๐ Gold (XAUUSD) Trade Breakdown โ Liquidity Sweep & Bearish Confirmation
Trade Direction: Sell ๐
Timeframe: M1
Strategy: Liquidity Sweep + Market Structure Break + Bearish Imbalance
1. Liquidity Sweep ๐ฏ
My setup began when price pushed above a previous high, marked by the first red circle. This move swept the liquidity resting above the high, where many traders had placed their stop-losses. Instead of continuing strongly upward, price showed signs of rejection, suggesting that the bullish move might be losing strength.
2. Bearish Market Structure Break ๐ป
After the sweep, I waited for price to break below a key low. This was an important confirmation because it showed that sellers were beginning to take control of the market. Rather than selling immediately after the sweep, I waited for this bearish structure break to confirm the potential change in direction.
3. Bearish Imbalance & Entry ๐
Following the structure break, price created a bearish imbalance, highlighted by the second red circle. This showed a strong downward move with an imbalance between buying and selling activity. I used the bearish shift, the breakout, and the resulting imbalance as confirmation for my sell entry, marked by the blue arrow.
4. Trade Outcome ๐
After my entry, gold continued moving downward with strong bearish momentum, confirming the direction of my setup.