P1: PIC/PIC c07
August 12, 2008
Printer: Yet to come
Exit Strategies and Trade Management
FIGURE 7.2 Long Trade Setup
Summary of XAU Daily Position as of August 17 and Trade Strategy Momentum: Daily bullish reversal with weekly momentum oversold. Pattern: Possible ABC decline. Price: Just below the 50% internal retracement (May 2005 low to May 2006 high) and 127% Ex-Ret (June 27 low to July 20 high). Time: Daily time factors in a position for a low. August 22 is the 100% L-L; August 13 is the 100% time retracement. See weekly Time Band for most compelling time factor at August 16 low. Entry Strategy: Go long on the trailing one-bar-high with a stop one tick below the August 16 low.