Ascending channels trading applied to Gold current situation

🔼 Ascending Channel – Explained Simply
An ascending channel is a bullish pattern — but not always a bullish ending.
It shows a market climbing step by step between two parallel rising lines:
the lower trendline (support) and the upper trendline (resistance).

🧠 Market Psychology
Buyers dominate, but sellers still show up at every swing high.
Each dip gets bought, keeping the trend alive —
until one side finally breaks the rhythm.

⚙️ How to Trade It
• Inside the channel:
Buy near the lower rail, take profit near the upper rail.
• Breakout play:
Go long on a confirmed close above resistance,
or short on a clean break below support.
• Stops:
Just outside the opposite rail — below support for longs, above resistance for shorts.
• Targets:
Use the channel height projected from the breakout point.

⚠️ What to Watch Out For
• False breakouts happen often.
• Too-steep channels usually fail faster.
• Volume must confirm — low volume = fake strength.
• Statistically, breakdowns occur slightly more often than breakouts.
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Key takeaway:
An ascending channel isn’t a promise of a bull run —it’s a structured climb that eventually ends.
Trade the rhythm, not the hope. 🎯
Statistically, in 57% of cases, up channels are broken to the downside

Gold now situation: the recent 1k pips is way-way-way to steep
Confirmation came with a drop under 3950 zone
Usually, in the case of such a steep channel, all the move is negated, so a drop to the 3850 zone.
However 3900 zone is strong support now, so a break under 3950 zone could lead to "only" a drop to this support.