FX.co ★ Trading idea for gold

An interesting event took place on gold yesterday. Trades have triggered a bullish absorption, which is one of the strongest reversal signals in the Price Action system and candlestick analysis.

Such a scenario suggests that sellers are now in a classic trap and are forced to hide risks at 1818:

Taking this into account, the best strategy right now is to increase the price, which can be done by following this plan:

Since the quotes have formed three wave structures (ABC), in which wave "A" is yesterday's absorption at D1, long positions should be opened at 61.8% and 50% Fibonacci retracement levels.

But if you want to sell gold, do it only after the quote falsely breaks out of 1818.

This follows the classic Price Action and Stop Hunting strategies.

Good luck!