After the ADP data release, gold market movements were extremely fierce—rising sharply, dipping to 4423, and then rebounding to 4461, which is simply a perfect textbook example of a shakeout.

This kind of movement actually exposes a core issue: before and after the data, both bulls and bears are frantically testing the waters. As a leading indicator for non-farm payrolls, once the small non-farm data is released, the market tends to experience violent fluctuations. False signals are everywhere, and many people get caught in this back-and-forth. Therefore, the first rule is: wait and see, only act once the market stabilizes and support and resistance levels become clear.

On the operational level, what is the most taboo in a volatile market? Obsession. Obsession with a certain wave, obsession with long-term bullish or bearish views—such fixation is purely asking for trouble in the current environment. The correct approach is to rely on the support at 4423 and the resistance zone around 4460 to do high short and low long trades. Simply put, sell at the top, buy at the bottom, take profits when seen, and avoid holding on to trades too long. Only then can you protect your account.

Ultimately, it’s about abandoning a one-sided mindset. The current market feature is clear—range-bound oscillation with no definite direction. So, respond flexibly at key levels, buy low and sell high, and profit steadily amid the shakeout. The subsequent rhythm is also crucial: first observe to avoid volatility, then seize short-term opportunities, and finally switch flexibly within the range.