BIAS
Looking at XAUUSD on a four-hour chart clearly depicts a downtrend.
PRICE ACTION
After a sell side liquidity raid and a creation of a lower low on Thursday, 10 January, we saw the market rally to 2062.270 towards an area of supply. After a successful supply of bearish orders price traded lower towards 2001.80 causing a break of the structure low at 2013.50.
The price action from that supply zone towards 2001.80 is regarded as an impulsive leg and we saw price retrace from that low towards between the 50-61.8% Fibonacci retracement levels the 1-minute timeframe then signaled a change of character before breaking 1-minute timeframe structure that led me to enter a short trade.
As the selloff continued, we traded into a demand zone that cause a change in character and liquidity raid at 2029.01 and 2032.94 respectively. Even though this is a case, this demand zone has not been strong enough to break the 5-minute structure to signal a change in character
It is Friday and close to market close hours so I will monitor price on Sunday’s open going into Monday. My stop loss is at break even with partials taken off so I am technically risk free in this trade.
Technical Tools
Fibonnaci retracement tool
Price action
Smart money concepts
Looking at XAUUSD on a four-hour chart clearly depicts a downtrend.
PRICE ACTION
After a sell side liquidity raid and a creation of a lower low on Thursday, 10 January, we saw the market rally to 2062.270 towards an area of supply. After a successful supply of bearish orders price traded lower towards 2001.80 causing a break of the structure low at 2013.50.
The price action from that supply zone towards 2001.80 is regarded as an impulsive leg and we saw price retrace from that low towards between the 50-61.8% Fibonacci retracement levels the 1-minute timeframe then signaled a change of character before breaking 1-minute timeframe structure that led me to enter a short trade.
As the selloff continued, we traded into a demand zone that cause a change in character and liquidity raid at 2029.01 and 2032.94 respectively. Even though this is a case, this demand zone has not been strong enough to break the 5-minute structure to signal a change in character
It is Friday and close to market close hours so I will monitor price on Sunday’s open going into Monday. My stop loss is at break even with partials taken off so I am technically risk free in this trade.
Technical Tools
Fibonnaci retracement tool
Price action
Smart money concepts
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.