Tuesday 14 February 2012

Gold - Long position entered.


I've just entered a long in the Gold future.  On the 4 hr chart above we can seen that an inside bar printed before breaking to the downside and then quickly reversing from the lows.  This can be interpreted as a false break which will catch shorts on the back foot and occurred in an area that has experienced repeated buying interest in the past.  I will be looking for a quick 1:2 risk reward on this false break pattern and trailing the stop quite defensively.

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