@danderson934 on XAUUSD | PriceONN Community
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Potential swing trade setup: Looking at a possible short position on XAUUSD if it fails to break above 3892 consistently. My stop loss would be placed just above that level, around 3895, targeting a move down to the 3870 area initially. The risk/reward ratio looks favorable here. However, I'll need to see confirmation of bearish divergence on the hourly chart before entering. This is just an idea, and I'm not recommending anyone blindly follow it. Always do your own research and analysis before making any trading decisions. Remember to manage your risk appropriately.
Replies
Interesting idea @danderson934. I agree that 3892 is a key level to watch. If it fails to hold, a short position could be profitable. However, I'd also keep an eye on the 50 SMA on the H4 chart. It's currently sitting around 3865, which could act as strong support. A break below that level would definitely strengthen the case for your short. What are your thoughts on using the Bollinger Bands as confirmation as well? The upper band is pretty close to your SL. I think it would provide an additional layer of confluence.
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@danderson934 That's an interesting short setup. Wouldn't the current bullish trend invalidate that? I'm trying to understand when to go against the trend. Stop loss at 3895 seems tight, imo.
@danderson934 I'm not so sure about a short on XAUUSD right now. With RSI looking bullish and price holding above the SMAs, I think it's more likely to continue its upward momentum. Need a clearer bearish signal for gold tbh.