Denis Joeli Fatiaki
Independent Analyst
Using market insights to create adaptable trading strategies
Historical data and patterns offer critical insights into potential future price movements across short-, medium-, and long-term time horizons. By analyzing layers of past trading activities, traders gain access to invaluable information that reflects the psychological battleground where buyers and sellers vie for control. These past actions form the foundation of a strategic roadmap for predicting future market trends.
The key to using this data effectively lies in identifying core components of market behaviour, particularly future support and resistance levels or supply and demand zones. These elements must remain adaptable to dynamic market conditions. Once established, additional tools such as the volume profile, momentum-based indicators, and multiple time frame analyses can be implemented to identify trading opportunities and refine your approach.
Building a roadmap with core tools
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Support and resistance /supply and demand zones
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Establishing these zones is the cornerstone of a profitable trading strategy. These levels highlight where significant market activity has occurred, which could serve as future pivot points. They must remain dynamic, evolving with market conditions.
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Volume profile
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The volume profile assesses the price levels where the most significant trading volume has occurred. It highlights high liquidity zones and potential points of price consolidation or rejection.
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Momentum-based tools
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Indicators like RSI, MACD, or moving averages allow traders to gauge the market's strength or weakness, enhancing their timing for entering or exiting trades.
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Multi-time frame analysis
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Analyzing charts across different time frames gives traders a broader context and aligns short-term actions with longer-term trends, helping manage risks effectively.
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Recent insights and examples
In the January 7 post, we provided a detailed analysis of key market levels and projected trends.
The S&P 500 Futures chart attached demonstrates the practical application of these tools to stay ahead of market movements. Today's trade breached the 6007 zone within the first 30 minutes of the session, leading to a robust upward rally before a modest pullback towards the session's close. The 6007 support zone could serve as a critical area to watch for potential retracements in upcoming sessions.
January 7 2025, projected critical levels and their impact, which continued to the middle of Jan 2025
Key takeaway
To navigate the complex and ever-changing markets effectively, traders must:
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Leverage historical data to identify psychological battle zones.
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Build a solid, flexible roadmap anchored in support and resistance or supply and demand levels.
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Complement this with advanced tools like volume profiles, momentum indicators, and multi-timeframe analyses.
The 6007 level is a prime example of how historical data and real-time tools combine to identify actionable trading opportunities. This systematic approach allows you to confidently adapt, anticipate, and capitalize on market movements.
Jan 18 2025, price breakout at 6007 zone 30 minutes after the US opening trades.
January 18 2025, end of the trading session, which saw a modest pullback.
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Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
USD/JPY is looking for direction around 153.00 with key US data in focus
USD/JPY reversal from 153.70 has been contained above 152.70 on Tuesday. Major currencies are trading within narrow ranges amid thin trading volumes. Investors await the release of the US GDP and PCE Inflation figures to make decisions.
Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
Gold recovers modestly, stays deep in red below $4,950
Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.
Canada CPI expected to show sticky inflation in January, still above BoC’s target
Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.
UK jobs market weakens, bolstering rate cut hopes
In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.
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