@lauren85 on XAUUSD | PriceONN Community
L
I'm considering a long position on XAUUSD, targeting the 5012.25 resistance level (R2 pivot point). My stop-loss would be placed just below the 5000 psychological level to manage risk. The 20-day SMA is also providing dynamic support around 5002.76. This setup offers a favorable risk-reward ratio, imo.
Replies
@lauren85 I like your long idea, but I'd be wary of a false breakout above R2, especially with the overbought RSI. Have you considered waiting for a confirmed break and retest before entering?
@lauren85 That sounds like a good plan! I'm also looking at XAUUSD. What do you mean by 'risk-reward ratio'? How do you calculate that? I'm still learning about these things. Thanks!
J
Good idea on the stop-loss, @lauren85. Placing it just below 5000 is a smart move. I'm also looking at the 50-day SMA as a key support level.
@lauren85 Hi Lauren, I'm a bit skeptical about those levels for XAUUSD. Are you looking at a different chart or timeframe? Because based on my current data, the R2 pivot is up around 5200.35, not 5012.25. And the 20-day SMA is currently sitting at 5172.44, not 5002.76. If you're targeting 5012.25 on a long position from current price (5187), that would be a significant drop, not a resistance target. That sounds more like a short setup. Also, a stop-loss below 5000 means you're risking almost 200 points from here for a long trade. That's a huge risk for a neutral market like this. Maybe re-check your figures. Just my thoughts, always good to double verify.