Gold price action

Once again, gold is the big mover in today's charts.  We had a massive $37 drop from mid afternoon until the close of the COMEX.  I took a very good short entry and only held for 20 ticks and watched price fall 350 ticks from my exit.  The reason I took profits early was that I had taken 2 earlier losses and did not want to have 3 consecutive losses.  Drat.  Could have been trade of the year.

Anyway, as anyone following me, will know, that I use volume as my main supply or demand identifier, as most major intraday swings ends with climax volume (as identified by the better volume indicator on the time based charts).

Today, I will show why volume is important and even though the majority of major swings ends with climax volume, most climax volume bars do not lead to reversal of swings.  Quite a lot of them are trend continuation.

When I first started experimenting with volume and churn bars, I thought we would get a reversal everytime we got this combination, but I was wrong and paid very heavily for that error.  Nowadays, I wait to see a trend change and use the range bar chart to get a better entry.  The HMA and MACD stop me getting in to a trend change trade too quickly as I used to do and help me time my entries much better.

See today's chart from both GC and CL.