Home Technical Analysis Gold Price Forecast Gold Forecast: Markets Show Signs of Weakness. Gold Forecast: Markets Show Signs of Weakness Christopher Lewis. on November 18, The Federal Reserve continues to speak of hockey shyness, and this should continue to work against gold. Gold markets have struggled a bit during the trading session on Thursday, as we are threatening to break back through the Day EMA. Ultimately, a lot of this comes down to the Federal Reserve and interest-rate expectations, which are very fluid thing to say the least.

I should say interest rates are fluid, not the Federal Reserve. Advertisement It's a new week, are you ready for a new broker? Open an account with a top broker now. TRADE NOW. Christopher Lewis. Christopher Lewis has been trading Forex for several years. First , our entry should be preceded by a strong movement, as it is in the disassembled example of USDCAD pair. That is, there should be long and strong uptrend or downtrend. Thus, the candlesticks should be large, large size compared to the previous ones.

Compared to the average size of the candlesticks in this chart, this timeframe and this currency pair.

That is, the candlesticks should stand out in the chart. For example, like this candlestick here:. If there is some movement, trend movement as you think and you are going to enter, but you see other candlesticks to the left, it is not a trend, but range most likely.

But if these candlesticks are far enough away from your potential entry, then the trend is not very strong here and the entry is not justified. It turns out to be not a range, and not against the trend, but it is not clear what it is.

As they say, the market decides where it wants to go. In such situations, it is better to refrain from the entry and wait until the movement will show itself. Thirdly , you can consider entering the trade, if there is a Double top. If the previous top was not so far away, or it was far away, but in this case, it would no longer be a double top, but the reaching of the level. For example, as it is in this chart. Therefore, there is no any reliance on the level here. But if there is no reliance on the level, it is dangerous for entry.

Yes, there are, if the price reaches any level. Often, especially for those who trade within the day, it is useful to go to the timeframe above and see what happens there. Here we have daily charts. On the weekly charts, we have long candlesticks; there is a space on the left, clear uptrend and Pin-bar. If we scroll our chart a bit, what will we see?

Was there such top before? There was not, it is dangerous to enter now. And there is no such level on the weekly chart. If the level that we have marked was there on the weekly chart, the entry would have been more justified. But there is no the level on the weekly chart, so we work with what we have. So, I have listed you some of the signs of a good entry against the trend.

But even these signs are not enough sometimes because such signs as a long candlesticks, space to the left, the presence of any good for entry setup — all this does not give us full confidence, as the price may continue moving. First, you should wait for all those signs I mentioned earlier. And in addition, you should wait until the price emerges High at least twice in a row at the same level.

In this case, we can see it on this chart. The price reaches almost one level. The sell price is 1, The price should not reach one and the same point. It is enough when it knocks out in the narrow limits of two or three pips plus or minus. And when you see that sell price is in the same point for several days in a row, i. the price is not allowed to go upward; it is an indication that you can enter the trade. This is a sign that the trend slowed down at least and there will be a correction at least.

Because on the daily charts in order to keep the price below the certain level and sell from this level, again and again, you need a lot of assets and a lot of resources. This means that the strong player is in the market. Therefore, in the case of the strong long trend, we wait until the price knocked out from one price level at least twice, and enter after that only. Moreover, it is best to enter near this level.

And you should enter, of course, with a pending order. Here the candlestick emerged and it reached the price of 1, Another candlestick emerged, and it reached the same price for a couple of pips below. What does it mean? This means that we have built a new level of which may be more sell trades.

After we closed the second candlestick that knocked out from the same point with High we put the pending order Sell Limit nearby the level.

Remember, the price knocked out from the level of 1, , so we put on 1, We put the pending order Sell Limit, as the price at the moment of closing the Doji is below the price we want to enter with. And stop loss is just above the level. At about the same distance at which we entered below the level, at the same distance above the level, we put the stop loss. In this case, the nearest obvious level is far. Therefore, you can keep or you can secure yourself and just increase the stop loss 4 times.

In this case, our stop loss is pips. We get pips. But as you can see, the price has reached this level. Our Take-profit would have been taken in this case. And the deal would have closed with a profit four times greater than this stop loss. In case if we had the level here, then we could enter easier: at the setup, at the Pin-bar, that would have the reference level. In the case when there is no the level, we wait until it is formed, that is when the price reaches some price mark twice. These bars may not necessarily go in a row.

There might be one or two candlesticks between them. Would wait for Low of two candlesticks reach approximately the same level. This would mean that big seller buys from this level. Also, if we enter at the set-up level against the trend, the stop loss would be according to the rules of setup. You can enter from the level of the previous day. You can take the level of the high point or low point of the previous daily candlestick during Day Trading, monitor the levels for the Daily Charts, and take the average daily range volatility as a goal or simply close the deal at the end of the American session, i.

What do I mean when I say to take the average daily range as a goal? This is the medium size of candlestick from High to Low of this currency pair. That is, if the average size of the candlestick from high to low is, say, pips, and the price has passed 80, it is natural to close the deal as the probability is very, very small that it will pass a large number of pips.

How can we determine the average daily range — volatility? There is the average range of candlesticks from High to Low here, even by the hour, calculated for the last 10 weeks. Also, there is the average daily range from high to low in different days of the week. Here on Wednesday, we had on average ,4 pips for the last 10 weeks. This number of pips the price on average passes from High to Low. An average of ,7 pips is on Thursday, ,3 pips — on Friday, 79,2 pips — on Tuesday.

Accordingly, if the price has already passed pips since the beginning of the day, it is meaningless to open some new positions and go in the direction, where the price moved. And it is pointless to expect any bigger profits too. It is better to close the trade.

When you trade Daily Trading, consider these data. This is a good moment to enter. When the candlestick with such a long tail closed, you can enter immediately. Because it means that traders buy or sell intensively and there will be the momentum down. It always happens after such candlesticks, as a rule. You can be in such trade little longer. Not even to the nearest level, but up to the next level. And you can get very, very good profit.

Because of everyone will enter here. As there are still spikes when marker makers try to knock out those who entered at this tail. It is necessary to put a big stop here, but the profit can often be very large also. Strong spike upward against the trend, you would have entered at the moment of close of the candlestick and then the price went down.

You could wait until the nearest level and the next level also. It would probably be the best option to wait until the next level.

Here you could get pips, it is very, very good on the H4. There was a strong movement down on the same chart, and then the price stopped. Once we see that the price stopped, it is an indication that you have to prepare. Here it knocked out from one level three times. After this Doji, we could put pending order buy limit. Almost at the same price Low of this tailed candlestick, then Low of this small one, and the next. And we could enter on this Doji.

Stop-loss is just below the level that is approximately at the same distance, where the pending order is.

Home Technical Analysis Gold Price Forecast Gold Forecast: Markets Show Signs of Weakness. Gold Forecast: Markets Show Signs of Weakness Christopher Lewis. on November 18, The Federal Reserve continues to speak of hockey shyness, and this should continue to work against gold. Gold markets have struggled a bit during the trading session on Thursday, as we are threatening to break back through the Day EMA. Ultimately, a lot of this comes down to the Federal Reserve and interest-rate expectations, which are very fluid thing to say the least.

I should say interest rates are fluid, not the Federal Reserve. Advertisement It's a new week, are you ready for a new broker?

Open an account with a top broker now. TRADE NOW. Christopher Lewis. Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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To give you the best possible experience, this site uses cookies. Here we see a chart of the USDCAD currency pair. And you should enter, of course, with a pending order. And stop loss is just above the level. This is a sign that the trend slowed down at least and there will be a correction at least. Therefore, in the case of the strong long trend, we wait until the price knocked out from one price level at least twice, and enter after that only. Choose the desired currency pair, EURUSD, for example.

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