The video discusses a gold trade made on January 1, 2021, which resulted in a significant profit due to strategic analysis of market trends, liquidity, and volume. The author emphasizes the importance of understanding retail trader behavior when analyzing market trends and highlights the potential benefits of identifying areas of liquidity. The video provides detailed explanations of technical indicators and charts to help viewers understand the author’s decision-making process in making the trade.
How I Caught the Insane Sell on Gold from the Top
Analyzing the Market and Understanding Liquidity
Mapping Out Trendline Liquidity and Identifying Stop Losses
Looking at Volume and Confirmations for Sellable Opportunities
Refining Entry Points and Taking Advantage of the Trend
In this video, the author discusses a gold trade that he had a couple of months back in January 2020, and how he was able to catch the insane sell on gold all the way from the top. He talks about entries, liquidity, and many different things.
Analyzing the Market and Understanding Liquidity
The author emphasizes the importance of mapping out what the iconic retail trader is doing, in addition to where the order block is or where the banks are going to sell. He advises understanding what the other people across the market from you are doing. In this way, you can learn where the money is resting below these levels and locate the market’s stop losses. In this way, understanding liquidity can benefit you significantly.
Mapping Out Trendline Liquidity and Identifying Stop Losses
The author maps out where the retail traders are buying and selling, using what is called dynamic support and dynamic resistance. This helps him understand where the money is resting below these levels, where stop losses are located. The market is going to have to come back down to take all that money that it has piled up. One can make profitable decisions based on this mapping of trendline liquidity.
Looking at Volume and Confirmations for Sellable Opportunities
The author advises analyzing daily timeframes to study market structure, and how price action moves up or down. He identifies untested levels of resistance, supply or order block and advises selling once the market reacts off of it. The author also advises focusing on high momentum candles, and volume in major drops. One can refine his/her observation take (obs) by checking the eight-hour timeframe, refining the 50 ob range, and taking it from the low to the high for entry. In this way, one can obtain many confirmations for a sellable opportunity.
Refining Entry Points and Taking Advantage of the Trend
The author takes advantage of the trend and identifies favorable buy and sell positions that could help him/her make a profit. He advises refining the observation take (obs), so that one can enter before the market shows significant momentum in the reverse direction.
Conclusion
The author’s detailed analysis, and understanding of liquidity helped him catch an insane sell on gold all the way from the top. From his analysis, he was able to map out trendline liquidity, identify stop-losses, focus on high momentum candles, and volume among other things. By refining his observation take (obs), he was able to capture excellent entry points and take advantage of the trend. By following this same approach, one can make a profitable trade.