FX.co ★ Trading idea for gold

Gold has been trading slightly above the November low for several days already, which suggests that it is time for the market to turn around and start moving upwards.

In fact, the previous bearish movements have created good buy levels in the hourly chart (H1).

Hence, since the quotes have formed a wave pattern (ABC), where wave A is the bullish initiative observed yesterday, traders can open buy positions from 1794, the target of which is a 50% retracement. Place limit at 1785, and then take profit as soon as the price breaks through 1815.

Of course, traders still need to be careful to avoid losing money. Trading in this financial market is precarious, but profitable if the approach used is correct.

The idea above is under Price Action and Stop Hunting methods.

Good luck!