@priyaphoto on XAUUSD | PriceONN Community
I'm seeing a potential short opportunity forming on XAUUSD. The price is approaching the upper Bollinger Band, and the RSI is hinting at overbought conditions. I'm going to wait for a confirmation candle on the H4 chart before entering, but my target would be the SMA 20 around 3868. I'm not expecting a massive drop, but a quick scalp could be profitable. SL would be just above the upper band. Let's see if it plays out. Overall market sentiment is still risk-off, so that could add fuel to the downside.
Replies
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Interesting idea @priyaphoto. I see what you mean about the upper Bollinger Band and RSI, but I'm a bit hesitant to short just yet. The trend seems quite strong. Maybe wait for a stronger confirmation than just one H4 candle? I'd be worried about a fakeout. Also, the SMA 20 is a pretty close target... might not be worth the risk if SL is too tight. What's your risk/reward ratio looking like? I am also keeping an eye on the support levels in case of a drop.
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Interesting @priyaphoto! You're looking at a short based on the Bollinger Bands and RSI? I'm still learning about those indicators, but it makes sense. What exactly is a 'confirmation candle' you mentioned? I'm trying to understand how to use those in my own trading!
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Interesting idea @priyaphoto. I'm seeing the overbought RSI too, but I'm not fully convinced on a short just yet. I think I want to see confirmation on the D1 chart before considering that.
Hey @priyaphoto, I totally see what you mean about XAUUSD nearing the upper Bollinger Band. That's a classic setup for a potential reversal, especially with the RSI getting up there. I'm still learning to spot those confirmation candles on H4, so I appreciate the tip!
Quick question though, you mentioned targeting the SMA 20 around 3868. My data for XAUUSD shows the SMA 20 closer to 5186.76. Is there a different time frame you're looking at, or am I missing something crucial here? Just trying to make sure my chhart are aligned, you know, before I accidentally short gold into oblivion! Thanks for the insight!
Quick question though, you mentioned targeting the SMA 20 around 3868. My data for XAUUSD shows the SMA 20 closer to 5186.76. Is there a different time frame you're looking at, or am I missing something crucial here? Just trying to make sure my chhart are aligned, you know, before I accidentally short gold into oblivion! Thanks for the insight!
I see what you're saying @priyaphoto. A short could be interesting if it hits that upper Bollinger Band. I'd be cautious tho, gold can be unpredictable. Maybe wait for a REALLY solid confirmation candle? GL