GOLD (XAU/USD) SMC Pullback Setup

Trade Analysis: 

Type: BUY (Long)

Symbol: GOLD (Spot or Futures)

1. Trade Idea Summary

· Entry (BUY): 4370

· Take Profit (TP): 4420.315

· Stop Loss (SL): Placed below the low of the triggering candle on M5-M1 after confirmation.

· Concept: SMC (Single Candle Stick Block) – Price is expected to reject/respect a key level marked by a single significant candle.

2. What is "Single Candle Stick Block" (SMC)?

In Smart Money Concept (SMC) trading, a "block" often refers to a single candle (or a small cluster) that acts as a rejection or support/resistance zone.

· Here, it likely means price is approaching a prior candle's high/low or wick that previously caused a reversal.

· The trade assumes that the same level will now act as support for a bullish move.

3. Why This Setup?

· 4370 is likely near a previous swing low or a bullish order block on higher timeframes (H1/H4).

· The "block" candle may represent a liquidity grab or stop run before a reversal upward.

· TP 4420.315 is precisely calculated, possibly aligning with a Fibonacci extension or prior resistance.

4. Execution & Risk Management

· Entry: Wait for price to reach 4370 and show bullish reaction (e.g., pin bar, engulfing) on M5/M1.

· SL: Place below the low of the confirming candle on M5/M1. This ensures invalidation if price breaks the "block."

· RR Ratio: Roughly 1:1 (50 pips profit vs. ~50 pips risk).

· Confirmation: Use M5/M1 for entry timing; avoid entering purely on limit order without momentum signs.

5. Key Considerations

· Market Context: This setup works best if gold is in an uptrend or range on H1/Daily.

· News Risk: Be aware of USD data, Fed speeches, or geopolitical events impacting gold volatility.

· Alternative Scenario: If price breaks below the "block" candle low decisively, the bullish premise is void.

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