Gold System in Development

Okay to summarize, we should also demo test not just the same day, but also next day. It does seem to be useful for Forex pairs as well, even though it's designed for Gold.

Yes, so people can demo test it themselves and decide how it applies to their own trading. I'm just showing the uses I see, but I'm sure there are others, along with other ways to execute. If anyone wants to share their setup, that'll be great too.

Following up on the examples I posted previously, when vertical line is inside the range, and then price reaches support/resistance, then the next stop is the horizontal line. Then the stop after that, is the other side resistance/support.

There's no reading yet but I'll post it as soon as I see it so that people can demo test various execution method for entry and exit and provide feedback.
The setup

Support is a price level everyone can see on the chart. Because everyone sees it, traders do the same two things around it.

Traders who are long put their stop losses just under support. A stop loss on a long position is really a sell order waiting to fire on its own.

Breakout traders also put sell orders under support, because they want to short if support breaks.

So just under support there is a hidden pile of sell orders. Nobody planned it together. Everyone just followed the same textbook rule at the same obvious level.

What happens when price reaches support

Price touches support and slips a tiny bit under it. The first stop losses trigger. Those are sell orders, so they push price down a little more. That triggers the next stop losses. More selling, price drops more, more stops trigger. It is a chain reaction. Price suddenly falls under support very fast. On the chart this looks like a wick poking below the level.

Now the important part. That pile of stop orders is limited. Once they have all fired, they are gone. The selling was not people choosing to sell. It was people getting kicked out of trades automatically. So when the pile runs out, the selling just stops.

At that moment price is sitting below the whole range, so it looks cheap. Buyers step in. Some are value buyers. Some are traders who wait for exactly this pattern. Some are big players who parked buy orders under support on purpose. With heavy buying and no sellers left, price jumps back above support and keeps going up. That is the sweep, also called a liquidity grab or a stop hunt.

Case 1. Price drifts down to support slowly

A slow drift means the selling is weak. Small orders, no urgency. Buyers just stepped back for a while, so price sinks on its own.

This tells you there is no strong seller behind the move. So when price finally touches support and the stops trigger, the only selling under support is the stop losses themselves. Nothing else. The pile burns out fast, buyers grab the discount, and price reclaims support and moves up.

A drift into a sweep is usually the clean version. The move down had no conviction, so once the forced selling is used up, there is nothing left to hold price down.

Case 2. Price drops sharply into support

A sharp fast drop means someone is selling with size and urgency. Maybe it is a news reaction. Maybe a big player is pushing price down on purpose, because they actually want to buy a lot. Their problem is that buying big moves the price up against them. But if they shove price into the stop zone, all those triggered stops become sellers, and sellers are exactly who a big buyer needs to buy from. They spend a little on the push and get filled on a huge buy at cheap prices.

The sharp drop plus the triggered stops together make a deeper wick under support.

Then you watch the reaction. If the aggressive seller is done, or if their real goal was to buy the whole time, the selling dries up all at once and their buying fuels the bounce. Price snaps back above support very fast. The speed of the recovery is the clue that the drop was not real selling pressure.

But if the seller has real reasons to keep selling, the bounce is weak. Price fails to get back above support and starts trading below it comfortably. That is not a sweep. That is a true breakdown.

Why Monday might not give a reading

For this whole pattern to work, there has to be a meaningful pile of orders sitting under support in the first place. That pile needs time to build. Early on Monday, before London opens, the market is basically waking up. Volume is thin, the weekend gap is still settling, and the big players have not committed to a direction yet. Banks and funds usually spend the early part of the week watching, positioning slowly, and waiting for real flows to arrive with the London and New York sessions. There is no fresh range that everyone agrees on yet, so there is no obvious level where thousands of traders have all parked their stops. Thin liquidity also means big players have no reason to run a sweep, because there are not enough resting orders under any level to make the push worth it. A stop hunt only pays when the pile of stops is big enough to fill a large position. So when my indicator gives no reading early Monday, that actually makes sense. The market has not built the trap yet. Once London or New York brings real volume, ranges form, stops cluster under them, and the setup becomes possible again. In other words, no reading early Monday is not the indicator failing. It is the market telling me the liquidity has not been stacked yet.

What I think my indicator is doing

From what I have observed, my indicator seems to be identifying these liquidity setups before they play out. When it gives a reading at a certain time, it is essentially flagging a moment where price has formed a range that the market cares about, meaning a support and resistance zone where traders have started stacking their orders. Under that support sits the pile of stop losses I talked about, and that pile is the fuel for the whole move. So when my indicator fires, what it seems to be telling me is that the trap is now loaded. The liquidity has been stacked under the level. From there, the playbook is what I described. Price gets delivered into support, either by a slow drift or a sharp push, the stops under the level get swept, the forced selling runs out, and price snaps back up. My indicator does not predict the exact second this happens. What it does is mark the range and the timing where the conditions for a sweep exist. That is also why it stays quiet at times like early Monday. If the liquidity has not built up under a level yet, there is nothing to sweep, so there is no setup to flag. The reading only appears once the market has actually built the pile.

The vertical line is outside of the range, which I haven't been been paying attention to since I've been paying attention to situations where vertical line is inside the support/resistance. However, from what I recall, I believe when it's already outside of the range, then I think it continues in that direction. It needs to be demo tested.

The other crosses were also outside of the range except for XAUJPY.

As mentioned, I've been ignoring the situations where the currency crossed with XAU is outside of the range but one thing that could be tested also is, using one of the crosses that is inside the range. In this case, XAUJPY, and looking for the liquidity setup there. Just an idea.

The reading was USD, so I should check XAUUSD, but XAUUSD vertical line was already outside of the range. Since XAUJPY was the only cross with vertical line in the range, I thought to test it, and price just touched resistance.

So the idea is, price will now head to the horizontal line as the next stop, and the the support level as the stop after that.

But do keep in mind that this was a USD reading and all XAU crosses, including USD, the vertical line was outside of the range so the setup doesn't apply. I'm just testing to see if it could apply, even if just only one XAU cross is at least inside a range.

Price reached the horizontal line. Let's see if it reaches the next stop, support level, which could be same day or next day.

Price reached support level. So far, testing has gone well, nothing has broken yet.

So basically, the sequence of events that have held up so far is:

1. Vertical line is inside the range as per the time given by the indicator.
2. Price goes to either support/resistance.
3. From there price goes to horizontal line.
4. From there, price goes to resistance/support.

Another pattern that has held so far, but hasn't been tested for day #2 yet since day #2 hasn't arrived, is that price moves toward the horizontal line on day #2, at least during the first half of the session.

I haven't thoroughly tested this across every case provided for all the currency crosses since Thursday, but from what I recall, this is what I've noticed. Another pattern that has held up for day #3, but hasn't been tested yet since the day after tomorrow hasn't arrived, is that price ultimately reaches whichever support or resistance level is closer, which seems to be the target for day #3.

A reading outside the 03:00 to 06:00 window is still valid, since London or New York can play it out intraday. Today's USD reading came in at 10:45.

The other adjustment is on the pair. Any XAU cross sitting in a range can be used for the liquidity setup, even if it is not the pair the reading was for. My guess is that when the time is given, at least one of them will be in a range. Remember that this is mostly about time and much less about the particular currency. Keep Whiterose from Mr. Robot in mind, because that is the approach here. It is all time analysis.

I’ve been following the thread closely, but to be completely honest, the core logic is becoming increasingly contradictory and unclear.
Initially, the rules were very specific: a 03:00–06:00 window, a Gold-specific strategy, and precise liquidity touches based on currency readings. However, over the last few posts:

1. The strict time window shifted to "any time of the day" (e.g., 10:45).
2. The asset focus expanded from Gold to Forex, then to "any XAU cross sitting in a range."
3. The currency reading itself went from being the main trigger to "it’s mostly about time and much less about the currency."
4. On top of that, we went from intraday setups to multi-day projections (Day 1, Day 2, Day 3 pattern shifts).

Moving the goalposts like this makes the strategy feel less like a backtested, rule-based algorithm and more like fitting narrative explanations after the fact (hindsight bias). When the time, pair, and hold duration are all variable, almost any price movement on a chart can be framed as "working according to plan."
Since the indicator is private and the execution rules change with every post, it's very hard to see how this offers a defined, repeatable edge. Wishing you good luck with the forward testing, but as it stands, the rules feel far too flexible to be objective.

Hey, thanks for the feedback. Let me get back to you, and if I missed something, let me know.

1. What I meant was that there should be a reading sometime between 03.00 and 06.00 broker server time, but a reading can happen outside of that window and it shouldn't be ignored. This is under development, which means it's improving, and to be successful you have to adapt as new information comes in.

2. This is the confusing part. I'm currently working on a Bitcoin version, a JPY version, and a USD version, with other currencies to follow. The Gold version is for Gold, but the readings come from one of the currencies in the XAU cross. This broker has 6 Gold crosses, made up of AUD, CHF, EUR, GBP, JPY, and USD. They technically offer a couple more Forex currencies, but those 6 trigger currencies are enough to give one or more readings per day. The key thing is that one reading isn't one pair. When there's a USD reading, for example, every Gold cross becomes tradable, so that's 6 or more pairs off a single reading.

3. Following on from that, don't pay too much attention to whether the trigger currency is AUD, or USD, or anything else, because ultimately what matters is the time. That time marks a significant point where you can watch price react to it for up to 3 days, from what I've noticed. I haven't checked what these pairs are doing on day 4, but it's possible price still reacts to the level created by that point in time in the future as well.

4. Yes, and that's the good part, because day 2 and day 3 are given to us for free. From my observations the price level created by the time are useful across both of those days, and probably longer.