Introduction
The current structure of the Gold market (XAUUSD) shows a dynamic battle between buyers and sellers, as revealed by both Volume Spread Analysis (VSA) and Smart Money Concepts (SMC).
Understanding the key areas of supply and demand, combined with price action and volume behavior, provides a roadmap for high-probability trading setups.
This article outlines two possible trading scenarios — bullish and bearish — along with a complete trading plan for each, ensuring traders are prepared for whatever the market decides.
Market Analysis
Smart Money Concepts (SMC) Observations:
- Break of Structure (BOS) events initially showed bearish momentum.
- Change of Character (CHOCH) indicated a potential bullish reversal around the 3260-3270 support area.
- Supply zones are present around 3300–3320, while demand zones lie near 3260–3270.
Volume Spread Analysis (VSA) Observations:
Climactic bars near support zones hint at smart money activity.
High volume spikes near lows suggest stopping volume and accumulation.
Low-volume pullbacks during rallies signal weak selling pressure — a bullish sign.
My Trade Setup in Gold (Not Financial Advice)
Bullish Trading Plan
Setup:
- Wait for price to hold above 3270-3280.
- Look for bullish confirmation (bullish engulfing candle, strong close, volume spike).
Entry:
- Enter a buy position near 3285–3290 after confirmation.
Stop Loss (SL):
- Place SL below 3260 (structure low) — about 20–30 points risk.
Take Profit (TP):
- First TP at 3300 (nearby resistance).
- Second TP at 3320 (major supply zone).
- Third TP if momentum is strong at 3340–3360.
Risk-Reward Ratio: Minimum 1:2 to 1:3.
Bearish Trading Plan
Setup:
- Wait for price to break below 3260 with high volume.
- Look for weak pullback (small candles, low volume) to enter.
Entry:
- Enter a sell position near 3255–3250 after a small pullback.
Stop Loss (SL):
- Place SL above 3280 — about 20–30 points risk.
Take Profit (TP):
- First TP at 3230 (minor support).
- Second TP at 3200 (major demand zone).
Risk-Reward Ratio: Minimum 1:2 to 1:3.
Conclusion
Successful trading is not about guessing market direction — it’s about reacting professionally to what price and volume are telling you.
By applying both Smart Money Concepts and Volume Spread Analysis, and sticking to clear entry and exit rules, you trade in harmony with the big players — not against them.
Stay patient. Wait for confirmation. Manage your risk like a professional.
And remember: in trading, it’s not about predicting the next move — it’s about being prepared for every move.
Happy Trading! ✨
