hey guys Nial hear from learn to trade the market market and welcome to
another trade setups video today's video I'm going to be talking about a huge
gold trade set up we recently discussed and the members weekly trade setups
newsletter and I'm going to be talking about a potential trade setup on gold
that I see sitting up over the next few weeks so firstly let's have a look at
the zoomed out daily gold chart we can see the market found strong resistance
that 1295 to 1,300 resistance region on several occasions over the last six
months what's interesting to note is that over the past three tests of this
1295 resistance level the price quickly reversed lower but on this most recent
test of the resistance price didn't actually reverse lower instead we kind
of just consolidated and grind it away under that resistance at 1295 if we zoom
in a little bit closer on the daily chart we can see a large pinbar reversal
sell signal formed at that resistance right up against it but again there was
no follow-through to the downside we just kind of grinded out went sideways
we can then drill down a little bit further and see these four daily price
bars actually formed a coiling inside bar structure this is actually where you
see multiple daily price bars that form within the range of the previous bar and
you can see that on the chart here these bars are actually forming within the
range of the previous bar so that's a coiling inside bar structure very
powerful now typically when we see those patterns with lots of inside bars
compressing like this it's a flashing line of warning sign that the market is
about to make a major break in one direction but it's important to remember
that because this was two weeks ago we didn't actually know which way the
market was going to break out at that time so it's kind of a point where the
markets about to do something and then we have to anticipate it and plan the
trade from there on this fourth price bar you can see prices did initially
breakout of the downside and for some this would have been a nice short signal
however as you can see the shorts had it wrong and prices quickly reversed off
the lows and formed a large bullish pin bar reversal with a long tail
this is one of my proprietary price action signals called the fakie setup
because prices make a false break in one direction and quickly start moving in
the opposite direction so the first move was a fake-out that's designed to trap
most of the retail money on the wrong side of the market it's a very powerful
price action setup that shows the psychology of what's taking place
between the buyers and sellers at that time we have like the majority of the
traders betting on the wrong side of the market only to get squeezed out in their
positions as price moves the other way it's like a self-fulfilling momentum
prices start to move the other way try to start panicking they stop out at
liquidate and then ultimately the professionals come in and drive the
price through to new highs okay for anybody short the fakie pattern was a
clear signal to get out of shorts and reverse to Long's and for those traders
not in a trade this was a clear signal to take a long position at the close of
this bullish pin bar we took an aggressive entry at the market price and
as you can see in the following few days prices rallied strongly through that
previous resistance at 1300 and beyond now personally I like to trade fakies
where the false break bar is a really clear pin bar like the one we have in
this example but there are four different types of fakies and I expand
in more detail about these in my trading courses so if you miss this trade the
question now is where is gold headed and how can we trade it from here well given
that price has shown its hand and started trending strongly above the
previous resistance at 1295 to 1300 we would assume that this level is going to
act as a strong support in fact after the first breakout prices actually
retested that level here and quickly pushed higher so from here the best
potential trade that I can see would be to be buying gold if prices fall back
towards that 1295 to 1,300 major level we would either wait for a price action
buy signal in that area or just blindly jump in around that 1,300 area if we
zoom out on the daily chart again we can see the technical preacher for gold
looks pretty bullish now that we're above that 1,300 resistance and I guess
until prices collapse below that support we can assume prices are going higher
obviously a prices fail that's potentially a good sign to close any
Long's and recess a chart the next major level is around these thirteen seventy
to 1400 levels and that would be my first up site
target but it's possible that we could even move higher than that long-term so
for now I'm buying gold on any price dips down towards that support and I'll
be setting profit targets up around thirteen seventy to fourteen hundred you
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the next video until then safe trading