A trader reviews a long position they took on gold, sharing their strategy and analysis process. They emphasize the importance of higher time frame analysis and using confluence in decision making. They also mention a free trading Discord group for resources and signals.

The Ultimate Guide to Long Trades on Gold: A Trade Review and Breakdown

Introduction
Gold is a valuable commodity and is traded by investors and traders worldwide. In this article, we will review and break down a long trade on gold (XAU/USD) executed by a trader. We will discuss the strategy used by the trader and explain how you can apply it to the market yourself. But before that, we will briefly introduce our free trading Discord group.

Free Trading Discord Group
The trader mentions a free trading Discord group in which he posts tons of resources such as trade breakdowns, trade analysis, and even signals. The group is free for the first 100 members. To join the group, click on the link in the description below.

Analysis of Long Trades on Gold
The trader begins by taking his replay tool to jump back to the exact moment he entered the trade. He removes all the markings and zones and starts analyzing the trade from scratch.

Higher Time Frame Analysis
The trader starts analyzing the trade on a higher time frame, the hourly chart. He notes that gold was in a downtrend until there was a reversal marked by a series of higher highs and higher lows. The trader says that it is essential to identify the overall bias on the direction of the market by analyzing the higher time frames to trade with the trend.

Identifying Support and Resistance Levels
The trader then identifies the support and resistance levels on the 30-minute chart. He marks the levels of resistance that were eventually turned into support. He looks for an impulse, a correction, and enters the market based on confirmations that price will continue to move upwards.

Break and Retest Strategy
The trader focuses on a break and retest strategy, which is a retest of a very important level, followed by a strong bullish confirmation that price will continue to move upwards before entering a long trade on gold.

Fibonacci Retracement
The trader explains how to measure impulses and corrections using the Fibonacci tool. The trader used the Fibonacci method to take this trade. He notes that a 0.5 Fibonacci correction off a level that was resistance but is now turned into support is an excellent level for a rejection. It is essential to look for confluence levels, where resistance turned support aligns perfectly with the Fibonacci level.

Confirmation for Entry
The trader does not blindly enter at the confluence level. Instead, he waits for a confirmation, which is a long bottom wick candle that breaks through the level, rejects to the upside, and closes back above the support level. The trader also looks for bullish confirmation by looking at extreme bullish volume in the next candle that engulfs the previous price action.

Risk to Reward Ratio
The trader secured a 2.0 risk to reward ratio on the long trades on gold, which is an excellent ratio for a successful trade.

Conclusion
Long trades on gold can be highly profitable, and it is essential to analyze the market before executing a trade. The trader identifies support and resistance levels, uses the break and retest strategy, analyses the market using the Fibonacci tool, looks for confluence levels, and waits for a confirmation before entering a long trade on gold. By following this strategy, traders can identify their own setups and trade successfully on gold.