Master Gold’s Breakout Strategy: Key Levels Explained!

9月6日

this chart of Gold Spot (XAU/USD), we observe several key technical features that guide potential trade decisions:

Forming Ascending Channel: The price is developing within an ascending channel, indicating a potential continuation pattern. This channel often signals further upward movement, but caution is needed, especially when the price is in a "weird" volatility zone or failing to make new lows.

LQZ Grabbed: This marks a liquidity zone where a price sweep likely occurred, gathering liquidity from stop-loss orders. The market can potentially reverse after this grab, pushing the price higher.

LTF Flags (1 and 2): These small consolidation patterns (flags) on the lower timeframe suggest continuation. The first and second flags could signify pauses in the broader trend, with the potential for either breakout or breakdown.

Failed Push into Descending Hover: This indicates a failed bullish push, transitioning into a descending pattern (hovering near a key level). A failed breakout could signal upcoming bearish pressure.

Price Path Projections: There are two scenarios represented by the green and yellow paths:

Bullish Scenario (Green Path): If the price maintains the ascending channel and breaks out from the flag structure, we could see higher prices above the liquidity zone (LQZ), likely towards the 4-hour resistance level around 2532.
Bearish Scenario (Yellow Path): If the price fails to hold, particularly breaking the ascending channel and descending, it could move lower toward the 1-hour LQZ around 2503.
In summary, the price action around the flags and the liquidity zones (LQZ) will dictate the next major move. Waiting for confirmation of either the bullish breakout or bearish failure would align with a high-probability setup.