The damage has been done to the December Gold Daily chart last week. The uptrend has been broken. Some of you will want to play the bounce or the “snap-back” on the long-side. You can do that, but the “snap-back” might be short-lived…it’s a MITI trade, that is “make it and take it.”
You can look at an intraday chart to sniper an entry and exit point, but with a much smaller position size than your standard risk unit that you’d trade in a major trend. For example, if you trade 5 or 10 lots per risk unit with the trend, you can test 1-2 lots for a counter-trend trade or for the bounce, which is the case here. Some refer to this size as a “scalp unit.”
Conversely, the Weekly December Gold chart is still in an uptrend as shown above. You can trade off of either chart, but there are a few caveats. The weekly chart is more reliable and the data is less random. HOWEVER, you need to manage risk TODAY. I’d suggest that you look at the chart data across multiple time frames.
This way you’ll always trade with the overall trend, and if you trade an over-bought or over-sold market, you won’t get hit for a big loss should the correction continue if your timing is wrong.