Price just left the major demand zone formed by the breakage of the major demand zone. The first time it came to the area it broke back into the downside of the supply zone but did not stay there. That was a liquidity pool. It then made a bullish impulse before coming back into the supply zone to "fetch" more buyers. The bullish engulfing pattern (H1) and pin bar (Daily) show me enough conviction from major traders to see gold moving to at least it's highest price yet. For confirmation of a shift in order flow, I suggest you check your reliable order flow data on gold and see if there is an increase. This is an indicator of conviction behind a move and helps decide whether there will be a rally in that direction.
What I want to see now is a break and retest of the minor supply zone (H1). Gold has a tendency of not showing retests on minor zones on higher time frames so for confirmation of a retest you can go as low as M15. But an H1 candle should break and close above the supply zone. For a higher probability trade, we should see, if we are lucky enough, price breaking and moving away from the H1 supply zone , staying up for a few hours then coming back to retest the area . A clean retest will b mean smart money has bough enough shares from dumb sellers who are looking for price to drop.
This trade idea will be negated by a quick break above the H1 supply zone and a quick break back into the supply zone. This move is a fakeout and is a hunt for liquidity by large players. This will see price rallying down to at least it's most recent low where we should see more buyers coming into the market buying from sellers who sold the break back into the major demand zone. Our most recent major low is in an area of sensitivity and is indicative of a presence of liquidity. A tap and rejection of that area might see Gold moving toward the hyped $2400 level.
DISCLAIMER
Trading currencies (or any other financial market) involves substantial risk, and there is always the potential for loss. Your trading results may vary. No representation is being made that any associated advice or training will guarantee profits, or not result in losses from trading. YOU MAY LOSE YOUR MONEY AND THAT WILL NOT BE MY PROBLEM. THIS IS JUST AN IDEA NOT FINANCIAL ADVICE.
What I want to see now is a break and retest of the minor supply zone (H1). Gold has a tendency of not showing retests on minor zones on higher time frames so for confirmation of a retest you can go as low as M15. But an H1 candle should break and close above the supply zone. For a higher probability trade, we should see, if we are lucky enough, price breaking and moving away from the H1 supply zone , staying up for a few hours then coming back to retest the area . A clean retest will b mean smart money has bough enough shares from dumb sellers who are looking for price to drop.
This trade idea will be negated by a quick break above the H1 supply zone and a quick break back into the supply zone. This move is a fakeout and is a hunt for liquidity by large players. This will see price rallying down to at least it's most recent low where we should see more buyers coming into the market buying from sellers who sold the break back into the major demand zone. Our most recent major low is in an area of sensitivity and is indicative of a presence of liquidity. A tap and rejection of that area might see Gold moving toward the hyped $2400 level.
DISCLAIMER
Trading currencies (or any other financial market) involves substantial risk, and there is always the potential for loss. Your trading results may vary. No representation is being made that any associated advice or training will guarantee profits, or not result in losses from trading. YOU MAY LOSE YOUR MONEY AND THAT WILL NOT BE MY PROBLEM. THIS IS JUST AN IDEA NOT FINANCIAL ADVICE.