Gold Short

Gold Short

Gold OANDA:XAUUSD



Market Context:
The market recently experienced a bearish correction after a notable bullish rally. Currently, it appears to be undergoing a retracement towards an identified Order Block (highlighted in red) on the 1-hour timeframe. This level has shown previous significance in halting price movements, suggesting the presence of institutional or high-volume orders.

Key Observations:
Order Block:
Price is approaching a previously identified Order Block. This area is expected to act as a resistance zone, providing a potential shorting opportunity.

SMT Confirmation:

SMT (Smart Money Trap): A higher high has formed on one part of the market structure, while momentum suggests weakening. This divergence indicates potential manipulation to lure breakout traders.
SSS (Buy-Side Sweep): Liquidity from buy-side liquidity stop losses above previous highs has been cleared, creating an ideal setup for a retracement.
15-Minute CISD (Confirmation of Intent):
The lower timeframe has shown a Change in the State of Delivery (CISD), signifying a bearish shift. This aligns with our expectation of rejection from the Order Block.

Trade Idea:
Entry:
Enter a short position near the Order Block zone at approximately $2,652.50 – $2,653.00, depending on price action confirmation.

Stop Loss:
Place a stop loss slightly above the Order Block zone at $2,659.35, ensuring room for potential wicks.

Take Profit (TP):
Target the lower timeframe CISD area, around $2,635.00, where we expect price delivery to settle after the bearish impulse.

Risk-to-Reward Ratio:
With the defined entry, stop loss, and profit target, this setup offers a favorable risk-to-reward ratio. Ensure proper risk management is applied, limiting exposure to a percentage of your trading capital.

Conclusion:
This trade idea is based on a confluence of factors, including an institutional Order Block, SMT and SSS confirmations, and a bearish CISD in the lower timeframe. As always, ensure you monitor price action closely and adapt to any changes in market structure.

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