🧠 Market Analysis
Gold (XAUUSD) has shown incredible bullish strength in recent months, driven by geopolitical tensions, inflation uncertainty, and increased demand for safe-haven assets. However, every trend experiences a pause or correction — and that’s where we may currently be.
📊 Pattern Overview: Rising Wedge Formation
One of the most prominent technical patterns right now is the Rising Wedge. This is a bearish reversal pattern that occurs when price action consolidates upwards in a narrowing range, indicating waning bullish momentum and an imminent breakdown.
In this chart:
We see a clear series of higher highs and higher lows, forming two converging trendlines.
The upper trendline acts as dynamic resistance, while the lower one has been supporting price until now.
The wedge has now broken to the downside, signaling the potential start of a new short-term downtrend.
🔍 Key Technical Elements Explained:
🔵 1. Major Resistance Zone
Marked in the blue rectangular box, this zone has acted as a historical pivot area — both as support and resistance in the past.
The market respected this zone multiple times.
Price action tends to hesitate or reverse in such regions due to large institutional order flows.
🧠 2. Black Mind Curve Resistance
Unlike flat trendlines, the "Black Mind Curve" represents a curved, psychological dynamic resistance — often based on market sentiment, Fibonacci arcs, or logarithmic regression.
It reflects the market’s natural rhythm and is respected due to the hidden behavior of algorithmic trading systems.
Price just rejected this resistance after touching it during the wedge formation — a strong bearish clue.
🔄 3. Retest in Progress
After breaking out of the rising wedge to the downside, price is now retesting the broken wedge support.
This is a common price behavior known as the “kiss of death” — a final tap before continuation.
If the price fails to reclaim this broken support zone, it confirms a bearish continuation is on the table.
🎯 Trade Plan: Entry, Target & Stop
Trade Element Details
Bias Bearish
Entry Idea On confirmation of retest rejection (e.g., bearish engulfing candle)
Stop Loss (SL) Above the recent high or resistance – near $3,413.58
Take Profit (TP) First major support near $3,153.70 (SR Interchange)
Risk-Reward Ratio Estimated between 1:2 to 1:3, depending on entry
🔥 Bonus Target: If momentum increases, an extended drop toward $3,100–$3,080 is possible — where deeper demand lies.
🧘♂️ Trading Psychology & Risk Management:
Let’s face it: Even the best setup can fail — which is why discipline is your edge.
Confirmation is Key: Never short just because of a pattern. Wait for structure + candlestick confirmation (e.g., bearish engulfing, shooting star, etc.).
Emotions Kill Accounts: Don’t let greed convince you to skip stop-losses or over-leverage.
Let Price Come to You: If you missed the perfect entry, don’t chase. The market always gives second chances.
🧠 Educational Insight: What Makes This Setup Powerful?
This setup is a confluence trade, meaning:
You’re not relying on one signal, but multiple confirmations:
Rising wedge (pattern-based)
Resistance zone (horizontal S&D)
Curved dynamic resistance (psychological + advanced trendline)
Retest + rejection behavior (price action)
These stacked layers of confirmation increase the probability of a successful trade.
📌 Final Thoughts:
Gold is showing all the technical signs of a short-term bearish correction, despite the broader bullish narrative. For smart traders, this is an opportunity to catch a swing short with a clear entry, stop, and target.
The key to winning here? Patience and confirmation.
You don’t have to predict the market — just react to it with logic and discipline. Let the setup unfold naturally, and let the trade come to you.
💬 What’s Your Take?
Are you shorting Gold here or waiting for more confirmation?
Have you used curved resistance lines before in your analysis?
Drop your thoughts below — and if this helped you, smash the like button, share with others, and follow me for more high-probability setups!
Gold (XAUUSD) has shown incredible bullish strength in recent months, driven by geopolitical tensions, inflation uncertainty, and increased demand for safe-haven assets. However, every trend experiences a pause or correction — and that’s where we may currently be.
📊 Pattern Overview: Rising Wedge Formation
One of the most prominent technical patterns right now is the Rising Wedge. This is a bearish reversal pattern that occurs when price action consolidates upwards in a narrowing range, indicating waning bullish momentum and an imminent breakdown.
In this chart:
We see a clear series of higher highs and higher lows, forming two converging trendlines.
The upper trendline acts as dynamic resistance, while the lower one has been supporting price until now.
The wedge has now broken to the downside, signaling the potential start of a new short-term downtrend.
🔍 Key Technical Elements Explained:
🔵 1. Major Resistance Zone
Marked in the blue rectangular box, this zone has acted as a historical pivot area — both as support and resistance in the past.
The market respected this zone multiple times.
Price action tends to hesitate or reverse in such regions due to large institutional order flows.
🧠 2. Black Mind Curve Resistance
Unlike flat trendlines, the "Black Mind Curve" represents a curved, psychological dynamic resistance — often based on market sentiment, Fibonacci arcs, or logarithmic regression.
It reflects the market’s natural rhythm and is respected due to the hidden behavior of algorithmic trading systems.
Price just rejected this resistance after touching it during the wedge formation — a strong bearish clue.
🔄 3. Retest in Progress
After breaking out of the rising wedge to the downside, price is now retesting the broken wedge support.
This is a common price behavior known as the “kiss of death” — a final tap before continuation.
If the price fails to reclaim this broken support zone, it confirms a bearish continuation is on the table.
🎯 Trade Plan: Entry, Target & Stop
Trade Element Details
Bias Bearish
Entry Idea On confirmation of retest rejection (e.g., bearish engulfing candle)
Stop Loss (SL) Above the recent high or resistance – near $3,413.58
Take Profit (TP) First major support near $3,153.70 (SR Interchange)
Risk-Reward Ratio Estimated between 1:2 to 1:3, depending on entry
🔥 Bonus Target: If momentum increases, an extended drop toward $3,100–$3,080 is possible — where deeper demand lies.
🧘♂️ Trading Psychology & Risk Management:
Let’s face it: Even the best setup can fail — which is why discipline is your edge.
Confirmation is Key: Never short just because of a pattern. Wait for structure + candlestick confirmation (e.g., bearish engulfing, shooting star, etc.).
Emotions Kill Accounts: Don’t let greed convince you to skip stop-losses or over-leverage.
Let Price Come to You: If you missed the perfect entry, don’t chase. The market always gives second chances.
🧠 Educational Insight: What Makes This Setup Powerful?
This setup is a confluence trade, meaning:
You’re not relying on one signal, but multiple confirmations:
Rising wedge (pattern-based)
Resistance zone (horizontal S&D)
Curved dynamic resistance (psychological + advanced trendline)
Retest + rejection behavior (price action)
These stacked layers of confirmation increase the probability of a successful trade.
📌 Final Thoughts:
Gold is showing all the technical signs of a short-term bearish correction, despite the broader bullish narrative. For smart traders, this is an opportunity to catch a swing short with a clear entry, stop, and target.
The key to winning here? Patience and confirmation.
You don’t have to predict the market — just react to it with logic and discipline. Let the setup unfold naturally, and let the trade come to you.
💬 What’s Your Take?
Are you shorting Gold here or waiting for more confirmation?
Have you used curved resistance lines before in your analysis?
Drop your thoughts below — and if this helped you, smash the like button, share with others, and follow me for more high-probability setups!
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
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Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
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.