GOLD : Long trade with LuBot

18 Şub 2023Hi Traders,
today I am sharing a trade setup that I entered into my portfolio using the LuBot indicator. Below I explain the reasons.

1. The indicator shows one last Long signal so I decide to follow bullish trades only.

2. The main trend of the last few months is up so I prefer to follow the operations in Trend

3. In the last few days we have seen a short-term negative trend that brings the price action to the ema100 which acts as support, generating a bullish reversal candle

4. From February 7 to today LuBot shows continuous signs of reversal. We are therefore in an area of ​​strong oversold.

Although the trade could have a strong probability of success, I prefer to remain cautious and place a stop loss immediately below the low of the daily candle with a lower risk than that usually used.

Although we are in an uptrend, the swing highs and lows are decreasing and we could still see a negative trend development. We must always be ready for any situation.

In this regard, I have entered a very tight Take Profit, on the closest resistance area that matches the ema21.

I then insert Buy stop entry on the break of the high of the Daily candle.

The signal setup that I used for this analysis is:
Swing Signals, signal style = 1, limit signals type 3.
In this way I have a broader view of the signals that appear only when there is a change of direction to follow and never entering directly on the signal.