Volume indicator + price action = success.
Very very simple stuff. Yesterday's drop on Gold was so predictable when you place the variables together. Gold could not pass the 1733 zone marked on the chart, multiple wick rejections to the upside. This alone, shows there is a significant bearish presence in the market, and equally a lack of bullish presence. This signals me to look at volume in the market. Volume had been building from 11am London session with bulls trying to push the market upwards. They failed, and thus the bearish volume appeared. The bears successfully formed a strong rejection candle to the downside with volume momentum behind it - this is your entry.
Target a 1:3 (my preference) and you have a high probability trade with more than enough confluence behind it.
Also, if you aren't using session splits on your charts I would highly recommend. They make it a lot easier to see the direction of the market on that particular day.
Anyway, future direction.
I am looking for the market to retest this 1733 area forming a nice double top before heading to test the recent lows again.
Nice one, bye.
Very very simple stuff. Yesterday's drop on Gold was so predictable when you place the variables together. Gold could not pass the 1733 zone marked on the chart, multiple wick rejections to the upside. This alone, shows there is a significant bearish presence in the market, and equally a lack of bullish presence. This signals me to look at volume in the market. Volume had been building from 11am London session with bulls trying to push the market upwards. They failed, and thus the bearish volume appeared. The bears successfully formed a strong rejection candle to the downside with volume momentum behind it - this is your entry.
Target a 1:3 (my preference) and you have a high probability trade with more than enough confluence behind it.
Also, if you aren't using session splits on your charts I would highly recommend. They make it a lot easier to see the direction of the market on that particular day.
Anyway, future direction.
I am looking for the market to retest this 1733 area forming a nice double top before heading to test the recent lows again.
Nice one, bye.