Gold is currently trading in Phase B of a bullish re-accumulation structure. Although I am uncertain as to which 'Scenario' (A or B on the chart), will play out, I am certain on the overall direction of the market based on the greater trend.
The greater trend is up, we are trading in a higher trading range. Price may test the top of the previous range and confirm a Phase C (which is the outcome described in Scenario B), ultimately price will eventually advance to the top of the trading range and eventually out into a mark up / price discovery.
From the perspective of risk to reward, the low volume area at the bottom of the 4 hour profile provide an excellent area to look for long trade entries if price does retrace and attempt to test the top of the previous trading range.
Currently watching gold looking for a long signal.
The greater trend is up, we are trading in a higher trading range. Price may test the top of the previous range and confirm a Phase C (which is the outcome described in Scenario B), ultimately price will eventually advance to the top of the trading range and eventually out into a mark up / price discovery.
From the perspective of risk to reward, the low volume area at the bottom of the 4 hour profile provide an excellent area to look for long trade entries if price does retrace and attempt to test the top of the previous trading range.
Currently watching gold looking for a long signal.