In today’s update, I look at the Gold market, specifically the GC gold June futures instrument. I see a gold setup trade opportunity using volume that is really exciting! Check it out:
When you use volume, and understand price action, you have a better feel for where price will be and where it is heading. That’s what I saw today with gold.
From the charts
From the 60min chart, I see GC coming up into a supply zone around 1740, where it has been rejected several times before with large selling pressure. This same zone was hit today, rejected, and is now setting up for a great trade opportunity.
From the 3min chart (my personal favorite), I see a bullish run up to the 1740 area, right where volume signaled this range as a potential reversal area. This was confirmed with the 6min and 12min charts. So taking a low risk short entry in this area, with stops just outside the 1742 peak would provide a high reward opportunity of 5:1 or even 10:1.
The Hawkeye Perspective
When you trade with volume and price, you can better identify these types of low risk, high probability trade setups. You know ahead of time the potential for the setup, and you are prepared to take the trade know that probabilities are on your side. So learn this and other strategies when you become a member of team Hawkeye. Get your very own copy of our amazing tools using the links provided below, and Learn to trade the Hawkeye way.