XAUUSD TRADING ANALYSIS

Yes. Till 2.30pm.
Entry zone: 4116
SL:4066
Price is still trading around the entry zone.

Trade Direction: Sell (Short)

Pair: XAUUSD (Gold)

Timeframe: M1

Strategy: Liquidity Sweep + Bearish Order Block + Market Structure Confirmation

1. Identifying the Key Liquidity Level

Before entering the trade, I identified a previous high, marked by the black horizontal line. This was the level I expected price to reach and sweep because buy-side liquidity often accumulates above previous highs, where breakout traders place buy orders and sellers place their stop-losses.

Rather than selling immediately, I waited for price to interact with this level.

2. The Initial Liquidity Sweep

The first important reaction occurred at the red-circled area. Price reached the previous high and initially swept the liquidity around that level.

This was an important development, but a liquidity sweep alone was not enough to confirm my entry. I needed to see how price would react and whether bearish confirmation would follow.

3. Identifying the Bearish Order Block

After the initial sweep, I identified the blue-circled area as my bearish order block.

My expectation was that price would react bearishly from this zone, reject the higher prices, and continue moving downward.

This was the area I was watching for a potential entry. However, I still needed price to respect the zone and confirm the bearish idea.

4. The Unexpected Move: A Second Liquidity Sweep

Instead of reacting immediately from the bearish order block, price moved higher again.

It broke above the previous high, swept the obvious buy-side liquidity, and then reversed.

This is the key lesson from this trade: the first liquidity sweep does not always mark the final high.

Price can sweep liquidity, retrace, and then move higher to take additional liquidity before making its actual move in the opposite direction.

If I had assumed the first sweep was the final high without waiting for further confirmation, I could have entered too early.

5. The Bearish Confirmation and Downward Move

After taking the liquidity above the obvious highs, price reversed and moved below the key level.

This bearish reaction was important because it showed that price was no longer sustaining its move above the highs.

The subsequent downward move aligned with my original bearish expectation.

Rather than treating the liquidity sweep as an automatic sell signal, the idea was to observe the sequence:

Previous High → Initial Liquidity Sweep → Bearish Order Block → Second Liquidity Sweep → Bearish Reversal → Downward Continuation.

I'll hold my buys till the 4hr candle closes.
Entry zone: 4116
SL: 4066

I hear you but why did you pick the blue circle area as your order block? What was the reasoning behind it or was it just random? If I want to execute this same strategy am I just supposed to pick any random level and circle it as an order block?

I hear you but why did you pick the blue circle area as your order block? What was the reasoning behind it or was it just random? If I want to execute this same strategy am I just supposed to pick any random level and circle it as an order block?

I hear you but why did you pick the blue circle area as your order block? What was the reasoning behind it or was it just random? If I want to execute this same strategy am I just supposed to pick any random level and circle it as an order block?

Watching gold from the low I just marked out with the arrow

Gold on 1min timeframe is reacting to the 15 minutes level I first marked out, and price has broken above a 1min timeframe high level marked by the the arrow which is my confirmation, my trigger is the circled bullish engulfing candles , waiting for price to fill the imbalance it created placed my buy limit with precise SL and TP

Gold on 1min timeframe is reacting to the 15 minutes level I first marked out, and price has broken above a 1min timeframe high level marked by the the arrow which is my confirmation, my trigger is the circled bullish engulfing candles , waiting for price to fill the imbalance it created placed my buy limit with precise SL and TP

Gold on 1min timeframe is reacting to the 15 minutes level I first marked out, and price has broken above a 1min timeframe high level marked by the the arrow which is my confirmation, my trigger is the circled bullish engulfing candles , waiting for price to fill the imbalance it created placed my buy limit with precise SL and TP

Have been triggered by that candle holding my position

I'll be waiting till New York to trade Gold.
If price is still trading above the current price level, I'll be looking for confirmation to go long on Gold once it breaks above 4131.
Entry: 4131
SL: 4106

That impulse is good

Got stopped out and due to emotional play I breached the account

Got stopped out and due to emotional play I breached the account

That Hurts. Just learn from the lesson and move on.
I'm not seeing anything interesting to trade on Gold this morning, so I'll wait till New York session.
Break above 4131 price level, and I'll position to go long on the retest of the same level.
Entry POI: 4131
SL: 4106

That's why I'm not friends with scalping. It involves a lot of emotional rollercoasters and with my sensitive nature, I protect my psychology from emotional interferences when trading at all times.
If I default, I must seek to know the reason and work towards avoiding it.

Gold took out that highs marked by the red arrow, price has dropped from the 1hr timeframe signifying a change in market direction, the blue arrow shows the sweep candle, the circled candle is the fvg level that I am anticipating price to get to then continue