The last pair looked at today was on GOLD. If you're a follower of my post here or anywhere else, then you know that I was looking for a potential head & shoulders pattern. Price didn't quite make it to a horizontal neckline (which is preferred not needed) before heading up to retest the level of the left shoulder.
A double top at that level then turned into an ascending triangle which has recently broken out to the upside. Back to the non-horizontal neckline. This continues our series of higher highs & higher lows which results in a bullish trend. So IF we are going to continue this bullish trend THEN the path of least resistance leads us up into previous structure resistance....hope that wasn't confusing.
As a countertrend trader, you should now be asking yourself the question "How can I get involved if we retest previous structure highs?" while a trend trader should be asking themselves "How can I get involved in the anticipated move up to those previous structure highs?"
A double top at that level then turned into an ascending triangle which has recently broken out to the upside. Back to the non-horizontal neckline. This continues our series of higher highs & higher lows which results in a bullish trend. So IF we are going to continue this bullish trend THEN the path of least resistance leads us up into previous structure resistance....hope that wasn't confusing.
As a countertrend trader, you should now be asking yourself the question "How can I get involved if we retest previous structure highs?" while a trend trader should be asking themselves "How can I get involved in the anticipated move up to those previous structure highs?"
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