Gold has been ranging since last Tuesday, so expecting a larger move to develop soon is a reasonable outlook. When markets remain in consolidation for several sessions, they often build liquidity on both sides of the range before eventually delivering a stronger expansion. However, it’s important to understand that Gold tends to behave differently when it is ranging. During these periods, price often moves back and forth within the range with the goal of trapping traders and collecting liquidity. Because of this behaviour, it’s important to approach the market with patience and caution, rather than trying to anticipate the breakout too early. The best approach in these conditions is to wait for clear confirmation once price induces into a marked Point of Interest (POI). This helps ensure that the market has completed the liquidity grab before committing to a trade. At the moment, Gold appears to be forming a Break-and-Test (B&T) setup, with price having recently mitigated a Smart Money Trap (SMT). This suggests that the market may be preparing for the next phase of movement, but confirmation is still needed. If price continues to respect the supply area and begins to move lower, the next step we would ideally want to see is the market trapping sellers and inducing into our POI. From there, we would wait for confirmation before entering the trade. Ideally, this confirmation would come in the form of a 2-leg protocol, which would allow for a tighter stop loss and more refined entry compared to waiting for a full Break of Structure (BOS). This approach helps improve the risk-to-reward potential while still maintaining confirmation that the market is ready to move. In ranging environments, patience is key. Allowing the market to complete the liquidity process and confirm direction can help avoid false moves and position you for the higher-probability setup when the real expansion begins. 📈