Technical Breakdown on US100 | 1H TimeframeTechnical Breakdown on US100 (1H) using Volume Profile, Gann, and CVD + ADX
1. Key Observations (Volume, Gann & CVD + ADX Focused)
a) Volume Profile Insights:
Value Area High (VAH): 20,050
Value Area Low (VAL): 19,800
Point of Control (POC): 19,927.77
Volume Nodes:
High-volume node: Consolidation around 19,930–20,000 (strong interest/acceptance zone).
Low-volume gap: Below 19,800 (potential area for fast price movement).
b) Liquidity Zones:
Clustered Stops:
Above recent highs at ~20,100 (liquidity trap).
Below recent lows near 19,650 and 19,500.
Order Absorption Zones:
Near 19,930–19,980: multiple rejections + high delta volume = passive sell pressure.
c) Volume-Based Swing Highs/Lows:
Volume spike highs: 20,050 (indicating rejection and potential reversal).
Volume spike lows: 19,600–19,650 (reaction points with increased volume and defense).
d) CVD + ADX Indicator Analysis:
Trend Direction: Turning bearish.
ADX Strength:
ADX slightly above 20 with DI- crossing above DI+ = Confirmed downtrend.
CVD Confirmation:
Falling CVD alongside price weakness = Strong supply taking control.
Multiple failed bullish attempts above POC.
2. Support & Resistance Levels
a) Volume-Based Levels:
Support:
19,800 (VAL)
19,650 (swing low with high absorption)
Resistance:
20,050 (VAH and rejection zone)
19,927.77 (POC, now resistance)
b) Gann-Based Levels:
Swing High: 20,100 (Gann reversal point)
Swing Low: 19,650
Key Gann Retracements:
1/3 retracement = ~19,820
2/3 retracement = ~19,980
3. Chart Patterns & Market Structure
a) Trend: Bearish
b) Notable Patterns:
Bearish flag forming inside descending channel.
Break below POC and VAL suggests breakdown continuation.
Retest failure near POC confirms resistance validation.
4. Trade Setup & Risk Management
a) Bearish Entry (CVD + ADX confirm downtrend):
Entry Zone: 19,920–19,940 (retest of POC)
Target:
T1: 19,650
T2: 19,400
Stop-Loss (SL): 20,060 (above VAH and swing high)
Risk-Reward (RR): Minimum 1:2
b) Position Sizing:
Risk only 1–2% of trading capital per setup.
