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🥇 The Power of 3 – A Simple Way I Trade Gold
After 10+ years of trading gold, one pattern I see play out again and again is something called the Power of 3.
It doesn’t work every single day… but when it appears it can be incredibly powerful.
The idea is simple:
Accumulation → Manipulation → Distribution
And very often this aligns perfectly with the global trading sessions.
🌏 Tokyo – Accumulation
During the Tokyo session, gold often trades inside a tight range.
You’ll typically see:
• Sideways movement
• Equal highs and lows forming
• Lower volatility
• Liquidity building above and below the range
This is the accumulation phase.
The market is essentially loading the spring ready for the move later in the day. 🪤
🇬🇧 London – Manipulation
When London opens, things usually wake up.
This is where the market loves to hunt liquidity.
You’ll often see:
• The Asian high or low get swept
• Stop losses triggered
• Breakout traders pulled into the move
• Sharp aggressive candles
This is the manipulation phase.
Gold is famous for this behaviour. It loves taking stops before making the real move.
A lot of traders unfortunately enter right here… just before the reversal. 😅
🇺🇸 New York – Distribution
Once the liquidity grab is complete, the market often shows its real direction.
This is where New York delivers the move.
Price expands and begins moving toward the next liquidity pool or higher timeframe level.
This is the distribution phase, where the market finally starts moving with momentum.
🔎 How I Trade It
One thing I’ve learned over the years is that you have to adapt your strategy depending on how gold is behaving. Some weeks it trends cleanly, other weeks it’s very liquidity driven.
At the moment I’m combining a few simple tools:
• LuxAlgo Sessions indicator to clearly mark Tokyo, London and New York
• Anchored Volume Profile to see where the real liquidity and high volume nodes sit
• Session highs and lows for liquidity targets and confluence
• Trendlines and higher timeframe structure
When a session high or low gets swept into a high volume node, that’s where things start getting interesting.
Those areas often become the turning points for the real move.
🧠 Why This Works So Well on Gold
Gold is one of the most liquid instruments in the world.
Large players need liquidity to move size, which means the market often has to grab stops first before delivering the move.
That’s why gold will frequently run one side of the market before trending the other way.
Classic gold behaviour. 🥇
📊 The Real Edge
This approach isn’t about predicting the market.
It’s about waiting for the market to show its hand.
Sometimes the best edge in trading is simply understanding where liquidity is sitting… and waiting for price to go and collect it first.
Patience beats prediction every time.
If you found this useful and want more insights on trading gold, liquidity, and session behaviour, give me a follow 👍
I share ideas, breakdowns and the occasional gold rant when the market starts doing something crazy.
Happy trading everyone. 📈
🥇 The Power of 3 – A Simple Way I Trade Gold
After 10+ years of trading gold, one pattern I see play out again and again is something called the Power of 3.
It doesn’t work every single day… but when it appears it can be incredibly powerful.
The idea is simple:
Accumulation → Manipulation → Distribution
And very often this aligns perfectly with the global trading sessions.
🌏 Tokyo – Accumulation
During the Tokyo session, gold often trades inside a tight range.
You’ll typically see:
• Sideways movement
• Equal highs and lows forming
• Lower volatility
• Liquidity building above and below the range
This is the accumulation phase.
The market is essentially loading the spring ready for the move later in the day. 🪤
🇬🇧 London – Manipulation
When London opens, things usually wake up.
This is where the market loves to hunt liquidity.
You’ll often see:
• The Asian high or low get swept
• Stop losses triggered
• Breakout traders pulled into the move
• Sharp aggressive candles
This is the manipulation phase.
Gold is famous for this behaviour. It loves taking stops before making the real move.
A lot of traders unfortunately enter right here… just before the reversal. 😅
🇺🇸 New York – Distribution
Once the liquidity grab is complete, the market often shows its real direction.
This is where New York delivers the move.
Price expands and begins moving toward the next liquidity pool or higher timeframe level.
This is the distribution phase, where the market finally starts moving with momentum.
🔎 How I Trade It
One thing I’ve learned over the years is that you have to adapt your strategy depending on how gold is behaving. Some weeks it trends cleanly, other weeks it’s very liquidity driven.
At the moment I’m combining a few simple tools:
• LuxAlgo Sessions indicator to clearly mark Tokyo, London and New York
• Anchored Volume Profile to see where the real liquidity and high volume nodes sit
• Session highs and lows for liquidity targets and confluence
• Trendlines and higher timeframe structure
When a session high or low gets swept into a high volume node, that’s where things start getting interesting.
Those areas often become the turning points for the real move.
🧠 Why This Works So Well on Gold
Gold is one of the most liquid instruments in the world.
Large players need liquidity to move size, which means the market often has to grab stops first before delivering the move.
That’s why gold will frequently run one side of the market before trending the other way.
Classic gold behaviour. 🥇
📊 The Real Edge
This approach isn’t about predicting the market.
It’s about waiting for the market to show its hand.
Sometimes the best edge in trading is simply understanding where liquidity is sitting… and waiting for price to go and collect it first.
Patience beats prediction every time.
If you found this useful and want more insights on trading gold, liquidity, and session behaviour, give me a follow 👍
I share ideas, breakdowns and the occasional gold rant when the market starts doing something crazy.
Happy trading everyone. 📈
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.