XAU/USD Short/Long - 5/15m - Post NY Open - May 23 2023
Using the long term PF, we can see that price has respected a major support once again and jumped up to one of the parallels that was used as support/resistance before. Looking at the short term PF (purple), price was also rejected a resistance which is why the first trade was a sell after price broke that red channel. This red channel is usually drawn when price seems to be dancing around a major support or resistance and it can be seen that is was respected in the recent past.
First trade had a stop above previous high and was taken at the retest of the red channel on the 5m. The trade idea was that price could go down to test the major support from the long term PF once again. Once we realized that price is recovering and respecting the lower bound of the red channel, the sell was taken out at half the SL since it was obvious that the SL will eventually be hit.
The second trade was a buy on the premise that price is now respecting the red channel which it did and it went up to the other channel boundary. The TP was put at the channel top boundary since it is highly likely that price will touch it after testing the lower boundary. The SL was put below the hour candle and under the lower boundary as well.
Price hit TP where we took 90% profits, leaving a runner set at $1983 as our TP2. This is likely to happen as price has broken/retested the larger time frame parallel and will head to the next parallel as we have seen it happen before. No partials were taken and it was a fairly quick move.
First trade had a stop above previous high and was taken at the retest of the red channel on the 5m. The trade idea was that price could go down to test the major support from the long term PF once again. Once we realized that price is recovering and respecting the lower bound of the red channel, the sell was taken out at half the SL since it was obvious that the SL will eventually be hit.
The second trade was a buy on the premise that price is now respecting the red channel which it did and it went up to the other channel boundary. The TP was put at the channel top boundary since it is highly likely that price will touch it after testing the lower boundary. The SL was put below the hour candle and under the lower boundary as well.
Price hit TP where we took 90% profits, leaving a runner set at $1983 as our TP2. This is likely to happen as price has broken/retested the larger time frame parallel and will head to the next parallel as we have seen it happen before. No partials were taken and it was a fairly quick move.