Gold Breaks 4HR Liquidity Zone: Reversal or Continuation?

16 ביוליWe provided a really clear outlook on XAU/USD yesterday evening at the start of Asia Session to look for a move to the top side or a possible start to reversal depending on reaction to the support zone being offered.

Today we have a BEAUTIFUL 4HR LQZ being shown in this chart that we are currently participating inside of. Will price reverse after hitting our TP or Do we continue to follow the trend that is being given.

CORE LESSON:
When gold is in areas of unknown price that you have never traded before the TREND is your friend. You can find yourself wanting the market to do something because it fits your BIAS and plan better but the market is the wild west and it doesn't have to do anything you want. You anticipate and don't get caught on the side of just reacting to price.

Yesterday evening at the start of the Asia Session, we provided a crystal-clear outlook on XAU/USD. We were looking for a move to the upside or the potential beginning of a reversal, depending on the reaction to the support zone.

Today, we are witnessing a BEAUTIFUL 4HR LQZ on this chart, and we are currently trading within it. The big question now is: will the price reverse after hitting our TP, or will it continue to follow the existing trend?

CORE LESSON:
When gold trades in uncharted territory, the trend is your friend. It's easy to develop a bias and want the market to fit your plan, but remember, the market is like the wild west—it doesn’t have to do what you want. Stay ahead by anticipating market moves and avoid getting caught reacting to price action.

ADDITIONAL INSIGHTS:
Understanding market psychology is crucial in these scenarios. Traders often get trapped in emotional decisions, influenced by fear and greed. Maintain discipline and stick to your trading plan. Watch for key levels and patterns that can indicate potential reversals or continuations.

Utilize proper risk management strategies to protect your capital. Setting stop-loss orders and taking profits at predefined levels can help mitigate risks and secure gains. Always be prepared for multiple scenarios and adjust your strategies accordingly.

Remember, successful trading is about adapting to market conditions and making informed decisions based on thorough analysis. Stay patient, stay focused, and keep learning from each trade to improve your skills and outcomes.