Hartle & Flow

Today, gold is trading back into the resistance zone. There was a hint yesterday that the market was going to retest the recent highs because the market closed up for the day, which also turned the RSI up. The other fact is that as the gold market moved sideways and out of the up trend channel, sellers could not break the market down. So, if a market cannot go down, then it is likely to turn up.

If the market closes up today and the RSI at the close is higher than 62, then the momentum has turned bullish.

The Constant Volume Chart (CVB) bar chart, which is set to 250 contracts along with the CQG SnapTrader, shows that the market momentum turned bullish this morning when the RSI started closing above 62.

I plot the volume study at the bottom of the chart. I use it to let me know when the CVB is nearing completion. I use the RSI to signal trading range and trending periods.

The current and very very short-term view using the TFlow chart, which is the 1-tick TFlow with the CQG SnapTrader and my two custom studies set to look back periods of 5-TFlow bars, indicates buying was occurring as the green buy volume line is peaking over the red sell volume line.

This entry was posted Wednesday, January 31st, 2007 at 9:08 am and is filed under TFlow, Gold Futures. You can leave a response, or trackback from your own site.