GOLD SL LEARNING 4TH NOV
In our recent trade, we observed gold holding below a key order block while consistently forming lower lows, unable to break previous highs. This behavior often signals potential for a buyer trap. Based on our strategy, we noted two critical indicators of a trap:
Double Bottom Pattern: When gold forms a double bottom near the lows, it’s often an 80% probability trap for buyers, encouraging premature long positions.
Trendline Breakouts: A breakout without breaching highs can also act as a setup to lure buyers, especially when price aligns with an order block.
Trade Execution Plan
price was at order block , our plan was to enter short once gold broke the recent lows, expecting the setup to confirm the downward momentum and trap buyers who anticipated a reversal. We had solid confirmation across the 1, 3, and 5-minute time frames. However, after entry, a bullish engulfing candle formed on the 15-minute chart, pushing price into sideways movement and eventually hitting our stop-loss.
Market Context & Takeaways
In volatile markets, it’s challenging to wait for higher time-frame confirmations as the market moves quickly, demanding timely risk-taking. Losses are part of the process, and our strategy remains sound with consistent results. In the last 7 days, I’ve recorded only 2 stop-losses, with all other trades hitting take-profit targets.
For more insights, follow for updates on trading lessons and setups.
Double Bottom Pattern: When gold forms a double bottom near the lows, it’s often an 80% probability trap for buyers, encouraging premature long positions.
Trendline Breakouts: A breakout without breaching highs can also act as a setup to lure buyers, especially when price aligns with an order block.
Trade Execution Plan
price was at order block , our plan was to enter short once gold broke the recent lows, expecting the setup to confirm the downward momentum and trap buyers who anticipated a reversal. We had solid confirmation across the 1, 3, and 5-minute time frames. However, after entry, a bullish engulfing candle formed on the 15-minute chart, pushing price into sideways movement and eventually hitting our stop-loss.
Market Context & Takeaways
In volatile markets, it’s challenging to wait for higher time-frame confirmations as the market moves quickly, demanding timely risk-taking. Losses are part of the process, and our strategy remains sound with consistent results. In the last 7 days, I’ve recorded only 2 stop-losses, with all other trades hitting take-profit targets.
For more insights, follow for updates on trading lessons and setups.
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