The Final Trap for GOLD? for OANDA:XAUUSD by ekatatrading

Everything is color coding so I will explain – Let us begin

So if we begin with the monthly timeframe we know that at the end of the day gold is still very much bullish and we cannot count the current monthly candle as it has not closed as of yet – anything can happen between now and the end of the month and by extension the end of the year

With that being said we know that the dealer would be more interested in destroying buyers because to destroy sellers all the dealer needs to do is have the market buy and any one who is selling would be taken out sooner or later

The question is if the market continues to buy without stopping out buyers wouldn’t that give anyone who is right about the direction (buying) be given a really good opportunity to buy? Do you think the dealer want’s to give people a good opportunity to buy? Sounds kinda dumb right?

So here I have on the m15 time frame a few things I wish to cover

Firstly over to the left (blue tag) we have the last area of the late buyers who would have bought the last big spike up – these are traders who FOMO’d. These traders couldn’t stand to see the market leave without them and it is very likely a lot of traders entered the market right here

Over to the right from there we have (red tag) stop losses, now the stop losses run a few areas in particular but for now we will deal with just the stop losses of the last late buyers (blue tag). Obviously stops could be even lower than this but if it goes any lower I feel as though sells may make more sense at that point – The reason for that is if the dealer goes too low he would then give buyers an even better opportunity to buy and like we agreed – he doesn’t want that.

Up and to the right we have (orange tag) the buyers who bought off of the previous consolidation (light blue zone) being take out and becoming the new liquidity with the last spike down and going into the new consolidation range (orange box) My question is why would the dealer break one consolidation only to quickly resume a next one (1 day apart) seems kinda odd don’t you think?

Well it does to me and upon looking at the new consolidation (orange box) closer I realized something – within the new consolidation we have even more buyers being induced (light blue tags) and right below those inductions we have the stop losses that I would have discussed earlier (red tags)

In green we have what I think could be the possible move because by doing this – the dealer destroys all the stop losses of very likely every buyer within this major trap here in one go AND now induces the seller AGAIN, just for that added cherry on top

I’d become interested in that green move if 1. obviously it plays out lol and 2. if it shows me that it is indeed going back into bullish momentum very sharply

The last tag (purple tag) is where I have set a price alert at 2014.28 and you’d notice I have set the alert a little higher that where I think it is going to go but still lower than the consolidation – this is to protect me from being falsely interested but also not to miss a potential set up

Downvotedon’t boost if you didn’t take the time to read this entire post and didn’t even try to understand

OR

Upvoteboost if you did take the time to read this entire post and did try to understand

If you’ve made it this far – leave a Merry Christmas in the comments for me.. Let me see how many traders actually appreciate an in-depth analysis

P.s if you disagree with me, I am always willing to submit if you have your analysis to counter but don’t disagree and not be able to explain in the same amount of detail as to why

By no means am I saying that I will be absolutely right about this but at least I am taking the time to explain what is going on in my brain

Godspeed