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02.02.202114:45 Forex Analysis & Reviews: Trading idea for gold

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The formation of the pin bar pattern confirms the short scenario in gold.

In fact, because of it, traders can follow this bearish strategy below:

Since the quote has formed a three-wave pattern (ABC), where wave A is the downward movement observed yesterday and today, short positions may be opened from 1855-1860, the target of which is a 50% retracement. Risks should be limited to 1868, and then take profit as soon as the quote reaches 1840, 1830 and 1800.

Of course, traders still need to carefully assess the situation before placing any position. Trading is very precarious, but profitable as long as the correct strategy is used.

The plan above follows Price Action and Stop Hunting methods.

Good luck!

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