Alan Solarsh analyzes a large engulfing candle on XAUUSD tied to US-Iran ceasefire talks. Institutions are four times more long than short on gold, suggesting a surge once the ceasefire is confirmed. He warns against removing sell-hedge orders and recommends a risk-off stance for most traders.
How's it everybody? Let's look at the chart and tell you what I see. Okay, cool. So I see a very big engulfing candle, and this engulfing candle, this one over here, we believe is due to US and Iran engaging in ceasefire talks. Now this is not an indication for you to remove your edges, okay? That is an emotional decision. So we do have the first candle that is opened above the ATMA, which is that candle there, and it is— has immediately gone red. So generally at the end of a 4-hour cycle, there is usually an uptick or a downtick depending on the direction, and then the new candle opens, and then that— the new candle that's open goes in the opposite direction. So it's, it's just a move, okay, to close out orders or to hit take profits, and then they start reversing the price again. So just be very aware of what's going on. So now we have to wait for the second candle to open below the ATMA before we make a decision. So you can see my red and white dotted lines, those are my sell hedges. So I'm also like emotional about it and say, geez, should I remove the hedges? What should I do? If you remove the hedges, what happens is that your equity goes down and your margin percentage also reduces because you pay money to the broker when you close out your trades. Then the price reverses, okay, goes— starts going south again, and then you need to again re-hedge, and you're going to re-hedge somewhere down below, which is worse and in a worse position than having your hedges over there. So I totally get where you guys are emotionally, mentally, and, um, on your charts and your drawdown. And you just need to be patient here. When the second candle opens above the ATMA, then we will make a decision of what we're doing and where we're going. So stay calm. That's risk-off at the moment. Your EA shouldn't be trading. And some of you are going short, which is fine if that's what you want to do and you're experienced and you understand. Great, I hope you make money. Me, I'm not, because the institutions are still long and their long positions outweigh their short positions by 4 times. So for me, I think when the war ends, gold is just going to shoot north, and we can see that already, okay, by this long wick candle over here with them saying that they are in talks of a ceasefire. And you can see that gold is starting to reverse. So when it when there is a ceasefire, gold is going to shoot north, and you don't want to be stuck with sell positions. So I hope that you enjoyed this video, and give me some comments and some likes if you're watching this on my socials. And if you've got any questions, you can ask in my Discord community, and I'll see you on my next video. Cheers.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
