Thursday, April 4, 2019

Market Review On Gold

It's been a while since the last post here so here I thought o post quickly review about my gold trade from yesterday. Firstly we will take a glance on the weekly chart to determine the current structure and then going through the lower periods to identify the trade location. Looking at the weekly chart we can observe a current balanced behavior in which the market is trading at the lower extreme. Additionally we can see a kind of head and shoulders pattern which will be more visible at the daily chart. Please note that the lower time frame such the 60 minute charts are back-adjusted.

With this in mind we can jump to the daily chart including yearly VWAP. We can observe that the market opened inside of the previous year's value and additionally trades inside of the value area form 2017 which seem to be accepted as extremes of the balance. Looking at the current VWAP's balanced slope we can see that we trading outside of the developing value with resistance at the DVAL (-1 Standard Deviation or Developing Value Area Low) and support from the 2017 VAL which explains the current rotational behavior of the market.

With this information we can directly go the monthly and weekly VWAP. The market is trading rotational below the previous month's value and found resistance the developing +1SD (VAH) level and the previous month's VAL close level which is obviously confluent with this week's developing VAH. With yesterday's swing failure it made perfect sense to short the market to the lower developing extreme as we tend to trade from extreme to extreme in a balanced market behavior.

Weekly VWAP

These levels were confluent with a previous VAH level on the daily VWAP perspective. Actually, today same thing. The market opened inside of today's value and testing the extreme with a rotational VAH short idea.

Including levels of confluence from the weekly and daily volume profiles.

So much as a warm-up of the art of posting.