DISCLAIMER
Trading is a high risk activity, protect your capital through the use of stop loss, making intelligent use of leverage and not investing more than you are willing to lose. The author of the post declines any responsibility for any losses incurred as a result of decisions made after reading this article. The information contained below is for informational purposes only. CFDs are complex instruments, therefore adequate knowledge is required before making any investment. Thank you for your kind attention!
Gold, what a fall!
Welcome back to another Forex Trendy episode, in which I will examine the four-hour time frame and delve into the world of price action. As traders, our goal is to protect our accounts and minimize losses, which are an unavoidable part of the trading process. I will demonstrate how to exploit the market while avoiding potential risks by focusing on price action.
Let’s start with the EUR/USD trade. A rising wedge pattern is visible on the chart, with a sell signal at 1.011. However, as a conservative trader, I am concerned by the price action. Higher highs and lower lows indicate an upward potential rather than a bearish signal. I’d rather wait for more solid confirmation before entering this trade.
Moving on to gold, due to its volatility, this precious metal necessitates a different approach. It is advised to keep a separate account solely for gold trading. Day trading gold can be profitable, but it requires focus and solid strategies. Gold’s price action appears promising, with a rebound from a strong support level of $190.40. Following the breakout and retest of the shoulder level, a reliable sell signal is provided, resulting in a significant downward move to $1835.
Let us now turn our attention to EUR/GBP. A bearish pattern with a left shoulder, head, and right shoulder is forming on the chart. Following a retest of the left shoulder at 0.1456, the price received bullish inputs and rose to 1.545, close to the 50 level. However, a subsequent downtrend confirmed the bearish pattern’s completion. This mature signal is trustworthy, and the price has risen to 1.5261.
The main takeaway from this analysis is the importance of paying attention to price action. It provides useful insights and aids in the management of emotions. Successful trading requires emotional detachment from money. Professionals frequently advise not investing more than you can afford to lose, because emotional involvement can result in premature trade closures or missed opportunities.
To make money in the forex market, you must have tried-and-true strategies, a solid plan, and a mental distance from money. Losses are unavoidable, but with a well-thought-out strategy, the gains will outweigh the losses in the long run.
I’d love to hear your thoughts and ideas for future videos. Fibonacci, day trading, copy trading, market analysis, and cryptocurrencies are all on the agenda. Stay tuned and we’ll see you soon!
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