May 1st 2020, Silver Chartbook – Caught again just right

Caught again just right

In our last weekly silver chartbook we showed projected scenarios on how to produce great gains with only small risk. That didn’t mean that this excludes other ways to make money in between. On the first of April the market offered such an additional income producing opportunity and we took that reload opportunity. All our entry and exit points are being posted live in our telegram channel. Caught again just right.

What is our definition of an aggressive market participation opportunity? Low risk. Let us have a look at this specific trade. Lets’ see why we fearlessly took advantage of this highly volatile environment, while most were simply nervous.

Silver Daily Chart: Caught Again Just Right

Silver in US Dollar, daily chart as of April 30th, 2020

You will notice at the right green arrow, that on the day of entry, April 1st, the daily range was very small. That promises a range break in one of the consecutive days as a first edge. You will also be able to make out that on the prior days a supply and demand zone was created (see the yellow line). This provided for a tight stop. Another hint, that the market gave away, was the fact that three days prior a similar situation was presented. The break to the downside never gained momentum though. It stopped dead in its tracks slightly below $14.

“Luckily” prices moved quickly upwards right after our entry on the following day. We booked profits by exiting half of our position based on our quad exit strategy. Even more importantly, with this exit we erased the risk.

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Silver Daily Chart: In The Making…

Silver in US Dollar, daily chart as of April 30th, 2020 b

The market has moved according to our plan choosing scenario number two. At point A we did not have an entry since other required edges, besides a conducive entry zone, were not present. At the time of writing this chart book a double bottom (yellow horizontal line) is forming which might provide for another long entry soon to come. It will depend on how price is acting in the green marked zone.

Silver Weekly Chart: Resistance Ahead

Silver in US Dollar, weekly chart as of April 30th, 2020

The interesting part will be how prices will be acting within the red resistance zone. Should we penetrate the US$16+ zone it can be expected that what was resistance will become support. That would be ideal. The higher likelihood is that we will see a temporary decline. That would allow for a possibly low risk reentry. Nevertheless, we are positioned from our April 1st reentry opportunity. A great protection in case greed should prevail.

Silver Monthly Chart: Why So Aggressive?

Silver in US Dollar, monthly chart as of April 30th, 2020

The monthly chart supports the reason of why we are so aggressively trying to build a core long term position. Markets have a tendency of repeating cycles. After the crash of 2008 with the FED adding to their balance sheet, silver prices quintupled. We are again presented right now with an asymmetrical bet and find it worthwhile to put our money towards an outcome that can see a staggering increase in silver prices.

Caught again just right

As a market speculator one needs to be constantly on ones toes. As much as monthly, weekly and daily planing of possible scenarios and outcomes is vital, there is never time to not pay attention. Opportunities are nearly endless in the market and as such if they fall within the low risk category of one of your systems it is mandatory to partake.

A random choosing of emotional based market participation however would lead to a negative outcome. Focus, diligence and an alertness of market and price behavior is vital. It allows for catching moves just right and creating consistent results.

We post real time entries and exits for the silver market in our telegram channel. Follow us in our telegram channel.

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About the Author: Korbinian Koller

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.