【Scalping Course ③】Sell the rally in GOLD, where to enter? Confirm the "end of the rally" on three timeframes
Gold Price Movement Analysis｜Practical Learning Series
The 1-hour chart is in the middle of a decline. The 5-minute chart has risen a little. “If I sell from here, I should be able to ride the continuation of the decline,” I thought, and sold, but the rally continued and I hit the stop loss――.
Retracement selling is a type of selling that tends to cause hesitation not by the direction itself but by confirming whether the retracement has ended. If the reason for selling is only “it went up,” you end up entering in the middle of the retracement.
In this lecture, we will organize the procedures to confirm the end of the retracement in the order of 1-hour chart, 5-minute chart, and 1-minute chart. The idea of the role of each time frame is“GOLD’s 5-minute chart is rising, the 1-hour chart is falling. Which one should you believe?”Please also see
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Three common scenarios where retracement selling is confusing
First, we list scenarios where people tend to get tricked when entering with the intention of retracement selling. Each appears to be “rising during a downtrend,” so they are easy to sell without distinguishing them.
| Scenario | Appearance | Why it’s hard to sell |
|---|---|---|
| ① The 1-hour chart itself is in an uptrend | The overall trend is down, but the most recent 1-hour candle is bullish and rising | Even within a large decline, the rise on the 1-hour chart is a “large retracement” when viewed from the 5-minute and 1-minute charts |
| ② The 5-minute chart is flat and oscillating | Rises and falls repeatedly, with little change in price highs and lows | The starting point and end point of the retracement are not determined, making it hard to articulate where the retracement ended |
| ③ A new low was broken only by the wick | The 1-minute wick dipped below the previous low, but the close was back above | When viewed on a confirmed candle, it has not broken, and a retracement may continue from there |
What these three have in common is that the reason for the price decline has not been explained with a confirming candle. In the next chapter, we will decide the order of checks.
What you will understand going forward
From here, using an imaginary chart example, we will organize the three steps to consider retracement selling in order.
- A way to confirm whether the decline is progressing on the 1-hour chart
- A way to separate “retracement” and “sideways” on the 5-minute chart
- In the 1-minute chart, a method to confirm the end of the retracement by the close and body of the confirming candle
- Why the stop-loss for selling can occur before the chart (including Bid/Ask calculation example)
- Copyable “Retracement Selling Check Sheet” and “Practice Record Sheet”
You can read the continuation with a free view
The continuation can be read with the free view of this article. Those who sign up may receive information useful for GOLD short-term trading, such as the next release of the course.
First, try documenting, on one line, “from where to where is the retracement,” while reviewing demo trades and charts.
