Following yesterday's New York trading session, gold has entered a period of consolidation, forming a distinct ranging zone. To navigate this market phase effectively, I've identified key areas on the chart where trading decisions can be made.
Firstly, I've marked "No Trading Zones" to indicate areas of potential uncertainty or low probability setups. These zones serve as cautionary areas where it's best to avoid initiating new trades.
Additionally, I've identified a specific selling area where short scalping opportunities may arise. However, it's crucial to exercise caution and patience, as this short position should only be executed during periods of high trading volume. The target for this sell trade is set at 15-20 pips, reflecting the short-term nature of the scalp.
Conversely, if the price of gold breaks above the marked zone, it may present an opportunity for a buying trade. In this scenario, traders can consider entering a long position to capitalize on potential upward momentum.
By carefully analyzing the current market conditions and identifying strategic entry and exit points, traders can make informed trading decisions and optimize their chances of success in the gold market.