Since I showed this to you this week and it fits so perfectly: Gold has fallen significantly again after the blowoff top on December 4th. I had shown you independently which points are optimal for entry into an upward trend.

Between the 50 and 78.6 Fibonacci retracement we can enter pullbacks in the hope that the trend direction will continue. That’s exactly what happened to the gold price now!

Gold in the daily chart Here you can see the steep rally from November 13th to December 4th. Now the prices have exactly run up to the 78.6 retracement and have bounced back up from there. The strong green daily candle from Wednesday shows us that there is a lot of buying interest here.

(Source: Tradingview.com)

These are exactly the points in the chart where we can get into a trade in a sensational way. Tight stops are also offered here. Of course, we do not know in advance whether the prices will turn at the 38.2, at the 50 or at the 78.6 retracement. Sometimes they also turn in the middle and don’t stick to the official Fibonacci specifications!

However, an entry at 78.6 is of course really great. If we had already entered at 61.8, we would also have to set the stop loss below 78.6. Because if the prices fall below, the idea is over anyway. At least according to the theory. The prices can always make a breakout downwards and then catch themselves again. But it is enough if the prices turn at 78.6 in most cases.

I mentioned the 61.8 above, because it is also a popular retracement. In addition, the prices reached this point the day after the huge red candle on December 4th. In retrospect, we could have gone long at 61.8 and taken the 50 retracement as a target. But of course that is an extremely hot iron and not at all certain that the prices have to behave like this.

Conclusion If you can live with not taking every trade, focus on the retracement at 78.6 percent of the upward stretch. If the prices turn up earlier, then that’s the way it is. This is an optimal entry point with huge profit margins. This is possible for any stock, any commodity, any currency pair and any index.

The prices on the stock exchange move in a zigzag pattern and these pullbacks are the order of the day. Therefore, we can certainly also ignore the mass of trades that already occur at the 50 or 61.8 retracement. Less is more. It’s also more fun when a trade is opened and it makes a lot of profit.