Technical Breakdown on Gold Spot (XAU/USD) – 1H Timeframe using Volume Profile, Gann, and CVD + ADX
1. Key Observations (Volume, Gann & CVD + ADX Focused)
a) Volume Profile Insights:
Value Area High (VAH): 3,388.2
Value Area Low (VAL): 3,296.7
Point of Control (POC): 3,385.3
High-volume nodes: Dense consolidation between 3,365 – 3,390, indicating institutional activity and balance.
Low-volume gaps: Between 3,340 – 3,360 (inefficient move up, price may revisit).
b) Liquidity Zones:
Stop clusters likely at:
Above 3,388 (previous swing high)
Below 3,300 (recent swing low)
Order absorption areas: Around 3,320 where price stalled with large volume, indicating passive buyers absorbing aggressive sellers.
c) Volume-Based Swing Highs/Lows:
Swing High: 3,388.5 (strong rejection & volume spike)
Swing Low: 3,297.1 (volume bounce support area)
d) CVD + ADX Indicator Analysis:
Trend Direction: Range-bound currently (sideways movement in CVD with weak momentum)
ADX Strength: ADX < 20 → Indicates weak trend or consolidation
CVD Confirmation:
CVD is showing slight bullish divergence vs. price → early demand buildup
Not yet confirmed with strong trend continuation
2. Support & Resistance Levels
a) Volume-Based Levels:
Support:
VAL: 3,296.7
Absorption zone: 3,320.0
Resistance:
VAH: 3,388.2
Swing high: 3,388.5
b) Gann-Based Levels:
Recent swing low: 3,297.1
Retracement levels (from recent high 3,388.5 to low 3,297.1):
1/3 Retracement: 3,327.6
1/2 Retracement: 3,342.8
2/3 Retracement: 3,358.0
3. Chart Patterns & Market Structure
a) Trend: Range-bound (confirmed by ADX < 20 and flat CVD)
b) Notable Patterns:
Potential bullish falling wedge pattern forming
Projection suggests price might bounce from 3,320 toward upper channel (3,370+)
Watch for retest of POC (3,385) for breakout confirmation
4. Trade Setup & Risk Management
a) Bullish Entry (Pending confirmation from breakout and CVD support):
Entry Zone: 3,320 – 3,325 (channel + volume support)
Targets:
T1: 3,342.8 (50% Gann)
T2: 3,385.3 (POC and VAH)
Stop-Loss (SL): Below 3,297 (swing low/VAL)
RR: Minimum 1:2
b) Bearish Entry (If rejection at VAH and CVD turns bearish):
Entry Zone: 3,385 – 3,388
Target:
T1: 3,320.0
Stop-Loss (SL): Above 3,400
RR: Minimum 1:2
c) Position Sizing:
Risk only 1-2% of capital per trade
1. Key Observations (Volume, Gann & CVD + ADX Focused)
a) Volume Profile Insights:
Value Area High (VAH): 3,388.2
Value Area Low (VAL): 3,296.7
Point of Control (POC): 3,385.3
High-volume nodes: Dense consolidation between 3,365 – 3,390, indicating institutional activity and balance.
Low-volume gaps: Between 3,340 – 3,360 (inefficient move up, price may revisit).
b) Liquidity Zones:
Stop clusters likely at:
Above 3,388 (previous swing high)
Below 3,300 (recent swing low)
Order absorption areas: Around 3,320 where price stalled with large volume, indicating passive buyers absorbing aggressive sellers.
c) Volume-Based Swing Highs/Lows:
Swing High: 3,388.5 (strong rejection & volume spike)
Swing Low: 3,297.1 (volume bounce support area)
d) CVD + ADX Indicator Analysis:
Trend Direction: Range-bound currently (sideways movement in CVD with weak momentum)
ADX Strength: ADX < 20 → Indicates weak trend or consolidation
CVD Confirmation:
CVD is showing slight bullish divergence vs. price → early demand buildup
Not yet confirmed with strong trend continuation
2. Support & Resistance Levels
a) Volume-Based Levels:
Support:
VAL: 3,296.7
Absorption zone: 3,320.0
Resistance:
VAH: 3,388.2
Swing high: 3,388.5
b) Gann-Based Levels:
Recent swing low: 3,297.1
Retracement levels (from recent high 3,388.5 to low 3,297.1):
1/3 Retracement: 3,327.6
1/2 Retracement: 3,342.8
2/3 Retracement: 3,358.0
3. Chart Patterns & Market Structure
a) Trend: Range-bound (confirmed by ADX < 20 and flat CVD)
b) Notable Patterns:
Potential bullish falling wedge pattern forming
Projection suggests price might bounce from 3,320 toward upper channel (3,370+)
Watch for retest of POC (3,385) for breakout confirmation
4. Trade Setup & Risk Management
a) Bullish Entry (Pending confirmation from breakout and CVD support):
Entry Zone: 3,320 – 3,325 (channel + volume support)
Targets:
T1: 3,342.8 (50% Gann)
T2: 3,385.3 (POC and VAH)
Stop-Loss (SL): Below 3,297 (swing low/VAL)
RR: Minimum 1:2
b) Bearish Entry (If rejection at VAH and CVD turns bearish):
Entry Zone: 3,385 – 3,388
Target:
T1: 3,320.0
Stop-Loss (SL): Above 3,400
RR: Minimum 1:2
c) Position Sizing:
Risk only 1-2% of capital per trade
Bharat Pandya @ProspireWealth
+91 9624044866
pandyabn76@gmail.com
+91 9624044866
pandyabn76@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Bharat Pandya @ProspireWealth
+91 9624044866
pandyabn76@gmail.com
+91 9624044866
pandyabn76@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.