XAU/USD Rips Higher After Intraday Retest

### XAU/USD Key Points

• The XAU/USD (gold) price pulls back into intraday area of interest.
• Price finds support at prvious short term resistance.
• Subsequently rips out of this level with minimal drawdown, giving us a beautiful long trade.

XAU/USD Technical Analysis

Afternoon team,

Boom! An absolute textbook market reaction to yesterday's Gold long setup. If you missed it, then click the link, but here is an extract including the intraday XAU/USD chart we were watching, as well as my thoughts:

If price does in fact pause, it’s the grey box I’ve marked on the intraday chart, where I’ll be looking for longs.

Now take a look at what happened on the updated, XAU/USD hourly chart:

What I want you to really think about here, is your psychology as a trader managing this position. So often we're taught that if we're not first into a position, then we've missed the boat and the setup is gone. But here, you can see that is not the reality of trading.

Consider if you entered long on the first retest of the hourly white box on that chart. Price bounced, then went lower, until it actually poked through the bottom. Here, you would have been resigned to the fact that your trade was probably going to get stopped out and it would continue lower.

But alas, price then ripped again, making its way out of the box this time to the upside. It's here that you'd be cheering again that your trade is on its way to your take profit level.

Now it's this last move before price ripped that is key. Look at that one last dip to the bottom of the box before ripping higher. That's the market just adding an extra level of dispair to long trader's psych and soaking up as many of their stop orders as possible before ripping.

But if you can understand this psych and understand that the smart money is simply building a position around these key levels, then you can learn to control your emotions and ultimately make consistent money from your trading. It's this that's the real key to trading forex.

Best of probabilities to you.

Dane.

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