Alan Solarsh analyzes XAUUSD price action, focusing on candle wicks into the 50-period moving average as a key reversal zone. He reviews demand zones and order blocks, discusses his trading robot's hedging strategy, and plans to update it to trigger hedges below fractals with a buffer for conservative trade management.
Questions this video answers
Longs 57%, Shorts 43%.
Yes — the robot hedged on Friday; the presenter closed that hedge when price returned into the demand zone.
Chapters
Currently and what could possibly happen on Monday, Tuesday. So we had a huge candle wick down into the 50 moving average which is the. This over here, let's get some lines. Okay, yellow is good. This over here, this area over here, that's the 50 moving average. Remember that is a key zone because on a four hour chart that 50 moving average is the 200 moving average on the H1 time frame. So it's a very key reversal area that the institutions use. And you can see actually that the price like wicked up quite considerably. So we've got two candles that have opened below the atma. This is candle, this is candle one and this candle here. This red candle is candle two. So two candles have opened below the atma. So we're in a downward trend but we're in the demand zone. So it's quite an interesting, it's quite an interesting chart that we're looking at. So I know that we're in a demand zone. So I definitely wouldn't be hedging at this point because we're in a demand zone and the institutions could be accumulating. So let's go and have a look at MYFX book to see what the sentiment is to understand what the institutions may do going forwards on Monday. So if we look at we click on sentiment, I've set mine up to only show euro, US dollar and gold. If you want to change yours you just click on the gear symbol at the gear icon in the top right hand corner and then you click on symbols and then you can uncheck what you don't want and then check what you do want. Xau USD is right at the bottom. Cool. So if we go back to the sentiment, you can see here that longs retail is 57% and shorts is 43%. It means that we can still see more downward pressure to fake out longs of the of retail. So maybe that is what happened on Friday. I didn't know what the sentiment was on Friday but I'm sure that a lot of stop losses got hit when the price this candle. Sorry, when this red candle wicked down into when this wick candle wicked down into and onto the 50 moving average I'm sure that a lot of long stop losses got hit. So it's anyone's guess what the direction is on Monday. We know that we're in a demand zone and we know that the second candle has opened below the 8 EMA. So it's anyone's guess of the direction. This is a time to be conservative again. I would not hedge in this area here. So the correct place to have hedged would have been below the demand zone over there, and below the fractal over there would be the correct place to have hedged. But when the candle started coming back, my. When the candle wicks back by at least 50%. So about there, I would have closed out that hedge in a. In a profit and then waited to see what the direction was if I had a hedge. So my robot did hedge on Friday and I closed out that hedge because the price came back all the way into this zone here. And then I closed my hedge at that point because we're back in that demand zone. And now I'm going to wait. So I'm going to add another feature to the robot, which is going to be a hedging feature below a demand zone, not when the second candle opens below the atma. So it'll be a new feature that's going to be added in the next couple of weeks or months when I get to it. But that's going to be exciting. So the robot will only hedge. Basically, it'll say hedge below order block or hedge below order block and fractal. So when the price comes below the order block. Let me clean my chart up so you can see what I'm talking about. So when the. When the price wicks below the order block and below the fractal buy X buffer, so maybe a dollar, maybe $2, whatever you choose as a buffer, then the hedge will activate at this point and then you can decide what to do, how to close that hedge out, and how to manage that hedge with either the EA or manually. So I hope that you enjoyed this video and I'll see you on the groups on Monday. Cheers.
