HOW And WHY The Markets MoveIn this video I explain HOW and WHY the markets move.
At it's core, trading is a zero-sum game, meaning that nothing is created. There must always be a counter-party to any trade, after all it is called "trading". Because of this, liquidity is the lifeblood of the market and it is what is required by all participants, albeit more for the larger entities out there. In order for these larger entities to trade, they must do so in stages of buying and selling, and not all in one single position like we do as retail traders. They buy on the way down, and sell on the way up, throughout many different time horizons. Therefore, they require price to be delivered efficiently in order to sustain this working machine.
I hope you find the video somewhat insightful. Regardless of your beliefs, I think it can be agreed that these two principles are what drives the marketplace and it's movements.
- R2F
Liquidity
Pure Price Action Top Down Analysis of EURUSD2023 saw EU create a bullish opening range in H1, and H2 2023 opened only to raid stop orders from early trading that year before expanding to the upside. This PA created a bullish range which was retraced to the demand zone left in the wake of that previous expansion in April 2024, leaving behind what I suppose should be the low of the year.
The Fiber has since continued bullish but appears to be stalling now in order to gather further internal bullish liquidity (SSL) to garner enough momentum for the move towards the BSL from 2022. Anticipation here is to capitalize on the bullish continuation towards the liquidity above the current dealing range but we are also aware of internal levels price might bounce from before that reversal happens. As EU approaches the nearest demand, we anticipate it could find support there for a retracement of the recent selloff experienced which potentially can be a decent opportunity to go long momentarily.
Ultimately, the lower demand zone below the SSL(1.071) is where we expect to see major longs come in.
Feel free to leave comments, reviews and criticisms, we look forward to building a very strong community of price action wizards with you all.
GLGT,
LloydFx
09:30 Liquidity sweep 09:30 liquidity sweep that was build starting from end of Tokyo session.
very fast bull run until Tokyo session top that need to be caught very fast .. ia actually enter at the bottom where i saw a smt with ES.
Unlock the Market's Hidden Rollercoaster: How to Ride the WavesXau/Usd Review with my trading personality
As a Whimsical Rollercoaster Enthusiast, your trading style is likely driven by the excitement of quick market movements and the thrill of capturing early trades. You're probably someone who thrives on dynamic entries, enjoys the fast-paced action, and may have a more intuitive approach to the market. Let’s blend that with risk management to balance your adventurous spirit while still keeping a solid trading plan.
Technical Review for a Whimsical Rollercoaster Trader:
1. Key Levels to Watch:
2,595 (Resistance) and 2,580 (Support) are your playgrounds right now. You’re drawn to the thrill of what might happen at these zones.
If price pushes toward 2,595, you might feel an urge to jump in, expecting an immediate reaction. However, I encourage you to:
Embrace your adventurous nature but temper it with tactical precision.
Let the level hit and then wait for a quick confirmation (like a wick rejection or a mini pullback). This gives you both the excitement of early entry and higher probability without losing your edge.
Scenario: Price pushes toward 2,595. Here, your Risk Entry could be triggered:
Risk-Entry Plan:
Enter short at the first rejection of 2,595.
Set a tight stop-loss just above the liquidity zone (2,600), respecting your love for quick moves but protecting from being shaken out too soon.
Target the 2,580 area first, knowing the ride might be wild but worth it.
Why it suits you: It’s a quick decision, satisfying your need for speed, while the tight stop-loss aligns with managing risk. You get that thrill, but within guardrails.
2. Confirmation Entry – Building Momentum:
Confirmation Entries might feel a bit “slow” to you, but they can help ensure you stay in the game longer. Consider them when you want to ride bigger moves, not just quick scalp trades.
Scenario: If price breaks through 2,595, wait for a retest to confirm this zone is now support. Here’s where you bring in your whimsical nature: instead of waiting too long, spot a smaller timeframe pattern, like a bullish engulfing candle or a rejection wick, and go long.
Confirmation-Entry Plan:
Enter long at the retest of 2,595 after a clear rejection pattern. Think of it as waiting for the next loop on the rollercoaster — the bigger move is coming, and you want to be on board for it.
Set a slightly wider stop-loss, maybe under 2,580, to allow the trade to develop without getting knocked out early.
Aim for the next higher liquidity zones, like 2,600 or 2,615.
Why it suits you: This method still lets you catch the excitement of a momentum breakout, but the confirmation gives you more confidence. You still get the rush but with less risk of getting thrown out before the big move.
3. Patterns Within Patterns – Your Playground:
As a Whimsical Rollercoaster Enthusiast, you probably love when the market shows intricate patterns — they're like hidden rollercoaster tracks, revealing sudden twists and turns.
Scenario: If price breaks above 2,595, zoom into lower time frames and look for miniature patterns within the broader trend. You might find a bull flag within a larger ascending channel. Entering on these small corrective patterns can satisfy your need for fast-paced decision-making while riding the overall trend.
Plan:
Use these smaller patterns for quick entries. Set your stops just outside the pattern, and take profits quickly as the price breaks out.
Think of it as riding the small waves, but always looking for the bigger momentum move to follow.
Why it suits you: You’re jumping in on short-term opportunities while always keeping an eye on the next big move. This keeps you engaged and allows you to take action when you feel that burst of adrenaline without losing sight of the bigger picture.
4. Managing Whimsical Risk:
Stop-loss flexibility: As someone who enjoys spontaneity, a tight stop might feel restrictive but necessary. Here’s the compromise:
Set initial stops tight (like just above 2,595 if shorting), but allow yourself room to evolve the trade based on market action. If the trade moves in your favor, quickly move the stop to breakeven.
Mental Resilience: Losses will happen, but you need that mental discipline to jump back in without chasing every tick. Treat each trade like a separate rollercoaster ride — whether it’s a good or bad one, there’s always another one coming.
Use your intuition and excitement to recognize evolving setups. But keep a few rules in place to avoid the pitfalls of impulsivity (e.g., no more than 3 trades per day on a single idea to avoid over-trading).
5. Incorporating the Rule of Three:
For the rollercoaster trader, the Rule of Three is your ultimate guide. This rule asks you to identify at least three confirming factors before entering a trade:
Scenario: Price reaches 2,595:
You see a rejection (touch #1).
The lower time frame shows consolidation or a mini bear flag (touch #2).
Momentum begins to fade (touch #3).
Action: This triple confirmation allows you to short confidently, knowing you have the right mix of signals to back your bold entry.
Why it suits you: The Rule of Three still gives you the excitement of quickly entering trades but ensures they are high-probability setups. It prevents you from overtrading out of sheer excitement while still letting you capture those thrilling moves.
Summary Action Plan for a Whimsical Rollercoaster Trader:
Risk Entry: When you feel the market is ready to react at key levels (like 2,595), dive in! But do it smartly — use tight stop-losses and a quick decision-making process. Think of it as jumping onto the coaster right before it starts moving.
Confirmation Entry: Use this when you're looking for a bigger, smoother ride. Wait for the breakout-retest combo, then get in for the larger trend move. Stay patient here; it’s worth the wait.
Patterns within Patterns: Zoom into the mini rollercoasters inside the bigger structure. Catch the small waves but keep your eyes on the longer ride.
Trinity Rule : Ensure three factors align before entering. This rule keeps you disciplined while still embracing your whimsical nature.
CRT + Liquidity Sweep on the DAXLet's make Money!!!
Trade responsibly and apply proper risk management. Happy Weekend
XAU/USD Strategy: Pattern Recognition and Trade ExecutionComprehensive Market Breakdown for XAU/USD (Gold Spot) Based on Multi-Time Frame Analysis
Overview:
The analysis of XAU/USD across multiple time frames (15-minute, 30-minute, 1-hour, and 4-hour) indicates a complex market structure with both bullish and bearish signals. This detailed breakdown will provide insights into the current market conditions, key patterns to watch, potential trading strategies, and risk management considerations.
1. 15-Minute Time Frame: Symmetrical Triangle Pattern
Pattern Details:
Symmetrical Triangle: This pattern is characterized by converging trend lines connecting lower highs and higher lows, indicating indecision in the market.
Apex Proximity: The price is nearing the apex of the triangle, suggesting a potential breakout is imminent.
Implications:
Neutral Bias: The symmetrical triangle does not inherently suggest a bullish or bearish bias but indicates a potential breakout in either direction depending on market sentiment.
Volume Confirmation: A breakout with a significant surge in volume will confirm the direction of the move.
Trading Strategy:
Bullish Breakout: If the price breaks above the upper trendline with strong volume, consider entering long positions targeting previous resistance levels.
Bearish Breakout: Conversely, if the price breaks below the lower trendline with increased volume, consider short positions targeting previous support levels.
Stop-Loss Placement: Place stops just outside the opposite side of the breakout point to mitigate risks from false breakouts.
2. 30-Minute Time Frame: Mixed Channels (Descending and Ascending)
Patterns Observed:
Descending Channels: Suggest bearish continuation if in a downtrend or a potential reversal if broken to the upside.
Ascending Channels: Suggest bullish continuation if in an uptrend but signal a potential reversal if broken to the downside.
Market Implications:
Corrective Phase: The presence of both descending and ascending channels indicates the market is in a corrective phase, oscillating between support and resistance levels.
Range-Bound Trading: Until a significant breakout occurs, the market is likely to remain range-bound.
Trading Strategy:
Range Trading: Consider buying at the lower boundaries of the channels and selling at the upper boundaries.
Breakout Preparation: Prepare for a potential breakout by setting alerts around key levels (upper and lower boundaries of the channels).
Stop-Loss Placement: Place stops just outside the channels to protect against unexpected breakouts.
3. 1-Hour Time Frame: Rising Wedge Pattern
Pattern Details:
Rising Wedge: This pattern is characterized by higher highs and higher lows within a narrowing upward slope, typically a bearish reversal pattern.
Implications:
Bearish Reversal: The rising wedge suggests that upward momentum is weakening, and a potential breakdown could follow.
Reversal Zone: The price is near the upper boundary of the wedge, which may serve as a reversal zone, especially if a breakout to the downside occurs on high volume.
Trading Strategy:
Short Entry on Breakdown: Enter short positions if the price breaks below the lower trendline of the wedge with confirming volume.
Target Levels: Target the lower boundary of the larger ascending channel or previous support levels as take-profit points.
Stop-Loss Placement: Set stops above the most recent high within the wedge to protect against false breakouts.
4. 4-Hour Time Frame: Broader Rising Channel and Nested Patterns
Patterns Observed:
Broad Rising Channel: Indicates a larger uptrend is intact, providing a bullish bias.
Nested Descending Channels: Smaller corrective patterns within the broader uptrend suggest temporary pauses or consolidation phases before potential continuation moves.
Key Levels to Watch:
Resistance at 2,540: A break above this level would suggest a bullish continuation and potential for new highs.
Support at 2,470: A break below this level would indicate a significant shift in market sentiment towards bearishness.
Market Implications:
Potential Continuation or Reversal: The larger rising channel gives more weight to potential continuation moves, but the presence of smaller corrective patterns within suggests caution.
Echo Phase: The nested descending channel could represent an echo phase, a corrective move within the larger uptrend.
Trading Strategy:
Long Positions on Break Above 2,540: Enter long positions if the price breaks above this resistance level with confirming volume.
Short Positions on Break Below 2,470: Consider short positions if the price breaks below this support level with increased volume.
Volume Confirmation: Ensure any breakout is confirmed with a surge in volume to avoid false signals.
Risk Management: Use wider stops given the higher time frame context to avoid being stopped out by market noise.
5. Synthesis of Multi-Time Frame Analysis:
Confluence of Patterns: The alignment of rising wedges, symmetrical triangles, and mixed channels across multiple time frames suggests a market at a critical juncture. The presence of both bullish and bearish signals indicates that the market is poised for a decisive move.
Key Takeaways for Traders:
Patience and Discipline: Wait for confirmed breakouts with volume before entering trades. Do not rush into trades without sufficient confirmation.
Adaptability: Be prepared to adapt strategies based on the direction of the breakout or breakdown. Use alerts and monitor key levels closely.
Focus on Higher Time Frame Signals: Higher time frame signals carry more weight and should be given priority when making trading decisions.
Risk Management: Employ tight stops and carefully manage position sizes to limit exposure in case of adverse market movements.
6. Final Recommendations:
Potential Bullish Scenario:
Watch for a break above 2,540 on strong volume across multiple time frames. A confirmed breakout could lead to a bullish continuation towards new highs.
Potential Bearish Scenario:
Monitor for a breakdown below 2,470, especially if supported by a break of the rising wedge and descending channel patterns. A breakdown here would signal a shift to a bearish trend.
By combining these insights with real-time monitoring of market conditions, traders can enhance their decision-making process and capitalize on high-probability trade setups in the XAU/USD market.
How Spotting Liquidity Can Help Your Trading StrategyUnderstanding where liquidity exists in the market can help enhance your trading success in a few ways:
1. It can help you understand where potential blocks of liquidation could occur. The market is often attracted to these block and will liquidate there.
2. It can help you confirm patterns that exist on you charts
3. It can help you spot new patterns which you may not have spotted previously.
Let's take a quick look at the "Liquidity Swings" indicator by LuxAlgo in this video.
Gold Teeters on the Edge: Major Reversal or Breakout?The charts provided for XAU/USD (Gold Spot) on various time frames present a comprehensive analysis scenario where several key patterns and zones align across different time frames.
Analysis Breakdown:
1. **Daily Time Frame (1st Chart):**
- Rising Wedge Pattern: This is typically a bearish reversal pattern, especially when it forms after a significant uptrend. The price is nearing the upper boundary of this wedge.
- Daily Liquidity Zone (LQZ) at ~2,484, The price is within a critical liquidity zone. This zone often acts as a magnet for price action, where significant buying or selling can occur. A reaction here could signal a reversal, particularly since it aligns with the top of the wedge.
2. 4-Hour Time Frame (2nd Chart):
- Continuation of the Rising Wedge: The 4-hour chart mirrors the daily chart, emphasizing the wedge pattern's significance. The price is testing the upper boundary of this wedge, which could result in a breakout or a reversal.
- Confluence at LQZ: The price is closely interacting with the daily LQZ, reinforcing its importance. Multiple touches near this area might suggest either absorption of liquidity before a breakout or a potential exhaustion leading to a pullback.
3. 1-Hour Time Frame (3rd Chart):
- Bearish Flag Structures: Two bearish flags are visible, which are typically continuation patterns indicating the possibility of a downward move. These have occurred within the broader rising wedge.
- Approach to Key Resistance: The price is at a critical juncture where the rising wedge's upper boundary coincides with a strong resistance level.
4. 15-Minute Time Frame (4th Chart):
- Breakout and Retest Scenario: On the lowest time frame, a breakout from the bearish flag is evident, with the price retesting the structure's top. This may indicate either a continuation to the upside or a failure and reversal, depending on how it interacts with the liquidity zone above.
Potential Trading Scenarios:
- Reversal Scenario: Given the rising wedge pattern and its bearish implications, combined with the proximity to a significant liquidity zone, there's a strong potential for a reversal. Watch for a clear bearish signal on the 4-hour or daily chart, such as a bearish engulfing candle, which could confirm the reversal. A break below the wedge's lower boundary would be a stronger confirmation.
- Breakout Scenario: If the price breaks above the wedge's upper boundary and holds, especially on the daily chart, it could signal a continuation of the uptrend. However, be cautious of potential false breakouts, especially around such strong resistance and liquidity zones.
- Entry Considerations: If considering a short entry, look for a rejection from the LQZ on the 4-hour or 1-hour chart, ideally supported by bearish confirmation patterns (e.g., engulfing candles, pin bars). A reduced-risk entry could be taken on a lower time frame after the breakout and retest of the wedge or flag structure.
STOP being my liquidity!! Understand what's really happening!I show it to you every day - I show you exactly how the market traps buyers/sellers and turns them into liquidity i.e. stop losses for the real traders. If you find yourself getting trapped and faked out more often than not, WATCH THIS VIDEO! Understand what is happening in the market!
Unless you're here to clown - I've met a lot of you over the course of my putting these videos out. If you're here to clown, not to learn, please continue to make fun of my lines and please continue to be my liquidity!
Otherwise, for those students who are truly trying to read the markets and profit from every single move - come learn with me! These videos I post are all you need! Watch my last 4 videos on TSLA and you'll start to understand what is really happening in the market and how to take the clowns' money instead of giving it to me.
Happy Trading :)
Quarter Theory: Mastering Algorithmic Price Movements!Greetings Traders, and welcome back!
In today's video, we’ll dive deep into Quarter Theory—a powerful concept that can take your trading to the next level. We’ll break it down step-by-step, explain how it works, and show you how to implement it into your strategy.
Quarter Theory is all about studying the algorithmic price delivery within the markets. It’s grounded in Time and Price Theory, which suggests that significant market moves often occur at specific price levels and times. This foundational idea will help us predict price movements more effectively.
If you haven’t already, be sure to check out the previous videos in the High Probability Trading Zones playlist for the key concepts you’ll need to fully grasp today’s content. For those watching on TradingView, links to previous videos will be included to help you catch up.
Mastering Institutional Order Flow & Price Delivery:
Premium & Discount Price Delivery in Institutional Trading:
We’re kicking off a weekly series on Quarter Theory, with the goal of helping you build a robust trading model by the end. Stay tuned!
Best Regards,
The_Architect
Gold Spot (XAU/USD) Nears Key Resistance: Major Move Ahead?Gold Spot (XAU/USD) Market Analysis - August 13, 2024
Daily Chart Overview
- Broadening Wedge Pattern: The daily chart reveals a broadening wedge pattern, often associated with market indecision and potential reversal signals. This pattern, characterized by expanding volatility, suggests that the market is at a critical juncture, with the possibility of either continuing its uptrend or facing a significant correction.
- Ascending Channel (Bullish Flag): Within this broader wedge, a smaller ascending channel (bullish flag) has formed. While typically a continuation pattern, the flag is currently struggling to maintain its structure as price action approaches a significant resistance zone.
- Key Resistance Levels (Daily Liquidity Zone):
- The price is hovering just below the Daily Liquidity Zone (LQZ), ranging between 2,477.654 and 2,484.053. This area also aligns with the previous higher high, marking it as a critical resistance zone.
- A failure to break above this zone could lead to a reversal, while a successful breakout would open the path for continued bullish momentum.
- Support Levels:
- The Lower boundary of the ascending channel around 2,454.606 (which aligns with the 15M Liquidity Zone) serves as immediate support.
- A breakdown from this level could trigger a deeper correction towards the lower trendline of the broadening wedge, likely around the 2,420 - 2,430area.
4-Hour and 1-Hour Chart Insights
- Broadening Top Formation (4H): Echoing the daily pattern, the 4H chart displays a broadening top, indicating increased market volatility and a potential battle between buyers and sellers.
- Descending Channel (1H): A descending channel has formed within the broadening top on the 1H chart, suggesting a short-term bearish bias. This descending channel is pressing against the 4H and Daily LQZ, increasing the likelihood of a significant price movement soon.
15-Minute Chart Considerations
- Bear Flag Formation: The 15M chart shows a bear flag, a continuation pattern that could signal further downside. This pattern is forming near the 15M LQZ, reinforcing the importance of this support level.
- Potential Breakdown: The price is testing the lower boundary of this bear flag. A breakdown here could lead to a continuation of the downtrend, particularly if the 15M LQZ fails to hold.
Mass Psychology & Market Sentiment
- Indecision and Volatility: The broadening patterns across multiple time frames reflect growing market indecision and volatility. Traders should be cautious as this setup often leads to sharp and unpredictable price movements.
- Watch for Divergences: Keep an eye on potential bearish divergences on momentum indicators like RSI or MACD, particularly around the key resistance levels. These could provide early signals of a market reversal.
Trading Strategy Recommendations
- Wait for Confirmation: Given the critical resistance at the Daily LQZ, it’s prudent to wait for clear confirmation of either a breakout or a reversal. A strong daily close above the LQZ would be more convincing for bullish continuation.
- Short-Term Bias: On the lower time frames (15M and 1H), the bias remains bearish. Caution is advised for long positions until there's a definitive break above resistance.
- Risk Management: Considering the broadening patterns and associated volatility, tighter stop losses or reduced position sizes are recommended to manage risk effectively.
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Summary: Gold Spot (XAU/USD) is at a crucial inflection point, with significant resistance at the Daily LQZ and potential support at the 15M LQZ. Traders should closely monitor price action in the coming sessions, as a decisive move in either direction could set the tone for the next major trend.
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This was a MOVIE! Prepare to be entertained.. To say the least!This video is as real and transparent as it gets in the trading world. Hope you appreciate it as much as I learned from it.
Final profit on this trade/video as we got cut off right at the drop - $560 and counting.
This was legit a movie - For anyone who watches this whole thing, I hope you enjoyed and learned some important lessons about the nature of the market, human psychology, and the importance of having a trading plan. Probably the most up & down wild hour of trading i've had in a long time. I will be rewatching this one for years to come. Lots of lessons learned in 1 video.
Happy Trading to everyone.
Can Gold Surpass Its Recent Highs? Expert Analysis Inside!Key Levels:
Higher High (HH): Marked near the top at around 2460.
Lower High (LH): Slightly lower high indicating a possible trend change.
Support/Resistance Zones: Key support/resistance levels are identified on the chart.
Lower Time Frame (LTF) Lower High: Indicated by a yellow line, suggesting a lower high on a smaller timeframe within the larger trend.
Liquidity Zones (LQZ): Marked on the 4-hour, 1-hour, and daily timeframes indicating potential areas of liquidity.
Market Structure:
Shorter Time Frame Higher Low: A higher low is indicated on a smaller timeframe, suggesting potential bullish continuation.
Barley Missed HH and then pushed down: Indicates a failure to achieve a higher high, followed by a downward movement.
Support Rejection: The market rejects off support, suggesting a possible formation of a new higher low (HL).
Observations:
The market is reacting to support and resistance levels, showing signs of potential trend continuation or reversal.
The presence of multiple liquidity zones suggests areas where price might seek liquidity, influencing future price movements.
This Simple Error Cost Me Big on XAUUSD! Learn From My Mistakes!Key Levels and Zones
Highs and Lows:
HH (Higher High) and LH (Lower High) are marked on the chart.
The chart shows a recent HH and LH indicating a bullish trend with a potential pullback.
Liquidity Zones (LQZ):
4HR LQZ at 2474.891: This zone might act as a significant resistance level.
4HR LQZ at 2432.126 - 2432.046: This zone was previously a resistance level that may now act as support.
4HR LQZ at 2348.453: Another support zone lower on the chart.
Daily Bull Flag:
A daily bull flag is drawn, suggesting a potential continuation of the bullish trend if the price breaks out upwards.
Trading Plan
Identify Key Zones:
Mark key support and resistance levels on your trading platform.
Wait for Confirmation:
Look for confirmation signals (candlestick patterns, volume spikes) before entering a trade.
Set Alerts:
Use trading alerts to get notified when the price reaches key levels.
Risk Management:
Always use a stop loss to protect your capital.
Ensure your risk-reward ratio is at least 1:2.
Review and Adjust:
Regularly review your trades and adjust your strategy based on market conditions.
Gold Breakout Imminent? Uncover the Explosive Potential of GOLD!Current Trend
Bull Flag Formation: The chart indicates a bull flag pattern, a bullish continuation pattern that usually occurs after a strong uptrend (flagpole). The consolidation within the flag is typically a pause before the next upward move.
Trendlines: The yellow trendlines outlining the flag suggest that the price is currently testing the upper boundary of this consolidation range.
Fibonacci Retracement Levels
78.60%: This level is around 2431.637 (coincides with a 4HR LQZ), acting as a strong resistance zone.
61.80%: Around 2410.880, which the current price has just crossed, potentially indicating bullish momentum.
50.00%: Around 2393.940, served as a support level during the consolidation.
38.20%: Around 2372.760, another support level during the consolidation.
Liquidity Zones (LQZ)
4HR LQZ at 2431.637: A significant resistance zone that aligns with the 78.60% Fibonacci retracement level. This is a critical area to watch for potential price reaction.
4HR LQZ at 2349.449: A key support zone which held during the recent consolidation phase.
Price Action
Current Price: At 2410.880, the price is approaching the critical resistance at the 4HR LQZ (2431.637).
Breakout Potential: If the price can break and hold above the 2431.637 level, it may confirm the continuation of the bullish trend, targeting higher liquidity zones.
Support Levels: The price needs to stay above the 61.80% Fibonacci retracement level (2410.880) to maintain bullish momentum. A drop below could lead to further consolidation or a bearish reversal.
Daily Bull Flag
Upper Trendline: The price nearing the upper trendline of the daily bull flag indicates potential breakout if breached.
Lower Trendline: Support if the price pulls back.
Trading Strategy
Long Entry:
Upon a confirmed breakout above the 4HR LQZ at 2431.637, with a potential target of the next daily liquidity zone at 2475.281.
Use the 50.00% retracement level (2393.940) as a support for placing stop-loss to protect against downside risk.
Short Entry:
If the price fails to break above the 4HR LQZ and shows bearish reversal signs, a short trade could be considered with a target back to the lower 4HR LQZ at 2349.449.
Use the current price level (2410.880) as a resistance for stop-loss placement.
Risk Management:
Utilize appropriate position sizing and risk management to account for volatility and potential price fluctuations.
Summary
Bullish Outlook: If the price breaks above the 2431.637 level, indicating a continuation of the bull flag pattern, with targets at 2475.281 and beyond.
Bearish Outlook: If the price fails to break above 2431.637 and shows a reversal, potential downside targets include 2393.940 and 2349.449.
Monitoring the price action around these critical levels will be crucial in determining the next significant move for XAUUSD.
Missed the XAUUSD Move? Here’s What You Overlooked!1. Daily Trendline
Description: The yellow trendline running across the chart represents the overall upward trend on the daily timeframe. It shows that despite the recent fluctuations, the long-term trend has been bullish.
Significance: This trendline serves as a dynamic support level. Traders often look for price action around this trendline to gauge the strength of the ongoing trend. A break below this trendline could signal a potential reversal or a stronger bearish movement.
2. Ascending Channel
Larger Ascending Channel:
Description: This channel is characterized by two parallel lines (yellow) sloping upwards. The price has been moving within this channel for a considerable period.
Significance: The upper boundary acts as resistance, while the lower boundary serves as support. The price breaking below the lower boundary can indicate the end of the bullish trend and the beginning of a bearish trend.
Smaller Ascending Channel:
Description: A smaller channel within the larger context, indicating a shorter-term upward movement.
Significance: The break below this smaller channel, as shown on the chart, signifies a potential reversal or correction within the larger trend.
3. Support/Resistance
Description: Horizontal lines marked as support and resistance represent key price levels where the price has historically faced buying or selling pressure.
Significance: These levels are crucial for identifying potential entry and exit points. The support level acts as a floor where buying interest is strong enough to prevent the price from falling further. Conversely, the resistance level acts as a ceiling where selling interest prevents the price from rising further.
4. Higher High (HH) and Lower High (LH)
HH (Higher High):
Description: A peak higher than the previous peak, indicating the continuation of an uptrend.
Significance: The formation of a higher high typically signals bullish momentum. However, in this case, the subsequent failure to maintain this level and the formation of a lower high (LH) suggests weakening bullish strength.
LH (Lower High):
Description: A peak lower than the previous peak, indicating potential trend reversal.
Significance: The lower high after a higher high is a bearish signal, suggesting that buyers are losing control and sellers are gaining strength.
5. 15M/5M Bear Flag Entry
Description: A bear flag pattern on the 15-minute and 5-minute timeframes is highlighted. This pattern consists of a sharp decline followed by a short consolidation in the form of an upward-sloping channel (flag).
Significance: The bear flag is a continuation pattern, indicating that after a brief consolidation, the price is likely to continue its downward movement. The breakout from this flag pattern provides a potential entry point for short positions.
6. Target Profit Levels (TP 1 and Daily LQZ/TP 2)
TP 1 (2,347.560):
Description: The first target profit level is set at 2,347.560.
Significance: This level is likely determined based on historical support levels or a measured move from the recent price action. Traders might look to take partial profits or exit their positions at this level.
Daily LQZ/TP 2 (2,265.195):
Description: The second target profit level is set at 2,265.195, which aligns with the daily liquidity zone.
Significance: This is a more ambitious target, potentially indicating a stronger bearish move. The liquidity zone suggests an area with significant trading volume, which could act as a magnet for the price.
Conclusion
The chart presents a comprehensive analysis of the XAUUSD (Gold Spot) with multiple technical indicators suggesting a potential bearish outlook. The breakdown from the ascending channels, the formation of a lower high, and the bear flag pattern all point towards a continuation of the downward trend. The identified support and resistance levels, along with the target profit zones, provide clear benchmarks for managing trades.
Gold's Next Big Move: Will XAUUSD Break Resistance or Crash? Chart 1: 4-Hour Timeframe
Trend Analysis:
The chart shows a clear upward trend, forming higher highs and higher lows.
A wedge pattern is visible with converging trend lines indicating a potential breakout scenario.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Major Resistance: The upper trendline around 2480.
Recent Price Action:
The price has recently tested the lower trendline support and is currently retracing upwards.
A lower high (LH) has formed around 2480, suggesting a potential reversal or consolidation phase.
Potential Scenarios:
Bullish: If the price breaks above the 2412 resistance, it may retest the upper trendline around 2480.
Bearish: A break below the 4hr LQZ at 2348.248 could signal further downside towards the daily LQZ at 2267.320.
Chart 2: 1-Hour Timeframe
Trend Analysis:
A shorter-term view confirming the upward trend with higher highs and higher lows.
The formation of a wedge pattern indicates consolidation within a narrowing price range.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240, coinciding with the previous chart.
Recent Price Action:
Price recently bounced off the 4hr LQZ support level and is now hovering near the 2412 resistance.
The lower high (LH) indicates sellers are stepping in around the 2412 level.
Potential Scenarios:
Bullish: Breaking and closing above 2412 could lead to further upside towards 2480.
Bearish: Rejection at 2412 and a break below recent lows could target the 4hr LQZ support at 2348.248.
Chart 3: 15-Minute Timeframe
Trend Analysis:
Short-term consolidation observed within a wedge pattern.
Recent price action indicates potential for a breakout or breakdown from this pattern.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Recent Price Action:
Price is consolidating just below the 2412 resistance level, forming a wedge pattern.
The 15-minute timeframe shows the price struggling to break above 2412.
Potential Scenarios:
Bullish: A breakout above the wedge and 2412 resistance could lead to a quick move towards 2480.
Bearish: A breakdown from the wedge could revisit the 4hr LQZ support at 2348.248.
Conclusion
The overall trend across multiple timeframes remains bullish with key resistance at 2412 and significant support at 2348.248. A break above 2412 could signal further upside towards 2480, while a failure to break and sustain above this level may lead to consolidation or a pullback to the 4hr LQZ support. Monitoring price action around these key levels will provide insights into the next directional move.
Gold’s Next Big Move: Critical Levels You Can’t Afford to Miss!Hey Traders, welcome back to my channel! 🚀
Today, we're diving deep into the latest XAUUSD analysis, and trust me, you don't want to miss this one. With gold prices poised for a significant move, understanding these key levels could make all the difference in your trading strategy.
Let's get started with the 1-hour chart (shown below). 📊
Chart 1: XAUUSD 1-Hour Time Frame Analysis (July 21, 2024)
Key Observations:
Daily Bull Flag Formation:
The chart highlights a daily bull flag pattern, which indicates a continuation pattern following a strong uptrend. On the daily TF sometimes this can take a bit longer to see due to how big this flag is on the (LTF)
The price has been consolidating within this flag formation.
Reversal Structure (Lower High - LH):
There is a reversal structure where the price made a lower high (LH), suggesting a potential bearish reversal in the short term.
Structure LTF (Lower Time Frame):
The price structure on the lower time frame indicates an area where price could pull back and reject off of this area indicating the continuation of the Overall move.
The second way this could play off of this area is we could get a clear impulsive move above this structure and then a rejection looking for higher moves in the Shorter Time Frame.
15-Minute Time Frame:
The 15-minute time frame shows a detailed view of the consolidation and break down from the flag formation. where you could see how close we are to the LQZ shown on the 1HR
1HR Liquidity Zone (LQZ):
Identified at 2,390.966, this zone may act as a significant support area and also our first Take Profit we gave last week.
4HR Liquidity Zone:
Marked at 2,349.179, another major support area that aligns with the daily LQZ. If price end up breaking the 1HR LQZ impulsively then we could look for this area as Take Profit and then once we get down to this area we could potentially see a pullback.
Daily LQZ:
The daily liquidity zone is at 2,286.809, a crucial support level for the longer-term perspective.
Recommendations:
Watch for Reactions at Support Levels:
Monitor the price action around the 1HR, 4HR, and daily LQZs for potential entry points.
Set Alerts:
Set alerts for breakouts above the recent highs and breakdowns below the key support levels.
Manage Risk:
Ensure proper risk management by setting stop-losses below support levels and taking profits at resistance levels.
How I found and identified Five 100%+ return swing trades!It's not too late! My job i to identify the liquidity being built and since we're trading options, time the breakout as best we can. As you can see on these 3 equities, in addition to 2 more I'm trading (PYPL, UPS), we've built sufficient liquidity over the past few months in order to make these breakouts.
So keep an eye out for controlled selling and re-entry opportunities - it's never too late to catch another breakout!
Happy Trading :)
Liquidity is KEY to the MarketsIn this video I go through more about liquidity and why it is important.
The markets move because of liquidity. Without liquidity, there is no trading. The larger the trader, the larger the liquidity required. Understanding the concept of liquidity and the fractal nature of price, trading becomes very interesting. A whole new world opens up to you and you no longer have to keep guessing where price is going. You no longer have to keep chasing candles.
I hope you find this video insightful.
- R2F
Bitcoin at a Critical Level: What Investors Need to KnowBitcoin ( BITSTAMP:BTCUSD ) is currently at a crucial juncture. The 3-month chart suggests that if Bitcoin drops below the $50,000 level before moving above $70,000, we could see further downside, potentially to the $40,000 - $35,000 range.
Election Impact
This potential scenario might coincide with the upcoming election, which could have a significant impact on market sentiment and liquidity. Political events often introduce volatility and uncertainty, affecting investor confidence and market stability.
Investment and Trading Strategy
For investors, a potential dip to the $40,000 - $35,000 range presents a buying opportunity. However, traders should consider hedging their positions to profit in case of further declines. This approach can help manage risks and take advantage of market fluctuations.
Long-term Outlook
Over the next 6 to 8 months, these market dynamics could lead to increased buy-side liquidity and higher prices. This period of stabilization might create a more favorable environment for Bitcoin and other cryptocurrencies.
Conclusion
While the short-term may bring challenges, particularly due to the election, the long-term outlook remains positive. Investors and traders should prepare for potential short-term declines but remain optimistic about increased liquidity and higher market prices in the future.
Premium & Discount Price Delivery in Institutional TradingGreetings Traders!
In today's educational video, we will delve into the concepts of premium and discount price delivery. The objective is to provide you with a comprehensive understanding of institutional-level market mechanics. Before we proceed, it is crucial to define what we mean by "institutional level" and "smart money," as these terms are often misunderstood. We will also address the common misconceptions about who the liquidity providers are in the market.
By grasping these foundational concepts, you will gain a new perspective on the market, realizing that its movements are not random but calculated and precise, orchestrated by well-informed entities often referred to as smart money.
If you have any questions, please leave them in the comment section below.
Best Regards,
The_Architect
Mastering Institutional Order Flow & Price DeliveryGreetings traders!
Welcome back to today's video! In this educational session, we'll delve into the concept of institutional order flow. Our objective is to accurately identify market reversals and trend continuations. By mastering the draw on liquidity, we will gain a clearer understanding of whether the market is experiencing bullish or bearish institutional order flow. To accomplish this, we will analyze the behavior of smart money and trace their footprints.
Join us as we uncover these crucial insights together.
If you haven't seen the " Premium & Discount Price Delivery in Institutional Trading " video, here is the link:
Happy Trading,
The_Architect
