Gold breakout is imminent

Gold breakout is imminent

GOLD has made a big range during the last week. Both ups and downs in the market marked the ranging move.To get more news about Fortrade, you can visit wikifx.com official website.
In my opinion, GOLD is still bullish. Dips have been bought above 1770 and if 1790 breaks we should see 1810 and 1831. At this point, the accumulation is happening and the breakout is imminent. However, if the range persists we could see 1770 again. I am mostly bullish now and expecting a long breakout.
However, as with any other individual Forex candlestick pattern, it is highly advisable to exercise patience and wait until the market reacts during the following trading session, whether it‘s on an hourly or a daily time frame. If the price starts moving in the direction opposite to the trend, preferably with a gap at the session’s open, the probability of a full-fledged reversal increases substantially. Also, when trading the shooting star pattern, you can get the confirmation by means of momentum indicators, such as MACD or RSI, which come very handy when determining when the shift of power takes place within the market. If the shooting star pops up when RSI, for instance, is deep in the overbought area (above 80), consider going for a sell or entering a short position. Moreover, when there is a divergence shown by any of these indicators (a discrepancy between the direction of the price action and the movement of indicators moving averages), the shooting star pattern at the top of the price swing would constitute a mighty strong sell signal.
As for the inverted hammer, it has a similar confirmation scheme: the gap to the upside on the back of the growing bullish momentum and rising price, but here it‘s important to take into account the color of the real body and the time during which the price holds above the hammer’s body and within the upper wick - the shorter it is, the higher is the probability that the reversal will pan out.
A shooting star, the hammers, and a hanging man are the only individual (single) candlestick patterns that matter in Forex trading - there are at least four types of doji patterns: the common, the long-legged, and gravestone, and the dragonfly dojis, but they work only in combination with confirmatory factors. Whereas the best Forex candlestick patterns come in the combination of two or more candlesticks, with engulfing patterns being probably the most easily determinable and arguably the most reliable Forex trading signals, if confirmed by the abnormally high trading volume or the showings of various indicators.