XAUUSD 20 August 2024 - NY Session

**Trend Direction:**
The major trend in the higher timeframe (1D) appears to be bullish, as indicated by the price moving above previous resistance levels and continuing higher. The 1H chart also shows a recent breakout to the upside.

**Entry Price:**
- **Buy Limit Order:** Place a buy limit order around $2,500. This level represents a recent breakout area, and if the price pulls back, this level could act as a strong support, allowing for a low-risk entry.

**Stop Loss:**
- Set your stop loss slightly below the $2,490 level, which is the recent swing low on the 1H chart.

**Take Profit:**
- Target price should be set at the next significant resistance level, which is around $2,530. This level corresponds to an area where liquidity is likely to be high.

**Risk-Reward Ratio:**
- This setup gives you a reward-risk ratio of approximately 2:1.



### Stop Loss Adjustment for Trailing Profits:
- If the price reaches $2,510, you can move your stop loss to breakeven ($2,500).
- As the price continues to rise, consider trailing your stop loss by $5 increments, ensuring you lock in profits while giving the trade room to move.



### Trade Justification:
- **Fractals:** The fractals on both the 1H and 1D charts support the bullish trend, indicating that the price could continue higher after a minor retracement.

- **Confluence:** The $2,500 level is a key area of confluence, acting as both a previous resistance level and a potential support upon a retest.