I've been watching XAUUSD all week and as the overall movement has been bearish, I've been looking at countertrend opportunities of where profit taking may be taking place and relief moves (retracements) will occur.
On this chart we've just had the last retracement back into previous structure, now the question is where are we likely to go next? Drawn on is our next area of confluence which features a harmonic move (red lines), two 1.414 fibonacci extensions from the previous swings, and two fibonacci retracements from the previous swing highs.
As i told the traders in the Live Room this morning, identifying an area is just half the battle, afterwards you need to decide on an entry reason or technique.
On this chart we've just had the last retracement back into previous structure, now the question is where are we likely to go next? Drawn on is our next area of confluence which features a harmonic move (red lines), two 1.414 fibonacci extensions from the previous swings, and two fibonacci retracements from the previous swing highs.
As i told the traders in the Live Room this morning, identifying an area is just half the battle, afterwards you need to decide on an entry reason or technique.
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