Technical Breakdown on Gold Spot / USD (XAU/USD) | 1H TimeframeTechnical Breakdown on Gold Spot (XAU/USD) – 1H Chart using Volume Profile, Gann, and CVD + ADX
1. Key Observations (Volume, Gann & CVD + ADX Focused)
a) Volume Profile Insights:
Value Area High (VAH): 3,312
Value Area Low (VAL): 3,230
Point of Control (POC):
High-Volume Nodes: Dense cluster near 3,229–3,250 and again around 3,312
Low-Volume Gaps: Noticeable void between 3,260 – 3,290, suggesting possible fast movement zone
b) Liquidity Zones:
Liquidity Pools:
Order Absorption:
c) Volume-Based Swing Highs/Lows:
Swing High (Volume Spike): 3,312 – area of rejection with reduced follow-through
Swing Low (Reversal Support): 3,230 – heavy volume absorption followed by rally
d) CVD + ADX Indicator Analysis:
Trend Direction: Currently shifting bullish after a prolonged downtrend
ADX Strength: ADX > 20 with DI+ > DI- (early bullish momentum building)
CVD Confirmation:
2. Support & Resistance Levels
a) Volume-Based Levels:
Support:
Resistance:
b) Gann-Based Levels:
Swing Low: 3,230
Retracement Levels:
3. Chart Patterns & Market Structure
a) Trend: Turning bullish (CVD rising, ADX > 20, price forming HLs)
b) Notable Patterns:
Reversal Base formed near 3,230 with upward breakout
Forming ascending channel – prices respecting the lower boundary support
Retest of breakout zone (POC + lower trendline) acting as potential launchpad
4. Trade Setup & Risk Management
a) Bullish Entry (CVD + ADX confirm uptrend):
Entry Zone: 3,240–3,250 (near lower trendline + POC retest)
Targets:
Stop-Loss (SL): 3,225 (below POC + swing low)
RR: Approx. 1:2.5
b) Bearish Entry (Only if trend reversal confirmed):
Entry Zone: Below 3,225 (loss of POC/VAL with CVD breakdown)
Target: T1: 3,200 (psychological + historical support zone)
Stop-Loss (SL): 3,255 (back above POC)
RR: Approx. 1:2
c) Position Sizing:
Use 1–2% capital per trade to manage downside risk
