Here are ONE DOZEN negatives I see in-XAUUSD, and why I feel-Gold is a sell:
1. Multiple Sell Fractals in effect (red on chart).
2. jaws OPEN, feeding in down-trend. THIS IS YOUR DIRECTIONAL COMPASS.
3. (under chart) is in the shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias.
4. Phase energy (lower top indicator) is heading LOWER. The action is below the zero line. Decidedly .
5. DMI-(middle top indicator) has red (sell) as the dominant factor, and this action is gaining strength as the (black) DMI-line rises.
6. Prices are trading BELOW the . This is a sell signal.
8. Prices are trading below the Ki jun-Sen baseline of the . This is a sell signal.
9. Prices are trading below the thick red conversion line. This is a sell signal.
9. The red conversion line direction is heading lower. This is a sell signal.
10. The Ki jun-Sen baseline of the direction is heading lower. This is a sell signal.
11. The CHOP ZONE indicator (under chart) is red, indicating a down trend.
12. 5/34 (top) is heading lower.
My comments: very signs. Decision: do not go long-XAUUSD. If you are short, maintain position.
Good luck to you. Don.
The TREND, as indicated by CHOP and Directional Movement, is down.
Right now gold could zig-zag back and forth from $305 to $325, and that (to me) is not a low risk trade.
I just published a chart for SGEN with my own personal rules of engagement. Please look at this chart because the analysis for SGEN will work for gold.
Yes, the Ichimoku Cloud and candlesticks can be used to chart gold, but they will work better if you have an established trend. Don.