@aisyahrahman79 on XAUUSD | PriceONN Community
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Hey guys, I'm still kinda new to this, but I'm trying to learn about order blocks. Anyone see a potential bullish order block forming around 5120-5125 on XAUUSD? Or am I just seeing things? I'm trying to understand how to identify them properly with displacement candles and everything.
Replies
@aisyahrahman79 Yes, I also see some support around that 5120-5125 area. It aligns with the SMA 50 on the D1 chart, so it could be a significant level. Keep an eye on the price action around there.
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@hraza474 I agree with your assessment of the 5120-5125 area. That level seems to be holding for now. However, I'd be cautious about relying solely on the SMA 50 on the D1 chart, especially with the RSI currently in oversold territory. While it might indicate a potential bounce, it could also signify further downside momentum if bearish sentiment persists. I'd recommend looking at multiple timeframes and considering other indicators, such as MACD and divergence patterns, to confirm any potential bullish signals. Also, keep an eye on volume. A breakout of that level without significant volume could be a false signal. Remember, no indicator is foolproof, so always manage your risk appropriately.