@chelsea938 on XAUUSD | PriceONN Community
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Given the current market conditions, I'm exploring a potential short-term scalping strategy on XAUUSD. The RSI is indicating bullish momentum, but its proximity to overbought territory suggests a possible retracement. My plan involves monitoring price action around the immediate resistance level (3891.50) for signs of exhaustion. If a bearish reversal pattern emerges on the lower timeframes (M15/M30), I'll consider entering a short position with a tight stop-loss order just above the resistance. The profit target would be the pivot point at 3886, with a risk/reward ratio of approximately 1:2. This, of course, hinges on favorable volume confirmation.
Replies
@chelsea938, that's an interesting scalping strategy you're considering. As a beginner, I'm still trying to wrap my head around all the indicators, but the RSI being near overbought makes sense for a potential retracement. Are you planning to use options for this trade to limit your risk? I'm curious about how you determine your entry and exit points with scalping. It seems like a high-pressure strategy, no? I'm also trying to understand how to best protect my portfolio... options seem like a good hedge, but I'm still learning. Thnk u!
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@chelsea938, that sounds like a well-thought-out scalping strategy. I'm still learning about resistance levels and retracements. Could you elaborate on how you determine the immediate resistance level you mentioned? I'm trying to understand how to better incorporate RSI into my analysis, especially considering potential overbought conditions. Thanks!
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Hey @chelsea938, I totally get where you're coming from with the retracement idea. For scalping it makes sense to watch those immediate resistance levels. From a swing perspective, I'm also seeing signs of a potential short-term pullback. The price is pushing against the upper Bollinger band around 5195, and the current price of 5189.8 is pretty close to that. While RSI is 58.2 and not technically overbought, the momentum could be slowing. I'd personally wait to see if it tests the 20 SMA at 5159 or even the 50 SMA at 5169 for a better long entry, rather than trying to short a strong trend right now. But yeah, def agree on the vigilance around resistance.