Market Overview
Gold (XAUUSD) is currently trading within a broad range and approaching key liquidity zones at both extremes. To maximize profit potential while minimizing risk, this week’s strategy is to remain patient and wait for price to reach these Extreme Zones, where the Risk-to-Reward (R:R) profile is significantly more favorable than taking trades in the middle of the range.
Trading Plan
1. Short Setup – Upper Resistance Zone
We will look for short opportunities if price retests the previous high and triggers a liquidity sweep.
Entry: Sell Limit around 4175
Stop Loss (SL): 4200 (25-point risk)
Take Profit (TP):
TP1: 4028.5 (Intermediate support zone)
TP2: 3865 (Range low)
Expected Risk-to-Reward: Excellent, reaching over 1:12 if price extends to TP2.
2. Long Setup – Lower Support Zone
If price declines first, we will look for long opportunities from the strong demand zone below.
Entry: Buy Limit around 3853
Stop Loss (SL): 3818.5 (34.5-point risk)
Take Profit (TP): 4053, targeting a 200-point move from the entry.
Expected Risk-to-Reward: Approximately 1:6.
Risk Management
This strategy is based on pending limit orders placed at major support and resistance levels. Traders may either:
Scale into positions using smaller position sizes, or
Wait for a lower-timeframe reversal confirmation (M5/M15) before entering to achieve a tighter stop loss.
Always respect the predefined stop-loss levels to protect your trading account against unexpected market volatility.