See the image and understand what I am asking. I hope this analysis will improve your trade execution and mindset because you can already identify where the market will go during the New York session. We usually execute trades during the New York session.
When you look at the daily chart, if the daily candle is moving upwards before the start of the New York session, it means the market will likely continue upwards for that day. When the New York session opens, the XAU/USD daily candle will be halfway formed because the market will hit retailer liquidity and then continue its move.
Remember, this daily candle must have high volume, indicating a significant market movement. When the market hunts for retailer liquidity, the candle will be halfway formed, and after hitting the liquidity, it will move sharply, making it difficult for anyone to catch. Check the image for more clarity.
Analyzing the daily chart of XAU/USD can help you understand the market behavior and improve your execution on trades based on focusing the New York session. Below I’ll be explaining the most crucial points:
New York Session : – The New York session plays a very significant role in trade execution. The market’s movement before and during the New York session determines if the trend of the day is most likely to go upwards or downwards.
Daily Candle Direction – Take a look at the first few minutes of the candle’s direction of the day before the New York session starts. If the candle is going upwards, the direction of the day’s candle is most likely to be upwards. This is an early indication of the market’s overall direction.
Retailer Liquidity – more often, before the market makes a big move, it targets simple people’s stops. Liquidity points where a lot of retailers place their stop-loss. This only happens during the New York session, where the candle is halfway drawn.
High Volume Candle – high volume candles is when the market is hunting for the retailer’s liquidity When it gets hit, the market moves so well that it’s hard for traders to catch the counter after it has exhausted; check the image to see the liquidity points, high volume candles, and the trend of the New York market. These points will help you predict the market move with a high accuracy and never ignore the movement of the market during the New York session, and ensure the following factors are met before engaging in any trade.
Execution of trade : The processing of execution of trade must be 1m to 15m.
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