XAUUSD long - Supply Demand - UPDATE - BANKS (Explained)

Hello Traders!

First of all I wanted to thank you for the huge engagement on my last XAUUSD analysis. I really appreciate that. So now let's go to the update and the explanation.

What happened ?
Yesterday I posted an Analysis on Gold with bias SHORT. Price went up to the mentioned Supply Zone(h4) but it never closed below this zone. Instead it closed above the zone and also it made a valid Triangle Break. From that moment Gold is marked as bullish. On Gold it is very important to wait for Price Action Signals and also to keep it on your watchlist. Because when the confirmation is given, Gold will rapidly react on the zones and will drop down or shot up. This is one of the characteristic behavior on GOLD. It is very aggressive. So keep that in mind.

2 possible Scenarios:
I marked two possibilities on the chart.

#1 Price will go up to the Resistance and then it will go down to the zone which then will became a Demand Zone and will shot up.
#2 Price will drop down to Retest the Triangle and also there we have a nice Demand Zone. This Demand is very strong and if we will touch it, the probability for Gold to shot up is very high then.

Recommendation
My recommendation on Gold is to wait. We do not have clear signs of confirmation for any of the possible scenarios. Also it is Friday. I would wait for Monday or better for Tuesday to trade it. Also we got NFP News and for Gold it is also important to follow fundamental analysis. Normally when you trade Supply Demand you do not need to take care much about Fundamentals. The banks need to that. They are responsible if they are going to push the price higher or if they will drop it lower at specific fundamental news. We as Supply Demand trader simply follow them due to the footprints they leave in the market.

... but on Gold the whole uptrend is made by fundamentals: Corona Virus

So for now stay out from Gold. I will not look for short right. I will try to buy it. If I will have a nice Setup on Gold I will share it with you. So stay tuned.

Also check out my last couple Analysis on Gold to get an idea on how I am trading it and when I am doing it.


That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions.

Thank you and we will see next time
- Darius.

Comment:

Comment:

Price respected the h4 Supply Zone. Like I said as Supply Demand Trader you do not need to be aware of fundamentals. Simply just know your zones.

Seems like price will create a new zone but it is not confirmed yet.

You can now wait for a nice retest and enter shorts or you wait for price to go down to the Demand Zone and then buy it from there after price action confirmation.

Also you can see at this drop that the price went down to the Support and then went back up. Therefore always use Support Resistance Levels as your Take Profit.

Also use SL. Like always this is very important and follow proper risk management