XAUUSD Daily Bias: Short Setup After Buy-Side Liquidity Grab at
Description: Gold (XAUUSD) is showing signs of a potential short move on the daily timeframe after sweeping buy-side liquidity (BSL) at the all-time high (ATH). Liquidity has been engineered, and a valid order block has formed, signaling possible distribution. The market may seek to fill internal range liquidity (IRL) as price retraces lower.
Analysis:
Liquidity Grab: Price has taken buy-side liquidity (BSL/ERL) at the ATH, clearing weak hands and potentially setting up a reversal.
Order Block Formation: A valid bearish order block has formed on the daily timeframe, suggesting institutional distribution.
Internal Range Liquidity (IRL) Target: With liquidity built above, price may now seek lower levels to rebalance inefficiencies and mitigate demand zones.
Market Structure: Bearish signs include rejection wicks, momentum shifts, and lower timeframe confirmations aligning with the higher timeframe bias.
Trading Plan:
Entry: Look for a retracement into the bearish order block or premium zones for a short position.
Stop Loss: Above the recent highs or order block invalidation zone.
Take Profit: Target IRL levels, fair value gaps (FVGs), and previous swing lows for partial exits.
Risk Management:
Manage risk effectively with stop-loss placement and position sizing. Monitor economic events and fundamentals influencing gold prices, such as interest rates and geopolitical factors.
Analysis:
Liquidity Grab: Price has taken buy-side liquidity (BSL/ERL) at the ATH, clearing weak hands and potentially setting up a reversal.
Order Block Formation: A valid bearish order block has formed on the daily timeframe, suggesting institutional distribution.
Internal Range Liquidity (IRL) Target: With liquidity built above, price may now seek lower levels to rebalance inefficiencies and mitigate demand zones.
Market Structure: Bearish signs include rejection wicks, momentum shifts, and lower timeframe confirmations aligning with the higher timeframe bias.
Trading Plan:
Entry: Look for a retracement into the bearish order block or premium zones for a short position.
Stop Loss: Above the recent highs or order block invalidation zone.
Take Profit: Target IRL levels, fair value gaps (FVGs), and previous swing lows for partial exits.
Risk Management:
Manage risk effectively with stop-loss placement and position sizing. Monitor economic events and fundamentals influencing gold prices, such as interest rates and geopolitical factors.
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