FX.co ★ Trading idea for gold

The sharp decline of the US dollar today has affected all trading instruments, including gold.

Now, since most sell stops are placed at 1900, gold bulls can build up long positions in the market, in order to raise the price of gold.

In particular, since the quotes have already formed three wave patterns (ABC), where wave "A" is the upward movement observed yesterday, traders could set up buy positions from the 50% retracement level, and then take profit as soon as the quote breaks out of 1900. The risk for this transaction is the low reached yesterday.

Of course, traders have to monitor and control the risks to avoid losing money. Trading is very precarious, but also very profitable as long as you use the right approach.

Price Action and Stop Hunting were used for this strategy.

Good luck and Happy New Year!