Gold Continues to Climb
Yesterday, gold closed higher, which pushed the RSI readings above 56, signaling that the momentum is shifting upwards. Today, the market is probing the resistance zone formed the last trading day of February. Currently, the market has stalled at yesterday’s high.
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 market has held below the resistance zone formed yesterday. The recent extreme RSI readings were values above 62, which indicated upside momentum. Now, the RSI readings are tracing out pivot lows above 38 and slightly above 62. The trend status is a trading range with a bullish 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 moving sideways. Both the green buy volume and the red sell volume line of the TFVCrss study are forming peaks, but then the market reverses. This is trading range behavior.
The short-term TradeFlow view can change very rapidly.