Why I am Still Bullish Biased on GOLD | Price Action Basics
Updated: Feb 3
I want to clarify one thing concerning gold for you.
Reading your questions I noticed that many of you are completely paralyzed.
With a recent structure breakout & consequent bearish movement, many traders feel themselves completely lost.
Basic price action rules always help to get an objective directional bias:
1750 level is our initial low, the price reached that level 29th of June
and we saw a strong bullish rally from that.
Reaching 1818 level the price retraced setting a new higher high.
The retracement leg was completed around 1790 level.
We the second swing up, the price managed to set a new high again.
1833 is our current local market high.
With basic trend trading rules, we know that technically speaking the market remains in a "bull's zone" while
it is trading above THE LAST HIGHER LOW level.
The entire area between the last higher high and the last higher low is considered to be a buy zone for us.
Our bias will change IF ONLY the price violates the last higher low level to the downside.
Setting a new low, the price will initiate a new local bearish trend violating current bullish sentiment.
Of course these rules are not 100% accurate, but in a long run they help you to properly read a price chart.