The short gold trading strategy revolves around a specific level, 1928, which is considered crucial for potential short opportunities. The premise is simple: if the price of gold breaks below the 1928 level and subsequently retests it as a resistance level, it could signal a favorable entry point for short positions.
Identifying the Key Level The first step is to identify the key level, in this case, 1928, by analyzing historical price charts and recognizing its significance as either support or resistance in the past.
Confirmation through Break and Retest: The strategy waits for a clear break of the 1928 level to the downside. Once this break occurs, the focus shifts to the retest of this level as potential resistance. The successful retest validates the significance of the 1928 level as a resistance barrier.
Identifying the Key Level The first step is to identify the key level, in this case, 1928, by analyzing historical price charts and recognizing its significance as either support or resistance in the past.
Confirmation through Break and Retest: The strategy waits for a clear break of the 1928 level to the downside. Once this break occurs, the focus shifts to the retest of this level as potential resistance. The successful retest validates the significance of the 1928 level as a resistance barrier.