XAU/USD Short - 5/15m - Post NY Open - Nov 17 2022
From the 2 long term 4H PFs (one bullish, one bearish), we see that price has broken 2 floors over the London session and retested both of them (first green circle) which is an indication that the market bias is bearish. The next floor is not for some time so we were looking for a retracement to enter short.
The short term purple PF provides us with more details on potential short entries on lower timeframes since the path is not clearly defined with the long term PFs alone. The purple PF shows a clear channel between the two 0.5 parallels. Price did a fake out on the major floor and pushed up without a retest so the idea was to wait for price to hit a significant ceiling before dropping again to retest the floor.
Trade was a 1:2, taking 50% around 1:1 (SL to BE). Good execution, entered on a retest after a fake out on the significant short term PF ceiling. Price fell right back down after testing that parallel where we set our TP. SL was above the previous high.
The short term purple PF provides us with more details on potential short entries on lower timeframes since the path is not clearly defined with the long term PFs alone. The purple PF shows a clear channel between the two 0.5 parallels. Price did a fake out on the major floor and pushed up without a retest so the idea was to wait for price to hit a significant ceiling before dropping again to retest the floor.
Trade was a 1:2, taking 50% around 1:1 (SL to BE). Good execution, entered on a retest after a fake out on the significant short term PF ceiling. Price fell right back down after testing that parallel where we set our TP. SL was above the previous high.