market by taking short positions from the 50% retracement level. Set stop-loss at 1822, then exit upon the breakdown of 1773, 1765 and 1614.

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.