Geometric Intraday Trade Idea (GITI) – GOLD 1Hr

Which Instrument & Time Frame?

As shown in the chart above, the GOLD on a 1Hr chart at the time of analysis was trading at the 1332.42 area.

Which direction?

Overall, based on the three timeframes; 1Hr, 4Hr & the Daily chart, this pair appears to be moderately Bearish.

What pattern?

From a ‘Geometric ’pattern’s perspective, a Bearish ‘Kite’ pattern is believed to have formed offering a Short opportunity if one is entering the trade from C to D. Gold is potentially undergoing a correction for now and hence it may be reaching out to point D area potentially before rebounding.

How to Trade it?

Geometrically speaking, intraday traders could benefit from a short-term Short trade with an ideal entry below the 1330 level aiming your ideal TP before prices reaching the next psychological area of 1305.80. As for the Stop Loss (SL) level, one could apply the 1:1 risk to reward ratio where the number of pips you are willing to risk could equal the number of potential pips in profit. There is still an attractive gap of opportunity to the TP level if prices are not too far off the price mentioned of where it is trading at present.

Happy Geometric Pipping!