Two Scenarios + Trade Filter on GOLD futures by ThinkingAntsOk
Use this as a guide to develop your setup.
Based on the Technical structures we can see on the chart, our main vision is Long for Gold because:
-Price above the cloned channel
-Pennant Pattern (Continuation structure)
-Our Setup for a bullish trade will be set IF the price breaks above the pennant pattern and then makes a corrective movement. We will place our orders above that corrective movement
Also, we have seen on the past how the price started bearish movements despite the bullish technical scenario, for that reason, this is how we will trade it on that case:
-If price breaks below the upper trendline of the cloned channel, we will expect a corrective movement and we will set our orders below the corrective wave, with our target on the lower trendline of the pennant pattern
Based on the Technical structures we can see on the chart, our main vision is Long for Gold because:
-Price above the cloned channel
-Pennant Pattern (Continuation structure)
-Our Setup for a bullish trade will be set IF the price breaks above the pennant pattern and then makes a corrective movement. We will place our orders above that corrective movement
Also, we have seen on the past how the price started bearish movements despite the bullish technical scenario, for that reason, this is how we will trade it on that case:
-If price breaks below the upper trendline of the cloned channel, we will expect a corrective movement and we will set our orders below the corrective wave, with our target on the lower trendline of the pennant pattern