When we view the weekly timeframe, it becomes clear that the market has a strong bearish momentum. The weekly timeframe shows a significant rejection from the level 2483.108, the highest point of XAU/USD, and the candle closing at the level 2394. This suggests a temporary pullback, but overall, the market is expected to go down for some time.
Examining the artificial candle, we can see that while the weekly candle might move upwards for a period, there is an 80% chance that it will close lower by the end of the week. This indicates a predominant bearish trend in the market for the foreseeable future.
Expecting the Market to Test This Zone and Continue the Upward Trend
We are anticipating that the market will test this zone and then continue the upward trend. This means that after the market revisits this support or resistance area, it is likely to resume its previous direction, moving higher. This behavior aligns with typical market patterns where a price retest is followed by a continuation of the prevailing trend.
Daily Chart Perspective: You're right, daily charts offer a broader view of market movements.
Order Block Identification: Recognizing order blocks is a valuable skill for price action trading.
Fair Value Gap (FVG): Identifying potential areas of price movement (FVG) is helpful.
Areas for Improvement:
Certainty in Predictions: Market movements are inherently uncertain. While order blocks offer clues, they don't guarantee specific outcomes.
Multiple Entry Points: You mentioned 2420-2440 as an entry point, but also suggested 2400.884. Focus on a single, well-defined entry based on your strategy
Explanation:
Order Block Test:
he market reaching the daily order block is a good starting point.
Observe price action (rejections,confirmations) at this level.
Momentum Shift:
Look for signs of bullish momentum after the test,after the test,like higher lows and closes.
Consider using indicators or price patterns on smaller timeframes for confirmation.
Fair Value Gap (FVG):
if price hasn't filled the gap previously,it could act as a potential target.
Be aware that gaps don't always get filled.
Here's how you can improve your analysis:
Define Entry and Exit:Clearly define your entry point (e,gbreak above 2420) and stop-loss (e.g below order block low).
Risk Management:Always calculate your risk-reward ratio before entering a trade.
Confirmation:
Use other technical indicators or price patterns for confirmation.
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