We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides Download
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/70dQeBCONm
  • The #ASX 200 stock index hit record highs this year but those days seem unlikely to return anytime soon as even equity buckles before the #coronavirus outbreak. Get your market update from @DavidCottleFX here: https://t.co/HlZhPBsZ6X https://t.co/Rvfnt44wTm
  • Housing data may be more heavily scrutinized in 2020 as softer global growth places more stress on the consumer to keep the American economy afloat. Get your market update from @ZabelinDimitri here: https://t.co/ms4EGbJ1WF https://t.co/EOwX7DLGZZ
  • What are the truths and lies of #forex trading regardless of your #tradingstyle here: https://t.co/uF75VPzstr https://t.co/k1USOdlHiR
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/6l6t02a61R
  • The $NZD may fall versus the Australian Dollar on a more-dovish #RBNZ down the road. “Risk-neutral” AUD/NZD has been maintaining composure as stocks sell off on coronavirus fears. Get your NZD market update from @ddubrovskyFX here: https://t.co/3OtpuHRHBv https://t.co/wYiiLdtmur
  • #Copper prices are rapidly approaching a 17-year uptrend as concern about the #coronavirus threatens to thwart global stabilization and demand for the growth-oriented commodity. Get your market update from @ZabelinDimitri here:https://t.co/2RbfvVZOxX https://t.co/m3EJI8sksF
  • My trading video for the weekend: 'S&P 500, Yen, Gold - A Lot Rides On Weekend Appeals and Monday's Open' https://www.dailyfx.com/forex/video/daily_news_report/2020/02/29/SP-500-Yen-Gold---A-Lot-Rides-On-Weekend-Appeals-and-Mondays-Open.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • The $USD technical outlook is still pointing higher against the Malaysian Ringgit and Philippine Peso following near-term weakness. What is the road ahead for USD/MYR and USD/PHP? Find out from @ddubrovskyFX here: https://t.co/IQUjFt8CVE https://t.co/8rSTyzBf9U
  • That is....that is not good. I am frankly shocked they let a number like that print https://t.co/HauBmn8w3X
Gold Forms a Triangle After a 20% Decline

Gold Forms a Triangle After a 20% Decline

2011-10-11 17:18:00
Walker England, Trading Instructor,
Share:

Gold (XAU/USD) continues to be out of favor due to its 20% decline from its $1920 high on September 10th to its September 28th low at $1532. Currently price is residing at resistance for our current down trend at $1680. At this critical point, gold will find itself either breaking to higher highs, or continuing its present descent to lower lows.

Fundamentally, Gold still remains the safe haven asset of choice. As the economic climate around the world slows many traders, investors and others are still parking their money in the metal. If world governments fail to decide on a plan of stimulus action and markets continue to decline Gold will likely be a direct benefactor. Likewise if there is light at the end of the tunnel, and an economic recovery on the way, it may signal a next leg down for Gold.

GOLD_Forms_Triangle_After_20_Percent_Decline_body_Picture_1.png, Gold Forms a Triangle After a 20% Decline

Taking Price in to a 4Hour chart we can see our well defined support and resistance lines of our triangle. Resistance is currently found over the October 10th high of $1682.61. Support is found under $1653.00 by connecting our rising lows ascending up to present price action. One method of trading triangles includes placing entry orders waiting for a breakout. This allows traders to cover both ends of the market regardless of direction.

GOLD_Forms_Triangle_After_20_Percent_Decline_body_Picture_2.png, Gold Forms a Triangle After a 20% Decline

My preference is to bracket Gold (XAU/USD) utilizing entry orders. Entry’s to buy should be placed over 1,700 with the option to sell under 1, 6400. Limits should look for a minimum of $125.00. Stops should be set limiting $62.50 in risk for a 1:2 Risk/Reward Ratio.

Alternative scenarios include price continuing to consolidate prior to a break.

Additional Resources

How to Trade Triangles

Identifying the Trend

Pivot Points

---Written by Walker England, Trading Instructor

To contact Walker England please email Instructor@DailyFX.Com. You can follow James on Twitter @WEnglandFX.

To be added to Walkers’ distribution list, please send an email with the subject line “Notification,” to instructor@dailyfx.com.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.