The Authority’ on Price Action Trading. In 2016, Nial won the Million Daily forex gold analysis market Trader Competition. I see setting up on the GOLD chart.
After watching, please leave a comment below and share with other traders. Hey guys it’s Nial here from learn to trade the market and welcome to another trade setups video. In todays video i’m going to be talking about a huge gold trade setup we recently discussed in the members weekly trade setups newsletter and i’m going to talking about a potential trade setup on gold that I see setting up over the next few weeks. So firstly, lets have a look at the zoomed out daily gold chart. What’s interesting to note is that on the past 3 tests of this 1295 resistance, the price quickly reversed lower, but on this most recent move up to test that resistance, prices didn’t reverse lower, instead price started to consolidate right under that resistance. If we zoom in closer on the daily chart, we can see a pin bar reversal sell signal formed exactly at that resistance, but again, there was no follow through lower, we just went sideways.
Now typically when we see so many inside bars compressing like this, it’s a warning sign that the market is about to make a major break in one direction, but remember at this point we don’t what direction that is. On this 4th price bar, you can see prices did initially break out to the downside and for some this would have been a short signal. However, as you can see, the shorts had it wrong and prices quickly reversed off the lows and formed a large bullish pin bar reversal with a long tail. This is a pattern I call the fakey setup, because prices make a false break in one direction and quickly start moving in the opposite direction, so the first move was ‘fake out’ designed to trap most fo the market on the wrong side. Ok, for anybody short, the fakey pattern was a clear signal to get out of shorts and reverse to longs and for those traders not in a trade, this was a clear signal to take a long position. At the close of this bullish pin bar, we took an aggressive entry at the market price and as you can see in the following few days prices rallied strongly up through the resistance at 1300 and beyond.
4 different types of fakeys and I expand in more detail about this in my trading courses. Ok, so if you missed that trade, the question now is, where is gold headed and how can we trade it from here ? Well given that price has shown it’s hand and started trending strongly above that previous resistance at 1295-1300, we could assume that level is going to act as strong support, in fact after the first break out prices actually re tested that level here and quickly pushed higher. If we zoom out on the daily chart again, we can see the technical picture for gold looks very bullish now that we are above that 1300 resistance, and until prices collapse back below that support, we can assume prices are contained higher and will continue trending higher. Obviously If prices fail, that’s potentially a good sign to close any longs and re assess the chart. The next major level is around these 1370-1400 levels, and that would be my first upside target, but it’s possible we could move even higher than that longer term.
So for now, i’m buying gold on any price dips down towards that support and i’ll be setting profit targets up around 1370-1400 area. If you’d like to receive more trade setups ideas and trading lessons like this, please head over to learntotradethemarket. Be sure to sign up to the newsletter mailing list and remember to subscribe to our youtube channel. I’ll see you in the next video, until then safe trading. What Is A Fakey Pattern and How Do You Trade It? I never knew that one can trade inside bars like this. Thanks Nial for making me understand the price action better, been stuck in the indicators and blowing acounts but now im doing better and trying to understand and master the craft of the key support and resistance method.
Maybe now I will improve my trading with that metal. I did not trade that fakey signal, since it happen bellow the resistance. So trading this fakey pattern was trading long directly into above resistance. Gold is faling now, back to that same supoort, previous resistance and maybe we will get good Buy price action signal now. I reacted emotionally by closing the Gold chart.
The market is always going to be there, plenty more opportunities for those patient enough to wait. Thanks Nial, love these break-down videos. Nice trade, thank you for sharing. What do you think of the pin bar on the daily chart USDCAD formed last Friday sept 08. It seems to be in a strong support area.
Would you wait for a candle confirmation before going long. Click the contact us menu and send me a message. Missed the fakey pattern but I got in on the retest of support at 1300. I’ll look to buy at support or at the ema bounce. I think I mention this in almost every trading lesson I produce. Brett, as I said in the video, that 1295-1300 level is now support, and I’ll be buying again if prices re visit that support area. Your email address will not be published.
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