Technical Breakdown on US100 | 1H Timeframe

Technical Breakdown on US100 (1H) using Volume Profile, Gann, and CVD + ADX

1. Key Observations (Volume, Gann & CVD + ADX Focused)

a) Volume Profile Insights:

Value Area High (VAH): 20,050

Value Area Low (VAL): 19,800

Point of Control (POC): 19,927.77

Volume Nodes:

High-volume node: Consolidation around 19,930–20,000 (strong interest/acceptance zone).

Low-volume gap: Below 19,800 (potential area for fast price movement).

b) Liquidity Zones:

Clustered Stops:

Above recent highs at ~20,100 (liquidity trap).

Below recent lows near 19,650 and 19,500.

Order Absorption Zones:

Near 19,930–19,980: multiple rejections + high delta volume = passive sell pressure.

c) Volume-Based Swing Highs/Lows:

Volume spike highs: 20,050 (indicating rejection and potential reversal).

Volume spike lows: 19,600–19,650 (reaction points with increased volume and defense).

d) CVD + ADX Indicator Analysis:

Trend Direction: Turning bearish.

ADX Strength:

ADX slightly above 20 with DI- crossing above DI+ = Confirmed downtrend.

CVD Confirmation:

Falling CVD alongside price weakness = Strong supply taking control.

Multiple failed bullish attempts above POC.

2. Support & Resistance Levels

a) Volume-Based Levels:

Support:

19,800 (VAL)

19,650 (swing low with high absorption)

Resistance:

20,050 (VAH and rejection zone)

19,927.77 (POC, now resistance)

b) Gann-Based Levels:

Swing High: 20,100 (Gann reversal point)

Swing Low: 19,650

Key Gann Retracements:

1/3 retracement = ~19,820

2/3 retracement = ~19,980

3. Chart Patterns & Market Structure

a) Trend: Bearish
b) Notable Patterns:

Bearish flag forming inside descending channel.

Break below POC and VAL suggests breakdown continuation.

Retest failure near POC confirms resistance validation.

4. Trade Setup & Risk Management

a) Bearish Entry (CVD + ADX confirm downtrend):

Entry Zone: 19,920–19,940 (retest of POC)

Target:

T1: 19,650

T2: 19,400

Stop-Loss (SL): 20,060 (above VAH and swing high)

Risk-Reward (RR): Minimum 1:2

b) Position Sizing:

Risk only 1–2% of trading capital per setup.