Let us consider the daily price chart of XAUUSD (Gold) futures. The price is moving in the limits of W1 and D1 bearish trend, containing the falling Donchian Channel. At the moment, we can observe the price retracement completion: the last bar peak of RSI-Bars oscillator is located on the border of the resistance trend line, and that means a prompt price reversal is about to happen. The corresponding Parabolic confirmation will be obtained after the support level breakout at 1162.82, located below next to the last Bill Williams fractal. This mark can be used for opening a pending sell order with Stop Loss placed above $1208.85 per troy ounce. This level is confirmed by the upper Donchian Channel boundary and the last resistance fractal.
After position opening, Stop Loss is to be moved after the ParabolicSAR values, near the next fractal high. Thus, we are changing the probable profit/loss ratio to the breakeven point.
- Position Sell
- Sell stop below 1162.82
- Stop loss above 1208.85
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