Gold is Ready for a Triangle Breakout PEPPERSTONE:XAUUSD by ALEENA – TradingView

I enjoy walking around the market and analyzing prices and volumes. I like to see the structural battlefield before jumping

Identify support and resistance areas

Before you can identify a pattern, you must determine where the historical memory of prices lies. We use two main methods on this chart.

Highs and Lows: When price repeatedly fails to move higher, resistance develops, such as local resistance established at the top of a range. Support occurs when the price continues to rise, here called local support and major support.

Visual Range Volume Profile (VRVP): The horizontal bar on the right represents volume at a specific price level. The longer bars (blue and yellow) represent the prices with the most trading activity.

Identify trends and patterns

Once I have identified the horizontal areas, I look for dynamic trends by connecting the price axes.

The yellow diagonal line connects a series of highs starting in early February. This suggests buyers are stepping in at increasingly higher prices.

A triangle pattern is formed by combining local resistance with a flat top and an ascending yellow trendline. This represents a period of market stress, with volatility declining as price approaches the “peak,” or top of the triangle.

Current market environment

We are now in the stage of taking a leap of faith.

The price is constricting between the uptrend line and local resistance.

Traders usually wait for the daily candle to close outside of this triangle.

A break above local resistance points to bullish continuation.

A break below the yellow trendline indicates a test of lower local support.

I won’t take a trade until price shows where it’s going, there’s no rush. Only with patience can you make money in the market

And you? What are you betting on next? Will we always retest or will we restore previous support?