Bearish setup of Gold on 1H(reverse previous bullish setup!)

Yesterday, I published a bullish trade idea on gold. It was a nice setup with fib, MA, momentum, demand zone, you name it... But it ended up with failure. The zone got violated in the middle of day(Beijing time). I observed the US 10Y yield started to go up again with a intra day rally of over 3%. Hang Seng index fell with Nasdaq. That also weighed on gold and BTC. Luckily, China market closed 0.5% higher at 3 p.m. At least, clients can have a not bad weekend.

Stop loss is something traders need to deal with. As my key zone on 1H violated, I changed my short term bullish view to bearish, also, the daily is downtrend. I got both my little buddy and big buddy on my side!

From the chart, I marked two possible entries, with one inside my previous buy zone.

To increase the winning percentage, trigger mechanism is necessary. I will look for price action on 5m. However, everything has two sides. I need to be in front of screen for price action setup.

Anulowano zlecenie:

That's why trigger matters. Price touched the two zones after I slept. I saw higher high and high lower formation(trend continue pattern). There is no short entry. I would make the same decision if I am in front of the screen.