Short is the trade on XAU/USD at the moment as the market has presented us with a bearish Gartley pattern with various confluences on the daily time frame.
When we zoom into the 4h charts we can see that there was a confirmed double top with RSI divergence. The importance of this double top is that the market put in a lower high when it came to retest the point A of the top. In my mind, this is a psychological point in favour of the short thesis.
Zooming in even further to the 1hr charts we find ourselves presented with another bearish Gartley! There is far too much confluence here for me to not get involved in this trade.
When we zoom into the 4h charts we can see that there was a confirmed double top with RSI divergence. The importance of this double top is that the market put in a lower high when it came to retest the point A of the top. In my mind, this is a psychological point in favour of the short thesis.
Zooming in even further to the 1hr charts we find ourselves presented with another bearish Gartley! There is far too much confluence here for me to not get involved in this trade.