XAUUSD – Wolfe Waves Forming on H4 ChartGoldOANDA:XAUUSDBrianLionCapitalHello Trader, On the H4 chart, gold is forming a fairly classic Wolfe Waves pattern. The fifth wave has completed, and the price is entering the critical resistance zone of 3760 – 3770, which is also a potential Sell Zone. With the current structure, the preferred scenario is a short-term downward correction before the main trend resumes. Technical Analysis The price has touched the 2.618 Fibonacci Extension and reacted downward, indicating profit-taking pressure. The MACD still shows strong previous buying momentum, but the histogram is starting to weaken, aligning with the potential for a corrective wave. Area 3760 – 3770: a critical resistance zone, coinciding with the fifth wave of the Wolfe Waves. Trading Scenario Sell Order According to Wolfe Waves Entry: 3760 – 3770 SL: 3782 (above resistance zone) TP: 3710 -3660 -3610 – 3620 (key level Wolfe target) Sell when price confirms below the trendline Entry 3727-3730 sl 3735 tp 3715-3700-3686-3665 Short-term Buy Scalping Entry: 3705 – 3708 SL: 3700 TP: 3720-3730 – 3745- 3766 Note: This is just a short-term retracement strategy, counter to the correction, so risk management is crucial. Conclusion Short-term: Prioritize observing reversal signals at 3760 – 3770 for a Sell. Medium-term: Wait for Buy opportunities around 3564 – 3574 to align with the main trend. The market is entering a distribution and correction phase, so patiently waiting for candle confirmations at key areas will be key to optimizing entry. This is the Wolfe Waves scenario I propose for gold during this period. Feel free to refer and adjust according to your own strategy. Follow me for the fastest updates when the price structure changes.