demonstrated a significant and sharp drop in the price and broke the previous level of support. This is an excellent bearish signal. Moreover, the downward movement has been supported by a large volume, which only reinforces its importance. Given all of the above factors, we should give preference to the short positions on .

volume gold

However, sales can only be opened after a confident and rapid breakdown of the new support level of 1463.00. The movement must be supported by a large volume, which will insure us from a false breakdown. Stop the loss should be put just above the breakout volume bar. The potential of the transaction is more than 300 points.

sell gold

As for market sentiment, this technical indicator fully confirms our trading scenario of opening short positions on, as most retail traders are in long positions (trading against the “crowd”).


Review prepared

Andrey Olshanetsky

especially for ICMarkets

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