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Top 3 Forex Gold Setups I Will Be Trading in 2026

  • Writer: VasilyTrader
    VasilyTrader
  • 8 hours ago
  • 4 min read
Top 3 Forex Gold Setups I Will Be Trading in 2026

Among different strategies and signals that I relied on in 2025, there were 3 exceptional setups that showed the highest accuracy and profitability.


In this article, I will explain the structure and price model of these setups and equip you with the best entry signals for a new 2026 trading year.



Setup 1


The first powerful setup that showed great results the last year is based on an old-school price action chart pattern - double top & bottom.


But don't trade each double top & bottom that you spot.


To achieve the highest win rate, these patterns should form on specific time frames and on specific price levels.


Bullish Model


Please, study a bullish model:


ree

The price should test a key daily support level.

After that, a double bottom pattern should form on 1H time frame.


Your signal to buy will be a breakout and an hourly candle close above its neckline.


  • Set your buy limit order on a retest of that,

  • Stop loss will lie below the bottoms,

  • Take profit will be the closest intraday resistance.


Example


Look how USDCHF reacted to a key daily support level.


double bottom chart pattern price model forex example

A double bottom pattern was formed on that and its neckline was broken with a gap up.

It was a strong signal to buy and a perfect entry for that trade should have been on its retest.


Look how strongly the market went up then.


Bearish Model


Now, examine a bearish model.


best setup to trade in 2026 double top pattern forex gold

The price should test a key daily resistance level.

After that, a double top pattern should form on 1H time frame.


Your signal to sell will be a breakout and an hourly candle close below its neckline.


  • Set your sell limit order on a retest of that,

  • Stop loss will lie above the bottoms,

  • Take profit will be the closest intraday support.


Example


That's the example of that price model on NZDUSD.


double top chart pattern price model example forex trading

The price reached a key daily resistance level.

A breakout of a neckline of a double top pattern on an hourly time frame on that provided an accurate signal to sell.


Meeting all the required criteria, this setup achieved 76% accuracy in 2025.


Setup 2


The second setup that had a high win rate last year is from Smart Money Concepts trading.


It is based on a combination of liquidity zones, traps, and imbalances.


Bullish Model


Please, examine a bullish model of that setup.


bearish trap and inducement smc smart money concepts trading price model

We need a test of a daily liquidity demand zone and a bearish trap below that.


After a trap, a bullish imbalance should occur on an hourly time frame.

I suggest looking for a bullish engulfing candle and return of the price within or even above a liquidity zone with a close of that candle.


  • Buy the market immediately after a candle close,

  • Set your stop loss below the low of the trap,

  • Your take profit will be the closest intraday supply zone.


Example


EURAUD tested a significant daily liquidity demand zone.


how to trade bearish trap and inducement example forex smc smart money concept

After its test, the price went lower.

A formation of a bullish engulfing candle confirmed that a bearish violation of a liquidity zone was a trap.


Long trade was opened after the engulfing candle closed.

Stop loss was below the trap and take profit was based on the next strong intraday supply zone.


Bearish Model


Now, study a bearish model.


bullish trap and inducement smc smart money concepts trading price model

We need a test of a daily liquidity supply zone and a bullish trap above that.


After a trap, a bearish imbalance should occur on an hourly time frame.

I recommend looking for a bearish engulfing candle and return of the price within or even below a liquidity zone with a close of that candle.


  • Sell the market immediately after a candle close,

  • Set your stop loss above the high of the trap,

  • Your take profit will be the closest intraday demand zone.


Example


GBPNZD approached a major liquidity supply zone on a daily.


how to trade bullish trap and inducement example forex smc smart money concept

A bullish trap was followed by a formation of a bearish engulfing candle on an hourly time frame - a strong signal of a selling imbalance.


A trading position was opened after engulfing candle closed.

Stop loss was above the high of the trap, and take profit was the closest strong intraday demand zone.


Meeting all the conditions, this setup showed 79% accuracy.


Setup 3


The last setup worked phenomenally well in Gold trading last year.


Because of a crazy bullish rally that the market started straight from the beginning of 2025, this simple pattern provided huge gains.


I am talking about a bullish flag pattern.


Please, note that the first 2 setups were bullish and bearish.

In a current case, we are considering only a bullish flag.


Here is a price model.


best price model for trend trading gold xauusd in 2026

Make sure that the market is bullish.


After an update of a new high and a formation of a new higher high higher close, expect a correctional movement on a 4H time frame.


The price should start falling, forming an expanding, parallel or contracting channel - a bullish flag.


Your strong signal to buy will be a bullish breakout and a 4H candle close above a resistance of the flag and the last lower high within that.


  • Set your buy limit order on a retest of the broken level of the last LH,

  • Set stop loss below the lows of the flag,

  • Your take profit will be the closest psychological level above a current high.


Alternatively, you can trade this model without take profit and apply trailing stop loss.


Example


That is the example of this price model in real market.


how to trade bullish flag pattern on gold xauusd 2026

Gold formed a bullish flag after updating the ATH on a 4H time frame.


A bullish breakout of its resistance line and the level of the last Lower High and a candle close above provided a strong signal to buy.


Opening the trade on a retest of a broken LH level, the price went up straight to 4000 level, producing huge gains


This pattern achieved 69% accuracy.

But because of a strong bullish momentum, each profitable signal produced enormous gains.


If Gold continues rallying next year, and I think it definitely will, keep an eye on bullish flags as your signal to buy.


Best Setups


Using these 3 setups, you can successfully trade Forex and Gold in 2026.

Integrate them in your trading strategy, learn to recognize them and follow the rules that I provided.

Let these setups bring you huge gains in a new year.

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Thank you and good luck in trading!

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