Gold +750 Pips Live Trade Before Large Engulfing Bar | Apr 24th
Gold +750 Pips Before Large Engulfing Bar On the Daily Charts
After gold took out the major 1281 support level, which had been holding for several days, the precious metal sold off breaking through support. After a pin bar and small bounce, I shorted the PM at 1280.15. About 35 minutes later, I was up +750 pips and took profit on this live trade (chart below).
The PM did go a few more $’s, but then double bounced, forming a pin bar to start the reversal. After the pin bar + double bottom on the 5m chart, the PM formed a false break + engulfing bar, closing back above the key 1275 support.
There is a good chance the 1275/78 support level will get tested again. If the pullback is corrective, then look to get long, targeting 1295 and then 1330. If the daily lows at 1268.45 fold, then we’ll likely see further unwinding towards 1249, and 1233.
Read our primer article on Trading the False Break Strategy Part 1
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