Gold Shows Spring Action
Yesterday, the gold market traded down through the support zone. Today, the market has traded back above the support zone. This is called a spring. Traders were able to sell the market down, flush out the weak holders and now the market should move higher. I have marked 4 of 5 points for a broadening triangle. The pattern calls for a new high.
The current action has taken the RSI reading to below 50. Markets in uptrends will often move into corrective phases that produce RSI readings below 50, but the RSI will turn back up from above 38. Today, the RSI is climbing. A close above 681.00 would be a positive sign.
The Aggregated TradeFlow chart is set to 5-ticks range (available in CQG 7.5) with my two custom studies plotted. Today, buyers are in control as the buy volume line (green) is peaking well above the sell volume line (red) of the TFCross study.
The current and short-term view using the TradeFlow chart is the 1-tick TradeFlow bars with the CQG ChartTrader. I have added the new CQG Order Ticker (available in CQG 7.5).
My two custom studies are set to look back periods of 5-TradeFlow bars. At the time this image was captured, the market was climbing. The green buy volume line is dominating the red sell volume line of the TFVCrss study indicating buyers coming in.
The short-term TradeFlow view can change very rapidly.