On May 16 2024 I posted on social media @AidanFX the XAUUSD BUY setup chart. The instrument tapped into the 1 Hour Demand zone (Gray) and reacted higher from this zone. Bullish divergence pattern (Red) also formed in the demand zone adding more confirmation that XAUUSD will push higher.
XAUUSD 5 Minute Chart May 16 2024
XAUUSD 5 Minute Chart May 17 2024
Price dips lower to the initial buy entry and bounces higher from the 15 Minute demand zone (Blue). Another divergence bullish pattern (Red) forms in the 15 Minute demand signalling for a move higher.
Entered the BUY trade at 2375.70 with stop loss at 2370.80. XAUUSD moves higher to the proposed targets. 1:4.5RR target at 2397.75 hits and is where I closed the buy trade for a +4.5% gain (Risking 1% on every trade).
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the XAUUSD move higher.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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