It’s NFP Friday today.
You know what that means—volatility Volatility Volatility.
I always avoid staying out of the markets on NFP day but let’s still look at what gold did today.
We are on the 4-hour chart.
I have marked up an order block, as you can see on the chart. An order block is an area of interest that market makers use to access extra liquidity, which they can then use to push the price higher or lower. I’m the case of going short; I would always use the most recent bullish candle before an impulse lower. As we can price came right into the order block before dropping lower.
This is what sniping is.
I don’t usually trade order blocks on the 4-hour. However, this one was too good not to show.
If you were looking to short Gold ( XAU ), You would have opened a short position in the middle of the OB. This is always a safe play. Put your slightly above the OB High, and your target would be the liquidity zone. This would have given a nice 1/7 RR.
Order block sniping requires much backtesting and creating your own set of rules – just like any other strategy.
This is a textbook example of how price returns into the OB zone to collect liquidity before moving lower.
Interesting? Yes,
Would I trade this on NFP day? No
Let’s keep watching and see if gold can present us with any setups next week.
Have a good weekend, traders.
You know what that means—volatility Volatility Volatility.
I always avoid staying out of the markets on NFP day but let’s still look at what gold did today.
We are on the 4-hour chart.
I have marked up an order block, as you can see on the chart. An order block is an area of interest that market makers use to access extra liquidity, which they can then use to push the price higher or lower. I’m the case of going short; I would always use the most recent bullish candle before an impulse lower. As we can price came right into the order block before dropping lower.
This is what sniping is.
I don’t usually trade order blocks on the 4-hour. However, this one was too good not to show.
If you were looking to short Gold ( XAU ), You would have opened a short position in the middle of the OB. This is always a safe play. Put your slightly above the OB High, and your target would be the liquidity zone. This would have given a nice 1/7 RR.
Order block sniping requires much backtesting and creating your own set of rules – just like any other strategy.
This is a textbook example of how price returns into the OB zone to collect liquidity before moving lower.
Interesting? Yes,
Would I trade this on NFP day? No
Let’s keep watching and see if gold can present us with any setups next week.
Have a good weekend, traders.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.