Trade Explanation:
I entered a long position on Gold based on a combination of technical confluence, algorithmic input (ALog), and structure-based analysis. Here's the breakdown of the trade rationale:
📍 1. Key Support Zone Reaction
Price approached a historically strong support level, tested multiple times (as shown by the blue arrows). Each test resulted in rejection wicks, indicating buying pressure and a possible base forming.
🔁 2. Breakout + Retest Structure
This aligns with a Breakout-Retest Strategy:
Price previously broke below a key level with strong momentum.
It is now consolidating and showing signs of reversal right at the retest zone, which is often a high-probability area for trend continuation or reversal.
My algorithm flagged this area as a Buy Zone, enhancing my confidence.
📉 3. Bearish Momentum Exhaustion
The sharp drop was followed by smaller-bodied candles with long lower wicks, a sign of seller exhaustion and possible accumulation.
This shift in candle structure often precedes a reversal.
📊 4. Indicator Confluence
The short-term EMAs have begun to flatten, signaling momentum slowing.
My ALog incorporates multiple indicators (including volume, RSI divergence, and trend velocity), and it showed a bullish setup forming.
🏁 5. Trade Plan
Entry: Near the bottom of the support zone where accumulation signals triggered.
Stop Loss: Just below the last swing low, where bullish invalidation would occur.
Take Profits:
TP1: For short-term investors or conservative exit.
TP2 & TP3: For higher time frame targets based on the breakout projection.
I personally aim for TP3, as I see a strong upside potential if momentum picks up.
The risk-to-reward ratio is excellent, with controlled downside and multiple exit points for flexibility.
🧠 Conclusion
This trade was taken with a high-conviction strategy that combines price action, structure-based logic, algorithmic signal, and smart R:R planning. It's not just about one candle — it's the full context that matters.
I entered a long position on Gold based on a combination of technical confluence, algorithmic input (ALog), and structure-based analysis. Here's the breakdown of the trade rationale:
📍 1. Key Support Zone Reaction
Price approached a historically strong support level, tested multiple times (as shown by the blue arrows). Each test resulted in rejection wicks, indicating buying pressure and a possible base forming.
🔁 2. Breakout + Retest Structure
This aligns with a Breakout-Retest Strategy:
Price previously broke below a key level with strong momentum.
It is now consolidating and showing signs of reversal right at the retest zone, which is often a high-probability area for trend continuation or reversal.
My algorithm flagged this area as a Buy Zone, enhancing my confidence.
📉 3. Bearish Momentum Exhaustion
The sharp drop was followed by smaller-bodied candles with long lower wicks, a sign of seller exhaustion and possible accumulation.
This shift in candle structure often precedes a reversal.
📊 4. Indicator Confluence
The short-term EMAs have begun to flatten, signaling momentum slowing.
My ALog incorporates multiple indicators (including volume, RSI divergence, and trend velocity), and it showed a bullish setup forming.
🏁 5. Trade Plan
Entry: Near the bottom of the support zone where accumulation signals triggered.
Stop Loss: Just below the last swing low, where bullish invalidation would occur.
Take Profits:
TP1: For short-term investors or conservative exit.
TP2 & TP3: For higher time frame targets based on the breakout projection.
I personally aim for TP3, as I see a strong upside potential if momentum picks up.
The risk-to-reward ratio is excellent, with controlled downside and multiple exit points for flexibility.
🧠 Conclusion
This trade was taken with a high-conviction strategy that combines price action, structure-based logic, algorithmic signal, and smart R:R planning. It's not just about one candle — it's the full context that matters.
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.