Here is 24 hour December Gold futures. Wednesday shows the price “slam”. What is unusual here is that after two bars, price rallies and “retakes” pre-slam levels in one bar. This is sign of strength and alert that a buy could be taken.
The “Buy Zone” is the area between the lowest high of the thirty minute bars and the low of the move. This area is marked on chart.
Price has an A-B-C correction down to this area Wednesday night. Thursday morning price shows a retest of these lows and forms a tight zone of closes – highlighted in green.
At 12:30 am, price has a 4 Close Reversal breakout up and close above the Buy Zone. This is the time to get long.
The Sell Zone will be the area between the previous pivot high and the highest low of the thirty minute bars. This was reached at 5:00 am. At 7:00 am price shows a 4 Close Reversal down. This is a sign to get out of longs if not already.
Lundy S. Hill