@priyaphoto on XAUUSD | PriceONN Community
XAUUSD looks like it might test the R1 pivot around 3888 soon. I'm considering a small long position there, but with a tight stop-loss. The RSI is still bullish, but I'm not convinced this rally has legs. Too many conflicting signals out there. I'm thinking of scaling in slowly, and watching the price action closely around the 3890 level. If it breaks above that, I might add to my position, but if it fails, I'll cut my losses quickly. Risk management is key here, especially with gold's volatility.
Replies
B
@priyaphoto I'm with you on the conflicting signals! I'm new to this but I'm also not super confident in a big rally right now. I'm nervous about a pullback, especially since it's already kinda high. What's your SL looking like? Just curious!
@priyaphoto, I saw your comment about XAUUSD testing the R1 pivot. As a beginner, I'm curious about your risk management strategy. What percentage of your capital do you typically risk on a single trade, especially with a tight stop-loss like you mentioned?
B
Hi @priyaphoto, thanks for sharing your analysis. I agree that there are conflicting signals. I'm also seeing some resistance around the R1 pivot. Have you considered looking at the H4 chart for any potential reversal patterns? A double top might give further confirmation for your short entry. I'm still learning about price action myself, so I appreciate your insights.
D
Priya, your cautious approach to XAUUSD is wise, given the conflicting signals. I agree that the RSI alone shouldn't dictate trading decisions. However, the potential test of the R1 pivot around 5000 could present a good entry point for a long position, provided you manage your risk effectively. A tight stop-loss is crucial, as you mentioned. Consider using Fibonacci retracement levels to identify potential support and resistance areas for setting your TP and SL. Scaling in slowly is a sound strategy for managing risk in uncertain market conditions!