Gold collapsed extremely hard due to trapped liquidity at the equal highs on the left.
Once banks had pushed the price up aggressively into this area, stopping out sellers, they then could proceed with their aggressive selling.
It is crucial to understand the concept of liquidity if you wish to make high risk to reward trades and understand the WHY behind...
After an impulsive move, the market tends to enter into a consolidation.
This is the zone where buys and sellers fight to win the next move.
Of course, whenever sellers and buyers are fighting - liquidity is built.
In this example, sellers attempted to sell from the structure only to be stop hunted before the true move to the downside.
Likewise, buyers would...
I started yesterday morning by posting an idea with the phrase below.
'Lets start the morning with everyone's favourite! Gold'
Well I'm kinda doing the same again this morning but this time it so we can all have some more food for thought at the breakfast table instead!
Now here me out, I have drawn the two graphs in this mornings idea on...
Please support this idea with LIKE if you find it useful.
What Is an Ascending Channel?
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing...
In this video, I explain in detail the relationship between the price of Gold and the interest rate on 10-Year Government Treasury Bonds.
You will understand why Gold is used as a hedge against inflation when investors cannot protect the purchasing power of their wealth through the purchase of government treasury bonds.
Gold has risen in value by 231% since 2007...
A channel is one of the most basic price action patterns
The channel is a powerful yet often overlooked chart pattern and combines several forms of technical analysis to provide traders with potential points for entering and exiting trades, as well as controlling risk. The first step is to learn how to identify channels. The next steps include determining where...
With the market watching out for Gold to hit the $2000 level, once this occurred and broke higher you have to always be cautious and take a step back before jumping into any longer term trend continuation plays.
When new record highs or lows get established in any market that is highly liquid, its good to keep your options open and try and look at the market with...
We have been posting potential bullish trading signals on Gold and the ways in which to enter this trending market of late, as the probability for these has been very high.
Now, the market doesn't trend in a straight line, so when we saw the price in Gold make its way to the $1900.00 level we looked to see if we could get any confirmation selling signals for a...
We recently posted about Gold and how to execute with better entries off of using price structure and patterns.
The last comment we made is that we would be keeping a close look at Gold for any pullbacks that could show good price structure for potential buying signals inline with the current underlying bullish trend.
We have zoomed into the 15 Minute chart to...
It has been said ever since people were allowed to trade to "trade with the trend" and "the trend is your friend". Although there is logic to this the market unfortunately doesn't always trend and in fact spends most of its time in ranges and channels.
The market environment changes all the time and it's why so many traders struggle with their trading because...
Taking a look at the price action on Gold, we saw a high probability trade setup for a potential buying opportunity.
We saw many factors all lining up together which always helps increase the probability for you as a trader to get a good idea what direction price could go next.
As you can see from the 30 Minute chart, we saw Gold in a descending channel until...
Trendlines are the simplest chart pattern you can find, but they are some of the most widely used, and for good reason.
They highlight a price trend going up, down, or sideways. Which therefore will be used for further analysis and other chart patterns, but what many people don't know are the specifics of trendlines. Firstly, widely-touched trendlines (about a...
On the analysis you can see a perfect example of a pitchfork trend on the chart. In this case it is the price of gold. A Pitchfork trend is particularly good for entering and exiting a trade on the right time. You can see in the past there where good chances to go in with BUY until the end of the Pitchfork trendline.
I think XAUUSD is about to make a move soon as the price is moving in a tighter and tighter range. Given the fundamentals and the current trend of gold I expect gold to make a move upwards but I will wait and see how the price reacts.
Also I am trying the Heikin Ashi charting technique.