XAUUSD H4 Trading Idea

The following plan focuses on two main strategies: short trading opportunities when price pullbacks against a high wave (x), and long trading opportunities when a wave completes with a correction (3, 7, 11) against a low wave 2 minor.

Short Strategy:
Look for a high wave (x): Identify an extended move to the upside that creates a significant high point on the price chart.
Price pullback against high wave (x): Wait for the price to retrace or pull back against the high wave (x) by a certain percentage or using technical indicators such as Fibonacci retracements, moving averages, or support/resistance levels.

Long Strategy:
Wave completion: Identify a completed wave pattern, such as wave 2 minor, that indicates a corrective phase in a downtrend.
Correction pattern: Observe correction waves numbered as 3, 7, or 11. These waves often offer attractive long trading opportunities.

Take Profit:
Set a target: Determine a realistic profit target based on previous resistance levels, Fibonacci extensions, or chart patterns. Consider setting a favorable risk-to-reward ratio, such as 1:2 or 1:3, to maximize potential gains.