Long Trade idea on XAUUSD(15m)In this setup, I took a long position based on a confluence of technical factors and pure price action principles:
1. Trendline Breakout:
A well-respected descending trendline was broken with strong bullish momentum. The breakout indicates a potential shift in market structure from bearish to bullish.
2. Higher Low Formation:
After the breakout, price formed a higher low instead of breaking the previous support, signaling that buyers are stepping in and defending the level.
3. Retest of Broken Trendline:
Price pulled back to retest the broken trendline, which acted as support. This successful retest offered a high-probability entry point.
4. Strong Bullish Candles at Entry:
Bullish candlestick formations confirmed buyer strength at the area of interest, further validating the long setup.
5. Positive Risk-to-Reward Ratio:
Stop-loss was placed below the most recent structural low, while the take-profit targeted the next resistance level. This setup provided a favorable R:R ratio.
