TradeCompass for Gold Futures – January 23, 2025
Current Price: $2,758
TradeCompass helps you navigate the gold futures market with clear entry and exit points. Here’s today’s analysis to maximize your trading opportunities.
Bullish Scenario
- Entry Above: $2,761 (Price needs to be above $2,761 to be considered bullish)
- Profit Targets:
- $2,763.3 (Quick target aligned with yesterday’s Value Area Low)
- $2,765.9 (Positioned near yesterday’s VWAP and today’s Value Area High)
- $2,767.7 (Just below yesterday’s Point of Control)
- $2,770.9 (Extended target near yesterday’s Value Area High)
Bearish Scenario
- Entry Below: $2,756 (Price needs to be below $2,756 to be considered bearish)
- Profit Targets:
- $2,755 (Quick profit target)
- $2,752.4 (Near January 21st’s Value Area High)
- $2,749.3 (Deeper bearish momentum target)
- $2,745.4 (Aligned with two-day ago VWAP)
- $2,741.2 (Near January 21st’s Point of Control)
- $2,735.5 (First lower standard deviation of two-day ago VWAP)
- $2,727.6 (Extended target near January 21st’s Value Area Low)
Benefits of Using Volume Profile and VWAP
- Precision in Forecasting:
- Volume Profile identifies important price zones (Value Area High/Low) for potential support and resistance.
- VWAP shows the average traded price, helping you understand market sentiment.
- Identifying Key Levels:
- These tools highlight areas where price changes might occur, crucial for informed decisions.
- Risk Management:
- Volume Profile and VWAP deviations help you place stop-loss orders to manage risk.
- Early Trend Detection:
- VWAP and its deviations adjust to trading activity, allowing you to spot momentum shifts early.
- Adaptable Across Timeframes:
- These tools work for various trading strategies (intraday, swing, long-term).
Key Notes
- Stop Management: Move your stop-loss to your entry point after the first profit target is reached to secure gains.
- Partial Profit-Taking: Take profits gradually at each target level to capitalize on market movements.
- TradeCompass as a Guide: Use the provided thresholds and levels as a starting point, adapt your strategy based on real-time market behavior.
Disclaimer
This information is for educational purposes only and should not be considered financial advice. Always trade with caution and proper risk management. Visit ForexLive.com for additional insights and updates.
Trade wisely!
This article was written by Itai Levitan at www.forexlive.com. Source