XAU/USD PREPARING TO SHORTXAU/USD 1H - As you can see price has traded perfectly into an area of Supply I had marked out that I wanted to see price reject from. This is an area of Supply we could look to trade this market short from.
In order for us to get an entry now, all we need to do is look for a small pullback into a fractal area of supply giving us a more refined entry on this market. We will find this within the most recent bearish move to the downside.
When it comes to placing our short we will need to see price trade into this fractal area of Supply and reject well, from there we can look to place our SL above the zone we enter from and our TP just above the area of Demand.
If you wanted a less refined entry you could have looked to place a short position in or around the area of Supply provided with your SL above that zone and TP down at the area of Demand. Your Entry all depends on how aggressive your approach is.