Gold short setup 1554.40 Key Reference Area Trades

Nice reversal bar currently forming here on the daily. My resistance level here held up firmly and am expecting a rotational move lower the following session.

I have been getting several email about the structure of the gold daily chart. I have been actually talking about this gold setup for about 2 weeks now so here it is. As you can see the upside key reference are on gold was respected, no these levels were not played with, that have been the same!. First of all this is a great example of my methodology of trading. Shorting when gold entered the top of my zone was the ideal trade setup but to be completely honest I missed that trade and was not to happy about it, but it happens, I'm trying to cover so many markets its hard for me to monitor every hour whats going on. The reasoning for this being a great swing short was the fact that 1) I have been watching the dollar 2) the structure was was forming here at the highs. 3) if you did take a stab at the highs its a fantastic risk to reward trade (and that's what trading is all about maximizing your gains and minimizing your risk. if you shorted the beginning or the zone your stop would be above the highs of the most recent move, and objective#1 would be 1395 which it did hit and had a small bounce, and objective #2 would be the 1466 level I think we will see some reaction there / short covering. But ultimately I believe 1381 is i the cards here. If in the following sessions I start to see gold setup for an entry I will get short with a target of 1381. We had a short setup exactly like this one overnight on the ES, I shorted the 1317.00 level with a stop at 1317.75 and I lost 3 ticks on the trade big deal, but more importantly I had a 10 point objective for this setup. And if you managed the trade properly you should of had a small win or scratch trade cause the 1317.50 level was respected and did pull back 3-4 handles. All in all when I see this type of development what were looking for is responsive trade setups inside of larger balance to attempt to catch an initiative move, and that's exactly what is starting to happen here IMO you have to take this trade every-time. I hope that clears up the e mailers and my methodology. Good Trading Kratrader