XAUUSD - Liquidity Sweep & Smart Money Play | Dual Setup Breakdo

XAUUSD

Liquidity Sweeps

Smart Money Concepts (SMC)

Trendline Liquidity

Demand/Order Blocks

Risk-Reward Structure

🔻 First Trade Idea – Short Position (Sell Setup)
🧠 Psychology & Liquidity Insight:

The market formed equal lows before a sudden rally which attracted retail traders.

Price created a bearish structure with lower highs, signaling weakness.

A strong liquidity sweep occurred by breaking trendline liquidity twice (as shown by red lines), targeting early buyers' stop losses.

A supply zone (red box) was respected near 3337, providing an ideal entry point for shorting.

📉 Trade Logic:

Entry: Near 3336.93 (Supply Zone)

SL: Above 3344.14 (Liquidity Sweep zone)

TP: 3328.62 / 3325.64 (Targeting demand imbalance & internal liquidity)

R:R: Approx. 1:2+

🔺 Second Trade Idea – Long Position (Buy Setup)
🧠 Psychology & Liquidity Insight:

After the initial selloff, price taps into the demand zone (blue box) created by the last impulsive move.

Internal liquidity is built again near 3328–3330, where retail traders expect a continued fall — ideal for smart money to reverse.

Price is expected to accumulate and reverse with a strong rally toward the upper liquidity resting above 3344.

📈 Trade Logic:

Entry: Near 3328.62 (Demand Zone Tap)

SL: Below 3325.64

TP: 3344.14 (Major Liquidity Target)

R:R: Over 1:3 – a high-quality reversal play.

🎯 Why This Trade Setup is Powerful:
✅ Both trades are liquidity-driven, not just indicator-based.

✅ Incorporates smart money logic and price structure.

✅ Clear risk-to-reward, validated by price behavior and institutional order flow.