For this analysis I am doing on XAUUSD, you can see that price is going to test the major supply zone a third time, if it manage to reverse and break through the grey rectangle as seen in the chart - then it would be safer to open a short on this but if it create new highs above the stop loss which is set at 1747 then my analysis on XAUUSD would be invalidated. Also I used an RSI indicator to further confirm that this pair is currently in overbought levels which open more rooms for going short.
Yorum:
Sorry typo, the blue rectangle should be viewed as Major Demand Zone