Here's the outcome of our analysis. To be continued... and I hope you are enjoying it trading XAUUSD. How do I know this Figure 2 has been the market structure because gold itself have followed what is shown in Fig. It is worth mentioning that the price action does not necessarily always match our form because it will be impossible for us predict movements of a tool so random. However, by pinpointing trades on even lower timeframes you can be more aware of how the market will act.
The market, as I was indicating it tested the 1-hour fair value gap (FVG) You can do this by looking at 5- or 15-minutes charts and quickly notice the FVG as well as how market reacts to it.
In any case, it seems like BTCUSD did not respect the structure as we expected. I hope you did not make too high-risk trades. Exit Trade Without Confirmation is indeed a Danger Signal to never forget!! Do not skip these crucial elements of confirmation for entries: liquidity, order blocks, FVG and momentum shifts.
In particular according to Figure 2. This alignment confirms the validity of our analysis in forecasting where XAUUSD was likely to play out. By looking at some shorter timeframes like the 5- or 15-minute chart, traders will be able to identify important levels as per FVG providing clues and hints about internal market workings along with Entry possibility. Gold traded mostly in line with expectations last week, nicely following the expected structure somewhat at least and reacting as anticipated respectively to within minor price FVG on the 1-hour chart. This response validates our analysis, informing us where the market is likely headed.
On the other hand, we did not receive an expected structure in BTCUSD. An important point here, which is the unpredictability and volatility in markets. This is one of the cases where we need to trade with caution and not commit high risk trades when there is no follow through from market on our entry signals. Higher probability entries are captured by confirmations through liquidity, order blocks, FVG and momentum shifts.
A big part of trading is knowing where market structures are and waiting for the confirmation to start taking trades. This will help traders maneuver the market better and decrease risks. Remember that the market may not always unfold exactly as we handle, but with a thoughtful analysis to trade betas increases.
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