This chart highlights a textbook liquidity sweep and reversal pattern in Gold (XAU/USD).
Key Levels:
- Resistance Zone: Clearly defined above 3,360, with multiple rejection points.
- Support Level: Around 3,250, acting as a strong demand area.
- Liquidity Zone: Price dipped below the support to trigger stop-losses and trap sellers before reversing upward.
Price Action Insights:
- After grabbing liquidity below the support zone, the price rallied back, confirming a reversal setup.
- The move reached the target zone at 3251.225, fulfilling the projected bullish objective.
Outcome:
The trade idea played out successfully with the target marked as complete. Now, price is hovering at the former support-turned-resistance zone.
Next Steps:
Traders should monitor for:
- A potential breakout above this zone for continuation.
- Or rejection signals for a short-term pullback.
Key Levels:
- Resistance Zone: Clearly defined above 3,360, with multiple rejection points.
- Support Level: Around 3,250, acting as a strong demand area.
- Liquidity Zone: Price dipped below the support to trigger stop-losses and trap sellers before reversing upward.
Price Action Insights:
- After grabbing liquidity below the support zone, the price rallied back, confirming a reversal setup.
- The move reached the target zone at 3251.225, fulfilling the projected bullish objective.
Outcome:
The trade idea played out successfully with the target marked as complete. Now, price is hovering at the former support-turned-resistance zone.
Next Steps:
Traders should monitor for:
- A potential breakout above this zone for continuation.
- Or rejection signals for a short-term pullback.
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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.
Related publications
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.