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Volume Overview Chart: Main Buy/Sell Areas
The XAUUSD currency pair on the H4 time frame is still following a broader uptrend line. After a strong move higher, prices have entered high equilibrium territory, where gradual pullbacks and cycles around value are common before the market commits to moving in the next direction. Against this backdrop, volume profiles provide the clearest “value” framework for implementation.
Volume files – an important value area
Procurement area POC
The POC area marked around 5,000 represents the main axis of value. Here, the market accepts price more aggressively, so it often acts as an absorption zone where the likelihood of a deep decline is highest. If the price is pulled down, the POC is the first area to look at and could see buyers come in and rebalance the auction.
VAH purchase area
The VAH area around 5.12x is the upper boundary of the current value area and acts as a dynamic support area as long as the structure remains bullish. A decrease in VAH, if it remains constant and spins upward, usually indicates the need to “retest value” before continuing.
Sell and resell VAL
The VAL area above 5.33x is a key value boundary that acts as a major resistance area. If the price touches this level and shows clear rejection/non-acceptance, this area is suitable for profit-taking techniques for long positions or tactical scalping for shorts.
Strong Liquidity – Medium Retracement Zone
Strong liquidity around 5.12x is a popular area for pullbacks and reactions. Price can move deeper into this area, trigger a stop loss, and then decide whether to move back to the POC or resume the uptrend. Think of this as a response zone, not an expectation zone. Implementation requires confirmation.
Trend Lines – Structural Support for Uptrends
The uptrend line remains intact. When price holds a trendline, a downward move should be viewed as a retracement within an upward structure. A decisive breakout and sustained close below VAH/POC would be a signal that the system is entering a deeper correction phase.
Trading scenario
Scenario 1: Call back to VAH, then follow up
Conditions: The price rebounded to VAH (5.12x) and remained unchanged, without accepting the decline.
Confirmation: A clean bull cycle, a strong bullish candle, or a new series of lows.
Goal: Push VAL (5,33x).
Scenario 2: Withdraw liquidity and then turn over to POC
Conditions: Weak reaction near the 5.12x liquidity area and loss of control over value.
Plan: Let the market cycle towards POC 5,000 or so and look for absorption.
What it means: A “reset” cycle in which the market reloads positions before trying to rise again.
Scenario 3: Strong jump from POC to VAL
Status: The price touched POC (5,000) and buyers strongly attracted it.
Confirm: Restore VAH and stay above it (accept return value).
Target: VAL (5,33x) as the most important profit taking/reaction area for tactical trading.
Scenario 4: Rejected at VAL, revised downwards
Status: Price tested VAL (5,33x) but failed to hold, showed rejection and closed below.
Plan: Prioritize profit taking on long positions; I consider short-term scalping upon confirmation of rejection.
Target: Back to the 5.12x liquidity zone, possibly deeper depending on acceptance.
in conclusion
The overall trend remains upward and the trend line remains upward. The volume profile highlights three main references: POC around 5,000 points as a fundamental value buy zone, VAH around 5,12x as a pullback buy zone, and VAL around 5,33x as key resistance for profit taking or tactical scalping sales. Anticipate retracement before expansion – only act when value is confirmed.
If you want a clear and structured XAUUSD scenario with POC/VAH/VAL and trendline logic, follow Brian’s channel so you don’t miss the next high probability arrangement.
