DislikedHi KADC,
I'm new in trading gold and started reading this thread, as far as I have read I found your charts and ideas very usefull to someone who wants to trade anything especially gold.Here is my chart.I think that on 1H chart there is still a very nice trend down, plus rsi 14 is down on 1h too.Moreover as you mentioned a few posts ago gold is at a retracement level .I'm short from 1660 expecting gold would drop to at least 1650, if break that red trendline down from 1670, it should go down back to 1642 which is the 76.4 retracement of the last...Ignored
In general, like with trend lines, Fibonacci are more "significant" when they have confluence, so just like when drawing trend lines, don't be afraid to fudge your Fibonacci a bit if it means you can get levels that coincides with a half-dozen highs or lows as that's far more useful than devotedly drawing ranges that encompass the extremes of a move but have levels that don't coincide with anything.
Right now, with gold and silver trading sideways with (I still believe) more likelihood of a push down before a push up, I think looking for short-short trades, like the $10 move you mention from $1660 to $1650, or even $5 moves, are the way to go.
I had $1666 to $1652.50 (Feb GC) as the more likely "$10" range and $1660 to $1655 as the "$5" play, but gold formed a double-top at $1666 so I think a retest of $1636, or at least your suggestion of $1642, are likely; however, the Euro just fell it's full trading range against US$ and Yen for no reason (ZeroHedge tweet that Reid says US going over Fiscal cliff maybe?) so it's just as possible gold and silver will put on their "flight-to-safety" hats today and keep climbing as a reaction to the uncertainty in currencies.
Some people have posted that they've held onto trades that went wrong: I'd advise that any trade that starts going the wrong way you should get out of immediately and re-evaluate. Note that immediately reversing your position is not "re-evaluating" and could end up costing you twice as much when it turns out you were right about the direction in the first place, just not right about your entry point.
You can always make money tomorrow provided you don't lose it today.