Gold (XAUUSD) – Short Trade Idea
🔑 Key Observations:
Strong Rejection Zone:
Price faced rejection at the previous high (highlighted in purple supply zone).
Multiple attempts to break above failed, confirming seller presence.
Volume Confirmation:
The sharp bullish push from the bottom was met with equally strong selling pressure at the top.
Volume spikes indicate distribution at higher levels.
Market Structure:
Clear lower high formation after rejection.
Entry aligns with a retracement into the supply zone.
📊 Trade Setup:
Entry: Short near supply zone (around 3374–3379).
Stop-Loss: Above recent swing high (3380 area).
Target: 3356 level (previous demand zone).
Risk/Reward Ratio: ~1:5 (high probability setup).
⚠️ Risk Management:
Always use a stop-loss to protect capital.
Consider trailing stop-loss once trade moves in favor, to lock in profits.
If price breaks and closes above supply, setup becomes invalid.
🔑 Key Observations:
Strong Rejection Zone:
Price faced rejection at the previous high (highlighted in purple supply zone).
Multiple attempts to break above failed, confirming seller presence.
Volume Confirmation:
The sharp bullish push from the bottom was met with equally strong selling pressure at the top.
Volume spikes indicate distribution at higher levels.
Market Structure:
Clear lower high formation after rejection.
Entry aligns with a retracement into the supply zone.
📊 Trade Setup:
Entry: Short near supply zone (around 3374–3379).
Stop-Loss: Above recent swing high (3380 area).
Target: 3356 level (previous demand zone).
Risk/Reward Ratio: ~1:5 (high probability setup).
⚠️ Risk Management:
Always use a stop-loss to protect capital.
Consider trailing stop-loss once trade moves in favor, to lock in profits.
If price breaks and closes above supply, setup becomes invalid.
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.