Identifying and understanding FVGs

Gold has absorbed liquidity over the past two days, and there was high volume on the previous day. I expect a 'seek and destroy' move today. If that doesn't happen, the market is still in a 4-hour bullish Fair Value Gap (FVG). The market should move upward from here, potentially reaching the Daily High (DH). If this doesn't occur, then 'seek and destroy' is expected. Do your own research; this is not financial advice.

Detailed Explanation:

Liquidity Absorption: Over the past two days, gold has been consolidating, absorbing liquidity. This means that the market has been gathering orders, setting the stage for a significant price move.

High Volume on Previous Day: The previous day's high trading volume indicates strong market interest and participation, often preceding a substantial price movement.

'Seek and Destroy' Expectation: This term refers to a market behavior where price moves to eliminate stop-loss orders, often leading to a sharp price movement. Traders anticipate this to capture liquidity before a significant move.

4-Hour Bullish Fair Value Gap (FVG): A Fair Value Gap is an area on a price chart that represents an imbalance in the market caused by rapid price movements. A bullish FVG on the 4-hour chart suggests that the market has moved quickly upwards, leaving behind unfilled orders. Traders often expect the price to return to this gap, providing an opportunity to enter trades in the direction of the prevailing trend.

Daily High (DH) Target: The Daily High represents the highest price level reached during the current trading day. Traders often monitor this level as a potential target for price movement.

'Seek and Destroy' Revisited: If the anticipated price movement does not occur, traders may look for a 'seek and destroy' scenario, where the market moves to eliminate stop-loss orders, potentially leading to a sharp price movement.

Disclaimer: The statement advises conducting your own research and clarifies that the information provided is not financial advice.

Trading Strategy!

Liquidity Absorption: Recognizing periods of consolidation and liquidity absorption can help traders anticipate potential breakout points.

Volume Analysis: Monitoring trading volume can provide insights into market interest and potential price movements.

Fair Value Gap (FVG) Trading: Identifying and understanding FVGs can offer opportunities for entering trades in the direction of the prevailing trend.

Risk Management: Always conduct your own research and consider seeking advice from financial professionals before making trading decisions.

DYOR!