A trader reviews a forex chart using the 8-period EMA as his primary buy signal, noting that a candle opening and staying above it indicates a long position at trend bottoms. He checks sentiment and the economic calendar, linking higher jobless claims to deflationary pressure that could boost gold and support a bullish move, with major moving averages converging near soft resistance.
Isn't this insane? Wow. Amazing. All right, let's look at the charts. Yesterday we were talking about this demand zone still being in play. This one over here. Okay. You can see here that stuff is still happening over here. So they're probably stop losses that triggered there and then the price went north. So now it's almost the perfect time for the best trading strategy. So, so this line over here is the 8 exponential moving average. So currently this is the first candle that has opened above the 8 exponential moving average. We need one more candle to open above the 8 exponential moving average. As long as it's above the 8 exponential moving average. For me that is a buy signal. This is not trading advice. This is just how I trade and I'm just sharing it with you. So this is a perfect time to be placing a strategic trade right at the bottom of a trend. We've had this downward trend over here and now we've got this opportunity over there to place a trade which is absolutely fantastic. So let's go look at FX book and look at the sentiment. So the sentiment is even Stevens. So anything can happen there room for a bearish move or a bullish move if we look at the news. Let's look at the calendar for today. So we've got FOMC minutes coming out later today. Tomorrow we've got jobless claims. So with jobless claims we look at the continuing jobless claims and if this number, if the actual that the print that comes out is larger than the consensus, this is a deflationary marker which means that the interest rates are working and then gold should go north which is fantastic. Which is in line with what's happening with the physical gold being demand and the disparity between futures. So yeah, this is the naked trader trading from the beach. Don't you love it? Fantastic. So let's go back to the chart and show you what else. So currently we are almost at a resistance level. It's soft resistance. So the soft resistance is this. It's the 21 day moving average and then we've got the 32 day and the 50 moving average converging and all the moving averages are converging with the 200 moving average. So a breakout is imminent. I don't say it's north, I don't say it's south. But currently the chart is indicating that the bulls are in control and I'm almost ready to place my psychological trade. My nice. It's a largest trade for me, bigger than what I normally place because. Because it's at the bottom of a trend and probably the price is going to spark north. Where is it going to go? Well, as I said, there is resistance. We've got resistance.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
