- Technically the MKT is in a BEAR TREND and has produced a negative signal.
- On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. If the MKT produces a DP BREAKOUT signal early in the session, it should just "go" and not look back. Beware of any break in early negative structure, as a corrective rally up to resistance is a likely scenario. Anticipate a price "zone" around a major resistance point to FADE. Follow any corrective rise with a REVERSAL strategy.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off early in the session. Avoid DP FADE strategies even with confirmation, as this is more likely a plateau for a BREAKOUT SELL. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.
Today's PRICE MAP Performance for GOLD
Today in the GOLD futures market, we had an MC Value of -4 indicating a BEAR TREND market state. Our expectation is for the continuation of the bear trend and a new move lower. We had an early breakout from the DP which our market commentary tells us should just "go". Indeed this trade did just "go" and never looked back as it built negative structure and wasted no time in selling off to the UT1. By using the MC Value to define the technical state of the market, our traders were able to capitalize on the breakout from the Critical Range and get short Gold on the breakout from the DP.
