Friday, February 18, 2011

Gold price action

The chart below is the daily chart of gold. Note the pin bar / fakey setup that occurred last week which has sent prices higher this week. I actually took a fair chunk of change out of this setup and I wanted to show everyone.

There are some simple principles at work here:

  • Momentum was clearly higher as evidence showed by the 8 / 21 day emas crossed up
  • We then got a clear (minor) fakey with pin bar setup. (Nial explains the minor fakey in his member's section)
  • Price moves up into next resistance near $1390.00 / ounce
  • Very cool trade.


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