Gold: How to Trade in Price Channel
For the next week, the Gold market will be able to provide different trade opportunities in both directions. The price has been moving sideways between 1815.50 and 1795.00 levels. We have a horizontal price channel, and we should apply trading rules for such market conditions.
The rules are simple, and they tell us to buy at the bottom of the price channel and sell at the upper border. You can see how many profitable trades we could have following this idea.
If the price reverses from the resistance level one more time, it will be a selling opportunity with the stop above the local swing high and the resistance. The profit target will be at 1800.00 level.
If the price breaks 1815.50 resistance, it will be a bullish signal.
If the price bounces from 1795.00 support, it will be a buying opportunity with the profit targe tat 1815.50 resistance.
If the price breaks 1795.00 support, it will be a bearish signal.
As you can see, a simple price channel gives clear trading signals for buyers and sellers, depending on the price action at the borders. Reversal signals we use for trading in the price channel, and we follow the sideways movement. Breakouts we use for catching a new trend.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The rules are simple, and they tell us to buy at the bottom of the price channel and sell at the upper border. You can see how many profitable trades we could have following this idea.
If the price reverses from the resistance level one more time, it will be a selling opportunity with the stop above the local swing high and the resistance. The profit target will be at 1800.00 level.
If the price breaks 1815.50 resistance, it will be a bullish signal.
If the price bounces from 1795.00 support, it will be a buying opportunity with the profit targe tat 1815.50 resistance.
If the price breaks 1795.00 support, it will be a bearish signal.
As you can see, a simple price channel gives clear trading signals for buyers and sellers, depending on the price action at the borders. Reversal signals we use for trading in the price channel, and we follow the sideways movement. Breakouts we use for catching a new trend.
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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