Hi Traders! Have a look at this (some gold from Andrew Pancholi)👇🔥🔥
Potential Set Up 9 July 2019
Educational Trade Analysis
1. We have time cycles and the dollar index this week. These also fall within the major time cycles for last month.
2. This suggests that the Dollar Index is likely to reverse and most likely weaken therefore our opportunities arise with the cross rates.
3. Looking at the GBP we see the following.
4. We have come down to the 78.6% Fibonacci level
5. There is support at this point previous lows at this level are evident.
6. We have placed the pitchfork as shown.
7. We now need proof that this pitchfork is going to hold.
8. If the market reverses off this then there is a potential target of the median line
9. Therefore we need to calculate the risk reward ratio
10. To do this we use the 40 bar Average True Range to calculate the placing of the stop loss
11. Then we can place in the risk reward ratio and as long as this is greater than 3 to 1 we would give consideration to taking this opportunity
12. We can put an order in and the lower parallel