US 100 CFD: Key Levels & Trading StrategiesPEPPERSTONE:NAS100 AlexGoldHunter Analysis of US 100 Cash CFD on a 1-hour Timeframe
Current Market Structure
Break of Structure (BOS): Significant changes in trend are indicated by BOS.
Change of Character (CHoCH): Suggests a potential trend reversal or continuation.
Fair Value Gap (FVG) and New Gap (NG): Highlight areas where price may return to fill gaps, acting as potential support or resistance.
Fibonacci Retracement Levels:
Key Fibonacci levels are used to identify potential support and resistance areas:
0.382: 20,740.19
0.5: 20,777.2
0.618: 20,814.2
0.705: 20,841.2
0.786: 20,866.8
The 0.5 and 0.618 levels are particularly noteworthy as they often act as strong support or resistance zones.
Volume Profile:
The Volume Profile on the right side of the chart shows the traded volume at different price levels.
Higher volume areas indicate strong support or resistance zones.
The highest volume node around the 20,886.7 level suggests a significant resistance area.
Indicators:
Relative Strength Index (RSI): Currently at 56.72, indicating neutral to slightly bullish momentum.
MACD (Moving Average Convergence Divergence): Shows a bullish crossover, indicating potential upward momentum.
Buy Strategy with Confirmation:
Price Action: Look for a bullish CHoCH or BOS, indicating a potential upward trend.
RSI Confirmation: RSI should be above 50 and ideally moving upwards.
MACD Confirmation: MACD line crossing above the signal line, with a positive histogram.
Volume Confirmation: Increasing volume on bullish candlesticks.
Entry Point: Enter a buy position if the price breaks above the recent high at 20,886.7 with strong volume.
Stop Loss: Place a stop loss below the recent low at 20,772.4.
Take Profit: Set a take profit at the next resistance level around 20,904.6 or based on a favorable risk-reward ratio.
Sell Strategy with Confirmation:
Price Action: Look for a bearish CHoCH or BOS, indicating a potential downward trend.
RSI Confirmation: RSI should be below 50 and ideally moving downwards.
MACD Confirmation: MACD line crossing below the signal line, with a negative histogram.
Volume Confirmation: Increasing volume on bearish candlesticks.
Entry Point: Enter a sell position if the price breaks below the recent low at 20,772.4 with strong volume.
Stop Loss: Place a stop loss above the recent high at 20,886.7.
Take Profit: Set a take profit at the next support level around 20,661.8 or based on a favorable risk-reward ratio.
Conclusion:
This chart provides a comprehensive view of the US 100 Cash CFD's current market structure, highlighting key levels and indicators for potential trading opportunities. The buy and sell strategies are based on confirmations from price action, volume, and technical indicators to increase the probability of successful trades.
If you have any further questions or need additional analysis, feel free to ask! Happy trading! 🚀✨
