How I trade xauusd/Gold perfectly using Recency and frequency

Xauusd/Gold, as known by many traders , is one of the most loving assets to trade when it comes to forex space but one of the most risky assets to trade base on its volatility.

Among all strategies mostly used amidst several traders, i can say the most simple and straight forward to use is Recency and frequency also known as break and retest.

Why xauusd respects break and retest base on my trading experience.
If you have being trading xauusd for a while, you will agreee with me on one thing that xaussd may be wicked at times.
It breaks a level, you enter immediately, and before you know it, price comes back to hit your stop loss like it was planned. Thats very funny and very hurt in most cases. This mistake moslty happens to newbie traders.
When i was so new to xauusd then, i kept asking myself why does gold always come back after breaking a level?
That question is what pushed me into understanding break and retest, and honestly, it changed how I trade gold.
This post is not theory. It’s based on what I see repeatedly on my charts.

LIQUIDITY Is the Main Reason for RETESTS on Gold
Gold loves liquidity, When a level breaks,
Many traders jump in late,
Stops are placed around the broken level,
Smart money needs those orders
So price comes back to that same level to trigger stop losses and fill large orders, trap impatient traders. After that, the real move begins.
This is why most clean gold moves happen after the retest, not during the breakout.
Hope this is getting interesting right? Just hold this post tight to see clarity.

Why Break & Retest Works So Well on XAUUSD?
From what I’ve observed on my charts:
Gold respects clear structure (support and resistance),
It reacts strongly to previous highs and lows,
It gives very clean reactions at retest zones,
Instead of chasing price, waiting for a retest allows you to enter with less emotion,
Use a reasonable sl around 50pips, gold need space to play out well,
Get better risk to reward,
Patience is the real edge here.

How I Personally Trade the Break & Retest on Gold
Here’s my simple approach:
I mark a clear support or resistance level
I wait for a strong break (not a weak candle)
I do nothing after the break (this part is hard)
I wait for price to come back to the broken level
I enter only after I see rejection or confirmation
No rush. No FOMO.


Outlook of xauusd on current price on 2hours time frame woth braek and retest map out.


Outlook on 30mins time frame , current price level with map out.
All PICTURES ARE MINE

Follow me for more raw knowledge-based psychology of trading xauusd .
Next post
WHY MOST TRADERS LOSE MONEY TRADING BREAK AND RETEST?



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I don't 'Day Trade' but I am fascinated in learning the mechanics of trading financial instruments.

Ten years ago I started buying a gold coin every few months. Almost on a Dollar Cost Average basis regularly and so far the results did better than putting my savings into my tax sheltered Retirement account.
No stress, no mess.

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