In the chart above, I display a daily chart of gold at the top, followed by the graphical 90-day correlation coefficients between gold and various asset classes. I do this kind of analysis at times when I feel a major inflection point is incoming. It is very handy when everything is moving quickly, since you can make the right choice after the dust settles....
It has been said ever since people were allowed to trade to "trade with the trend" and "the trend is your friend". Although there is logic to this the market unfortunately doesn't always trend and in fact spends most of its time in ranges and channels.
The market environment changes all the time and it's why so many traders struggle with their trading because...
Taking a look at the price action on Gold, we saw a high probability trade setup for a potential buying opportunity.
We saw many factors all lining up together which always helps increase the probability for you as a trader to get a good idea what direction price could go next.
As you can see from the 30 Minute chart, we saw Gold in a descending channel until...
