A constant theme in our 2020 videos has been the idea of Gold being a leading indicator.
It helps us confirm our signals on the indices, and gives us clues as to what’s likely to come. Today was no different.
Some previous research on patterns in Gold:
- Why Gold Has Been the Better Market to Trade (from -$800 to +$180)
- 5 Observations From Recent Market Volatility
In this video, we’ll walk you through (during live-market hours), what we’re seeing and how we’re evaluating whether or not to take a trade.
We had a setup in the NQ futures – an opportunity to go short, which was near our Volatility Box edge. We used the relative volatility of GC to give us clues, as to whether or not we were likely to see any kind of follow-through.
For scalpers, you may see the same chart in a completely different light. For example, the NQ futures levels did offer you several nice bounces into the 9600 support zone.
However, for us – we were looking for a minimum follow through of at least ~17 NQ points ($240).
The Volatility Box is really what makes deciphering relative volatility so easy to do, at a glance of the charts.