As
you know, according to the 4-hour chart, the market successfully
touched its level (see image). This is the main level where the market
stays. XAUUSD is attempting to pull back. On Friday, it reached the
level of 2400.820 and tested its first order block, which was created on
Friday, July 12. See the big arrow indicating the strongest level for
buying XAUUSD. This level is crucial because it acts as a significant
support zone, suggesting that buyers are likely to step in and push
prices higher from here.
If the market holds above this level, we could see a potential bullish move in the coming days.
The market is trying to pull back from this 4-hour level. How do we know? We switch to the 1-hour chart to find a break of structure and wait for the market to touch the 2441 level. This is the level where the market is likely to move down again. According to ICT (Inner Circle Trader) principles, we should go to smaller timeframes to execute the trade.
To understand this better, let’s break it down:
4-Hour Chart Analysis: The market has reached a significant level where it tends to stay. This is a key support zone.
1-Hour Chart Confirmation: To confirm the market’s next move, we look for a break of structure on the 1-hour chart. This break indicates a change in market direction.
Critical Level - 2441: We identify the 2441 level as a crucial point. When the market touches
this level, it is likely to resume its downward movement.
We are dedicated to helping you understand how the market functions and predict its next movements. On the 15-minute timeframe chart, observe the big arrow for a clearer picture. You'll notice that the market reaches its previous order block and creates a fair value gap (FVG) during its downside move. Then, it forms another FVG, retests it, and continues to move downwards.
In this scenario, you can clearly see the break of structure followed by the market testing its FVG. When the market breaks the structure with a significant candle (forming an FVG), it often returns to test this FVG before continuing in its initial direction. By observing these patterns, we can make well-informed trading decisions.
For instance, when the market creates an FVG, we can expect it to return to this level before resuming its trend. This knowledge allows us to anticipate movements and potentially secure 100 pips. By carefully analyzing these market behaviors, you can gain a deeper understanding and improve your trading strategy.
We analyze the market on the 1-minute (1M) timeframe, waiting for a breakout. Once the market breaks out and forms a new order, we look for the price to retest this level, such as 2402. When the market returns to test this level, we can easily execute our trade.
Our goal is to predict market movements accurately and assist all our clients in making informed trading decisions. By observing breakouts and retests on smaller timeframes, we can better understand market dynamics and improve our trading strategies.
0 Comments