Gold Continues the Sideways Trend
Yesterday, sellers gained the upper hand and the market traded down and slightly through the support zone. And, as is typical of trading ranges, buyers did come in and the market closed at the mid-point of the day’ range.
The RSI readings for the past three weeks are peaking below 62 and turning up from above 38, which signals a trading range with a bullish bias.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view.The CQG SnapTrader is displayed. Checking the chart, the recent extreme RSI readings were values below 38, which indicate downside momentum. And, the market is now tracing out RSI pivot lows above 38 and pivot highs below 62, which is trading range behavior with a bearish bias.
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 was trading down. Traders are hitting bids, which is indicated by the red sell volume line peaking above the green buy volume line of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.