Trading recommendation for gold on 03/10/2017 - a purchase is coming!

At the moment, gold continues to press down after falling, but a reversal or at least a pullback is approaching, which can be used for your own purposes to earn.

What is the situation with gold now?

Gold is approaching a local minimum:

Gold is currently approaching its low on the higher timeframe.

If you enter a buy now, it may not be entirely advisable, since the stop loss will turn out to be too large.

Again, if we judge that gold is the most volatile instrument, then a stop loss of about 300 points seems quite natural.

But I would not open a Buy trade now, but wait for the price to drop as close to the red support line as possible.

Then there will probably be the most favorable moment to enter the transaction. Stop loss is set below the minimum, and take profit is approximately at the designated target (white dotted line).

But the goal is approximate, often due to strong oversold / overbought gold passes a very large number of points, so it may be necessary to prepare for high volatility.

In addition, by this strategy strong oversold has long been shown:

All indicators are at the bottom, but there are still sell signals on the lower TM! But still, I would not sell, since the price can bounce up at any moment.

Therefore, there is only one way out - to wait until the price drops as close to the minimum as possible and open a buy deal.

Can I place a pending order for Buy?

In principle, you can put a pending Buy Limit at the red line, and stop below the minimum.

The only disadvantage of pending orders is that the price may not reach it for just a couple of points and go towards profit.

Conclusion: what to do?

You can divide the volume of the deal by 2 and open now with a stop of 300 points and place a pending order approximately on the red line - the stop is the same.

The reference point for the first Take Profit will be the area marked with a white rectangle, for the second - the top.

PS Therefore, if you enter right now to buy, you can expect a small drawdown.