The price of Gold auctioned up into a key volume profile level. In this video we highlight a scalping opportunity from this key level.
Watch the video to learn more…
GOLD Scalp Trading Example Analysis
The price of Gold remains bearish as the FOMC will look to hike interest rates more aggressively. Recent history shows us that the price of Gold falls when the Fed talks of aggressive hikes. This is due to the hikes affecting the inflation rate. In theory as interest rates rise, unemployment rises which in turn creates less demand for goods and services. This then has a direct impact on the inflation rate. Gold has been known to be a hedge against rising inflation so, if this is controlled we could see Gold fall further.
The price of Gold has auctioned up to the EU Volume Profile Value Area High and Point of Control. This was an area I felt that sellers could come back into the market after the rally. When the price comes to one of these levels pointed out by the volume profile, it is important to wait for price action or sellers/buyers to turn up. In this situation the sellers pushed price lower from the value area high offering an opportunity if the price were to break trend.
The price did change, showing us that sellers were more involved in the market and we looked for the price to trade down to the next point of interest. It is important when scalping the market to take profits at the first resistance level. This was the previous highs in this example, we took off the position here with stops at breakeven on the second position.
Did you see our USDCHF Analysis? You can see it here.
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