Price Action Analysis (Trader Pressure Method)
The market trend indicates that GOLD is still in a Bullish/Uptrend. However, we must also anticipate potential trend reversals if the price breaks through the Support Area or enters a consolidation phase.
Based on historical candlestick patterns, we can identify Buy opportunities. However, to remain objective, I will present an analysis for both Buy and Sell entry setups.
On the chart, I have marked the Resistance Area with a horizontal line above the price (2944.72 – 2932.07). Meanwhile, the Support Area is indicated by two lines below the price (2898.52 – 2885.27).
Entry Setup Options
Breakout Opportunity Setup
- If the 1-Hour candle closes above the Upper Resistance Level (2944.72), prepare to look for the best Buy entry.
- If the 1-Hour candle closes below the Lower Support Level (2885.27), prepare to look for the best Sell entry.
- Stop Loss Rules:
- For Buy entries, place a Stop Loss if the 1-Hour candle closes below 2932.07 (bottom of the Resistance Area).
- For Sell entries, place a Stop Loss if the 1-Hour candle closes above 2898.52 (top of the Support Area).
- Always maintain a minimum risk-reward ratio of 1:1.
Pullback Setup for Sell Entries
- Use the Resistance Area as a pullback zone.
- If the 1-Hour candle closes within the pullback area, consider entering a Sell position.
- Stop Loss: If the 1-Hour candle closes above 2944.72 (Upper Resistance Boundary).
- Maintain a minimum risk-reward ratio of 1:1, according to your trading strategy.
Pullback Setup for Buy Entries
- Use the Support Area as a pullback zone.
- If the 1-Hour candle closes within the pullback area, consider entering a Buy position.
- Stop Loss: If the 1-Hour candle closes below 2885.27 (Lower Support Boundary).
- Maintain a minimum risk-reward ratio of 1:1, according to your trading strategy.
Always apply proper money management in every trade to maintain healthy trading sustainability. Additionally, be cautious of Fake Breakout Candles.
I hope this analysis serves as a valuable reference for your market assessment.
Happy Trading, everyone!