Today I want to share a different point of view on the gold market, that matches with my last analysis, so even more interesting in my opinion.
Idea
Gold is currently trading in a high volume range between 1976 and 2010. The levels are extracted from a self made indicator, but you can recheck how important these levels are by browsing through the chart by yourself.
Anyway this strategy is quiet simple. A move out of the range with a daily close should push the price towards the next highlighted high volume area.
TP Levels
Bullish: 2050
Bearish: 1904
I'll explain the SL settings when it comes to trading.
Why are high volume areas important?
Market markers are placing orders at strategic points to get a maximum of safeness and of course profit out of the market. If a candle closes with a volume peak, compared to other candles, a huge amount of money was invested to start a movement from a specific level. If the levels are revisited the possibility of market makers appearing again is high and the main trends starting from these levels.