UP Forex Academy Trading Community

Trade Rationale

• Order Block:
  The price is approaching a strong bearish order block (highlighted in red on the chart). This zone is expected to act as resistance, where institutional sellers may step in.

• Fair Value Gap (FVG):
  There’s a visible FVG within the order block, indicating a price imbalance. Price often reacts sharply to these areas, providing high-probability entries.

• Liquidity Zone:
  The take-profit is set at a previous liquidity zone, where price is likely to seek orders before a potential reversal.

Execution Plan

1. Wait for Price Entry:
   Allow price to enter the order block and FVG zone around 3,296.00 USD.

2. Confirmation:
   Look for rejection or bearish price action (e.g., pin bar, engulfing candle) before executing the sell order.

3. Set Stop-Loss:
   Place your stop-loss at 3,298.00 USD, just above the order block to protect against false breakouts.

4. Set Take-Profit:
   Target 3,288.00 USD, aligning with the next liquidity pool as shown by the blue arrow on the chart.

Risk Management

• Risk per Trade: Never risk more than 1-2% of your trading capital.

• Review: Log your trade in your journal, noting the setup, emotions, and outcome for continuous improvement.

Final Thoughts

This XAUUSD setup is based on proven smart money concepts: order blocks, fair value gaps, and liquidity zones. Always stick to your plan and manage risk strictly for consistent results.