Hello Traders,
Here's my analysis on Gold daily chart.
This bull trap and then pullback to stop runs (stop loss hunting) have resulted in very good trading opportunities with Gold.
The psychology behind these moves are basically that traders see a breakout and enter trades but then price makes a pullback/retracement to take out stops and then reverse and continue in the original breakout direction.
You can always ask yourself – where are traders in pain? This can help a lot finding good trades.
Instead of buying the breakout (buying high) these stop loss hunting entries will give you a much better entry point.
The risk reward ratio RRR on these trades are very good.
The trend is your friend, so buying low in these pennant chart patterns combined with the bull trap and stop loss hunting is a strategy that works.
If it was helpful, I would appreciate you leaving a like and follow. Thanks!
Let me know in the comment section below if you have any questions.
Best regards,
Johan
Here's my analysis on Gold daily chart.
This bull trap and then pullback to stop runs (stop loss hunting) have resulted in very good trading opportunities with Gold.
The psychology behind these moves are basically that traders see a breakout and enter trades but then price makes a pullback/retracement to take out stops and then reverse and continue in the original breakout direction.
You can always ask yourself – where are traders in pain? This can help a lot finding good trades.
Instead of buying the breakout (buying high) these stop loss hunting entries will give you a much better entry point.
The risk reward ratio RRR on these trades are very good.
The trend is your friend, so buying low in these pennant chart patterns combined with the bull trap and stop loss hunting is a strategy that works.
If it was helpful, I would appreciate you leaving a like and follow. Thanks!
Let me know in the comment section below if you have any questions.
Best regards,
Johan