XAU/USD (GOLD) Bullish

XAU/USD (4H) Detailed Analysis on TradingView

Overview:
This analysis outlines a potential bullish scenario for XAU/USD (Gold Spot) on the 4-hour chart, focusing on key liquidity levels, Fibonacci retracements, and market structure. The chart highlights a possible retracement before a move higher towards the Sell Side Liquidity zone.

Key Levels:
Buy Side Liquidity:
The area below the current price where liquidity is likely accumulated (highlighted near 0.618 Fibonacci). This level is expected to act as a potential support for a bullish reversal.

Sell Side Liquidity:
A target zone around 2,743.08, representing the area where stop-losses of short positions may be triggered, driving further upward momentum.

Fibonacci Levels:

0.5 (2,690.64): A moderate retracement level that might act as an early support.
0.618 (2,682.60): The "golden ratio" and a key level where price may find strong demand.
Deeper retracement zones (0.786, 0.886): Possible levels in case of extended downside.
Scenario:
Retracement to Fibonacci Levels:

The price is expected to dip into the Buy Side Liquidity zone, testing either the 0.5 or 0.618 Fibonacci retracement levels.
This move would help accumulate buy orders and provide a potential entry point for long positions.
Bullish Reversal and Upward Momentum:

After testing the Buy Side Liquidity, the price is anticipated to reverse and move upwards, targeting the Sell Side Liquidity zone at 2,743.08.
A strong breakout from this level may lead to further upside potential.
Stop-Loss Adjustment:

Initially, the stop-loss can be placed below the Buy Side Liquidity zone.
As the price progresses upward, the stop-loss should be adjusted below key candle wicks within the Buy Side Liquidity zone to minimize risk and lock in profits.
Key Considerations:
Risk-Reward Ratio (R:R):

This setup offers a Risk-Reward Ratio (R:R) of 1:2, meaning the potential reward is twice the risk.
No Financial Advice:

This is my personal trading setup and should serve as a guideline for orientation.
Markets are unpredictable, and this scenario may not unfold as described. Develop your own thesis and stick to it, as personal responsibility is key in trading.
Market Confirmation:

Wait for clear bullish signals (e.g., bullish candlestick patterns, volume spikes) around the Buy Side Liquidity or Fibonacci levels before entering a trade.
Conclusion:
This analysis outlines a structured approach to trading XAU/USD, leveraging key technical levels and liquidity zones. A potential retracement to the Buy Side Liquidity zone followed by a bullish reversal offers an opportunity to capitalize on the move towards the Sell Side Liquidity zone.

Patience and disciplined execution are crucial. Always manage risk carefully and adapt your plan to market conditions. Good luck! 🚀✨