XAUUSD – Potential Reversal Zone Forming After BOS & CHoCH StrucChart Analysis
Based on the structure shown in your TradingView screenshot:
1. Market Structure
The chart shows a clear bullish trend leading into the current price.
Multiple Break of Structure (BOS) marks confirm buyers have been in control.
The earlier CHoCH indicates a temporary shift, but price reclaimed bullish momentum afterward.
2. Current Zone
Price has pushed into a potential reversal or supply area, shown by the shaded region around the “ENTRY” label.
This suggests you are planning a sell (short) position from that zone.
3. Premium/Discount Logic
Price is currently in the premium zone of the swing leg.
The “50% TP” line marks the midpoint of the recent bullish impulse—typical target when expecting a corrective move.
4. Short Setup Elements
Entry: At the top of the shaded zone (likely an imbalance or order block).
Stop-Loss: Presumably above the swing high inside the grey shaded area.
Take-Profit: At the 50% retracement of the previous impulse, which aligns with structure.
5. Momentum & Candlestick Behavior
The latest candles show slowing momentum into your entry zone—wicks and smaller bodies indicate weakening buyer pressure.
This supports the idea of a potential short-term reversal.
6. What Would Invalidate the Setup?
A decisive close above the upper boundary of the shaded zone → would signal continuation upward and invalidate the short.
7. What Strengthens the Setup?
Rejection wicks
Bearish engulfing from the entry zone
Lower time-frame BOS to the downside as confirmation
