Support and resistance are integral to technical analysis and a key plank of volume-price analysis methodology. It therefore makes sense to use the best tools possible to highlight the areas and levels on a chart where the price action is going and where it might stall. At Quantumtrading, we have developed price- and volume-based tools to help traders and investors make sense of price action, and we have a great example of how the accumulation and distribution indicator, the volume point of control, and Camarilla pivot levels have all come together on the weekly chart.
Gold
The precious metal has recently found its mojo once again, lifting off a triple bottom at the $1632 region. It also coincides with the volume support and achieved the $1812 level, where it now faces its first primary price resistance level in the form of the accumulation and distribution indicator. We can see this given the thickness of the blue hatched line. The line thickens and becomes stronger the more times it is tested and held. In addition, the line also coincides with the R3 Camarilla pivot, a level where price action often pauses, consolidates, and sometimes reverses. Finally, just above $1840 is the volume point of control itself. The confluence of these indicators suggests the recent bull run in gold prices may be pausing, and that for the precious metal to move higher will require significant effort. In other words, good, consistent volume, which at present is not in evidence.
The indicators
The indicators on this chart are for Ninjatrader and are also available for Tradestation and Tradingview. For MT4/5, the vpoc and Camarilla pivots are available, plus the Dynamic support & resistance indicator.
You can find details of these and all our indicators at Quantumtrading