The gold daily chart price action in early 2026 has been anything but straightforward—choppy, volatile, and full of traps. In David’s latest video on the NinjaTrader platform,which you can find here https://www.youtube.com/watch?v=7suhDFl1kck he breaks down the GC contract (gold futures) across multiple timeframes, but the real gems come from the daily chart. It’s a classic VPA masterclass in entrapment, using volatility as the “tool of pain,” and how market makers use it to shake out weak hands while positioning for the next big move.
Our core VPA lens is always from the merchant (MMs) perspective, and the daily gold chart shows how insiders (wholesalers) operate, creating ripples of volatility that trap retail traders. Let’s unpack the key insights from the session.
Timeframe Context
The daily chart for gold gives us the ‘big picture.’ Why? Because it’s where entrapment shines. High volatility on the daily creates wide ranges that echo across lower time frames, repeatedly testing highs and lows.
Volatility: The Market Makers’ Tool of Pain
Volatility isn’t random—it’s the number one weapon for insiders to inflict pain and extract money. A single high-volatility candle (sometimes called a “master candle”) acts like a boulder in a pond: It generates massive ripples, trapping traders in false moves. In gold, this master candle set a range from ~$5,400 (high) to ~$5,050 (low), with the price oscillating inside. Merchants use this to:
- Probe highs/lows on news/events (Fed speeches, geopolitics).
- Create anomalies (high effort/volume with poor result/price move).
- Shake out retail while accumulating/distributing quietly.
Stopping Volume and Climaxes: The Reversal Clues
Look for stopping volume at lows—high effort absorbing selling, often preceding a buying climax (retail capitulation met by merchant buying). On gold’s daily, anomalies like narrowing spreads on rising volume signal disharmony: Effort without reward = potential trap. Once gold clears $5,400 (master candle top) and pushes to $5,500, we’re in “clear water”—ripples fade, normal trading resumes. Until then, expect continued tests.
Merchant Tactics: Always One Step Ahead
Insiders hang their hats on endless “tags” (news, events, session crossovers) to spike volatility, trap naive players, and reverse quietly. In this environment, VPA is your edge: Read their intent through volume-price relationships, not headlines.
David’s video is essential viewing for any gold trader. Watch it HERE to see the charts in action. As we naviage 2026’s rotations and liquidity shifts, remember: Volatility is pain for the unprepared, but opportunity for those who can read the merchants.
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