A classic retail trap has occurred in the gold market (XAUUSD). The price broke local support/resistance, trapping retail traders into selling/buying, only for institutional algorithms to sweep liquidity and drive the price in the opposite direction. We have triggered a SELL position at the institutional entry point of 4046.
Outsmarting retail traps is the key to institutional trading. By entering at 4046, we buy/sell at the best discount price alongside smart money. To protect our trade, our stop loss is positioned at 4056.
Our profit targets are located at 4036, 4026, and 4006. Monitor the NY session close for trade management updates.