📌 Overview
This was a New York session buy on XAUUSD (Gold) based on SMT divergence and a pullback into a key imbalance zone.
The idea was simple — wait for liquidity to be taken, confirm strength, then enter on the retracement.
🧭 Market Context
Before the entry, price had already shown a strong reaction after a sell-off.
What caught my attention was:
- SMT divergence forming at the lows (marked on chart)
- Price failing to continue lower despite selling pressure
- Signs of accumulation before reversal
At that point, I was not looking for sells anymore — I shifted focus to longs.
🎯 Trade Bias
Bias turned bullish after:
- SMT divergence confirmed weakness in the downside
- Rejection from the lows
- Early signs of bullish structure forming
👉 The expectation was a move higher after the market showed inability to push lower.
⚙️ Execution Model
This trade followed a simple combination:
👉 SMT → Displacement → IFVG / FVG → Continuation
What I waited for:
- SMT divergence at the lows
- A strong move up (displacement)
- Price pulling back into IFVG / FVG (blue zone)
Once price tapped the zone and held, I looked for continuation.
⏰ Timing & Execution
Entry was taken during the NY session (M5 timeframe).
The setup formed after the initial volatility, where:
- Liquidity had already been cleared
- Market started showing real direction
- Pullback gave a cleaner entry
📍 Entry & Confirmation
Entry came from the FVG / IFVG zone.
What confirmed the trade:
- Strong reaction from the zone
- Bullish candles stepping in
- Structure beginning to shift upward
👉 No need to overcomplicate — just waited for price to respect the area.
🚀 Trade Outcome
Price reacted cleanly:
- Strong bullish continuation
- Broke short-term structure
- Moved toward previous highs
👉 Clean follow-through with minimal hesitation.
🧠 Trade Review
✔ What went well:
- SMT used correctly as early signal
- Patience for pullback into FVG / IFVG
- Entry aligned with structure shift
- Clean reaction from the zone
⚠️ What can be improved:
- Could refine entry further on lower timeframe (M1 precision)
- Possibly scale in better instead of single entry
🔑 Key Takeaway
This trade highlights:
👉 SMT is powerful when combined with structure
👉 Entry becomes cleaner when paired with imbalance zones
The best setups come when:
- Market shows divergence
- Momentum shifts
- Price offers a retracement entry
📌 Conclusion
This was a clean NY session reversal-to-continuation setup on gold.
Nothing complicated — just SMT, structure, and timing working together.
The focus is always the same:
👉 wait for confirmation, then execute cleanly.
⚠️ Disclaimer:
This content is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance does not guarantee future results.
I currently use the prop firm below for my trading and evaluations.
It aligns well with my NY session approach and execution style.
If you want to explore it further, you can check it below:
FundingPips — Prop Firm
Used in my live trading & evaluations
Used for analysis, structure, and execution planning
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