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 faces next resistance near 1.1930
EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.
GBP/USD sticks to the bullish tone near 1.3660
GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.
USD/JPY declines as Yen strengthens after election win, overshadowing US jobs data
The US Dollar rose briefly after stronger-than-expected job creation but gave back gains against a firm Japanese Yen. The Unemployment Rate falls to 4.3% and wages accelerate, reinforcing expectations of a prolonged Fed pause. Sanae Takaichi’s election victory fuels demand for the Japanese Yen, pushing USD/JPY down for the day.
Editors’ Picks
AUD/USD now targets the 0.7150 zone
AUD/USD has rapidly left behind Tuesday’s pullback, advancing sharply to three-year highs past the 0.7100 barrier on Wednesday. The pair’s strong performance follows investors’ assessment of the RBA’s hawkish message and the likelihood of further tightening down the road.
EUR/USD faces next resistance near 1.1930
EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.
Gold holds on to higher ground ahead of the next catalyst
Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.
UNI faces resistance at 20-day EMA following BlackRock's purchase and launch of BUIDL fund on Uniswap
Decentralized exchange Uniswap (UNI) announced on Wednesday that it has integrated asset manager BlackRock's tokenized Treasury product on its trading platform via a partnership with tokenization firm Securitize.
US jobs data surprises to the upside, boosts stocks but pushes back Fed rate cut expectations
This was an unusual payrolls report for two reasons. Firstly, because it was released on Wednesday, and secondly, because it included the 2025 revisions alongside the January NFP figure.
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