Trade analysis
Gold Sideways Channel and Demand Zone Explained | 21 October 2026
By Alan Solarsh · 21 October 2026
Gold has moved sideways since 28 September, and Alan marks a demand zone.
What the chart shows
A red candle opened above a demand zone, an area where buyers have appeared before. The moving averages are converging, meaning the average price lines are tightening. In a sideways channel, resistance is a level where price keeps turning back.
Knowing which zones have already been used keeps your chart clean and easy to read. A short daily check like this fits around a day job.
Key points from the video
- A red candle opened above the demand zone. A demand zone is where buyers have appeared before. Alan says opening above it means the zone has been mitigated, or used up.
- Alan points out the moving averages are converging on the chart. Converging means the average price lines are tightening toward each other. He says price also has support from the moving average.
- Alan marks a level where price keeps reaching and then reversing. Resistance is a level where price keeps turning back until a breakout happens.
- The sideways channel began on 28 September and has lasted weeks. Alan says the breakout direction is unknown, so he waits and watches.
- Alan watches a fractal, which is a small turning point on the chart. He wants that fractal broken, unless a new one forms first.
The Learn to Read a Forex Chart course teaches this step by step. You can start for free and learn at your own pace.
Learn to read a chart, start freeSee the robotQuestions about this chart
What does a demand zone mean on a gold chart?
A demand zone is an area where buyers have appeared before. Alan says a red candle opened above this one, which mitigates it.
What do converging moving averages mean on a chart?
Converging moving averages means the average price lines are tightening together. Alan sees them converging on Gold and waits to see what price does.
How long has Gold been in a sideways channel?
Alan says the channel began on 28 September, so it has lasted weeks. Price keeps turning back at resistance until a proper breakout happens. Alan says the breakout direction is still unknown.
Read next
- Learn To Read A Forex Chart, the free course
- All trade analysis videos by Alan Solarsh
- The previous day's chart analysis
- Forex education articles
- See the Forex Robots
Forex trading carries risk. This is education from my own chart, not advice or a signal.