XAUUSD - Identifying the Bias of Reaction Zones/Lines

This is how I determine the trend when the price reacts at a reaction zone or line.

I look at the nearest adjacent waves to see how the price behaves when it touches that zone. Sometimes, a line or zone may have both biases, but there are also zones with only one clear bias.

The plan was to take profit and then sell, but it seems the reaction in this zone was too strong, and the price moved quickly, leaving no time to enter the trade.


The Chartist