Last Week’s Trade Review
Last week’s analysis played out exactly as anticipated. It was a solid setup! Did you take the trade? If so, what challenges did you face? Share your experiences in the comments—I’d love to hear about your trade management and the lessons you learned.
This Week’s XAUUSD 4H Analysis
Price is currently reacting to a 4H origin supply zone. At this critical point, the market may shift from its bullish trend to a potential bearish trend.
Here’s why a bearish move could unfold:
- During the previous bearish trend, price grabbed liquidity that was resting above an unmitigated demand zone. A liquidity grab occurs when the market moves to trigger stop-losses or orders before reversing, often leading to strong directional moves.
- Importantly, price closed below the liquidity, after the liquidity grab, making it a valid leg of structure (LOS) with a fresh origin supply zone—a clear price movement defining market intent.
- Since this is a confirmed supply zone, sellers may regain control here.
What to Watch for Before Selling
- Confirmation of a Bearish Trend Change: Wait for price to break and close below the latest demand zone formed during the bullish trend.
- Once price does this, it means it has formed a bearish leg of structure. Use the Fibonacci retracement to enter at the 50% or 61.8% level .
- Place your stop loss above the high of the bearish LOS.
- Target: Aim for the lower low (LL), where price previously found support.
Key Takeaways
- Wait for clear structure breaks before taking action.
- Set your stops and targets according to your risk management rules.
Stay patient, disciplined, and trade with a plan. Let me know your thoughts—are you ready to take advantage of this week’s setup?
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