Gold Challenging Near-Term Resistance Zone
This morning, Gold is continuing to advance after testing the support zone on the daily chart. Now, the market is trading just below the resistance zone from last week. I still lean towards the RSI readings as flashing bullish momentum; therefore, I expect the resistance zone to be taken out.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view, and the CQG SnapTrader is displayed. Today, the recent extreme RSI readings are values above 62, which indicate good upside momentum. A trading range is flashed when the RSI readings began to peak below 62. I left in the resistance zone from 3/13 (colored blue). Notice how the market was turned back. However, the RSI readings did not close below 38. The RSI readings indicated bullish momentum by peaking over 62 and turning up from above 38.
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 readings to signal trading range and trending periods.
The current and short-term view using the TradeFlow chart, is the 1-tick TradeFlow bars with the CQG ChartTrader. My two custom studies are set to look back periods of 5-TradeFlow bars. At the time this image was captured, the market is pulling back. Traders are hiting bids. The red sell volume line the green buy volume line was edging out the green buy volume line of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.