How To Read Signals From A Chart

Thanks man! Really the market is manipulated and it's only those who know and able to flow with the manipulators, that succeed in the game. Thanks for the explanation of shakeout, it's really meant to shake out the herd

Why the gold market is near support.

Let's draw on the facts from the chart



1) We have 3 balance zones. They are marked on the chart with purple profiles. Profiles look like Gaussian Bell (normal distribution). Each next profile (auction) is lower than the previous one. The balanced price in the first profile is 1490. In the second - 1470. In the third - 1456. The balance zones are stepping down. But look at the rate of decline. The first time we went down $ 20. The second time - by 15. The decline slows down. That is, seller pressure exhales.
2) Look at the volumes that I highlighted with arrows. This is a big advantage in sales. But as we can see, they did not lead to a significant drop in prices. This means - support is near. If the market does not fall after a surge in sales, he has found support.

It seems to me that if this support is at the round level of 1450, then we can see a false breakdown of 1450 and then a quick recovery.

SLKT example

Let’s start from background. We have 12k major resistance. Market rejected down from 12k resistance in summer. And decline reached as low as 10.7k.
After big pump-bar 20/Sept, price gained 12k level again. Will the resistance reject price down one more time? Or will it be broken in upward direction? This is the question. Let’s ask the chart.



Here is the idea from price/volume action:
1) EVRT. Extremely high volume amid lack of bullish progress. Price penetrated 19k level, but closed down. I’d like to interpret it as the Heavy Selling Zone above 19k. If the volume did represent the buying, closing would be much higher. Next two days have the volume higher than average but a lack of bullish progress. These two days could be described as the “echo” of powerful EVRT on 31/Oct
2) Here is the attempt of bulls to breakout above 12k level of resistance. But look the volume - it is low. the market is not active around 12k. This could be ND. Next day has also small volume. The price bar has a shape of NS - attempt to go down during the day but closing on highs. If 7/Nov was NS, then next day 8/Nove should be DB. Instead…
3)… it appeared as SB - increase of volume with wide range and increase of volume, closing on low. That is why slow activity on 06-07/Nov is confirmed lack of buyers (No demand). That is why I’ve marked them as ND and ND2.
Well, we have EVRT + ND + SB. This is a sequence of bearish reversal. Chart claims, bulls are incapable to struggle through 12k Resistance now. That is why, the most expectable scenario for in the current obstacles - sliding down toward 11.7k Support-From-Demand-Bar line.
If professionals are really bullish, they need some manipulation in order to produce another attempt. Look on recent action. We have SLKB-Trap manipulation bar. It appeared before DB 29/Oct. It was a powerful pattern to start the new bullish attack.

Don't miss this analysis of gold market

Hi Oleg,
how do you definite your range logicaly please ?
thx

All thanks man! for your selfless service; i think the TRAP BEFORE DB is more or less selling climax, please confirm whether i am right or not

Don't miss my fresh gold analysis here

I am not sure if I understand your question clearly. But..
Firstly, I try to figure out the zones of balances/unbalances.
Then - define ranges.

Yes, Selling Climax is included in Trap before DB.

This is an EVRT example

Note, how price losing ability to
bounce up from support channel lines
and reach resistance channel lines

Check up this GBPUSD overview

#AUDJPY


We have 1-2-3 up-ward channel on place (red lines).
This is the borders of up-trend. While the price has been moving within 1-2 top-half of the channel, a lot of buyers did profits and happiness. They were in the extreme majority (blue bold lines on Profit Ratio indi).


But market is not a place to produce profits and happiness for everybody. Thus, look at what did happen next.




Follow blue markers:

 

1. Up-bar with spike in volume. Hitting 75.50 level.
2. The next two down-bars erased all profits from bar 1. So, 1+2 combination created a Trap (preparation for further decline).
3. Decline. Bullish happiness (profits) turned to tears (losses).
4. Price hit a parallel trend-line with series of bearish bar. Despite the volumes were not too extreme in size, I believe market experienced Panic emotions. Note the speed of decline increased.
5. Majority jumped into shorts The goal of decline seems to be completed
6. No supply
7. Demand bar

NS+DB is not very obvious on this chart (because of the volumes data from forex broker). Nevertheless, the shapes of price movements make me believe this market has more bullish intentions than bearish.


Maybe price is going to reach 2-line in the next days.

if I see one

I always try to confirm or refute a level of resistance or support.
always do background analysis to prove this.
I will try to determine what percentage of the level of alignment is with the level of support or resistance.

BTCUSD overview

Don't miss this Bitcoin market overview

Don't miss this gold market overview

how do you see the magic number on your trades? I have multiple charts of the same currency pair in my MT4 terminal and when a trade is executed from the ea I want to know which chart that trade came from. Any help please?

Pot stocks are headliners these days. Let's read the ACB.

After extra-big spike in volume amid rising up-bars in March, price declined more than 75% until the current days.

Study the volume. After breaking down 3.50 support level (blue line), price started to decline with increasing speed. This brings panic to market. We have the highest volume on 18/Nov. I always suggest extremely-high volume on down bars as the potential selling Culmination movement (Hidden strength).

Note:

1. 18/Nov down bar hits the bottom line of the down wave channel
2. next two bars are green.

So, what is next?
Probably, we are entering the accumulation stage. It will take too much time to absorb the supply at the lower prices before switching to up-trend mode. New lows can arrive, but I do not expect wide breakdowns. Bearish progress should stall, and horizontal range between 2.0 and 3.0 is going to develop IMO

May be you should check MT4 Journal Tab ?

Gold Chart Reading

Hi,

I just wanted to thank you for this very high quality and extremely informative thread. I have learned so much from your explanation(s) and videos. I wondered whether you could tell me where I can get hold of the Profit Ratio and Order Book indicators for MT4 or MT5?

I have been confused on many occasions when trying to understand similar information from others (particularly VSA). The way you have explained it all just makes so much sense and I now understand the reason why the decision to take a trade should always consider signs of strength or weakness in the background as a form of increased probability/confirmation for any such trade.

Excellent stuff. Thank you again