Technical Breakdown on Gold Spot / USD (XAU/USD) | 1H Timeframe

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Tools Used: Volume Profile, Gann Levels, Cumulative Volume Delta (CVD) + ADX

1. Key Observations (Volume, Gann & CVD + ADX Focused)

a) Volume Profile Insights:

Value Area High (VAH): 3,390.67

Value Area Low (VAL): 3,277.14

Point of Control (POC): 3,309.96

High-volume nodes: Prominent between 3,300–3,340 zone, where price consolidated and re-accumulated.

Low-volume gaps: Seen between 3,365–3,385 and under 3,277, ideal for fast moves if broken.

b) Liquidity Zones:

Stops Likely Clustered:

Above 3,390 (last high).

Below 3,277 (recent low and VAL).

Absorption Zones (based on delta volume):

Notable order absorption around POC (3,309.96) – heavy trade activity and hold in down move.

c) Volume-Based Swing Highs/Lows:

High-volume swing low: 3,277.07 – price bounced with demand pick-up.

High-volume swing high: 3,427.04 – volume faded after breakout, leading to rejection.

d) CVD + ADX Indicator Analysis:

Trend Direction: Currently uptrend forming, CVD rising slightly with bullish structure.

ADX Strength:

ADX ~22 and DI+ > DI-: Confirms beginning of a potential uptrend.

CVD Confirmation:

Rising CVD + bullish candles: Demand increasing, especially around POC reclaim.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 3,277.14

POC: 3,309.96

Swing low: 3,277.07

Resistance:

VAH: 3,390.67

Recent rejection zone: 3,342–3,350

b) Gann-Based Levels:

Confirmed Gann High: 3,427.04

Confirmed Gann Low: 3,277.07

Key Retracement Levels:

1/3 retrace: ~3,335

1/2 retrace: ~3,352

2/3 retrace: ~3,370

3. Chart Patterns & Market Structure

a) Trend:

Bullish, supported by ADX > 20 and rising CVD confirming new leg up.

b) Notable Patterns:

Falling wedge breakout confirmed from 3,277 support.

Channel projection points to potential continuation toward 3,370–3,390.

POC retest success showing strong reaccumulation.

4. Trade Setup & Risk Management

a) Bullish Entry (If CVD + ADX confirm uptrend):

Entry Zone: 3,310–3,320

Targets:

T1: 3,350

T2: 3,390

Stop-Loss: Below 3,277

RR: Minimum 1:2

b) Bearish Entry (If trend invalidates):

Entry Zone: 3,390–3,400 (retest rejection)

Target:

T1: 3,310

Stop-Loss: Above 3,427

RR: Minimum 1:2

c) Position Sizing:

Risk only 1–2% of total capital per trade.

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