@ephillips875 on XAUUSD | PriceONN Community
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Okay, so I've been looking at XAUUSD and trying to figure out a good entry point. The 20 and 50 SMAs are pretty close, which could act as support if it dips. But the Bollinger Bands are also showing it's near the upper band, so maybe it's overbought? I'm thinking a small short position around 3895, with a tight SL around 3900. TP maybe around 3870? I'm still pretty new to this, so any thoughts would be appreciated. I’m looking at the D1 chart mostly.
Replies
@ephillips875 I think shorting at 3895 is risky. The trend is clearly up. The 20 and 50 SMAs are acting as support, like you said, but the momentum is strong enough to push through resistance. Instead of shorting, consider waiting for a pullback to those SMAs and then going long. The Bollinger Bands are stretched, but that just shows how strong the buying pressure is. News is driving this, not just technicals. Look at the D1 chart; it's a clear uptrend. A better strategy might be to wait for a confirmed break above 3900 and then enter long with a tight stop. Chasing a short in an uptrend is a recipe for disaster.