Gold Moving Sideways
While the market did close higher yesterday, the close was back within the resistance zone, and today, sellers have come into the market. The price action today has broken the demand line of the upward trend channel (TC A), but is holding above the demand line for the next trend channel (TC B). The market is also holding above the support zone.
The RSI readings are indicating a trading range with a bullish bias.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view, and the CQG SnapTrader is displayed. Currently, the recent extreme RSI readings were values below 38, which indicate downside momentum. And, the market is stalling at the resistance zone, which used to be a support zone. A trading range will be signaled if the RSI begins to close with pivot lows 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 taken, the market was trending lower. Sellers were hitting bids. The red sell volume line is peaking above the green buy volume line of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.