Setup Overview: I believe gold has completed its 'A' pattern of the 'ABC' correction structure. Now that we have this data, we can make an educated guess that the market will go for shorts around the 1573 to 1583 mark (red zone drawn above). It's important to monitor price action in this zone before placing a sell order (because of the 100 pip differential between the top and bottom of the red box drawn). This is the zone between the 50% and 61.8% move that usually reverses the market on a 'B' wave.
Profit Overview: Gold has a history of wave 'A' and 'C' being the same length (or 200% of wave 'A', however you want to look at it). However, I have put take profits between 150% to 161.8% of wave 'A' to ensure we will be taking profits at the first stop on the way down as most probably will be.
Risk on sell: Make sure to widen stop losses because as in any 'ABC' correction, wave 'B' may retrace to the 78.6% line.
As always, this is all just for educational purposes, I am not a financial adviser.
Good luck Traders!
Profit Overview: Gold has a history of wave 'A' and 'C' being the same length (or 200% of wave 'A', however you want to look at it). However, I have put take profits between 150% to 161.8% of wave 'A' to ensure we will be taking profits at the first stop on the way down as most probably will be.
Risk on sell: Make sure to widen stop losses because as in any 'ABC' correction, wave 'B' may retrace to the 78.6% line.
As always, this is all just for educational purposes, I am not a financial adviser.
Good luck Traders!