- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade. UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.
Today's PRICE MAP Performance for GC
Wrap Up
A nice day for JS GOLD Traders as the market showed its hand early and performed to expectations. In a NEUTRAL DIGESTION market state, the expectation is for a sideways trade within the CRITICAL RANGE; however, with the R Level at the DIR, this changes the expectation of the state. The R at the DIR signals to traders that this market is "all wound up" and has the potential to create a directional move in either direction. The market began to build negative structure from the DIR at 2 am CT, creating lower highs and lower lows as it progressed toward the DP. After digesting at the DP for 4-5:30 am CT, the market gave traders the SELL DP BREAKOUT opportunity around 5:30 am CT with confirmation from the MOVING AVERAGE TACTIC. The optimal profit objective on this strategy is the DT2, which was attained with ease. Notice how the market maintained NEGATIVE structure throughout the entire trade allowing traders to hold onto their shorts with confidence. A good way to end the week on a profitable short from the DP BREAKOUT signal!
