Here is a quick analysis of what happened to Gold after Friday's NFP. Asian and London Session.
NFP caused this large drop in the price of Gold on Friday. The close of the second candle after the drop becomes an important price point called A.
Price falls again and consolidates in a range at this 1775 level.
The first proper breakout happens with a large bullish engulfing which covers the entire span of the ranging box. It is followed by a hanging man, which in this situation tells us that the bears lost their strength. This is followed by the London open which pushes the price back up to A before dropping back down into the box.
Another bullish candle pushes back up to A. There is a slight retracement before price breaks above and closes above the line which is the close of A.
The red line is the POC (Point of Control). This is the price at which most trading has happened.
I inferred several things from this line:
-this is a significant support and resistance
-many positions are entering here
-overall fundamentals support a bullish bias for Gold
-therefore, I'm assuming many of these are buys
I had a buy from just below the break of the box to just below A after the consolidation.
NFP caused this large drop in the price of Gold on Friday. The close of the second candle after the drop becomes an important price point called A.
Price falls again and consolidates in a range at this 1775 level.
The first proper breakout happens with a large bullish engulfing which covers the entire span of the ranging box. It is followed by a hanging man, which in this situation tells us that the bears lost their strength. This is followed by the London open which pushes the price back up to A before dropping back down into the box.
Another bullish candle pushes back up to A. There is a slight retracement before price breaks above and closes above the line which is the close of A.
The red line is the POC (Point of Control). This is the price at which most trading has happened.
I inferred several things from this line:
-this is a significant support and resistance
-many positions are entering here
-overall fundamentals support a bullish bias for Gold
-therefore, I'm assuming many of these are buys
I had a buy from just below the break of the box to just below A after the consolidation.