From a technical perspective, when price compresses in a “wedge” pattern and finally breaks, there’s usually some sense of follow-through…
At least to the next closest area of support or resistance in the near term.
Well, that’s exactly what happened to gold futures (GC). Let me show you on the chart just how it played out.
The Technical Picture
I noticed price action was tightening, which was my clue to keep an eye on it.
Over the course of approximately 12 trading days, you can see price continually became tighter and tighter as it compressed into the orange “wedge” pattern above.
On Friday, April 8, the price action finally popped both on an intraday basis and on a closing basis…
A Quick Win
Now this is really too small of a trade for me to consider, but that doesn’t discount its validity.
This is, in fact, actionable information. But it’s more valuable to someone who’s more of a short-term trader than I am. I’m a swing trader and long-term investor.
This was a perfect setup for a day trader or someone who was looking to simply buy the pop, place a stop below the candle that broke the wedge and a target at the nearest area of resistance located at approximately $1,971.
This easy-to-identify, low-risk, high-probability setup offered roughly 250 ticks in approximately 24 hours.
It was a great little setup with a great little outcome!
Congratulations to anyone who had an eye on this and was able to pocket some profits!
Trade Like an Insider
Now, if you’re more of a swing trader like me, you might want to consider checking out the work of my colleague and expert trader Ross Givens.
Ross’s premium Insider Effect research service focuses on corporate insider buying.
These insiders are corporate CEOs, CFOs, executives and board members either purchasing or selling shares in their own companies.
These folks have a footing of knowledge that Main Street investors simply do not.
He’ll cover his strategy for swing trading alongside corporate insiders and generating potentially massive gains as a result.
Rules to Live By
“Life becomes easier and more beautiful when we can see the good in other people.” Roy T. Bennett
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.