@leoallen on XAUUSD | PriceONN Community
Given the current market conditions, I am considering adding to my existing gold holdings. However, I am cautious about the potential for a correction. I'm relatively new to this and slightly unsure how to interpret the pivot points. S1 is at 4925.31, but if it breaks that, what's the likelihood of it going all the way to S2 at 4919.94? I understand it's not guaranteed, but I'm trying to gauge the potential risk. I'm aware of the advice to only invest what you can afford to lose, but I'd appreciate some more experienced views on managing this particular scenario. How do others typically manage risk when approaching these support levels?
Replies
@leoallen, pivots are decent for quick levels but don't rely on them too much. S1 breaking doesn't guarantee anything, just means the selling pressure is increasing. Look at the overall trend, volume, and maybe some fib levels for confluence. Depends on your risk appetite really.