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

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Technical Breakdown on Gold Spot / USD (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): 3,360.00

Value Area Low (VAL): 3,220.00

Point of Control (POC): 3,234.30 (current session), 3,382.79 (previous session)

High-volume nodes: 3,255 – 3,275 range shows emerging absorption

Low-volume gaps: 3,280 – 3,300 and 3,340 – 3,360 indicate potential resistance zones

b) Liquidity Zones:

Clustered Stops: Around 3,300 (swing high), 3,220 (recent swing low)

Absorption Zones: POC zone at 3,234.3 with heavy CVD divergence and bounce

c) Volume-Based Swing Highs/Lows:

Swing High: 3,382.79 – confirmed rejection with strong volume and price reversal

Swing Low: 3,234.30 – high-volume absorption, currently acting as support

d) CVD + ADX Indicator Analysis:

Trend Direction: Currently range-bound with minor bullish divergence forming

ADX Strength:

ADX ≈ 18 – weak trend, choppy conditions

CVD Confirmation:

Recent rising CVD despite flat price = hidden demand

Past falling CVD + bearish move to 3,234.3 = strong supply area confirmed

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

3,234.30 (POC)

3,220.00 (VAL and swing low)

Resistance:

3,275.00 (minor rejection zone)

3,300.00 (psychological + structure)

3,360.00 (VAH)

b) Gann-Based Levels:

Confirmed Gann Swing Low: 3,234.30

Retracement Levels from 3,382.79 High:

1/2: 3,308.55

2/3: 3,316.86

3. Chart Patterns & Market Structure

a) Trend: Currently range-bound, transitioning with a potential bullish breakout bias
b) Notable Patterns:

Emerging ascending wedge/channel forming in recent candles

Prior double-bottom near 3,234 with bullish CVD divergence

Testing lower trendline (accumulation possibility)

4. Trade Setup & Risk Management

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

Entry Zone: 3,240 – 3,250

Targets:

T1: 3,275

T2: 3,308

Stop-Loss (SL): 3,220

RR: Minimum 1:2

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

Entry Zone: 3,300 – 3,308 (near wedge resistance)

Target:

T1: 3,234

Stop-Loss (SL): 3,360

RR: Minimum 1:2

c) Position Sizing:

Risk only 1-2% of capital per trade. Calculate position size based on SL distance and capital base.

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