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

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Here's a detailed technical breakdown of the Gold Spot / USD (XAU/USD), 1H timeframe chart using Volume Profile, Cumulative Volume Delta (CVD), and ADX:

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

a) Volume Profile Insights:

Value Area High (VAH): 3395.88

Value Area Low (VAL): 3311.18

Point of Control (POC): 3381.67 (recent) / 3311.18 (previous)

High-volume nodes: Concentrated around 3380–3390 and earlier at 3300–3320, suggesting strong buyer interest.

Low-volume gaps: Between 3350–3370, indicating weak resistance and potential for swift price movement.

b) Liquidity Zones:

Stop Clusters: Around 3400 (recent swing high), and 3310 (swing low/POC) — potential liquidity sweep zones.

Order Absorption: Strong delta buildup near 3380–3390 indicates heavy buying pressure and potential large-position accumulation.

c) Volume-Based Swing Highs/Lows:

Swing High (Volume Spike): 3395.88 – recent high with strong breakout volume.

Swing Low (Volume Spike): 3311.18 – confirmed reversal point with heavy absorption.

d) CVD + ADX Indicator Analysis:

Trend Direction: Uptrend (confirmed by multiple bullish CVD bars and higher highs).

ADX Strength: ADX > 20 with DI+ > DI- ⇒ Confirmed uptrend.

CVD Confirmation: Rising CVD with bullish price action = Strong demand confirmation. Market is led by aggressive buyers.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

VAL: 3311.18

POC: 3381.67

Swing Low with Absorption: 3310

Resistance:

VAH: 3395.88

Swing High: 3400–3410 zone

b) Gann-Based Levels:

Gann Swing Low: 3311

Gann Swing High: 3395

Key Retracements (From 3311 to 3395):

1/2 level: 3353

1/3 level: 3339

2/3 level: 3367

3. Chart Patterns & Market Structure

a) Trend: Bullish

Supported by rising price structure, channel breakout, and rising CVD.

b) Notable Patterns:

Bullish channel forming (highlighted in purple).

Breakout above previous consolidation range (POC breakout).

Retest of POC at 3381.67 acting as support now.

4. Trade Setup & Risk Management

a) Bullish Entry (Confirmed by CVD + ADX):

Entry Zone: 3381–3385 (retest of POC/support).

Targets:

T1: 3410

T2: 3440

Stop-Loss (SL): Below swing low at 3350

RR: Minimum 1:2

b) Bearish Entry (Wait for breakdown of trend):

Entry Zone: 3310 (if price breaks below support).

Target:

T1: 3275

Stop-Loss (SL): Above 3350 (last high-volume rejection)

RR: Minimum 1:2

c) Position Sizing: Risk only 1–2% of capital per trade.

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