Our day trading strategy for gold futures begins with the
slowest timeframe the 233 range and we can see the big picture bull price
channel along with the PHOD and the PLOD. 
We use the previous swing-highs to find trend lines overhead as
resistance and we also see a much wider long term bear price channel that also
provides overhead resistance.

The faster 89 range chart shows us the bull price channel,
the inside day to outside day transition above and below the PHOD and the old double-bottom
that has since been violated and is no longer in play.

The much faster 34-range chart further defines our day
trading strategy which includes new trend lines from the swing-high and swing-low
and we will use those as the most important clues today.  As price rises I’m selling the price wedge highs,
and as price falls I’m buying the price wedge lows.

One thing we have noticed is the dollar index correlation
appears to have gold sitting on top of the PHOD just as the dollar index is
sitting on its PLOD.  We know the market
personality is going to need to improve on both the dollar index and the gold if
this market wants to break away from the PHOD. 
Remember we look for the first two tests of the PHOD or PLOD for trading
opportunities, so when we see the market trading on top, over and over again it
dilutes the effectiveness of the PHOD and PLOD and we’re getting that today on gold
futures.