Volume-Based Market AnalysisUsing Indicators:
Smart Money Support/Resistance and ATAI Volume Analysis with Price Action V1.03
Analytical Configuration
This analysis combines two advanced indicators. The calculation period for both has been set to 52 bars, based on a lower timeframe of 1 second (1S), which provides 72 valid LTF candles. This configuration ensures that volume-based calculations remain within the valid data window for maximum accuracy.
Current Market Context
On the latest candle, a Bear Trap Risk signal appeared right after detecting an OverSold condition. This combination usually suggests weakening selling pressure near the end of a bearish leg and indicates the potential for buyer reaction. At that candle, both buy and sell volumes reached their highest values within the 52-bar window, but sellers maintained a slight advantage — approximately 260K sell volume versus 210K buy volume. This dominance by sellers in the OverSold zone reinforces the concept of volume exhaustion
Key Zones
• Support Zone: 1134 – 1163 USD
• Resistance Zone: 1198 – 1217 USD
Price is currently oscillating between these two zones. Based on the data, a short-term move toward the lower edge of the support zone is possible. If strong support holds, a rebound toward the upper boundary of resistance can be expected to retest or potentially break above it.
Structural Observation
In previous data, ATAI identified a Bull Trap at the resistance zone, which initiated the current bearish leg. Now, the emergence of a Bear Trap Risk near the support boundary is an intriguing reversal signal. If this trap functions similarly to the previous Bull Trap but in the opposite direction, we could expect a movement from the support base toward the resistance ceiling in the upcoming phase.
Summary
According to both indicators’ volume-based calculations, this is the most probable short-term scenario. However, this analysis is purely technical and volume-driven, and does not constitute any form of financial or investment advice.
