Lecture on XAU/USD (Gold) Trading Strategy

Overview

• Focus on XAU/USD (gold) with a 4-hour and 15-minute entry strategy.
• Discussing order blocks as part of the trading strategy.
• Reference to a more detailed two-hour video on EUR/USD for additional understanding.
• Starting analysis from the end of December 2020 to the start of January 2021.

Trading Strategy

Initial Setup

• The strategy involves shrinking and flattening charts to avoid seeing trends.
• Mark significant highs and lows on the charts to identify structure.
• Initial assessment of market quietness due to the holiday period.

Chart Analysis

• Work backwards to identify 4-hour structure by marking lows and highs.
• Identify breaks in structure and areas of interest for future trades.
• Recognize minor pullbacks and swings.
• Highlight significant points such as order blocks and wick rejections.
• Understand the nuances of trading gold, especially how wicks can indicate liquidity runs.

Detailed Breakdown

• Identifying significant upward and downward trends.
• Highlighting imbalances and voids as areas of interest for potential reversals.
• Recognizing supply and demand zones, especially in relation to wicks and inside bars.
• The use of smaller timeframes (15-minute) to refine entries and identify patterns.
• Focus on break of structures, especially the use of body versus wick breaks.
• Emphasis on high probability areas for reversal or continuation of trends.

Trade Execution

• Example of a trade setup using order blocks observed on 4-hour and 15-minute charts.
• Emphasizing the importance of waiting for confirmation of reversal patterns before entering trades.
• Strategy of using pending orders and adjusting stop-losses based on observed chart patterns.
• Targeting structural lows and highs for setting take profit levels.

Risk Management

• Discussion on managing risk, including scenarios where multiple positions might be held.
• Importance of observing price action and reacting to significant market events like liquidity sweeps.

Results and Reflection

• Achieved high-risk rewards through strategic entries and exits.
• Continuous monitoring and adjusting of orders based on real-time chart observations.
• Emphasis on the importance of methodical and disciplined backtesting.

Conclusion

• Acknowledgement of successful trades with substantial returns for the period analyzed.
• Encouragement to continue the strategy throughout the year given the profitable outcomes.
• Invitation to engage with future sessions to continue learning and optimizing the strategy.

These notes provide a comprehensive summary of the strategies discussed in the lecture, focusing on the technical aspects of using order blocks with XAU/USD trading. They encapsulate all important points, including strategy, chart analysis, trade execution, and results.