FX.co ★ Jackroay | XAU/USD, GOLD

XAUUSDm M5 — FVG + Order Block Relationship and Market Structure Analysis 1. FVG + Order Block Relationship According to my chart, XAUUSDm on the M5 timeframe is showing a very clear relationship between FVG and Order Block zones, with price moving from a lower demand area toward a major supply area before facing strong rejection. The chart shows that the lower part around 4346–4349 contains a visible Order Block (Demand), while several FVG zones are positioned above and around the bullish expansion. These areas are important because they represent the imbalance created during strong directional movement. I can see that price first spent considerable time consolidating around the lower region before producing a Strong Bullish Move and expanding upward. During this expansion, the candles created areas where price moved quickly, leaving inefficient price delivery that is represented on the chart as FVG. The relationship becomes more important when price later returns toward these areas because an FVG can act as a reaction or continuation zone while an Order Block can provide a broader structural area. On my chart, the demand Order Block is positioned underneath the bullish movement and therefore represents the foundation from which the upward expansion developed. Above it, the FVG zones identify areas of imbalance created during the movement toward the upper structure. At the same time, the large Order Block (Supply) near the 4361–4363 region is acting as the major opposing zone. Therefore, the current structure is not simply bullish or bearish; it is a movement between demand, imbalance, liquidity, and supply. 2. Final Outlook — Bullish Structure at Major Supply The broader structure visible on my chart developed with a bullish recovery from the lower demand region and continued upward through several intraday resistance areas. After price spent time near the lower consolidation, buyers gradually increased pressure and eventually produced a strong upward sequence. The bullish candles pushed price from approximately the 4346–4349 area toward the 4355–4359 region and eventually into the major supply zone around 4361–4363. This movement demonstrates that buyers were able to regain control after the earlier bearish decline. However, the important point is that the bullish structure has reached Major Supply rather than remaining in open space. I would therefore read the structure as bullish while recognizing that the current location is technically sensitive. The upper Order Block (Supply) has already produced a reaction, and the recent candles show that price struggled to maintain the highs around 4363–4365. The long upper wicks around this region show rejection from the higher prices visible on the chart. A bullish structure at supply does not automatically mean immediate continuation; instead, the market needs confirmation through another BOS above the supply area. Until that happens, the upper zone remains an important decision point. From my chart, the bullish move remains structurally visible, but the reaction from supply has temporarily interrupted the momentum. 3. Bearish Rejection Scenario — Supply Reaction The Bearish Rejection Scenario is clearly visible after price entered the upper Order Block (Supply). Price climbed strongly into the 4361–4363 region and produced multiple candles with upper wicks, showing that higher prices were being rejected. Following this rejection, a sequence of bearish candles developed and price moved sharply downward through 4359, 4356, 4354 and toward the 4352–4350 region. This is the most important bearish reaction visible on my chart because the selling did not remain limited to one candle; instead, several bearish candles followed one another and produced a substantial retracement. I interpret this as a supply reaction because the strongest rejection occurred directly inside or around the marked supply zone. The bearish pressure then pushed price away from the upper area and toward lower liquidity. However, the chart does not yet show that the entire higher-timeframe bullish structure has necessarily been erased. The present bearish movement can still be treated as a retracement unless price continues to break important lower structural points. The key observation is therefore the origin of the rejection: sellers became active after price reached the major supply region. If price continues producing lower highs and lower lows on M5, the bearish reaction can extend toward the lower FVG and demand areas. Conversely, if selling loses momentum around the marked lower zones, buyers may attempt another recovery. 4. Bullish Continuation Scenario — BOS Above Supply The Bullish Continuation Scenario on my chart depends primarily on a BOS Above Supply. The upper Order Block (Supply) around the 4361–4363 region is currently the major structural obstacle. Price has already reached this zone once and was rejected, so another bullish attempt would need stronger confirmation than simply touching the area. A decisive movement through the supply boundary, followed by acceptance above it, would change the immediate structure because the previous supply ceiling would no longer be controlling price in the same way. The chart specifically identifies BOS as the confirmation terminology, and I would use that structural break rather than assuming continuation simply from bullish candles. If buyers return from the lower region and push through the recent highs, the first important observation would be whether the candles can sustain themselves above the supply zone. A temporary wick above supply without continuation would not provide the same structural confirmation as a sustained break. I can therefore see two different possibilities from the chart: rejection from supply followed by another retracement, or a successful BOS that opens the way for renewed bullish momentum. The existing bullish leg gives buyers a structural reference, but the supply zone remains the main confirmation point. Until price establishes itself above that region, the bullish continuation scenario remains dependent on the chart’s next structural development. 5. Current Price Action — SELL SIDE LIQUIDITY (SSL) The Current Price Action is positioned below the major supply reaction and is moving toward the area marked as SELL SIDE LIQUIDITY (SSL). After the sharp bearish displacement from the 4361–4363 supply region, price moved lower and eventually approached the 4352–4350 area. The chart marks SSL around the lower-right side, indicating that liquidity exists beneath the recent price structure. This is important because price can move toward visible liquidity before deciding whether to continue lower or reverse. I can see that the recent candles are smaller compared with the earlier bearish expansion, which suggests that the immediate selling pressure has slowed somewhat as price approaches the lower area. However, the direction remains bearish in the most recent visible sequence. If SSL is taken and price continues to close below the nearby structure, the bearish movement can potentially extend toward the lower FVG and eventually toward the Order Block (Demand). If instead price sweeps the liquidity and quickly recovers, that reaction would become important because it could indicate that sellers have completed their immediate liquidity objective. Therefore, I would not treat SSL simply as a fixed support line. On my chart, it is better understood as a liquidity area that can attract price and create the next structural reaction. 6. ORDER BLOCK (SUPPLY) — Major Selling Zone The ORDER BLOCK (SUPPLY) is the most prominent upper zone on my chart and is positioned around the 4361–4363 price region. This zone became significant because the preceding bullish movement entered the area and then encountered strong selling pressure. The chart shows a broad shaded supply region extending across the upper section, making it different from the smaller FVG boxes. The importance of this Order Block comes from its relationship with the preceding market structure: price rallied into the zone after a substantial bullish expansion, but the subsequent candles could not maintain the same upward momentum. Several upper wicks appeared around the zone before the market turned downward. I therefore consider this the main area where buyers and sellers are currently in conflict. If price revisits this Order Block, I would watch the candle reaction carefully rather than assuming that the zone must automatically hold. A strong rejection would reinforce the bearish reaction already visible on the chart, while a clean BOS above the zone would weaken the current supply reaction. The upper Order Block therefore acts as the primary decision area for the next major directional move visible from this M5 chart. 7. STRONG BULLISH MOVE — Momentum Expansion The STRONG BULLISH MOVE is one of the clearest features of the chart. Before this expansion, price spent a prolonged period fluctuating around the lower 4343–4349 region. The candles were relatively compressed, with repeated attempts to move higher and lower without a sustained directional expansion. The situation changed when buyers began producing consecutive bullish candles and price accelerated upward through the 4350 area. The movement then continued toward 4354, 4356, 4359 and ultimately into the major supply region near 4361–4363. This is what gives the move its momentum-expansion character. The candles became larger and the progression became more directional compared with the preceding consolidation. Such a movement also explains why FVG zones are visible afterward: rapid price expansion can leave areas where price does not trade evenly. From my chart, the bullish expansion is the main reason the overall recovery structure became bullish before reaching supply. However, momentum expansion eventually met opposing liquidity and the upper Order Block. The later bearish reaction demonstrates that momentum can change after reaching a major structural zone. Therefore, I see the strong bullish move as the driving leg that created the current bullish structure, while the present bearish move represents the reaction from the destination zone of that expansion.

8. FVG — Fair Value Gap Zones Several FVG — Fair Value Gap Zones are visible on my chart and are distributed around the bullish and bearish movements. The blue-marked FVG areas identify locations where the rapid candle expansion created an imbalance in price delivery. One FVG appears in the upper-left portion near the earlier bullish activity, while additional FVG zones are visible around the middle and lower portions of the chart. These zones are important because they show where price moved with speed rather than developing a balanced sequence of candles. The middle FVG around the bullish expansion is particularly relevant because it sits between the lower demand area and the upper supply region. Another FVG is visible after the bullish movement, closer to the retracement area, providing a reference for potential price interaction. I would not assume that every FVG must be completely filled. Instead, the chart shows them as areas where price may react, rebalance, or continue depending on surrounding structure. Their significance increases when they align with Order Block and market-structure information. On this chart, the FVG zones should therefore be read together with the BOS, MSS, SSL and Order Block markings rather than independently. The combination gives a clearer picture of where price has moved inefficiently and where a future reaction could occur. 9. ORDER BLOCK (DEMAND) — Major Buying Zone The ORDER BLOCK (DEMAND) — Major Buying Zone is located in the lower portion of the chart around the 4346–4348 region. This zone is especially important because it is positioned close to the base from which the strong bullish expansion developed. Before the upward movement, price spent a considerable period consolidating around this lower area, repeatedly testing the region and creating several small candles and wicks. Eventually, buyers gained enough momentum to push price away from the zone and start the strong bullish expansion. This makes the demand Order Block a major reference point for any deeper retracement. If the current bearish reaction continues, I would watch how candles behave when they approach this area. A rejection from demand could provide evidence that buyers are still defending the origin of the bullish move. On the other hand, sustained bearish closes through the zone would weaken its immediate role and could indicate that the bullish expansion has lost its original foundation. The demand zone is therefore not merely a horizontal support level; on my chart it is connected directly with the market’s previous accumulation and subsequent expansion. Its relationship with the lower FVG also makes the area more significant because both concepts identify inefficient or important price areas around the same broader region. 10. MSS — Break of Structure The MSS — Break of Structure marking on my chart identifies the point where the previous directional sequence changed and a new structural phase began. The MSS is positioned around the transition following the earlier bearish movement. Price had previously moved downward from the upper region and then began forming a base around the lower area. After consolidation, the market started to produce higher movements, and the structural break became important because it demonstrated that the previous bearish sequence was losing control. I use MSS as a structural concept rather than simply interpreting one candle as a signal. The important part is the relationship between the previous swing structure and the subsequent displacement. The chart shows that after the MSS area, bullish candles became more prominent and price eventually developed the Strong Bullish Move. This sequence connects the MSS directly with the later bullish expansion and the FVG zones created during that expansion. At the same time, the current bearish reaction from supply should be monitored for another structural change. If the bearish movement breaks important internal bullish structure, a new bearish MSS could become relevant. Until such a development is clearly visible, the chart still contains the bullish structure created after the original MSS, although price is currently retracing from supply. 11. Liquidity and Structural Reaction Liquidity is a major part of the price movement visible on this chart. The market first spent time around the lower region, where repeated highs and lows developed before the strong bullish expansion. Price then moved upward and eventually reached the upper supply area, where liquidity and selling pressure were encountered. After the rejection, the market began moving toward lower levels and the chart specifically marks SELL SIDE LIQUIDITY. This creates a logical relationship between the upper supply and lower liquidity: price expanded upward into a major selling area and subsequently reversed toward liquidity below. I can see that the recent bearish candles have already moved significantly away from the supply zone, meaning the market is currently in the reaction phase rather than the initial supply-test phase. The lower liquidity area can become an important destination for this retracement. If price takes SSL and quickly reverses upward, the resulting reaction would need to be studied alongside the FVG and demand Order Block. If price breaks below liquidity with strong bearish displacement, then the lower demand zone becomes the next major area visible on the chart. Thus, liquidity should be viewed as part of the sequence rather than as an isolated horizontal level. 12. Relationship Between Momentum, FVG and Order Blocks The chart provides a clear sequence connecting momentum, FVG and Order Blocks. Price initially developed around the lower ORDER BLOCK (DEMAND), then produced a STRONG BULLISH MOVE — Momentum Expansion, which created FVG — Fair Value Gap Zones along the path upward. The bullish movement eventually reached ORDER BLOCK (SUPPLY), where the market encountered selling pressure and reversed. This sequence is important because it shows how different chart concepts interact. The demand zone provided the base, momentum provided the displacement, FVG represented the resulting imbalance, and supply became the opposing reaction area. Following the supply rejection, price moved downward toward SELL SIDE LIQUIDITY and the lower imbalance areas. I therefore would not analyze each marking separately. The strongest interpretation comes from the complete chain: demand → momentum expansion → FVG → supply → rejection → SSL → possible demand reaction. If the market begins recovering from the lower FVG or demand area, the same sequence could potentially develop in reverse. Conversely, if bearish momentum continues and the demand zone is broken, the bullish structure created by the earlier expansion would become increasingly vulnerable. The chart therefore presents a complete market-structure cycle within the visible M5 price action. 13. Bullish Recovery From Lower FVG and Demand A bullish recovery scenario can develop if the current bearish retracement reaches the lower FVG or ORDER BLOCK (DEMAND) and produces a clear reaction. The chart shows that the lower area around 4346–4348 previously acted as the foundation for the upward expansion, while the nearby FVG marks an imbalance created during the subsequent movement. If price reaches these zones and sellers fail to continue downward, I would look for evidence of renewed bullish momentum through stronger bullish candles and a recovery of nearby internal structure. The important point is that a touch alone would not confirm a bullish reversal. The reaction needs to develop through price action and structure. A bullish response from the lower zone could bring price back toward the intermediate FVG areas and eventually toward the upper supply region. If buyers again approach 4361–4363, the market would face the same major decision point. A rejection would maintain the supply reaction, whereas a BOS Above Supply would provide a different structural development. Therefore, the lower demand and FVG areas are important because they can determine whether the current bearish movement remains a deeper correction or becomes a broader bearish structural phase. 14. Final Outlook From the Complete M5 Chart My final reading of the complete chart is that XAUUSDm M5 has experienced a strong bullish structural recovery from the lower ORDER BLOCK (DEMAND), followed by a significant momentum expansion and movement through multiple FVG zones into the major ORDER BLOCK (SUPPLY). The reaction from supply has produced a clear bearish displacement, and current price action is moving toward the marked SELL SIDE LIQUIDITY. The most important areas from this chart are therefore the upper supply around 4361–4363, the recent rejection structure around 4352–4359, the FVG zones created during the expansion, SSL below the recent price action, and the lower demand zone around 4346–4348. I would read the immediate structure as bearish after the supply rejection, while the broader bullish structure remains relevant until important lower structural support is decisively broken. For bullish continuation, the chart requires a recovery followed by a confirmed BOS Above Supply. For bearish continuation, sustained selling through SSL and the lower demand/FVG region would provide stronger evidence that the retracement is becoming a deeper structural decline. In this chart, the most useful approach is to follow the interaction between FVG, Order Block, MSS, BOS and liquidity rather than relying on one candle or one level. The price is currently positioned between the upper supply reaction and lower liquidity, making the next structural reaction particularly important.