FX.co ★ Gold auction and seller trap

Good afternoon, dear traders, I present to you the analysis of GOLD.

So, this trading week began with "coronavirus" fears, and so it passed in this way. "CROWBAR", by and large, was "about nothing", and traders continued to recoup Chinese pneumonia.

Today there is an interesting situation in terms of the distribution and concentration of sellers' stops in gold. This is a classic trap that can slam shut today or Monday in Asia.

H1:

In this situation, I do not recommend working in sales, because you will be forced to put stops at the top two levels and you will most likely be removed. Therefore, either work from pullbacks to increase in the American session or wait for a false breakdown (namely false) and after that, work in the opposite direction.

Good luck with trading and a happy weekend!