xauusd Bullish rejection
Analysis:
Zero Lag Trend & Fibonacci Strategy:
The trend must be aligned with the Zero Lag Trend Indicator as described in the script, which shows bearish momentum on 5 and 15-minute timeframes and bullish on higher timeframes like 60 minutes and 4 hours.
Fibonacci retracement levels (e.g., 0.5, 0.618) must guide entries or pullback setups.
Liquidity and FU Candles:
Liquidity zones are critical. The large wicks above previous swing highs are potential liquidity grabs, a sign of institutional moves.
Look for FU candles where price spikes and then reverses sharply, indicating manipulation and institutional positioning.
Imbalances:
Unfilled imbalances (areas where price moved strongly in one direction without retests) are likely to act as magnets for price action.
Trade Setup:
Entry Zone:
Look for an entry near 2623-2624 (highlighted yellow zone on the chart).
This area is supported by previous demand and coincides with the Fibonacci retracement levels (likely around 0.618).
Stop Loss (SL):
Place the SL below 2616 - 2620, which is the most recent low and below the potential liquidity grab.
Take Profit (TP):
TP1: 2633, aligning with the high of the recent bearish imbalance area.
TP2: 2637, the next key Fibonacci level and near a potential liquidity cluster.
Risk-Reward:
Aim for a 1:3 or higher risk-to-reward ratio, consistent with institutional trading principles.
Zero Lag Trend & Fibonacci Strategy:
The trend must be aligned with the Zero Lag Trend Indicator as described in the script, which shows bearish momentum on 5 and 15-minute timeframes and bullish on higher timeframes like 60 minutes and 4 hours.
Fibonacci retracement levels (e.g., 0.5, 0.618) must guide entries or pullback setups.
Liquidity and FU Candles:
Liquidity zones are critical. The large wicks above previous swing highs are potential liquidity grabs, a sign of institutional moves.
Look for FU candles where price spikes and then reverses sharply, indicating manipulation and institutional positioning.
Imbalances:
Unfilled imbalances (areas where price moved strongly in one direction without retests) are likely to act as magnets for price action.
Trade Setup:
Entry Zone:
Look for an entry near 2623-2624 (highlighted yellow zone on the chart).
This area is supported by previous demand and coincides with the Fibonacci retracement levels (likely around 0.618).
Stop Loss (SL):
Place the SL below 2616 - 2620, which is the most recent low and below the potential liquidity grab.
Take Profit (TP):
TP1: 2633, aligning with the high of the recent bearish imbalance area.
TP2: 2637, the next key Fibonacci level and near a potential liquidity cluster.
Risk-Reward:
Aim for a 1:3 or higher risk-to-reward ratio, consistent with institutional trading principles.
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.