Gold Rises to Next Resistance Zone
Yesterday, gold started out with a bid, but sellers came in and the market closed lower. Today, weakness in the dollar has brought out buyers in the gold market, and now the price has tagged the upper side of the resistance zone formed the last trading day of February. If the market can close with an RSI reading greater than 62, then the trend is up.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view, and the CQG SnapTrader is displayed. Yesterday, buyers came in three times in the support zone. However, the RSI readings traced out pivot lows below 38 and that hinted at the market could move lower. Instead, the market rallied again, and the RSI closed above 62, signaling an uptrend. Currently, the RSI is peaking above 62, and that is bullish momentum.
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 lower. Sellers were dominating. The red sell volume line was peaking above the green buy volume of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.