Gold has been respecting a clear descending channel on the 1H timeframe. After a strong bullish impulse, price has been consolidating within this structured decline, showing lower highs and lower lows. But something interesting is happening now...
🔍 Current Observations:
Price remains within the lower boundary of the descending channel — showing signs of compression.
Volume spike detected near recent lows while candles remain relatively small in range.
This is a classic “Volume > Price” divergence, often associated with smart money absorption or hidden accumulation.
💡 What This May Mean:
Despite the bearish structure:
The increase in volume without new strong lows could indicate that institutional players (smart money) are absorbing sell orders from retail traders.
These setups can often lead to a sharp upward breakout, especially if the price closes above the channel midline or recent swing high.
📌 What to Watch:
A confirmed break above the channel (preferably with strong volume) would validate a potential reversal.
Support remains fragile around the lower boundary. Failure to hold may trigger a final flush or fake-out before reversal.
🔔 Strategy Ideas:
⚠️ Don't jump in early — wait for a clean breakout candle with follow-through.
✅ Look for confirmation like:
Bullish engulfing at key support
Volume spike + breakout of last 1–2 candle highs
Break of descending trendline with a close
🧠 Final Thought:
This may be a smart money trap setup — where institutions accumulate just before the trend turns. Keep your eyes on volume + structure for the clearest signals.
🔍 Current Observations:
Price remains within the lower boundary of the descending channel — showing signs of compression.
Volume spike detected near recent lows while candles remain relatively small in range.
This is a classic “Volume > Price” divergence, often associated with smart money absorption or hidden accumulation.
💡 What This May Mean:
Despite the bearish structure:
The increase in volume without new strong lows could indicate that institutional players (smart money) are absorbing sell orders from retail traders.
These setups can often lead to a sharp upward breakout, especially if the price closes above the channel midline or recent swing high.
📌 What to Watch:
A confirmed break above the channel (preferably with strong volume) would validate a potential reversal.
Support remains fragile around the lower boundary. Failure to hold may trigger a final flush or fake-out before reversal.
🔔 Strategy Ideas:
⚠️ Don't jump in early — wait for a clean breakout candle with follow-through.
✅ Look for confirmation like:
Bullish engulfing at key support
Volume spike + breakout of last 1–2 candle highs
Break of descending trendline with a close
🧠 Final Thought:
This may be a smart money trap setup — where institutions accumulate just before the trend turns. Keep your eyes on volume + structure for the clearest signals.
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.
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.