A common setup that traders take is a break and retest of support. This setup on Gold would have had traders going long around the 1283 level and suffered some drawdown before it turned around. But what if I were to tell you there is a better way?
Look carefully at the chart below and you will see the yellow box is demand. So why did gold really bounce?
Exactly… it wasn’t the support level at all, but the demand beneath it that started the move. This makes perfect sense if you ask yourself what was needed to break that support level in the first place. The answer are the buyers who showed up at 1280 and are still there waiting to fill more orders.