Technical analysis by imodaresi about Symbol PAXG: Buy recommendation (12/23/2024)

The flag pattern in the 15-minute timeframe for gold is a strong continuation pattern, and if it’s currently forming with a bullish setup, it could provide an excellent opportunity for a Buy trade. Here's how to approach it:Steps for Analysis and Trade Execution:Identify the Pattern:Previous Trend: The trend before the flag should be bullish (flagpole).Correction Phase: A small, downward-sloping channel (the flag itself).Breakout: Look for a breakout above the flag's resistance.Confirm the Breakout:Check if volume increases during the breakout.Ensure the breakout candle is strong (a large body with small or no wicks).Entry Point (Buy):Enter the trade after the price breaks above the flag’s resistance.You can also wait for a pullback to the broken resistance (now acting as support) for a safer entry.Stop Loss Placement:Place your stop loss below the recent swing low or beneath the flag’s support line.Take Profit (Target):Measure the length of the flagpole and project it upward from the breakout point to determine your target