Gold vs The Seido Trading Indicator

This is a price action analysis of Gold (GC Futures) for the last 5 months on a daily chart. The Seido indicator was used to assist in this process. 

* Numbers refer to bar numbers 

1. 84 follow through (FT) - traders bought below 80 or waited for a strong bull close like on 76
2. 75 FT - trader bought above 71 bull close
   
3. 67 FT but 3rd leg - ignore
4. 59 FT and 58 OB so traders bought below 58
   
5. 55 FT and now holding 61 range highs - traders bought a breakout above strong bar
6. 49-44 FT is a parabolic 3rd leg - irgnore and wait for 2 legs, 7 bar pullback
7. 27 FT and OB 26 - found buyers below OB or waited once double inside bars (expectation of failure at the high close 46 as already 3 or 4 legs up within this TR)
8. 21 big bar likely to get FT so 17 OB found sellers above
9. 13-12 FT so traders sold L1 entry below the very small doji 11
10. 7 is bad FT at low of pullback 41 so traders wait for a more reliable entry
    

FT = Follow through bar as highlighted by the Seido Trading Indicator
OB = Outside bar
L1 = A way traders refer to entries. See bar counting tutorial on youtube.

The Seido Trading Indicator is a technical analysis tool and does not constitute a financial product or financial product advice under the Corporations Act 2001 (Cth).

This article is for educational purposes only and does not constitute financial advice. Trading involves significant risk. Past performance is not indicative of future results.