Does GOLD have found its bottom?
What does price action tells you?
Here a H4 chart. Looks like just flat flat flat....
Now lets see what the true value of GOLD is. We need to get the strenght of all main currencies and eliminate the USD factor out of the Gold value.
(XAUUSD: that is the price of gold in US dollar. If XAUUSD is moving up how do you can know if it is gold moving or if it is the US$ ? Only if gold is moving do we want to trade it.)
XAU/USD >>>> XAU (usd deleted)
golden line = Gold
red line = USD
the other currencies thin lines
If you was following my recent Blogs than you will know the trading techique called the double-GAP.
We see here the true value of Gold is trending up and the currency USD is trending down in the opposite direction.
A trader will now try to find in lower time frames a setup for a long entry. SL and TP is left to the experience and personal preferencs of the trader. I do use herefor recent highs and lows or supply and demand zones. also is possible to wait for a long breakout. A short breakout I would expect to fail under this conditions.