Lesson 8: GC Gold — 17 Contracts on the Ask (London Session Trade)

Key Strategy Concepts

Morning Routine for Gold Trading

• Wake up, identify proper levels of imbalance
• Look for value area high territory + supply levels
• Check 5-minute chart for engulfing candles at key levels

Smaller Imbalance Still Works

• 19 contracts on the ask = still significant on gold
• Not the highest imbalance (70 total on ask) but enough for interest
• Combined with negative delta + volume changes = valid signal

The Complete Picture Approach

• Need BOTH technicals AND institutional tools combined:
  1. Technical: Liquidity spike / movement into the level
  2. Institutional: Contracts on ask/bid + delta shift + volume

Avoiding Low-Number Traps

• Some numbers are "pretty low" — avoid those
• Wait for price to absorb orders into HIGHER territory (value area high + maximum level)
• Then look for the spike/liquidity grab

The Fake Breakout Pattern (Again)

• Bullish candle breaks structure to upside — retail buys
• Inside that bullish candle: filled with SHORT orders on the ask (17 contracts)
• It's a liquidity move to dump price lower
• Retail stops get hit, institutional shorts get filled

Trade Execution

• Short entry after price pushed back into the range
• SL above the maximum level
• Price dropped 30+ pips
• Runner kept with SL at breakeven
• Target: Value area low (price fills entire ranges on gold)
• Potential further to 9010 area

Key Insight: Breakeven Trailing

• Move SL to breakeven once in profit
• Keep a runner for the full range target
• Gold typically fills entire ranges from value area high to value area low

Gold London Session Characteristics

• Identify levels at London open
• Wait for price to return to those levels
• Look for delta shifts + contract imbalances
• Even 17 contracts on the ask can signal a valid short at the right level