$XAUT #USSECPushesCryptoReform


XAUT/USDT (Tether Gold) , Here is a breakdown of how to identify Supply and Demand zones based on your specified criteria:

1. Candle Size

· What to look for: In supply and demand theory, zones are created by large, impulsive candles that move away from a consolidation area. These are often referred to as "Rally-Base-Rally" (buy zone) or "Drop-Base-Drop" (sell zone).
· On chart: Looking at the left side of the visible range, you can see strong bearish momentum candles moving downwards. The bodies of these red candles are large and decisive, indicating strong selling pressure. These large candles are the "Rally" or "Drop" part of the formation.

2. Unmitigated Supply and Demand Zone

· What it means: An "unmitigated" zone is one that has not been touched or retested since it was created. Price left the zone and never returned to it.
· On chart:
· Supply Zone (Sell Zone): Look at the base just before the sharp drop on the left side. There is a cluster of small consolidation candles (the "Base") before the large red impulsive candle. The area surrounding those small candles (~5,048.0 – 5,065.0) is the Supply Zone.
· Is it unmitigated? Price has dropped away from this zone and is currently trading lower (5,085.9 is the current price, but the perpetual price is 5,082.1). Since price broke down from that zone and hasn't returned to it yet, that specific Supply Zone is currently unmitigated (untouched).

3. Imbalance (IMB)

· What it is: Often referred to as "FVG" (Fair Value Gap) or "Imbalance." This occurs during impulsive moves when the wicks of the candles do not overlap, leaving a gap in market efficiency. These are usually seen as areas where price may return for liquidity.
· On chart:
· Look closely at the large red candle that broke down from the consolidation. There may be an imbalance or inefficiency between the wick of the last small consolidation candle and the body of the first large impulsive candle.
· If you had a more zoomed-in view (1m or 15m), you would likely see a clear gap where price "rushed" through without leaving overlapping price levels. Currently, the area just below the consolidation base (approx 5,065.0 – 5,050.0) likely contains an imbalance.

Summary for XAUT/USDT:

· Demand Zone (Potential Buy): There isn't a fresh, clean demand zone visible on the zoomed-out view provided. Price is currently floating above the LB: 5,008.2 (Lower Bollinger Band), but a true demand zone would be a consolidation base near that low.
· Supply Zone (Potential Sell): The area between ~5,050 and 5,065 is the base of a broken structure. This is the primary supply zone to watch.
· Strategy: If price rallies back up to the 5,050–5,065 area, that is a potential reaction point for a short entry (Sell), especially if it shows rejection wicks, because that zone is currently unmitigated.
XAUT1,73%
post-image
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)