Day 15 of 90 — Previous Highs Show the Trend

Day 15 of 90 — Previous Highs Show the Trend
XAUUSD | M15 | Sentinel Lite

Situation
Gold was already moving in a clear downtrend.
Price kept making lower highs and lower lows, showing that sellers were controlling the market.
Later, a strong bullish move pushed price up quickly.
At first glance, this move can make it look like the market is reversing.

Common Misinterpretation
When Traders see a big bullish candle, it can feel like buyers are taking control.
Some traders believe the downtrend is over and start buying.
But a strong move up does not always mean the trend has changed.

Reality (Structure)
Looking closer at the chart, we can see three important levels:

• Left Previous High (Major Swing) — the major high before the downtrend began
• Middle Previous High (Lower High) — a bounce that failed during the downtrend
• Right Previous High (Current Structure) — the latest high after the strong bounce

Price moved up strongly but failed to break these previous highs.
After the bounce, momentum slowed and price started moving down again.

This tells us the move up was a reaction, not yet a full trend reversal.

Lesson
A real trend change usually needs more confirmation.

For a reversal to happen, we often need:
• Price to break the previous highs
• EMAs to turn upward
• Buyers to continue pushing price higher

Until that happens, the existing trend can still continue.

Sentinel Principle
You do not trade every pattern.
You trade aligned conditions.

🛡 Discipline > Impulse

Series Note
This 90-day series is also part of my own learning journey in understanding market structure.

Let’s see how price develops in the next session.

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