Gold's cruel wicks-a 1 hr analysis
This trade setup is tricky. Near the top there was some consolidation with higher closes. The most interesting candle here is the giant wicked shooting star. this is followed by a bearing engulfing.
But! A larger Bullish Engulfing brings price back high again. The next candle confirms that the bulls are losing out: spinning top. This is followed by a Bearish Engulfing.
However, just a few candles later, Gold sends a wick up very high again. This is after price came to a new found support.
At this support, price bounced off traveling about 50 pips up.
Gold sends a Bearish Engulfing with no upper shadow to break through the support and continue pushing down.
After breaking support, Gold sends wicks up to the support level several times and eventually goes down for a total of around 200 pips from top to bottom.
The difficulties in this trade are the terrible wicks. Without precise predictive entries, price moves too close to Stop Losses or pushes right through them (which happened to me every time!)
I had the overall trend picked out, but my entries were not ideal based on the movement which happened throughout the day. Namely, traveling wicks.
I think there are basically three optimal entries which are circled. These are based on previous levels of resistance/support. The final circle being the most optimal in terms of trade confirmation.
But! A larger Bullish Engulfing brings price back high again. The next candle confirms that the bulls are losing out: spinning top. This is followed by a Bearish Engulfing.
However, just a few candles later, Gold sends a wick up very high again. This is after price came to a new found support.
At this support, price bounced off traveling about 50 pips up.
Gold sends a Bearish Engulfing with no upper shadow to break through the support and continue pushing down.
After breaking support, Gold sends wicks up to the support level several times and eventually goes down for a total of around 200 pips from top to bottom.
The difficulties in this trade are the terrible wicks. Without precise predictive entries, price moves too close to Stop Losses or pushes right through them (which happened to me every time!)
I had the overall trend picked out, but my entries were not ideal based on the movement which happened throughout the day. Namely, traveling wicks.
I think there are basically three optimal entries which are circled. These are based on previous levels of resistance/support. The final circle being the most optimal in terms of trade confirmation.
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