1st commodity update for all my followers.
Gold has made a bearish Gartley pattern on the hourly chart. Price action also suggesting the same, as the price gets rejected from imp resistance level.
Please find the Gold Chart for your kind reference.
Bearish Gartley Details are
The main rules of the Bullish and Bearish Gartley are as follows:
- AB must retrace 61.8% of the XA leg
- BC can retrace between 38.2% – 88.6% of AB
- CD can be an extension of 1.272% – 1.618% of AB
- CD can also be a retracement of up to 78.6% of XA leg
- The point D is known as the PRZ or Potential Reversal Zone
From Point D, a trade can be entered with stops at or above (below) the price point at X.
Once a position is entered at D, profits can be booked at 61.8% of CD with the second target being the measured XA, projected from D. When trading in real time most often the markets don’t form Gartley patterns that fit the requirement to the point. Therefore, traders need to allow some room with a small margin of error. For example, a Gartley pattern may be valid even though the AB leg might have retraced 64.8% instead of 61.8%.
Trade Setup – Sell Gold @ 30950 Target 30750-700 SL 31125
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