Gold (XAU/USD) has reached a key liquidity zone above resistance, setting up a potential sell limit opportunity. This move reflects a classic liquidity grab, where smart money clears stop-losses before reversing the market.
Key Observations:
Liquidity Sweep: Price action spiked above a significant resistance level, triggering stop-losses and trapping buyers, suggesting a potential reversal.
Market Structure: Bearish signals, including rejection candles and waning momentum, indicate a possible downside move.
Optimal Entry: A sell limit at [specific price level] aligns with the liquidity grab and anticipated reversal zone.
Trade Plan:
Entry: Sell limit at [specific level], positioned for a move downward from the liquidity zone.
Stop Loss: Above the liquidity sweep to account for market volatility.
Take Profit: Targeting key support levels around [specific levels] for a favorable risk-reward ratio.
Risk Management:
This setup leverages the liquidity sweep for a high-probability trade, but disciplined risk management is crucial. Monitor for confirmation of bearish momentum before full execution.
Key Observations:
Liquidity Sweep: Price action spiked above a significant resistance level, triggering stop-losses and trapping buyers, suggesting a potential reversal.
Market Structure: Bearish signals, including rejection candles and waning momentum, indicate a possible downside move.
Optimal Entry: A sell limit at [specific price level] aligns with the liquidity grab and anticipated reversal zone.
Trade Plan:
Entry: Sell limit at [specific level], positioned for a move downward from the liquidity zone.
Stop Loss: Above the liquidity sweep to account for market volatility.
Take Profit: Targeting key support levels around [specific levels] for a favorable risk-reward ratio.
Risk Management:
This setup leverages the liquidity sweep for a high-probability trade, but disciplined risk management is crucial. Monitor for confirmation of bearish momentum before full execution.
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.
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.