these two setups were caught today on gold. price action has been very nice this week with a few perfect setups with minimal drawdown. catching 3r 4r and even 8r risk to rewards. understanding the reason behind the movement is what builds the confidence in a setup.
SETUP 1. (THE SELL)
price had rallied up during the Asia session which had swept the liquidity of previous highs, where price had reached was the important part as it came into 4200 psychological level and had a bearish reaction from this area confirming that sellers were willing to defend this area. I did not enter on the initial touch of this zone because that would be anticipation and not a well risked trade idea…. once price had confirmed the reaction I simply waited for price to come back into the discounted area for a selling opportunity. the target was a simple 1:3rr but also an area of mitigation where I was expecting a reaction between 4180/4165…. price did exactly that.
SETUP 2 (THE BUYS)
initially I had buys planned from 4180 as a fvg on the 1m time frame however price aggressively moved out of this mitigation zone confirming that it could once again take price higher. so I waited for price to deliver more price action and market out the next fog on the 1m TF. this gave me the second entry. the targets are for price to continue higher into the 4220 area however because of price coming to the end of the week it is safer to target previous highs and close the position. flat into the weekend.
NEXT WEEK.
we take each day as it comes there is not much knowing if price will continue higher or go back down the only way to catch snipers is to wait for price to give you more information and trade what you see.