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Did Gold Futures Just Hit Monthly Lows

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we’re going to take a look at gold futures. So we’re trying out a different format. So if you like this format, go ahead and give a thumbs up on this video or type into the question section box that you like, or you don’t like it. Just give us the feedback. The purpose of doing this is going to give us the opportunity to share with you a little bit better on the screen. So what’s going to happen is we have a picture and a picture, and what’s on my computer should take over the screen in just a few moments.

Okay, so let’s go ahead and jump right into it. Okay, so in front of us as the gold futures on a one hour timeframe. And one of the things that we want to do is we want to ask ourselves, a very important question, which is going to be, is this a low or is this the bottom? We had a massive sell off on gold futures, so is this the bottom? And the question is, how do you answer this? And I think it comes down to the philosophy, what do you believe in as an investor, as a trader? So for me, I believe that the markets tend to do the same things around the same price points. They form highs and lows at past highs and lows, same price points are same angles.

Is this the bottom?

So if I’m going to answer this question, “Is this the bottom?” All I’m really going to do is I’m simply going to zoom out a little bit. Give myself some candlesticks. And I’m simply going to bring in a blue line at the current price point and just basically work my way backwards and just say, hey is this an area of U-turn? And if the answer is yes, great. If the answer is no, then I’m going to recognize it. So what we have is you have a small area of U-turn. You have a little bit of a high here, a little bit of a low, but nothing too impressive.

So if we go back a little bit further and we ask ourselves, okay well why did we form U-turns over here? And bingo, it looks as if this is the level that the market is following. So you have an area where the market historically has formed highs. So here’s a high price. There’s a high price, here’s a high price, here’s a low price. There’s a low price and here’s a low price. So we have past highs becoming future lows.

So the question is going to be, are we to form a low right here? If it does, it’s going to be now. And if it does form a low, where could it go? Well, just like how we looked at past U-turns for future U-turns, same thing on the way up. So here’s a previous high. We work our way back and it appears that we have an area in the market where we form highs. And so this appears to where, if this consolidation range is going to hold, then ultimately we’re going to anticipate the market to U-turn bullish right now.

So what would a potential entry look like?

Well, all we really need is the market to create a bullish trend. And that looks like this. You have the market rally on the way up, and then retrace. And here’s the key, a low should form higher than this low. And that happens, more than likely the market’s going to rally. And then the market’s going to move in a wave, pull back again, and then the markets should rally up.

Now, this is a one-hour timeframe so each of these candlesticks represents one hour trading. And basically the distance is so great between the bottom blue level and the top blue level, it should create a bullish trend. Now this bullish trend, you’re going to begin to see that you have a low, a low, a low and a low, and these are going to be the opportunities. So I’m the type of person that says, okay if it’s going to U-turn, now is the time. So right now is the time that it’s going to U-turn. I’m not in the business of picking lows, so I’m not going to do that. I’m going to wait for the market to rally up, retrace and then I’m going to look for a counter trend line break bullish in the buy zone.

And so if I can get a counter trend line break bullish, I will look to buy over here. My stock will be below the previous low, and then my limits going to be just before resistance. And my plan is, buy low, profit high, buy low, profit high, buy low, profit high. This should be a little bit over a thousand ticks a movement when it’s all said and done. With an e-money contract, that’s a 10,000 US dollar buying opportunity. With a micro it’s about a thousand US dollar buying opportunity.

All right everyone, this is Josh Martinez. That’s this week’s idea. Looking at gold futures to see, will support hold? If it does, we’ve got a thousand tick rally. Let us know by liking this page or this video, or type into the question section box if you like it, or don’t like this new format. Josh Martinez, I’ll see you next week.

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