News and political matters caused gold to break the $1800 barrier!Every retail trader on 8th of July 2020
By: Golden Pips Generator
ALL YOU NEED IS THE CHART AND #FOREXIA KNOWLEDGE!!
We have different posts about why you should never listen to the mainstream media, but I’m writing this post to add today’s biggest news in our archive.
There was no surprise of price hitting $1800 due to the previous two weeks of consolidation, but I’m going to bring to your attention the macro view of gold and why the bullish trend we are seeing now, formed in the first place!
Let’s take a look at the chart below which is gold in monthly timeframe.
Induction and Trap AKA Safety Trade
As you can see we have obvious bullish momentum, that created an uptrend with multiple respects. Then the dealer started working the major zones (S/R), which you can see on the chart above with an orange rectangle and orange arrows above it. At the same time, the dealer created a downtrend as well, so everything was aligned for a sell.
You can also notice the way the candles behaved every time that they hit that zone, they moved against it to validate the area for the retail traders and this is the definition of induction.
All of a Sudden in June 2019:
Gold suddenly shifted against the induction trend and the zones they worked for 2158 DAYS!!!!
Everyone thought the price can’t go any higher, due to the price action, zones, fundamentals and so on. Yet the dealer needed to push up to profit from this!
Next Induction Phase Tool: CORONA VIRUS!
Before this #plandamic we had a good consolidation that trapped a lot of sellers and at the same time conveniently made up numbers and cases, which allowed them to blame the next push on the start of the outbreak.
After the push, we had 2 more months of consolidation and the funny thing about these 2 candles is the fact that the majority of retail traders were feeling smart and started investing in gold. However, AGAIN the whipsaw not only took their money, but also confirmed more sells at the resistance zone (blue rectangle) followed by another push to the upside.
Gold has just made a new 8 year high and is pressing the $1,800/oz. level as buyers continue to dominate price action. A slight risk-off tone in global markets today has underpinned the move, while lower US Treasury yields reinforce the underlying strength of the move higher in the precious metal.Dailyfx.com
If you choose to ignore traps in the financial market, ONLY blame yourself for not making it in the business!!
To learn more about trap setups, check out our website and start changing your life like thousands of others have already done!