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Pivot Points

XAUUSD ANALYSIS 3 MIN TF ENTRY WITH GOOD R:R**Gold Trade Analysis: Rationale and Strategy** **1. Price Reaction at Identified Zones (1-Hour Timeframe):** - **Historical Significance:** The designated zones have consistently acted as strong support and resistance levels, evidenced by multiple instances of price reversals upon reaching these areas. Such behavior indicates substantial buying or selling interest, making them critical for anticipating future price movements. **2. Anticipated Reversals:** - **Supply and Demand Dynamics:** The expectation of reversals at these zones aligns with the principles of supply and demand. When price approaches a demand zone, increased buying interest often leads to upward movement; conversely, nearing a supply zone typically results in selling pressure and potential downward movement. citeturn0search0 **3. Entry Timeframe (3-Minute to 5-Minute):** - **Precision in Execution:** Utilizing a lower timeframe, such as the 3-minute or 5-minute chart, allows for more precise entry points. This approach enables traders to observe detailed price action and confirm reversal signals within the broader 1-hour zones. **4. Monitoring Price Reaction:** - **Confirmation Signals:** It's crucial to watch for specific price action patterns—such as pin bars, engulfing candles, or bullish/bearish divergences—that confirm the anticipated reaction at these zones before entering a trade. **5. First Take Profit (TP) and Minor Resistance ("Small White Zone"):** - **Interim Resistance Levels:** The "small white zone" represents a minor resistance area where price may hesitate or consolidate. Recognizing this as the first take profit target allows for partial profit-taking and reassessment of market conditions before aiming for further targets. **6. Risk Management:** - **Protective Measures:** Implementing stop-loss orders just beyond the identified zones safeguards against unexpected breakouts or continuations, ensuring that potential losses are minimized. HAPPY TRADING
OANDA:XAUUSD
by TrendTapper
2
GOLD LONG/SHORT POTENTIAL TRADE SETUPS WITH GOOD R:RHigh Volatility & Price Sensitivity Historical price action shows aggressive rejections from these levels, confirming their importance. These zones act as magnetic levels where price either reverses or experiences momentum-based breakouts. Zone Bounce & Breakout Strategies Zone Bounce: Entry is planned when price touches the demand zone for buying or the supply zone for selling, expecting a reversal. Fresh Zone Breakout: If price breaks above a fresh demand zone with volume confirmation, it signals bullish continuation. The opposite applies to supply zones. Entry & Execution (5-Minute Timeframe) The 5-minute timeframe allows precision-based entries with minimal drawdown. Candlestick confirmation, such as pin bars, engulfing patterns, or wicks rejecting the zone, enhances trade validity. Risk Management & Stop-Loss Placement Stop-losses are placed slightly beyond the zone to account for false breakouts. Take-profit targets are set at the nearest structural level or swing high/low for optimal risk-reward management. Happy Trading
OANDA:XAUUSD
by TrendTapper
2