just touched 878 near resistance/hod <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1740111>
At the point of fibo 23.6 + macd divergence + next 1 or 2 upside candles - could it be a trigger for quick scalp or longer trade, or you looking for more confirmation ( let's ignore for a moment from risk/reward management ) ?
Because I am not an educator, it would be very difficult for me to explain to you what goes in my mind when I am looking for a trigger. I do not advocate scalping, even though it may seem at times that I am scalping, you should never ignore risk/reward btw, as that is one of key variables to be considered before you enter position. My trigger is always 1 minute chart's histogram together with price action, if price starts oscillating frantically I will stay away, I like to see a build up to a move, as that: 1) Reduces chances of range expansion against your position; 2) You are allowing sufficient time for accumulation for interested parties; 3) Divergences are also periods of accumulation and require a lot of screen time to anticipate the move even though you can be shaken/squeezed out of your entry a few times; There is more to it, but as I said because I am not an educator I can only try and answer direct questions at best of my ability BTW gold touched 879+ a few moments ago and now starting to weaken on 2 minute chart, perhaps that might lead to Nymex RTH retrace to allow for accumulation to take it higher during RTH, who knows? Last night around 7pm Eastern ($862) it completed a very bullish pattern (very bullish), so I looked at 10 minute chart which has also showed a bullish pattern, so to be able to participate in range expansion off the hourly chart AND keep drawdowns at bay it would have been prudent to switch over to 1-2-3 minute charts to look for a favourable entry, favourable I view as histogram showing strengthening of upside potential, don't forget that moving averages are the most basic form of viewing market sentiment no matter what time frame you trade.