Core Trading Concepts
Last updated
Last updated
To truly master our day trading strategies—whether in forex, gold, or stocks—you must understand these core concepts. They’re the foundational pillars of the United Kings approach, inspired by institutional trading (ICT) principles:
Definition: Liquidity zones mark areas with a high concentration of stop-loss orders—either buy-side (above current price) or sell-side (below current price).
Significance: In the gold market, liquidity spikes often occur around major support/resistance or psychological levels (e.g., $1900, $2000). Identifying these zones helps us anticipate big price moves, enhancing our gold trade signals.
Definition: A displacement is a sudden, forceful move in price—shown by consecutive long candles with minimal wicks.
Implication: These explosive moves often occur right after liquidity is tapped or swept. For gold, watch for large spikes during the London or New York sessions, which can trigger strong displacement candles.
Definition: When an uptrend breaks its pattern of higher highs/higher lows—or a downtrend breaks its sequence of lower lows/lower highs—this is a market structure shift.
Trading Edge: Spotting a structure shift early can yield timely trade signals for forex and gold. A downward structure shift in gold, for instance, might indicate the start of a deeper correction.
Definition: Short-lived counter-trend moves that often trigger stop-loss hunts (sometimes called “stop runs”).
Insight: Inducements are orchestrated by bigger players to grab liquidity before resuming the main trend. Recognizing these fake-outs can help you avoid being stopped out prematurely.
Definition: A Fair Value Gap (FVG) appears when a strong displacement leaves a partial candle “unfilled.” Visually, it’s a three-candle formation where the middle candle has un-matched wicks compared to the candles on its sides.
Trading Application: Price often returns to fill these gaps, so FVGs serve as reliable targets or potential entry zones—particularly helpful in gold or forex trade signals when looking for retracements.
Definition: The ideal entry point typically lies between the 61.8%–78.6% Fibonacci retracement of a sudden price expansion.
Execution: Combine FVG analysis, liquidity identification, and Fibonacci levels for extra precision—this synergy refines our forex trade signals, gold trade signals, and stock signals.
Definition: Occurs when two Fair Value Gaps form in opposite directions close together, creating a short-range oscillation.
Market Behavior: Price bounces within this range until one side breaks, often leading to a strong move. In gold trading, these ranges can develop around major news events, offering a prime opportunity for day trading strategies.
One of the keys to successful gold trading is recognizing how different market sessions impact price dynamics:
Asian Session (Tokyo):
Gold can range or trade sideways in this session. Liquidity is lower compared to London or New York.
However, if you spot a liquidity sweep in the Asian session, it can set the stage for a larger move when London opens.
London Session:
Often brings increased volatility to gold. Watch for “London manipulation,” where price may break short-term supports or resistances to grab liquidity.
Displacement moves commonly occur shortly after the London open, making it ideal for intraday signals.
New York Session:
Another volatile period for gold, especially around key economic data (e.g., jobs reports, inflation).
Price can see huge displacements that either continue the London trend or completely reverse it.
By monitoring these sessions and combining them with our United Kings Trading Strategy, you’ll gain powerful insights to anticipate moves in gold and other markets around the clock.
