L2.2 — Asian Range Breakout Setups on Gold

Gold consolidates during the Asian session in a relatively tight range compared to its intraday potential. This Asian consolidation range — the high and low from approximately 00:00 to 07:00 UTC — is one of the most reliable reference levels for London session entries on gold.

The setup: mark the Asian high and low before London open. When the London open produces a directional break of the Asian range with a strong impulse candle closing beyond the range boundary, the break direction becomes the bias for the London session. The broken Asian range boundary becomes the level to watch on the first pullback — if it holds as support (for a bullish break) or resistance (for a bearish break), it provides the entry location.

The most common failure mode: a liquidity sweep of the Asian high or low followed by a reversal back into the range. This is a stop hunt, not a genuine breakout. The diagnostic: a genuine breakout closes beyond the Asian range boundary and holds the first pullback to it. A sweep closes back inside the range immediately. Wait for the pullback to distinguish between the two.