Gold Stair Steps Higher
Today, the price of gold moved above the highs of last week, but has encountered sellers in the resistance zone formed the last trading day of February. If the market can close today with the RSI reading greater than 56, then the momentum is shifting upwards. However, if the market closes down, then the RSI readings are continuing to flash trading range status by peaking below 62 and turning up from above 38. These momentum readings are indicating a trading range, but 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 above 62, which indicate upside momentum. Now, the market has pulled back and the RSI has traced out pivot lows slightly below 38 and pivot highs below 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 working its way lower. Traders are hitting bids, as indicated by the red sell volume line climbing over the green buy volume of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.