From TradingView · · 1m 30s
A swing long setup on gold
A trader lays out why gold looks ready to bounce, and exactly where the trade dies.
In brief
A trader lays out why gold looks ready to bounce, and exactly where the trade dies. Stack confluences before entering: higher timeframe trend, an unfilled gap, an order block, and a reversal pattern all pointing the same way. Originally reported by TradingView.
Gold, bullish on the big picture
Weekly and daily charts on XAUUSD both read bullish, so the higher timeframe bias favours buyers. Everything below is a hunt for an entry in that direction.
“Weekly and daily time frame overall bullish”
Sellers are running out
The 4-hour chart is still in a downtrend, but the selling pressure looks like it's fading. That divergence between trend and momentum is the opening.
“4HR Current downtrend, however sellers seem to be fading”
An unmitigated gap sits waiting
A fair value gap formed on the 4-hour and price hasn't come back to fill it. Unfilled gaps tend to pull price in, which makes the zone a natural entry area.
“4HR FVG formed and is unmitigated”
An order block stacks on top
Just above the gap sits a 4-hour order block. Two institutional footprints in the same pocket of price is stronger evidence than either one alone.
“giving us another confluence to look for long entries”
The double bottom confirms
A double bottom is forming at the lows, the classic sign that sellers tried twice to break lower and failed. Third confluence pointing the same way.
“A PERFECT DOUBLE BOTTOM FORMING”
Two targets, one exit
First take profit at the daily high, second at buy-side liquidity above it. Stop loss goes below the strong swing low, which is the level that invalidates the whole idea.
“TP 1 target at daily high - TP 2 target at bs liquidity - SL below strong swing low”
The big picture
Stack confluences before entering: higher timeframe trend, an unfilled gap, an order block, and a reversal pattern all pointing the same way.
