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

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Technical Breakdown on XAUUSD 1H Chart using Volume Profile, Gann, and CVD + ADX

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

a) Volume Profile Insights:

Value Area High (VAH): 3,399.00

Value Area Low (VAL): 3,345.00

Point of Control (POC): 3,384.51

High-volume nodes: Clustered between 3,370 – 3,390 (sideways consolidation).

Low-volume gaps: Below 3,340 and above 3,410 – thin auction zones with potential for fast moves.

b) Liquidity Zones:

Stop Clusters Likely at:

Previous high: ~3,415 (minor swing high).

Previous low: ~3,335 (visible demand zone with prior bounce).

Order Absorption Zones:

Around POC (3,384.51): High cumulative delta volume implies passive sellers absorbing buy pressure.

c) Volume-Based Swing Highs/Lows:

Swing High (Volume Spike): ~3,415

Swing Low (Volume Spike): ~3,340

d) CVD + ADX Indicator Analysis:

Trend Direction: Range-bound with mild bullish bias (price riding just above POC but within channel).

ADX Strength:

ADX < 20 → Weak trend

DI+ ≈ DI− → No clear dominance, indicating balance.

CVD Confirmation:

Rising CVD earlier aligned with up move to 3,415.

Currently flattening, suggesting equilibrium between buying and selling.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 3,345.00

POC: 3,384.51

Swing Low: 3,340

Resistance:

VAH: 3,399.00

Swing High: 3,415

b) Gann-Based Levels:

Gann Swing High: 3,415

Gann Swing Low: 3,340

Key Retracement Levels from Range (3,340 - 3,415):

1/2: 3,377.5

1/3: 3,365

2/3: 3,390

3. Chart Patterns & Market Structure

a) Trend:

Current: Range-bound (ADX weak, no clear CVD breakout).

Bias: Mildly bullish consolidation within a rising channel.

b) Notable Patterns:

Ascending channel formation (light purple zone).

Breakout attempts above VAH rejected.

Price oscillating near POC → likely accumulation or rebalancing phase.

4. Trade Setup & Risk Management

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

Entry Zone: Near POC – 3,384.5

Targets:

T1: 3,399 (VAH)

T2: 3,415 (Swing High)

Stop-Loss (SL): Below VAL – 3,340

RR: ~1:2.2 minimum

b) Bearish Entry (If CVD + ADX confirm downtrend):

Entry Zone: Near VAH – 3,399

Target:

T1: 3,345 (VAL)

Stop-Loss (SL): Above Swing High – 3,420

RR: ~1:2 minimum

c) Position Sizing: Risk only 1-2% of capital per trade. Avoid overleveraging in choppy zones.

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