Trading Plan on XAUUSD, What are we waiting for before trading?
Today we will take a look at the precious metal and the setup we are planning to take
Based on the current scenario, we can see three consecutive structures, each bigger than the previous one. Based on previous scenarios this is a sign we will take of an imminent breakout on the consolidation that started in August 2020.
So, what is the final pattern we want to see before setting pending orders? The answer is a double bottom on the minor structure. If that happens, we will develop setups towards the bullish target (check the callout on the chart, please)
To better understand this, you can take a look at the pattern template. Our main approach while trading is ALWAYS defining what we will trade in advance. Assuming the double bottom happens, we will set pending orders on the entry-level and stop loss below the double bottom. The risk-reward ratio we have on a setup like this is above 3, which is excellent.
Please, remember that successful trading is about not having rigid views, opinions, and preferences on the direction of the price. We think successful trading is about defining what we can define as the best situation in terms of risk-reward ratio and establish what we will trade in advance. If the situation doesn't happen, you don't trade; if the situation occurs and is a stop loss, you absorb a -1% or -2% in your account. If the scenario happens and goes as expected, you take a +3 or +6% in your account. TRADE LIKE A CASINO!
Finally, the expected time for a resolution like this in case everything goes as expected is between 30 to 60 days.
Thanks for reading, guys! Trade safe.
Based on the current scenario, we can see three consecutive structures, each bigger than the previous one. Based on previous scenarios this is a sign we will take of an imminent breakout on the consolidation that started in August 2020.
So, what is the final pattern we want to see before setting pending orders? The answer is a double bottom on the minor structure. If that happens, we will develop setups towards the bullish target (check the callout on the chart, please)
To better understand this, you can take a look at the pattern template. Our main approach while trading is ALWAYS defining what we will trade in advance. Assuming the double bottom happens, we will set pending orders on the entry-level and stop loss below the double bottom. The risk-reward ratio we have on a setup like this is above 3, which is excellent.
Please, remember that successful trading is about not having rigid views, opinions, and preferences on the direction of the price. We think successful trading is about defining what we can define as the best situation in terms of risk-reward ratio and establish what we will trade in advance. If the situation doesn't happen, you don't trade; if the situation occurs and is a stop loss, you absorb a -1% or -2% in your account. If the scenario happens and goes as expected, you take a +3 or +6% in your account. TRADE LIKE A CASINO!
Finally, the expected time for a resolution like this in case everything goes as expected is between 30 to 60 days.
Thanks for reading, guys! Trade safe.
