Gold price analytics
In the chart above, the green zone represents a strong buy area that we’re focusing on. This zone is based on past price action and is not related to the 200 EMA, but rather a key support zone where we expect buyers to step in.
Here’s how we approach this zone:
  1. Strong Buy Zone: The green highlighted area is where the price has historically seen significant buying pressure, making it a high-probability area to watch for potential long trades.
  2. Bullish Momentum Confirmation: Instead of entering the trade immediately when price hits the zone, we wait for the creation of a bullish momentum zone. This means we want to see the price form a clear bullish structure (such as a series of higher lows and strong bullish candles) that confirms buyers are indeed stepping in. This approach helps us avoid false signals and ensures we are trading in line with market momentum.
  3. Trade Entry: Once the bullish momentum zone is formed, we look for a confirmed entry. This could be a breakout of a consolidation pattern or the formation of a bullish engulfing candle, signaling the start of an upward move.
  4. Risk Management: Always manage your risk by placing your stop loss below the buy zone, ensuring that if the trade goes against us, we exit with minimal losses. Our target can be set based on the next resistance level or a key market structure.
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Taki Kheloufi
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Gold price analytics
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