The Market Setup
Today I was watching gold on the M5 chart. The market already showing a downtrend, and after price made a BOS to the downside, I waited for price to come back near my resistance line.
I didn’t want to enter just because price touch the line. I wait to see if the resistance can reject the price first.
My First Entry
My first entry was after price rejected the resistance, after the BOS. The structure was already looking bearish, so I took the sell when the rejection was showing.
My Second Entry
Later, price came back to the same resistance line and rejected it again. I took another sell from that area. Both entries was based on the same idea: resistance still holding, and the price not showing strength to break above it.
What the News Did
Honestly, I forget to check the news before entering. I only do the news analysis after the market already move.
The U.S. CPI news was important for gold. September inflation came in hotter than expected, with headline CPI rising 3.7% year-on-year. This made traders think the Federal Reserve could keep interest rates higher. The U.S. dollar and Treasury yields moved up, putting more pressure on gold. Higher yields and a stronger dollar can make gold less attractive to traders. This result a instant downtrend for gold market .
What I Learned Today
I feel lucky because both entries went according to my analysis, and then the price continued moving down strongly. But the news also helped to make the move bigger.
Next time I need to check the economic calendar before I enter. My chart analysis can be right, but major news can make price move very fast. I’m happy with today’s trades, but I should not depend on luck only in future .
Posted Using INLEO
