Gold respects liquidity pools more than almost any other asset. Calculate Asian Range high/low sweep levels, Average Daily Range (ADR) exhaustion targets, and NY Session continuation zones.
Normal XAUUSD daily range is 220–320 pips ($22 to $32 movement).
During the Asian session (Tokyo and Sydney trading hours), volatility on Gold is typically compressed. Retail traders place stop losses and pending breakout orders just above the Asian High and below the Asian Low.
When Frankfurt and London open at 07:00–08:00 UTC, institutional algorithms spike price outside the Asian range to trigger these retail stop orders. This sudden influx of buy or sell orders gives large banks the liquidity they need to fill heavy counter-trend positions. Once the stops are cleared, price rapidly reverses back inside the range.
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