Trading Journal #20: A quick SELL for Gold
- I update the zones of my tradingview charts every morning.
- I make daily zones (green boxes) and 1h zones (blue boxes).
- I am a scalp to swing trader. I often look at the following timeframes: 15m, 1H, 4H, 1D.
- I only observe/trade two Forex pairs: GBPAUD (British Pound vs Australian Dollar) and XAUUSD (Gold vs US Dollar).
- I journal both my losing and winning trades.
- I don’t claim myself as a guru. I am still working on refining my strategy. Thus, whatever you read here shouldn’t be taken as a piece of financial advice.
Note: A zone is a premium price area in which no one wants to give up the price. Zones usually serve as strong areas of support and resistance. Therefore, the price is expected to move from one zone to another.
In my previous trading journal, I emphasized that there is a great possibility for Gold vs. USD to dive after hitting a strong monthly resistance zone. I took a trade an hour ago. My target was hit an hour after placing the trade. Let's take a look at this particular trade:
XAUUSD on 4H timeframe
Around 9 PM, I saw that the price is already touching a strong resistance zone where it previously broke down. The price went bullish for the past hours but I am certain it will go down after attempting to penetrate this particular resistance zone. I placed a SELL order and set my target price to the nearest support (blue box).
Let's take a closer look at the 1-hour timeframe:
XAUUSD on 1H timeframe
As you can see, the price failed to reach the previous resistance (yellow circle), making a SELL order the most sensible button to push. My TP was hit a while ago. I won't take further trades for this day as I'm already contented with the gains I had.
I am still looking to go short for XAUUSD. I am actually suspecting that the price will retest the previous resistance (yellow circle) before going down once again. If that happens, I will place another SELL order and set the TP to the nearest support, unless price action tells otherwise. That's the beauty of trading. Just rinse and repeat.
PS: The reasons why I am having this online journal can be found here:
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