Gold: Smart Money or Trap Money? Long Setup with a twist

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Description

> Gold – Long Setup Breakdown

After a clean break to a new Higher High, price pulled back aggressively on volume. A lot of traders will label that red spike as bearish — but let’s unpack what’s really happening.

1. Structure Held
Despite the drop, the move respected the previous demand zone — a classic smart money move to test liquidity before continuation.


2. Volume Spike (Red Candle):
Could be:

A shakeout of late buyers, or

Aggressive shorting that got absorbed just above the key structure.



3. Quick Reclaim + Tight Base:
Price reclaimed the zone fast and started building a tight consolidation just above the reclaimed zone — that’s usually a sign of pre-expansion energy.


4. Buy Stop Cluster Potential:
The current compression hints at stops above being used as fuel for the next impulsive leg.



I'm positioning long here — not because of the breakout, but because of the retest that held above demand with signs of absorption and continuation.

But I want your take:

Is this absorption by smart money or a bull trap?

Would you wait for a second retest, or is this the real deal?

How do you interpret that red volume spike?


Drop your thoughts 👇 Let's build sharper analysis through debate.

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