Sellers Come into Gold
Today marks the fourth attempt by gold to better the highs made on Monday within the resistance zone formed in late February, and the failure to move up has brought out the sellers. Now, the market is testing the demand side of the uptrend channel. Yesterday I said, “Generally, if a market cannot move in one direction after three days, it will reverse.” We see that today. Still, the RSI readings were peaking above 62. That indicates the trend is up.
The Aggregated TradeFlow chart is set to 5-ticks range (available in CQG 7.5) with my two custom studies plotted. This morning, the market is testing a support zone. The current readings from the TFVCrss study indicate that traders are hitting bids, so it looks like the support zone will not hold. The same look is on the individual TradeFlow bars below.
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 taken, the market was working its way lower. The red sell volume line is flashing peak readings above the green buy volume of the TFVCrss study, and that indicates traders are selling.
The short-term TradeFlow view can change very rapidly.