XAUUSD – Wolfe Waves continue on H4XAUUSD – Wolfe Waves continue on H4, price returns below trendline: prioritise correction scenario
Hello Trader,
Based on the Wolfe Waves structure on the H4 frame and current price behaviour, gold has returned to trading below the trendline, indicating a weakening short-term uptrend and paving the way for a downward correction before the market decides the next trend. The upper zone has created a clear “sell zone”; below, two defensive buy zones appear suitable for both scalping and medium-term.
Main Technical Picture
Wolfe Waves: wave 5 completes near resistance, then price falls back below the trendline — aligning with the correction scenario along Wolfe's target line 1–4.
Trendline & price box zone: the close below the rising trendline indicates “acceptance” below; immediate resistance lies at the 375x–376x cluster (sell zone).
Momentum: H4 MACD slows, histogram narrows → high probability of a pullback – retest before a new decision.
Detailed Trading Scenarios
1) Sell according to correction trend (priority)
Entry: 3756 – 3759
SL: 3764
TP: 3745 → 3732 → 3715 → 3690 → 3672
Reason: the 375x zone coincides with the sell zone + upper trendline; selling at retest offers a good R:R ratio.
Confirmation/Negation: if H4 closes above 3764 and holds, the short-term sell scenario weakens.
2) Buy scalping in buffer zone
Entry: 3701 – 3703
SL: 3695
TP: 3715 → 3732 → 3745 → 3766
Note: this is just a rebound in the correction phase; lock each step and move SL according to TP1.
3) Buy medium-term (strong base zone)
Entry: 3648 – 3651
SL: 3644
TP: 3672 → 3698 → 3708 → 3722 – 3727
Reason: the 365x zone coincides with the demand/accumulation volume on H4; suitable for catching a deep rebound along with the larger trend.
Management: this is a medium-term order, so divide volume, lock each step and move SL to breakeven after TP1.
Refer to my scenario if you find it reasonable, trade accordingly, and if you enjoy trading gold with high-quality scenarios, follow me.
