GOLD: Day 3 breakout traders long up high, NFP day!Hello everyone and welcome back to my channel, please don't forget to support my hard work, and feel free to share your observations if you have any, sharing is the key of improvement!
Gold, since the beginning of the week is creeping breaking higher, potentially trapping volume up high for a great, amazing sell off by the end of the day, completing the weekly pump and dump scenario.
To understand better the logic behind this forecast, let's analyse the week and remember two very important things!
1. I'm not trying to predict the market, my observation is not regarding any direction move, but I'm underlining the SETUP I'm looking for, more probable and profitable for the day.
2. I would never take any trade before NFP release!
Let's see deeply the week:
Monday, opening range of the week, established the high low of week, placing a peak formation high and a peak formation low.
Tuesday, eventually broke higher and dumped back down into Monday's high, consolidating just above that level, typical of trend trade template.
Wednesday a long setup went through the high of week (HOW) and as well broke higher the previous HOW, the trend trade setup was identified as a dump and pump in the day itself.
The day closed back inside the daily range, and a peak formation high was in place.
Thursday, the market pumped again into the HOW, breaking higher and triggering for the third time breakout traders long in the market, closing the day out of balance (out of the previous weekly boundary).
Today, Friday, the market retested again the HOW, essentially is still in breakout and still trending higher, but this kind of behaviour, where the price action is mostly "creepy" and not really strong trending, is very similar to past scenarios already happened where NFP cleaned all the traders long which they didn't take profit or still holding hoping for more profit.
How can you take advantage of this?
I want to see the market consolidating up high till the NFP release at 8:30am NYT, looking for a sell high opportunity.
If not, because the market can be really volatile during this day, after the news I can be looking for a short continuation.
What about a long thesis? Can the market keep going higher?
The answer is, absolutely yes, the market can explode in the long direction, forecasting is just the same as gambling.
So, the real question is, which setup do you have and which setup are you hunting!?
In the next update, I will share the potential 2 setups for the day
Gianni
