In Multitimeframe analysis, multiple time frames are always monitored. For swing trading, they are an ideal combination of frames: D1 for determining the trend, H4 for identifying a correction, H1 for a more detailed view and timing of potential trade entries.
D1 chart
On the daily chart of gold (XAU/USD), the price is currently in an uptrend, which is identified using the 100 moving average in the HLC/3 setting. This time frame shows us the direction of the trend, in accordance with which it is good to look for trading opportunities on lower time frames. The price is currently correcting lower.
Data source: Dukascopy, JForex platform
H4 chart
On the lower H4 time frame, we can see the correction and ongoing downward movement in more detail. The price of gold is falling against the US dollar and is heading towards the area of Fibonacci retracements from the last swing move of the mine. The RSI indicator (settings 13 and HLC/3) is located near the overbought zone, i.e. below 30.
Data source: Dukascopy, JForex platform
H1 chart
Chart H1 serves to clarify the analysis and to find potential levels of entry, stop loss and profit target. The chart of gold (XAU/USD) shows a downtrend, which drives the price into the area of support. At the same time, you can see several places that will be good to watch and use to enter long trades. These are two swing supports near the 61.8% Fibonacci retracement level. Despite all the indications, it is always better to look for confirmation in the form of candlestick formations in support areas for entries.
Data source: Dukascopy, JForex platform
In conclusion
On the chart of gold quoted in the US dollar, there are interesting possibilities for entering long positions. On the daily time frame, the price is in an uptrend. The H4 chart shows the ongoing correction below and Fibonacci retracements. The H1 chart is suitable for monitoring supports and candlestick formations confirming trade entries.
Dukascopy Europe Team
Dukascopy Europe
Tags: MultiTimeframe Analysis Gold XAUUSD
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