Why Did Gold Drop Below Support, Then Fly Up?
A two-voice Q&A on a real gold example from 22 September 2026. Price broke a rising trendline and the support under it, took the buyers' stop losses below, then shot back up and broke structure. The buy came when price returned to the bullish order block, and the target was the old high above, the external liquidity.
Key points
The setup: a rising trendline with three touches and support at $4,365.2 under it.
The liquidity hunt: price broke both and dropped to $4,351.8, taking the stop losses below support.
Break of structure: a close above the last lower high at $4,371.8.
The trade: buy on the return to the order block at $4,362.2, stop $4,350.8, target the old high at $4,381.9, reached in under two hours.
Chart data: COMEX gold futures 5-minute OHLC (UTC), 22 Sep 2026. Education only, not a signal.
Read more: Liquidity Sweeps on XAUUSD: How Gold Stop Runs Work · Order Blocks on XAUUSD: Identification, Refinement and Risk
Transcript
Q: How did this buy hit the target so fast? A: Let's rewind.
Q: What's this line? A: A rising trendline. Price bounced off it three times.
Q: And the flat line under it? A: Support. Buyers usually put their stop losses just below it.
Q: Wait, why did price drop below both? A: To grab those stops. That's the liquidity hunt.
Q: Then it shot straight back up? A: Yes. It broke the last lower high. That's a break of structure.
Q: So where do we buy? A: At the order block, the last red candle before the jump. Price came back into it. Buy there, stop under the low.
Q: And the target? A: The old high above. That's external liquidity.
Trendline, support, sweep, order block.
