Gold breaks downtrend channel, next target lower!Gold is currently trading within a clear downtrend channel, marked by lower highs and lower lows. After multiple rejections at the upper boundary of the channel, gold has begun its downward trend towards key support levels.
From a technical standpoint, the recent pullback and structural breakdown indicate that the market may continue its bearish trend. Last week's PPI data showed a 0.9% increase , exceeding expectations, which has strengthened the USD and added pressure on gold. This news reduces expectations for aggressive Fed rate cuts , further strengthening the dollar and diminishing gold's appeal as a safe-haven asset.
Looking at the chart, we can identify key support levels to monitor. The first target is around 3,311.000, with the potential to continue falling to 3,287.800 if price breaks below the near-term support at 3,310.000.
Key Levels:
Resistance: 3,355.700 (Upper boundary of the downtrend channel)
Support: 3,311.000, 3,287.800
Next Target (TP1): 3,311.000
Next Target (TP2): 3,287.800
My Advice:
With the bearish structure on the chart and the pressure from the PPI data, the outlook for gold remains to the downside. I recommend looking for short opportunities near 3,355.700, with stops above resistance and targets at 3,311.000 and 3,287.800.
GOLDMINICFD trade ideas
Gold: Short-Term Downtrend Still DominatesHello everyone,
I’m currently tracking gold on the 4H chart and noticed that the price has retreated to around 3,316 USD, testing the green FVG zones and still staying below the Ichimoku cloud. This looks more like a technical pullback, but overall the bias remains tilted toward the sellers.
From the news perspective, gold is under pressure from a stronger USD as markets wait for Fed Chair Powell’s speech at the Jackson Hole symposium. The latest FOMC minutes also maintained a cautious tone, reducing expectations of an imminent rate cut – and this continues to weigh heavily on gold prices.
What do you think about gold’s direction in the coming days? Share your thoughts in the comments!
Risk Management in TradingIntroduction
Trading is often seen as the art of predicting market moves, buying low, and selling high. Yet, the most successful traders will tell you that trading is not about prediction, it’s about protection. The markets are uncertain, and no strategy, indicator, or system can guarantee 100% accuracy. What separates consistently profitable traders from losing ones is not just their ability to analyze charts but their skill in managing risk.
Risk management is the backbone of long-term survival in trading. Without it, even the best strategies eventually fail. With it, even an average strategy can deliver consistent returns over time. In this guide, we’ll dive deep into what risk management is, why it matters, and the tools and techniques every trader must master.
Chapter 1: What is Risk in Trading?
Risk in trading refers to the possibility of losing money due to adverse market movements. Every trade carries uncertainty, and risk management is about controlling the size and impact of that uncertainty.
There are different types of risk in trading:
Market Risk (Price Risk):
The chance of prices moving against your trade. For example, buying a stock at ₹100 and it falls to ₹90.
Leverage Risk:
Using borrowed money or margin amplifies both gains and losses. A small price move can wipe out capital if leverage is excessive.
Liquidity Risk:
The inability to exit a position at the desired price due to low trading volume. This happens often in small-cap stocks or thinly traded futures.
Volatility Risk:
Sudden price swings can trigger stop losses or create unexpected losses, especially around news events.
Psychological Risk:
Emotional decisions – fear, greed, revenge trading – often increase losses.
Systemic Risk:
External shocks like economic crises, geopolitical tensions, or pandemics can affect all markets simultaneously.
In simple terms: Risk = Probability of Loss × Magnitude of Loss.
Chapter 2: Why Risk Management is the Core of Trading
Most beginners focus on finding the “perfect strategy.” They try indicators, signals, or tips. But even the most accurate strategies have losing trades.
Consider two traders:
Trader A: Has a 70% winning strategy but risks 20% of capital per trade.
Trader B: Has a 50% winning strategy but risks only 1% of capital per trade.
Who survives longer? Trader B. Why? Because Trader A only needs a short losing streak to blow up his account, while Trader B can survive hundreds of trades.
Risk management ensures three things:
Survival: You live to trade another day.
Consistency: Your equity curve grows steadily without wild drawdowns.
Confidence: Knowing losses are controlled reduces stress and emotions.
In short: Trading without risk management is gambling.
Chapter 3: The Mathematics of Risk
3.1 The Risk of Ruin
Risk of ruin means the probability of losing all your trading capital. If you risk too much per trade, your account may not survive inevitable losing streaks.
Example:
If you risk 20% per trade, a losing streak of just 5 trades wipes out 67% of your account. To recover, you would need a 200% gain!
But if you risk 1% per trade, even 20 consecutive losses only reduce your account by ~18%. That’s survivable.
3.2 Risk-Reward Ratio
The Risk-Reward Ratio (RRR) measures potential reward compared to risk.
If you risk ₹100 to make ₹200, your RRR is 1:2.
A higher RRR allows profitability even with a low win rate.
For example:
At 1:2 RRR, you need only 34% win rate to break even.
At 1:3 RRR, just 25% win rate keeps you profitable.
3.3 Position Sizing Formula
A popular formula is:
Position Size = (Account Size × Risk per Trade) ÷ Stop Loss (in points/value)
Example:
Account Size = ₹1,00,000
Risk per Trade = 1% = ₹1,000
Stop Loss = ₹10 per share
Position Size = 1000 ÷ 10 = 100 shares
This ensures you never lose more than ₹1,000 in that trade.
Chapter 4: Tools of Risk Management
4.1 Stop Loss
A stop-loss order closes your trade automatically at a pre-defined price to limit losses. Types:
Hard Stop: Fixed exit point.
Trailing Stop: Moves with price to lock profits.
4.2 Take Profit
Opposite of stop-loss – locks in gains at a target level.
4.3 Diversification
Never put all capital into one trade or one asset. Spread risk across instruments, sectors, or strategies.
4.4 Hedging
Using options, futures, or correlated assets to reduce risk. Example: Buying Nifty futures and buying a protective put option.
4.5 Risk per Trade Rule
Most professional traders risk 0.5% to 2% of capital per trade. This balance allows growth while protecting against drawdowns.
4.6 Daily Loss Limit
Set a maximum daily loss (e.g., 3% of account). If hit, stop trading for the day. This prevents emotional revenge trades.
Chapter 5: Psychological Aspects of Risk
Risk management is not just technical; it’s psychological. Many traders fail because of:
Overconfidence: After wins, increasing position size too aggressively.
Fear: Cutting winners too early or avoiding valid trades.
Greed: Holding losers, hoping they’ll turn profitable.
Revenge Trading: Trying to recover losses quickly, leading to bigger losses.
Good risk management enforces discipline. You follow rules, not emotions.
Chapter 6: Advanced Risk Management Strategies
6.1 Kelly Criterion
A mathematical formula to optimize bet size based on edge and win probability.
Formula: f = (bp – q) / b*
Where:
f = fraction of capital to risk
b = odds (reward/risk)
p = probability of win
q = probability of loss
Although powerful, many traders use a fraction of Kelly (half-Kelly) to reduce volatility.
6.2 Value at Risk (VaR)
Common in institutional trading. It estimates the maximum expected loss over a given period at a certain confidence level (e.g., 95%).
6.3 Volatility-Based Position Sizing
Adjust position size according to market volatility. If volatility is high, trade smaller; if low, trade larger.
6.4 Portfolio Risk Management
Beyond individual trades, manage total portfolio risk. For example:
Limit exposure to correlated trades (e.g., don’t go long on multiple IT stocks at once).
Set maximum portfolio drawdown (e.g., 10%).
Chapter 7: Real-Life Examples
Example 1: The Trader Without Risk Management
Rahul has ₹1,00,000. He risks ₹20,000 per trade. After just 5 consecutive losses, his account drops to ₹33,000. To recover, he now needs +200% returns. Emotionally shattered, Rahul quits trading.
Example 2: The Disciplined Trader
Priya also starts with ₹1,00,000. She risks 1% per trade = ₹1,000. After 5 losses, she still has ₹95,000. She survives, learns, improves her strategy, and grows steadily.
Moral: Survival > Prediction.
Chapter 8: Building a Personal Risk Management Plan
Every trader must design a plan tailored to their style. Key components:
Capital Allocation: How much capital to trade vs. keep in reserve.
Risk per Trade: Set a percentage (1–2%).
Stop Loss Rules: Fixed or ATR (Average True Range) based.
Position Sizing Method: Use formula or volatility-based sizing.
Diversification Rules: Limit exposure per sector/asset.
Daily & Weekly Loss Limits: Stop trading after exceeding them.
Review & Adaptation: Analyze performance monthly and adjust.
Chapter 9: Common Mistakes Traders Make
Trading without stop losses.
Risking too much on one trade.
Averaging down losing trades.
Ignoring correlation between trades.
Trading during high-impact news without preparation.
Not tracking risk metrics (drawdown, expectancy, RRR).
Chapter 10: Risk Management for Different Trading Styles
Day Traders: Must be strict with intraday stop losses and daily limits.
Swing Traders: Should focus on overnight gap risk and diversify across positions.
Long-Term Investors: Must manage concentration risk and rebalance portfolios.
Options Traders: Need to monitor Greeks (Delta, Gamma, Vega) for exposure.
Conclusion
Risk management is the invisible hand that shapes trading success. While strategies may change, markets may evolve, and tools may improve, the principle remains timeless: Control risk, and profits will take care of themselves.
Every trader faces uncertainty, but those who respect risk survive and thrive. Without risk management, trading becomes a casino. With it, trading becomes a business.
GOLD PLAN – Captain Vincent🏴☠️ GOLD PLAN – Captain Vincent ⚓
Background
After the Nonfarm payrolls, Gold created a Captain’s Liquidity Void (large imbalance zone). Price has now almost completely filled this gap.
On higher timeframes, Gold still maintains a Lower High – Lower Low structure, confirming that sellers remain in control .
However, during the Asian & European sessions, we usually see technical pullbacks to collect liquidity – those moves will be our chance to enter in line with the main direction.
📍 Key Levels for Today
🔹 Captain’s Trap Zone (3330 – 3332)
Confluence of Fibo 0.5 – 0.618 and trendline breakout.
Main SELL setup at this zone.
SL: 3336 – 3338
TP: 3325 → 3320 → 3315 → 33xx
🔹 Captain’s Quick Shot (3313)
Nonfarm breakout zone , heavy SELL volume.
Suitable for short BUY scalp if price reacts strongly.
SL: 3308
TP: 3318 → 3322 → 3326
🔹 Captain’s Safe Harbor (3300 – 3302)
Start of previous bullish leg, strongest support of the day .
If Quick Shot breaks, this becomes the main BUY accumulation zone .
SL: 3293
TP: 3305 → 3310 → 3315 → 33xx
🔹 Captain’s Shield (3313)
If held multiple times → becomes a short-term key support .
⚡ Trading Scenarios
Sell Priority : Short at Captain’s Trap Zone.
Quick Buy : Scalp around Captain’s Quick Shot if sharp reaction.
Breakdown : If 3313 fails → Buy at Safe Harbor (3300 – 3302).
📌 Captain’s Reminder
SELL bias is still dominant → Do not FOMO buy without clear signals.
The US session may bring high volatility from geopolitical headlines. Manage your capital with discipline.
Elliott Wave Analysis – XAUUSD 20/8/2025
1. Momentum
• D1 timeframe: Momentum lines are still “sticking” together, signaling that the bearish pressure is weakening. However, without a strong bullish D1 candle to confirm reversal, there is still a risk of sudden downward spikes. Patience is required until a clear bullish confirmation appears.
• H4 timeframe: Momentum is currently turning bullish, suggesting a potential upward move today. But caution is needed: if the bullish candles are short, overlapping each other, and when momentum reaches the overbought zone without breaking the previous high → this move is likely just a corrective rebound.
• H1 timeframe: Momentum is in the overbought area, indicating the possibility of a minor pullback or sideways movement in the short term.
2. Wave Structure
• D1 timeframe: The corrective triangle structure remains valid (only invalidated if price breaks below 3270). The main scenario continues to favor wave 1 and 2 in blue, with price currently in wave 2.
• H4 timeframe: The decline in wave C shows overlapping sub-waves, each formed by 3-wave structures, hinting at the possibility of an ending diagonal for wave C. The pattern is not yet complete, so we need further observation for confirmation.
• H1 timeframe: Within the 5-wave structure of an ending diagonal, wave 3 is typically the strongest and a divergence usually occurs between wave 3 and wave 5 on RSI. Yesterday’s decline pushed RSI into the oversold zone, but no divergence has formed yet. Combined with H4 momentum turning bullish, this suggests the current move is likely wave 3 (yellow). A corrective wave 4 upward is expected, followed by a final decline to complete wave 5 with RSI divergence. Once wave 5 ends, the entire wave C diagonal will be complete, paving the way for a strong bullish rally — a typical characteristic of ending diagonals.
3. Trading Plan
The strategy is based on the ending diagonal pattern:
• Conservative approach: Wait for a breakout above the upper boundary of the diagonal before entering.
• Aggressive approach: Wait for wave 5 to complete and enter at the projected bottom of wave 5.
Trade setup:
• Buy Zone: 3301 – 3299
• Stop Loss (SL): 3219
• Take Profit (TP1): 3314
• Take Profit (TP2): 3362
• Take Profit (TP3): 3381
Gold Update – Asian Session Ahead of FOMCGold Update – Asian Session Ahead of FOMC
After yesterday’s sharp decline below 3312, gold found strong support and is now consolidating sideways, building liquidity for the next move. From the current outlook, a short-term rebound is likely before the broader downtrend continues.
Looking at structure, the descending channel remains intact with price respecting the trendline, and yesterday’s break out of the triangle formation reinforced the bearish bias.
From an Elliott Wave perspective, the market may now be forming wave 4. If this rebound carries price back towards the 3325–3330 zone, it will retest a strong resistance area that has repeatedly capped price before. Should that happen, wave 5 could begin — and by theory, it is often the strongest leg.
Fibonacci projections highlight the next support near 3295. If tonight’s FOMC meeting delivers a hawkish outcome in favour of the US dollar, gold could even extend lower towards 3280.
For short-term trading, buyers may consider positions near 3316 with a tight stop just below the recent low, aiming to capture the corrective move of wave 4. On the flip side, if price reacts around 3325–3330, this may provide an opportunity to sell into the expected wave 5, with potential targets extending 40–50 dollars lower if momentum strengthens.
A sustainable trend always alternates between retracements and impulses. Patience in waiting for the right wave often leads to more effective trades than rushing to pick tops or bottoms.
Do you think the FOMC this month will announce a positive interest rate outlook? Share your thoughts in the comments.
#XAUUSD #Gold #TechnicalAnalysis #PriceAction #Fibonacci #ElliottWave #MACD #ForexIndia #CommodityTrading #FOMC
Gold Trading Strategy for 20th august 2025📈 Gold Trading Plan (XAUUSD)
🔔 Buy Setup:
Wait for 1-hour candle to close above the $3325 level
Once the breakout is confirmed (candle closes above the level), initiate BUY
Targets:
• 🎯 $3335
• 🎯 $3345
• 🎯 $3355
🔻 Sell Setup:
Wait for 15-minute candle to close below the $3307 level
Once this close is confirmed, initiate SELL
Targets:
• 🎯 $3295
• 🎯 $3283
• 🎯 $3271
⚠️ Disclaimer:
This content is provided for educational and informational purposes only and should not be considered financial advice. Trading in the financial markets involves substantial risk, and you should always conduct your own analysis before entering any trade. Past performance does not guarantee future results. Trade responsibly and only risk capital you can afford to lose.
Effective and Widely Used Trading StrategiesTrend Following Strategy
Definition: Trading according to the market trend, buying when the trend is up and selling when the trend is down.
How to Implement: Use technical analysis tools like Moving Averages (MA), RSI, and MACD to identify the market trend. One simple strategy is to trade long when the price is above the moving average (MA), and trade short when the price is below the MA.
Why it Works: The Forex market often has strong trends, which increases the chances of success.
Reversal Trading Strategy
Definition: Finding trading opportunities when the price shows signs of reversing after a strong trend.
How to Implement: Use indicators like RSI, Stochastic Oscillator, or reversal candlestick patterns (such as Doji, Engulfing) to identify reversal points. When the indicators show overbought or oversold conditions, you can place a sell order (if overbought) or a buy order (if oversold).
Why it Works: The market can reverse sharply after a long trend, offering high-profit opportunities when entering at the right reversal point.
News Trading Strategy
Definition: Trading based on major news events, such as interest rate announcements, GDP reports, or employment data.
How to Implement: You need to monitor economic events such as interest rate announcements, GDP reports, employment data (Non-Farm Payrolls), and inflation indices (CPI) to make trading decisions. Usually, before and after important news, the price will experience significant volatility.
Why it Works: News can cause strong market movements, creating high potential profit opportunities if you predict correctly.
Would you like to learn more about any specific strategy? Please leave a comment below to discuss with us.
xau today in buying zoneGold is consolidating after a recent rally, and unless it breaks above the $3,360 resistance zone and sustains that level, it’s not considered a buying opportunity right now. Traders are watching closely for a move below $3,243, which could signal further downside.
If you’re looking to enter, it might be wise to wait for confirmation of a breakout or a bounce from strong support.
Gold Under Pressure: Can XAU/USD Hold 3,335?Hi everyone, looking at the 2H chart, gold is still stuck between 3,330 – 3,350 USD. The Ichimoku cloud remains heavy, and price keeps hovering in the FVG zone, reflecting hesitation. The key support is around 3,335 USD, but buyers are showing little strength. On the upside, the 3,360 – 3,380 USD area is a strong resistance block that gold hasn’t been able to break.
On the news side, optimism around Russia–US talks has reduced geopolitical risk, cutting safe-haven demand. This, combined with the Fed minutes this week that may strengthen the USD, puts additional pressure on gold.
Main view: Gold is likely to face more downside pressure. If 3,335 USD breaks, the next target could be 3,310 USD. For now, I don’t see gold in a position to rally strongly until new drivers emerge.
Personally, I don’t think this is the moment for gold to break out strongly. It seems more likely that we’ll see a pullback first, before a new catalyst from the Fed or geopolitical developments comes into play. What do you think—could gold slip below 3,335 USD this week?
XAU/USDThis XAU/USD setup is a buy trade, reflecting a short-term bullish view on gold. The entry price is 3315, the stop-loss is 3312, and the exit price is 3320. The trade seeks a 5-point profit while risking only 3 points, offering a favorable risk-to-reward ratio.
Entering at 3315 indicates the trader expects an immediate upward move, possibly supported by short-term demand, a weaker US dollar, or safe-haven flows. This level may also coincide with a minor intraday support zone, where buyers are likely to defend against further declines.
The target at 3320 is placed just below a resistance level, allowing profits to be secured quickly before potential selling pressure emerges. This conservative approach ensures gains are locked in without holding the position for extended periods.
The stop-loss at 3312 is positioned tightly to minimize downside exposure. This disciplined risk management makes the trade suitable for scalping or short-term strategies, where small but consistent gains matter. Overall, the setup emphasizes precision and strict control over risk.
Gold Analysis and Trading Strategy | August 19-20✅ From the 4-hour chart, the overall trend is in a descending channel, with the successive lower highs (3409 → 3358), indicating a clear bearish trend. The key resistance levels are at 3348 and 3358; only if the price breaks above these levels can the current downtrend be reversed. The current movement is a corrective rebound followed by a continuation of the bearish downward trend, with bears still in control.
✅ From the 1-hour chart, the price is moving within a clear descending channel, with both the upper and lower bounds being well-defined. After hitting the resistance at 3358, the price has pulled back and is currently near the lower channel boundary (around 3317–3323). The recent rebound highs are lower than previous highs (3588 < 3409), suggesting that the bearish structure is continuing. Focus on the 3323–3310 area; if this level is broken, the price may continue to test the lower boundary of the channel.
🔴 Resistance levels: 3335–3340 / 3348–3358
🟢 Support levels: 3323–3310 / 3290-3385
✅ Trading Strategy Reference:
🔻 Short Position Strategy:
🔰Consider entering short positions in batches if gold rebounds to the 3335–3340 area. Target: 3320-3310;If support breaks, the move may extend to 3300.
🔺 Long Position Strategy:
🔰Consider entering long positions in batches if gold pulls back to the 3310-3300 area. Target: 3335-3340;If resistance breaks, the move may extend to 3345.
🔥Trading Reminder: Trading strategies are time-sensitive, and market conditions can change rapidly. Please adjust your trading plan based on real-time market conditions. If you have any questions or need one-on-one guidance, feel free to contact me🤝
Gold: Consolidation Phase, Poised for BreakoutHello everyone,
On the daily chart, gold is currently holding around $3,339 after the strong rally seen earlier this year. Since May, price action has been confined within a narrow range above $3,300, forming a steady consolidation zone. This suggests that selling pressure has eased significantly, while buyers continue to retain quiet control.
From a technical standpoint, the $3,300–$3,320 range remains a crucial support, aligning with both the Ichimoku cloud and the nearest Fair Value Gap (FVG). As long as this level is defended, the probability of gold climbing back toward $3,400 stays high. A decisive break above $3,420 would likely unlock the pathway to $3,500.
On the macro front, gold continues to benefit from safe-haven demand. Markets are increasingly betting on the possibility of a Fed rate cut in September, compounded by persistent geopolitical tensions. Given this backdrop, gold maintains its place as a defensive asset, and the current consolidation may simply be the groundwork for another bullish phase.
Thank you for reading, and let’s see whether gold will deliver its next big move soon.
August 19 Gold AnalysisAugust 19 Gold Analysis
The market awaits the Fed's policy signals, with gold fluctuating and consolidating in the $3,320-3,350 range, awaiting a directional breakthrough.
Market focus is on the upcoming Jackson Hole Global Central Bank Annual Meeting (August 21-23). Fed Chairman Powell's speech may provide clear directional guidance for the gold market.
Analysis of Influencing Factors
1. Macroeconomic and Policy Expectations
The US Producer Price Index rose 0.9% month-over-month in July, far exceeding the expected 0.2%, indicating that underlying inflationary pressures in the US remain strong. This data has led the market to lower its expectations for the extent of the Fed's September rate cut—the probability of a 50 basis point cut has decreased, while the probability of a 25 basis point cut has risen to 93%.
The market still expects an 85% probability of a September Fed rate cut, with two 25 basis point cuts expected in 2025. This adjustment in expectations provides medium- to long-term support for gold, but limits short-term upside potential.
2. Geopolitical Risks Easing
Signs of easing tensions between Russia and Ukraine are emerging: Trump is pushing for preparations for the "Puzer meeting," and Ukraine has stated it no longer insists on a ceasefire as a prerequisite for negotiations. This development has significantly weakened safe-haven demand, and if the peace process continues, gold prices may face further pressure.
However, geopolitical uncertainties remain in areas such as the Middle East and the Korean Peninsula, and a escalation in tensions could trigger safe-haven buying.
3. US Dollar and US Treasury Yields
The US dollar index rose 0.3%, and the 10-year US Treasury yield rose to 4.337%. Rising yields increase the opportunity cost of holding non-interest-bearing gold, limiting any rebound in gold prices.
Technical Analysis
Daily Chart
Gold prices have recently been volatile, trapped within a complex moving average system. The 20-day simple moving average (SMA) is near $3,352/oz, providing dynamic upward resistance for gold prices.
The 100-day moving average provides key support near $3,307.10/oz. The Relative Strength Index (RSI) is in the neutral 50 zone, indicating a stalemate between bulls and bears.
The daily chart suggests a rebound has stalled, with bears temporarily in the driver's seat.
The 4-hour chart
The Bollinger Bands are converging, with candlestick patterns frequently trading near the middle band. Gold prices are poised to test the previous low of $3,323.60/oz.
The MACD indicator is crossing near the zero axis, with alternating green and red momentum bars, indicating a fierce market tussle between bulls and bears. Technical indicators are below their midlines, indicating a neutral to bearish trend.
Key Levels
Support: $3,323.60/oz (recent low); $3,307.10/oz (100-day moving average); $3,295.80/oz (minor support).
Resistance: $3,352.00/oz (20-day moving average); $3,372.30/oz; $3,389.85/oz.
Trading Strategy
Short Opportunities: Entry range: $3342-3350 (aggressive) or $3355-3360 (conservative buying). Stop-loss placed above $3365. Target range: $3325 → $3320; breakout targets $3307-3300.
Long Opportunities: Entry range: $3316-3320 (small position for a trial long position) or $3307-3298 (strong support zone). Stop-loss placed below $3308. Target range: $3335 → $3345.
Trade with caution and manage risk! Wish you good luck!
Gold Consolidates Ahead of FOMC Liquidity SweepGold is currently moving within a narrow range, with downside pressure becoming increasingly evident. With just over a day left before the FOMC meeting – an event that could shape the next major trend – the market seems to be preparing for a sharp liquidity sweep.
👉 At first glance, price action looks frustrating and unclear. But for traders following MMFLOW KeyLevels, this is actually the “golden range”, as key zones continue to hold with remarkable precision.
📉 Today’s Outlook
Main Trend: Ongoing corrective downside move.
Potential Scenario: A deep liquidity sweep towards the 331x zone before a strong bullish rebound.
🔑 Key Trading Levels
SELL Zone: 3340 – 3345 | Short SL: 4 – 5$
🎯 Targets: 3325 → 3317 → extended 3310
📌 Note: Manage risk tightly and watch reactions around KeyLevels – a single BreakOut move post-FOMC could unlock the next major opportunity.
✨ Once again: KeyLevels = Profits ✅
👉 Follow MMFLOW TRADING for daily KeyLevel strategies, liquidity maps & smart money insights
🇮🇳 Gold Under Pressure | Key Levels to Watch TodayGold continues to move in line with our weekly outlook. Despite strong rebounds from liquidity zones, the market still faces heavy selling pressure, unable to break out of the 335x – 336x resistance area.
With no major news events scheduled today, price action is expected to remain within range, making KeyLevels the most important zones to trade from.
📌 Trading Bias Today
Priority remains on SELL setups at upper resistance zones. Adjust entries slightly for better risk–reward.
For BUY positions, wait for deeper entries to avoid liquidity sweeps around 333x – 332x, which have been tested multiple times recently.
🔑 Key Market Levels
Resistance: 3346 – 3357 – 3370 – 3383
Support: 3324 – 3316 – 3309
📌 Trading Plan for India Traders
✅ BUY Zone: 3316 – 3314
SL: 3310
TP: 3320 – 3324 – 3328 – 3332 – 3336 – 3340 – 3350 – 3360+
✅ SELL Zone: 3356 – 3358
SL: 3362
TP: 3352 – 3348 – 3344 – 3340 – 3330 – 3320
⚠️ Summary
Gold remains inside a bearish channel, waiting for a clear breakout. Until major news like the FOMC hits, expect sideways price action within today’s KeyLevels.
👉 Watch reactions closely around 333x – 336x for the next potential move.
Stay disciplined, trade the levels, and let the market show its hand.
Part 2 Ride The Big MovesBasic Concepts & Terminology
Before going deeper, let’s simplify the core terms in options trading:
Strike Price: The fixed price at which the buyer can buy (call) or sell (put) the asset.
Expiry Date: The date on which the option contract expires (e.g., weekly or monthly).
Option Premium: The cost paid by the buyer to the seller for getting this right.
Lot Size: Options are traded in lots, not single shares. Example: Nifty option lot = 50 units.
In-the-Money (ITM): When exercising the option is profitable.
Out-of-the-Money (OTM): When exercising the option is not profitable.
At-the-Money (ATM): When the strike price = current price of the underlying asset.
Example:
Suppose Reliance is trading at ₹2,500.
A Call option with strike 2,400 is ITM (because you can buy at 2,400, lower than 2,500).
A Put option with strike 2,600 is ITM (because you can sell at 2,600, higher than 2,500).
XAUUSD Gold Trading Strategy August 19, 2025XAUUSD Gold Trading Strategy August 19, 2025:
Gold's range remains narrow, closely monitoring the progress of ceasefire negotiations in Ukraine.
Basic news: Yesterday, August 18, according to Rueter, US President Donald Trump told Ukrainian President Zelenskiy that the United States will support Ukraine's security in any agreement to end Russia's war in Ukraine. Gold reacted quite mildly when no message of real weight was released, and market sentiment was still very hesitant, currently spot gold is trading around $3,335/oz, equivalent to an increase of about $2 on the day.
Technical analysis: Yesterday's bullish pattern of gold is still maintained when gold prices approach our Plan 1 area and increase again. However, the increase is not strong, it is very likely that today the gold price will still maintain a slight fluctuation in the area of 3325 - 3350. When the gold price breaks the pattern, it will fluctuate very strongly, we will continue to wait to buy mainly in the area around 3300.
Important price zones today: 3325 - 3330, 3300 - 3305 and 3345 - 3350.
Today's trading trend: BUY.
Recommended orders:
Plan 1: BUY XAUUSD zone 3328 - 3330
SL 3325
TP 3333 - 3340 - 3360 - 3390.
Plan 2: BUY XAUUSD zone 3300 - 3302
SL 3297
TP 3305 - 3315 - 3335 - 3370.
Plan 3: SELL STOP XAUUSD zone 3320 - 3322
SL 3325
TP 3317 - 3307 - 3300.
Wish you a safe, successful and profitable trading day.🌟🌟🌟🌟🌟
XAUUSD Gold Trading Strategy August 19, 2025XAUUSD Gold Trading Strategy August 19, 2025:
Gold's range remains narrow, closely monitoring the progress of ceasefire negotiations in Ukraine.
Basic news: Yesterday, August 18, according to Rueter, US President Donald Trump told Ukrainian President Zelenskiy that the United States will support Ukraine's security in any agreement to end Russia's war in Ukraine. Gold reacted quite mildly when no message of real weight was released, and market sentiment was still very hesitant, currently spot gold is trading around $3,335/oz, equivalent to an increase of about $2 on the day.
Technical analysis: Yesterday's bullish pattern of gold is still maintained when gold prices approach our Plan 1 area and increase again. However, the increase is not strong, it is very likely that today the gold price will still maintain a slight fluctuation in the area of 3325 - 3350. When the gold price breaks the pattern, it will fluctuate very strongly, we will continue to wait to buy mainly in the area around 3300.
Important price zones today: 3325 - 3330, 3300 - 3305 and 3345 - 3350.
Today's trading trend: BUY.
Recommended orders:
Plan 1: BUY XAUUSD zone 3328 - 3330
SL 3325
TP 3333 - 3340 - 3360 - 3390.
Plan 2: BUY XAUUSD zone 3300 - 3302
SL 3297
TP 3305 - 3315 - 3335 - 3370.
Plan 3: SELL STOP XAUUSD zone 3320 - 3322
SL 3325
TP 3317 - 3307 - 3300.
Wish you a safe, successful and profitable trading day.🌟🌟🌟🌟🌟
XAUUSD: Support Broken? Bearish Trend Continues!XAUUSD is currently trading in a clear downward channel on the H4 timeframe . After failing to break the resistance at 3,360 , the price reversed and is now testing the important support level at 3,320 . This support level has been tested multiple times in the past weeks. If this support is broken, the bearish trend could continue, with the next targets at 3,300 and 3,280.
The market structure remains weak, with lower highs and lower lows , confirming that the selling pressure is dominant. If the price fails to hold the 3,320 support level, the likelihood of further declines towards lower support levels is very high. It’s crucial to closely monitor price action at these support levels.
Stay tuned to market developments and prepare your trading strategy accordingly, as everything is shifting towards a stronger bearish move !
Gold Analysis and Trading Strategy | August 19✅ Fundamental Analysis
Recently, due to the progress made in the "Puzey Summit" driven by Trump, Ukraine has given up its preconditions for a ceasefire, and the U.S. and Europe have committed to providing security guarantees. This has led to a cooling of market risk aversion, significantly easing the pressure for gold bulls to cover, and resulting in a technical shift toward a bearish consolidation in gold prices.
✅ Technical Analysis
🔸 On the daily chart, gold closed with a long upper shadow, forming a shooting star candlestick pattern, suggesting that the recent rebound might be over and that there could be further downside potential. Based on this pattern, gold is expected to encounter resistance at higher levels today, and after any rebound, the bearish trend may resume.
🔸 On the 4-hour chart, the price shows a downtrend, with MACD in the negative territory and both the MACD line and signal line pointing downwards, indicating strong bearish momentum. The price is approaching the lower band of the Bollinger Bands, suggesting potential oversold conditions, which may lead to a possible rebound.
🔴 Resistance levels: 3346–3352
🟢 Support levels: 3323–3309
✅Currently, gold is at the end of a consolidation phase. If it breaks above 3360, it could open up an upside target toward 3405. However, if it breaks below 3320, it may accelerate downward towards 3282.
✅ Trading Strategy Reference:
🔻 Short Position Strategy:
🔰Consider entering short positions in batches if gold rebounds to the 3348-3350 area. Target: 3335-3325;If support breaks, the move may extend to 3310.
🔺 Long Position Strategy:
🔰Consider entering long positions in batches if gold pulls back to the 3323-3325 area. Target: 3335-3340;If resistance breaks, the move may extend to 3345.
🔥Trading Reminder: Trading strategies are time-sensitive, and market conditions can change rapidly. Please adjust your trading plan based on real-time market conditions. If you have any questions or need one-on-one guidance, feel free to contact me🤝
Momentum Trading Strategies1. Introduction to Momentum Trading
If you’ve ever watched a cricket match where a batsman suddenly starts hitting boundaries one after another, you’ll notice something called momentum. Once the flow begins, it often continues until something major interrupts it. The same happens in stock markets.
Momentum trading is built on a simple idea:
👉 “Stocks that are moving strongly in one direction are likely to keep moving in that direction—at least for a while.”
In trading, momentum is like catching a moving train. Instead of trying to guess where the train will start or stop, you jump on when it’s already moving. Unlike long-term investing, where you analyze fundamentals deeply, momentum trading is more about riding the wave created by news, earnings, emotions, or institutional flows.
For example:
If Reliance stock is up 8% today on strong earnings and massive volume, a momentum trader might buy in, expecting further upside tomorrow or over the next week.
If crude oil prices fall sharply, a momentum trader might short oil stocks, assuming more selling pressure will follow.
So momentum trading isn’t about predicting the future—it’s about following what’s already happening.
2. The Psychology Behind Momentum
Markets are not purely logical. They are driven by human behavior—fear, greed, and herd mentality. Momentum thrives on these psychological forces:
Herd Behavior – When people see a stock rising, they rush in, fearing they’ll miss out (FOMO). This buying creates more buying.
Confirmation Bias – Traders look for news or charts that confirm their belief, reinforcing the trend.
Fear of Loss – When prices fall, investors panic and sell, creating downward momentum.
Overreaction – Markets often overreact to news—both positive and negative. Momentum traders exploit this by catching the exaggerated moves.
That’s why momentum works: people chase winners and dump losers.
3. Core Principles of Momentum Trading
To really get momentum trading, let’s simplify it into a few golden rules:
The Trend is Your Friend – Don’t fight against the flow. If Nifty is trending up with strong breadth, focus on long trades.
Volume Confirms Momentum – Price alone is not enough. A move backed by high trading volume signals real strength.
Momentum Has a Shelf Life – No stock rises forever. Momentum fades when buyers lose energy. So, entry and exit timing is crucial.
Relative Strength Matters – Stronger stocks outperform weaker ones, especially in bull markets. Momentum traders prefer leaders, not laggards.
Risk is Key – Since momentum can reverse sharply, strict stop-loss discipline is non-negotiable.
Think of momentum like surfing. You don’t control the wave—you just ride it until it fades, then exit before it crashes.
4. Popular Momentum Trading Strategies
Momentum isn’t one single style—it’s a family of approaches. Let’s explore the most widely used ones:
4.1 Breakout Trading
This is the classic momentum method. Traders wait for a stock to break above resistance or below support with strong volume.
Example:
Stock X is stuck between ₹100–₹110 for weeks.
Suddenly, it breaks above ₹110 with huge volume.
A momentum trader buys here, expecting ₹120, ₹125, or higher.
The psychology? Breakouts attract fresh buyers, and shorts are forced to cover—fueling momentum.
4.2 Moving Average Crossover Strategy
Traders use moving averages (like 20-day, 50-day, 200-day) to capture momentum.
If a short-term average (20-day) crosses above a longer one (50-day), it signals upward momentum.
If it crosses below, it signals downward momentum.
This strategy filters noise and captures medium-term trends.
4.3 Relative Strength Strategy
Momentum traders often compare how a stock is performing relative to the overall market or sector.
Example:
Nifty is up 1%, but Stock A is up 6%.
That relative strength suggests momentum, making Stock A a candidate for long trades.
The reverse works for shorting weak stocks in a weak market.
4.4 Intraday Momentum Scalping
Some traders capture quick bursts of momentum within minutes or hours. They trade news, economic data releases, or sudden volume spikes.
For instance, if Infosys announces strong guidance at 10 AM, intraday momentum traders jump in for a 2–3% move before it cools off.
4.5 News & Earnings-Based Momentum
Earnings season is a goldmine for momentum traders. Positive surprises often create upward momentum; negative surprises trigger downward spirals.
Example:
Company beats earnings estimates → stock gaps up 10%.
Traders buy expecting continued demand from institutions.
This “post-earnings drift” is a classic momentum phenomenon.
4.6 Sector Rotation Momentum
Big money often flows into specific sectors (IT, Banks, Pharma) during different phases of the economy.
Momentum traders ride the hot sector until it cools.
Example:
When RBI cuts rates, banking stocks rally for weeks.
A trader focuses on the strongest banks instead of random picks.
5. Technical Indicators Used in Momentum
Momentum trading heavily relies on technical analysis. Some widely used tools:
Relative Strength Index (RSI) – Measures speed of price movements. Above 70 = overbought, below 30 = oversold.
Moving Average Convergence Divergence (MACD) – Tracks trend strength using moving averages.
Rate of Change (ROC) – Calculates % change in price over a period.
Volume Indicators (OBV, VWAP) – Confirm if price moves are supported by volume.
Bollinger Bands – Help spot volatility and potential momentum breakouts.
These are not perfect, but they guide entry/exit decisions.
6. Risk Management in Momentum Trading
Momentum can be rewarding but also dangerous because reversals are sudden. To survive, traders follow strict rules:
Stop-Loss Orders – Never trade without a predefined exit point.
Position Sizing – Don’t put all capital in one trade. Risk 1–2% per trade.
Avoid Overnight Risk (for intraday) – News or global events can reverse momentum overnight.
Don’t Chase Too Late – Entering after a huge move often results in buying the top.
Take Partial Profits – Lock in gains as momentum matures.
Think of risk management as your seatbelt—it won’t prevent the accident, but it can save your life.
7. Real-Life Examples of Momentum Trading
Example 1: Adani Enterprises 2020–2022
Adani stocks had a massive rally driven by infrastructure growth stories. Traders who identified the breakout early rode the multi-month momentum.
Example 2: Tesla in the US
Tesla stock in 2020–21 was a momentum trader’s dream—surging 10x in months. Technical breakouts plus EV hype created sustained momentum.
Example 3: COVID Crash & Recovery (2020)
Markets fell sharply in March 2020. Momentum traders shorted stocks during the fall. Then, when recovery began, they switched sides and rode the rally.
8. Advantages and Challenges
Advantages
Quick profits in short time.
Works in both rising and falling markets.
Backed by psychology and herd behavior.
Flexible—can be applied intraday, swing, or positional.
Challenges
Momentum is short-lived; timing is tricky.
False breakouts can trap traders.
High emotional stress due to volatility.
Requires constant monitoring—can’t be passive.
9. Tips for Traders
Trade only liquid stocks—avoid low-volume traps.
Combine momentum with fundamentals for stronger conviction.
Don’t overtrade; wait for clear setups.
Learn to exit gracefully—don’t wait for the last rupee.
Keep a trading journal to track what worked and what didn’t.
10. Conclusion
Momentum trading is like riding waves in the ocean—you don’t create the wave, you just ride it skillfully. It’s about speed, timing, and discipline. Done well, it can be one of the most profitable trading styles. Done poorly, it can wipe out accounts.
The key is to remember:
Follow the trend, not emotions.
Risk management is more important than entries.
Momentum is temporary—treat it like an opportunity, not a guarantee.
If investing is like planting a tree, momentum trading is like harvesting fruits quickly when they’re ripe. Both can make money, but momentum needs sharper focus and faster decisions.