An update on Gold Futures

Last week I posted a possible Elliott Type II buying opportunity on the 60 minute chart of Gold Futures.  The trade triggered around 5PM ET on the 21st, never rallied to the Ellipse we were using for our first target.  While the trade didn't work this should have been either a small loss or even a break even trade.  After the trade is triggered you should give it 6-8 bars to hit your first profit target, if it doesn't you need to exit the position or reduce your risk dramatically.  As you can see from the image this trade took out the original entry after 10 bars which gives you ample time to adjust the position.  Once it took out the entry it then made a new low.

 

The fact that the first trade did not work does not mean that this is the end of the line.  The market was still in a Type II pattern we just need to find a new entry.  Remember, on an Elliott Type II Trade you are stopped out on average 1.8 times before the trade works.  Trying to find the end of the trends is one of the hardest trades to take, but once it works it pays well.  Since we still have a Type II setup I re-adjust my entry to simply using a trend line drawn across the highs of the 21st and 22nd, once we get a break of the line it's time to enter again.  The entry occurs on the 7AM bar on the 22nd with our Ellipse again being the first target.  This was the trade that worked.

 

At this point the trade should be risk free with a trailing stop at the Ellipse (where first profits should have been taken) price of 1330.  Our next profit target is the MOB at 1356.  It's important to remember if the first trade fails and the pattern is still there, you have to have the confidence to take the next opportunity.  In my personal trading I give the market 3 tries to work, if I get stopped out 3 times it's time to move on.  Gold stopped us out once for a break even trade, when it triggered again you have to jump back in.

 

Ron Wheeler

eSignal Learning
 

 

 

Comments

[Mcx Tips]

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I'll love to read your next post too.

Regards

Mcx Tips

[Share Market]

It was a awe-inspiring post and it has a significant meaning and thanks for sharing the information. Would love to read your next post too...

Thanks

Regards:

Share Market

[cheap soccer cleats]

The members of Congress or the Senate who follow their principles and philosophy quietly in a spirit of compromise are unknown to many Americans, while the loudest and most extreme adidas f50 green on every issue are known to every man in the street. http://www.soccershoes-usa.com/ LFQ

[Single parents dating site]

Thanks for sharing this information.And I'll love to read your next post too!!!

[Pegasus Dating]

An informative blog! As you can see from the image this trade took out the original entry after 10 bars which gives you ample time to adjust the position. Once it took out the entry it then made a new low.