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CommoditiesGold (XAU/USD) Simple Trading Setup

Gold (XAU/USD) Simple Trading Setup


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GOLD ( XAU/USD ) Is now showing some interesting price action based on the daily time frame, Let’s start with the obvious, Price has been creating lower lows and lower highs and now we are currently pulling back to an important key level. I can see that price is now also testing a trend line and we can expect some rejection.

I would like to see the price break the low of 1740 on the current daily time frame before I will even consider shorts. My entry will be a break and retest based on the Daily time frame and then we can look to refine the entry on the 4-hour time frame.

My target is the low of 1681. I believe this will be a solid target if it is able to change the structure to a more bearish environment. Looking at the flip side, The trend line has been tested multiple times and there is a chance that it will break and the price will push through, hence we need to wait for the structure to turn bearish.

Let’s wait and then look closer to the time when the setup is ready.

Renaldo Philander

Prediction Analysis Overview Table

Analysis Overview InformationPrediction Analysis information
On what market is this position based (Forex, Stocks, Crypto, Indices, or Commodities)?Commodities
What is the trading position identifier (Name and/or Symbol)?XAU/USD
Is this a Short or Long Position?Short
Would this be considered a Short Term, Medium Term, or Long Term trade?Long Term
As a Short, Medium, or Long Term trade, which best describes the position (Scalping, Day Trading, Swing Trading, or Position Trading)?Swing Trading
What Time Frame chart is the position based on (1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Daily, or Weekly chart)?Daily
Depending on the asset, how much do you expect it to move in price or percentage?From Entry to Target – 4.24%
What ratio of risk to reward is this trade/position? Choose your appropriate target(s)Approximately 3 to 1 Target 2 N/A Target 3 N/A
What were the technical analysis tools used? Tick the appropriate boxes;Chart PatternsIndicatorsPrice ActionSupport & ResistanceTrendlines
From the technical analysis tools and indicators provided, tick the appropriate boxes for the tools and indicators used to analyze the position;Ascending Triangle, ☐ Bollinger Bands, ☐ Candlesticks, ☐ Channel, ☐ Cup & Handle, ☐ Descending Triangle, ☐ Double Bottom, ☐ Double Top, ☐ EMA, ☐ Fibonacci Retracement, ☐ Flag, ☐ Head & Shoulders, ☐ MA, ☐ MACD, ☐ Order Blocks, ☐ Pennant, ☐ Rounding Top Or Bottom, ☐ RSI, ☐ Symmetrical Triangle, ☐ Volume, ☐ Wedge

Trading Prediction Success Probability Score

FSP ranks the probability of this trade a 5/10

  • Waiting for the structure to switch bearish
  • Price is bullish and could easily push higher

Disclaimer: The FSP probability score is derived from adding and subtracting the positive and negative aspects of the position and is not a definitive sign of how the trade will play out. FSP is not in any way a financial advisor

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