Gold Continues Lower
On Friday, the gold market closed below the support zone. Today, gold is trading lower and is hugging the demand line of the new down trend channel. The daily range today is narrower then Friday’s and that hints that the market is nearing a point where sellers cannot attract more of a following. The big negative is the RSI is below 38 on the current live reading. If the market closes and the RSI reading is below 38, then the trend is now down based on the negative momentum sign.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view, and the CQG SnapTrader is displayed. The market is stair stepping down making a lower series of falling resistance zones. The RSI readings are pegging below 38 and that is a negative sign.
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 taken, we can see that sellers were hitting bids as the red sell volume line was running higher then the green buy volume line of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.