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 edges higher to mid-1.1600s; looks to US PCE Price Index for fresh impetus
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and recovers a part of the previous day's retracement slide from the 1.1680 region, or the highest level since October 17. Spot prices currently trade around mid-1.1600s and remain on track to register gains for the second straight week.
GBP/USD: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures Price Index report for September could offer some hints about the US interest rate path.
USD/JPY stays pressured near 155.00 on Fed-BoJ policy divergence
USD/JPY remains weak near 155.00 in the Asian session on Friday. The pair faces headwinds from expectations of the Fed-BoJ monetary policy divergence, which outweighs the fall in Japanese Household Spending in October. All eyes are on the delayed US Personal Consumption Expenditures Price Index data for September later on Friday.
Editors’ Picks
EUR/USD edges higher to mid-1.1600s; looks to US PCE Price Index for fresh impetus
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and recovers a part of the previous day's retracement slide from the 1.1680 region, or the highest level since October 17. Spot prices currently trade around mid-1.1600s and remain on track to register gains for the second straight week.
GBP/USD: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures Price Index report for September could offer some hints about the US interest rate path.
Gold edges higher amid dovish Fed expectations; traders await US PCE inflation data
Gold struggles to capitalize on the overnight bounce from the $4,175 area, or the vicinity of the weekly trough, and oscillates in a narrow trading range during the Asian session on Friday. Traders now seem reluctant and opt to move to the sidelines ahead of the September Personal Consumption Expenditures Price Index, or the Federal Reserve's preferred inflation gauge.
Pi Network: Bearish streak nears critical support trendline
Pi Network edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges experience a surge in inflows. Technically, the pullback in PI risks further losses, as the Moving Average Convergence Divergence indicator is flashing a sell signal.
Why the Fed may cut rates in December: Understanding the policy shift
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
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