1:5 risk to reward buy setup for Gold
Updated
Core Analysis Method: Smart Money Concepts
Here’s the analysis based on the Smart Money Concepts methodology:
😇 7 Dimension Analysis
Time Frame: 5M
Swing Structure:
The market structure is strongly bullish with liquidity resting in a key area at the extreme POI. The Inducement has been taken, and the corrective swing move has reached its lowest levels, showing two pullbacks. The internal structure supports this corrective move, with Order Blocks (OB), Sell Order Blocks (SOB), Fair Value Gaps (FVG), and liquidity marked as Points of Interest (POI) in the Discounted zone, making this setup powerful.
Support & Demand are also located in the POI zone, making this setup favorable for bullish momentum.
Pattern:
🟢 Chart Patterns:
A Rectangle pattern is forming, so patience is required to see how it plays out.
🟢 Candle Patterns:
Candle patterns will be considered once the price reaches the POI.
Volume:
No notable volume observations at this point.
Momentum RSI:
Skipped for this analysis.
Volatility Bollinger Bands:
Skipped for this analysis.
Strength ADX:
Skipped for this analysis.
Rating: ⭐⭐⭐ (3 Stars)
Probability: 50%
The probability is moderate, indicating a balanced risk/reward scenario.
✔️ Entry Time Frame: 5M
✅ Entry TF Structure: Bullish
☑️ POI: Extreme unmitigated OB
💡 Decision: Buy Limit
🚀 Entry: 2494
✋ Stop Loss: 2484
🎯 Take Profit: 2545
😊 Risk to Reward Ratio: 5 RR
🕛 Expected Duration: 1 Day (D1)
SUMMARY:
This setup on the 5-minute timeframe suggests a potential buying opportunity as the market is in a bullish structure, and key Points of Interest align at the Discounted zone. The Rectangle chart pattern forming adds to the likelihood of a potential move. The trade setup has a moderate probability with a 5:1 risk-to-reward ratio. The entry is planned at 2494, with a tight stop loss at 2484 and a target at 2545. Given the lack of significant volume, momentum, volatility, and strength indicators, this trade is more speculative and should be monitored closely as the price approaches the POI.
Here’s the analysis based on the Smart Money Concepts methodology:
😇 7 Dimension Analysis
Time Frame: 5M
Swing Structure:
The market structure is strongly bullish with liquidity resting in a key area at the extreme POI. The Inducement has been taken, and the corrective swing move has reached its lowest levels, showing two pullbacks. The internal structure supports this corrective move, with Order Blocks (OB), Sell Order Blocks (SOB), Fair Value Gaps (FVG), and liquidity marked as Points of Interest (POI) in the Discounted zone, making this setup powerful.
Support & Demand are also located in the POI zone, making this setup favorable for bullish momentum.
Pattern:
🟢 Chart Patterns:
A Rectangle pattern is forming, so patience is required to see how it plays out.
🟢 Candle Patterns:
Candle patterns will be considered once the price reaches the POI.
Volume:
No notable volume observations at this point.
Momentum RSI:
Skipped for this analysis.
Volatility Bollinger Bands:
Skipped for this analysis.
Strength ADX:
Skipped for this analysis.
Rating: ⭐⭐⭐ (3 Stars)
Probability: 50%
The probability is moderate, indicating a balanced risk/reward scenario.
✔️ Entry Time Frame: 5M
✅ Entry TF Structure: Bullish
☑️ POI: Extreme unmitigated OB
💡 Decision: Buy Limit
🚀 Entry: 2494
✋ Stop Loss: 2484
🎯 Take Profit: 2545
😊 Risk to Reward Ratio: 5 RR
🕛 Expected Duration: 1 Day (D1)
SUMMARY:
This setup on the 5-minute timeframe suggests a potential buying opportunity as the market is in a bullish structure, and key Points of Interest align at the Discounted zone. The Rectangle chart pattern forming adds to the likelihood of a potential move. The trade setup has a moderate probability with a 5:1 risk-to-reward ratio. The entry is planned at 2494, with a tight stop loss at 2484 and a target at 2545. Given the lack of significant volume, momentum, volatility, and strength indicators, this trade is more speculative and should be monitored closely as the price approaches the POI.
Trade active
and now toward profit arget
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.