XAUUSD 4H: Bullish Continuation Trade SetupKey Observations:
Bullish Momentum: The chart displays a large bullish candle breaking significantly upward just before the potential entry point. This suggests strong recent buying pressure and momentum.
Support Zone: A "Support Zone" is highlighted in red/blue, centered around the Entry Point of 4,080.06 and 4,079.58. This zone likely represents a recent area of consolidation or previous resistance that has been broken and is expected to now act as support.
Entry and Exit:
Entry Point: ≈4,080.06 (indicated by the solid line at the bottom of the green potential profit box).
Stop Loss (Risk): 4,065.61 and 4,065.63 (indicated by the bottom of the red box, representing the maximum acceptable loss).
Take Profit (Reward): 4,100.22 (indicated by the dashed line at the top of the green box, representing the target price).
Risk/Reward Ratio (R:R): The setup suggests a favorable risk/reward ratio, as the potential profit (distance from Entry to Take Profit) is visibly larger than the potential loss (distance from Entry to Stop Loss).
Calculation: Risk ≈4080.06−4065.61=14.45. Reward ≈4100.22−4080.06=20.16. The R:R is ≈20.16/14.45≈1.39:1.
Trading Hypothesis:
The strategy shown is a "buy the pullback" or "continuation" strategy. The expectation is that after the initial sharp bullish move, the price might briefly pull back to the identified Support Zone (the Entry Point) before continuing its upward trajectory toward the Take Profit target of 4,100.22.
