Gold (XAUUSD) – High-Probability Retracement Zone!

Gold has just hit an all-time high (ATH), which makes a retracement highly likely before any further continuation to the upside. Markets move in waves, and after such a strong bullish impulse, price tends to pull back to key support levels where institutional traders may step back in.

🔍 Why This Level Matters ($2903)
We are looking at a high-probability retracement zone around $2903, where multiple technical factors align, creating a strong confluence area.

1️⃣ Point of Control (POC) – Institutional Interest
The POC (Point of Control) is a key level derived from the Volume Profile indicator in TradingView. It represents the price level with the highest traded volume within the selected timeframe.

• Why is this important?
  
• This level acts as a strong magnet for price because it indicates where the most trading activity occurred, meaning there was a balance between buyers and sellers.
  
• Price tends to revisit these levels for liquidity before resuming its trend.
  

2️⃣ Volume Profile – Understanding Market Structure
The Volume Profile is an advanced tool that helps traders understand where the majority of volume is concentrated. Instead of focusing only on time-based charts, it provides a horizontal volume distribution, revealing where major market participants have shown interest.

• The thick blue areas on the right indicate high-volume nodes, where price is likely to find support or resistance.
  
• The thin areas (low-volume nodes) suggest price might move quickly through them, as there was little interest in trading at those levels.
  

3️⃣ Fair Value Gap (FVG) / Imbalance – Price Efficiency
This level also aligns with a Fair Value Gap (FVG), also known as an imbalance.

• An FVG occurs when price moves aggressively in one direction, leaving behind inefficiencies or gaps in liquidity that the market often retraces to fill.
  
• This means price is likely to revisit this level before continuing the overall bullish trend.
  

4️⃣ Fibonacci Golden Pocket – The Perfect Confluence

• One of the most reliable retracement zones is the 0.618 - 0.65 Fibonacci retracement level, also known as the Golden Pocket.
  

This level is widely used by professional traders as it represents a key reversal zone.
It aligns perfectly with our POC and FVG, making it a powerful confluence for a potential bounce.

📌 What to Expect?

• ✅ A pullback to the $2903 zone, where buyers may look to step in.
  
• ✅ A strong reaction from this level could confirm bullish continuation.
  
• ✅ If price breaks below, we may see further downside, but for now, this remains a high-probability buy zone.
  

🎯 Trading Plan:

• 📉 Wait for price to retrace into $2903
  
• 🔎 Look for confirmations (candlestick patterns, bullish divergence, order blocks, etc.)
  
• 📈 Enter long positions if price shows bullish structure
  
• 🎯 Target previous highs for continuation
  

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