XAUUSD - Thursday - What Happened There?
In the chart we saw:
1. Divergence in the 30M tf (early indicator that bears have weakened) - see yellow lines
2. QML/QM (quasimodo level/irregular Head and Shoulder) pattern. This happens when it creates a Lower Low and Higher High at the same time (see black arrows).
In other words, its just a break of structure hinting on reversing. QM traders use the left shoulder all the way to the shadow of the head as the zone to enter their trade. (see black zone)
3. For fibs traders, when BOS happens, we measure the first point from the head and the 2nd point being the High after the BOS, then we enter trade on the golden zone (0.5 to 0.618). Note that sometimes, price reaches the 0.761 to 1 for Premium Selling point (Short) and Discount Buy point (Long).
4. The bullish rally ends at 1644.900 as it hits the higher tf golden zone, because after all it is still bearish on higher tf.
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