Alan Solarsh reviews live XAUUSD trading, noting a double morning-star pattern and bear trap setup amid risk-off sentiment over Iran. Month-end COT data and institutional position closures will drive volatility through the next few days, with a possible $3,500 sweep down. He recommends cutting lot sizes to a quarter of current levels and strict risk management until the EA gets updated.
Good morning everybody. So yesterday I told you that these candles over here were extremely weak and that possibly we're going to have a reversal, which we did. So the second candle opened below the ATMA, which meant that bull run was a bear trap— a bull trap. So now the price has gone south again. We do have one candle above the 80 EMA. It's kind of a double morning star over there. Double dojis, not really dojis, but like the morning star formation. Unfortunately, we still don't know what's happening in Iran because the one side is saying we are in communication, the other side is saying we're not in communication, uh, and in negotiations for a ceasefire. So we don't really know what's happening. Today is Friday the 27th. So it's the last day, last trading day of the month, I think. Let me check the diary and see what's happening. So Monday, Tuesday, 30th and 31st. Tuesday is the 31st, so that's the last day for COT data for the month. And today we can expect the institutions to be closing out positions between today and Tuesday. So there's going to be volatility during those 2 days, 3 days, so from today until Wednesday next week. So we don't know what's happening, we still have to wait and see what happens with Iran. It's totally risk-off at the moment, and you guys, if you're trading, you just need to be extremely, okay, conservative and have proper wallet management. And good trading psychology. Do not be risk-on and don't take any chances because the price could reverse at any time. I'm still expecting $3,500, a sweep down there, but we don't know. We actually don't know what to do, so we just have to be patient, sit on our hands. I know it's frustrating. I also want to trade. I also want to get started, but it's a very dangerous time to be trading and to be taking chances. So if you are using the EA, scale it back to like probably a quarter of the lots that you were using. And, um, you know, just be conservative. Cool, guys. I'll— I'm still like updating the EA, trying to automate some processes so as to make it more efficient so that you guys get the EA faster. And I'll let you know of my progress. Have a good day and weekend. Chat soon. Ciao.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
