Gold Broke the Channel. Now the Retracement Becomes the TradeGoldOANDA:XAUUSDAndrew_InsightTradeGold is no longer sitting at an interesting support. It is sitting after the support failed. That distinction matters. The H1 chart shows a clean bearish sequence: lower highs, lower lows, repeated bearish BOS, and finally a decisive break beneath the descending channel around 4,520. Since that breakout, sellers have pushed Gold all the way toward 4,290. At this point, selling simply because the candles are red is not a strategy. The better question is: Where would I want sellers to come back in? THE EMPTY SPACE ABOVE PRICE The latest selloff happened so quickly that Gold left an obvious imbalance behind. That FVG sits roughly between 4,380 and 4,410. For anyone new to this concept, think of an FVG as an area where price moved so aggressively that very little two-way trading took place. Markets often revisit these areas before deciding whether to continue the original move. And that gives me my first setup. If Gold rebounds into 4,380–4,410 and H1 shows rejection from that area, I want to sell the retracement rather than chase the current low. SELL SETUP #1 Entry: 4,390–4,405 SL: 4,425 TP1: 4,350 TP2: 4,300 TP3: 4,255 The confirmation I want is simple: price trades into the FVG but cannot close an H1 candle above 4,410. No rejection, no trade. BUT THERE IS A SECOND SELLING AREA Suppose the bounce becomes stronger. That would not automatically make Gold bullish. Above the FVG sits the H1 Order Block around 4,440–4,465 — the area from which another strong bearish expansion originated. In my view, this is the more important test. If buyers manage to fill the FVG and push Gold into 4,440–4,465, I would watch for sellers to defend that zone. SELL SETUP #2 Entry: 4,445–4,460 SL: 4,480 TP1: 4,410 TP2: 4,365 TP3: 4,300 This setup gives Gold more room to correct while still respecting the broader bearish structure. Now comes the scenario that would change my mind. WHAT WOULD MAKE ME BUY THIS? I am not interested in buying Gold just because 4,290 looks cheap. A falling market can always become cheaper. For me, buyers need to prove something first. Gold would need to recover the Order Block and produce an H1 close above 4,465. More importantly, the next pullback must then remain above approximately 4,440. That would tell me something has genuinely changed: an area that was supposed to produce sellers has been reclaimed by buyers. Only then would I consider the long side. BUY SETUP H1 close above 4,465 → retest holds 4,440–4,455 → BUY Entry: 4,450–4,460 SL: 4,425 TP1: 4,500 TP2: 4,525 TP3: 4,575 Below 4,465, I treat rallies as corrections. Above 4,465 and holding, I start treating them as a possible structural recovery. AND IF GOLD DOESN'T BOUNCE? This is the scenario traders often forget. Gold does not owe us a retracement. If price breaks 4,285 before reaching either selling zone, I would not immediately sell the breakout candle. After such a large decline, that is an easy place to get caught by a snapback. Instead: H1 closes below 4,285 → wait for 4,285–4,300 retest → SELL Entry: 4,285–4,295 SL: 4,320 TP1: 4,255 TP2: 4,240 TP3: 4,225 That is continuation trading with confirmation rather than chasing momentum. MY READ There are essentially three different markets on this chart. Below 4,380: sellers remain firmly in control. 4,380–4,465: retracement territory where I am hunting for bearish reactions. Above 4,465: the current bearish idea starts losing its advantage. That is why I am not asking whether Gold is going up or down today. The H1 trend has already answered that question: down, until price proves otherwise. What I am waiting for is the location where the next decision becomes worth trading. At 4,290, Gold is stretched. At the FVG, it becomes interesting. At the Order Block, it becomes a real test. And above 4,465, I stop fighting the buyers.