Real Trade (Gold) March 18, 2025 (Tuesday) RR 2 Smart Money

Big Q is here.

Why do FX charts move?

As you study smart money, you’ll understand that charts move for three main reasons.

If you understand these, you can achieve high-probability trades using only candlesticks.

Three reasons why charts move

① Hunting or creating Liquidity

Large traders (institutions, etc.) cannot place big orders without sufficient liquidity. Therefore, they may move the chart to trigger individual traders’ stop losses.

② Filling the Fair Value Gap (FVG)

When price moves sharply, gaps (FVG) appear. Often, price returns to fill these gaps. Finding FVG makes it easier to predict the next price move.

③ Manipulation (market manipulation)

Large traders may create fake price moves to lure individual traders in the wrong direction (trap). However, if you spot this manipulation, you can enter with a higher win rate.

There are many methods that use smart money strategies, but the above ①–③ form the basis.

The Smart Money method I use (Smart Money Sniper) has three types, but all of them utilize ①–③.

Today, among them, I used the simplest type to trade gold.

Unlike Golden Strike, it’s a scalping approach, so the target risk-reward ratio is 1:2.

At RR 1, the EA achieves break-even, creating a no-loss state.

I took profits at RR 2.