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 holds around 1.1750 after weak German and EU PMI data
EUR/USD maintains its range trade at around 1.1750 in European trading on Tuesday. Weaker-than-expected December PMI data from Germany and the Eurozone make it difficult for the Euro to find demand, while investors refrain from taking large USD positions ahead of key employment data.
GBP/USD climbs above 1.3400 after upbeat UK PMI data
GBP/USD gains traction and trades in positive territory above 1.3400 on Tuesday as the British Pound benefits from upbeat PMI data. Later in the day, crucial data releases from the US, including Nonfarm Payrolls, Retail Sales and PMI, could trigger the next big action in the pair.
Japanese Yen seems poised to appreciate further; awaits BoJ decision on Friday
The Japanese Yen maintains its bid tone through the first half of the European session on Tuesday which, along with a bearish US Dollar, keeps the USD/JPY pair depressed below the 155.00 psychological mark. The growing acceptance that the Bank of Japan will raise interest rates this week turns out to be a key factor behind the safe-haven JPY's outperformance.
Editors’ Picks
EUR/USD holds around 1.1750 after weak German and EU PMI data
EUR/USD maintains its range trade at around 1.1750 in European trading on Tuesday. Weaker-than-expected December PMI data from Germany and the Eurozone make it difficult for the Euro to find demand, while investors refrain from taking large USD positions ahead of key employment data.
GBP/USD climbs above 1.3400 after upbeat UK PMI data
GBP/USD gains traction and trades in positive territory above 1.3400 on Tuesday as the British Pound benefits from upbeat PMI data. Later in the day, crucial data releases from the US, including Nonfarm Payrolls, Retail Sales and PMI, could trigger the next big action in the pair.
Gold retreats from seven week highs on profit-taking; all eyes on US NFP release
Gold price loses momentum below $4,300 during the early European trading hours on Tuesday, pressured by some profit-taking and weak long liquidation from the shorter-term futures traders. Furthermore, optimism around Ukraine peace talks could weigh on the safe-haven asset like Gold.
US Nonfarm Payrolls expected to point to cooling labor market in November
The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls (NFP) data for October and November on Tuesday at 13:30 GMT. Economists expect Nonfarm Payrolls to rise by 40,000 in November. The Unemployment Rate is likely to remain unchanged at 4.4% during the same period.
NFP preview: Complex data release will determine if Fed was right to cut rates
The long wait is over, and the Bureau of Labor Statistics in the US will release nonfarm payrolls reports for both November and October at 1330 GMT on Tuesday. The overall NFP figure for October is expected to be -10k, however, it is expected to be influenced by a massive 130k drop in federal department workers.
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