June 9th 2019, Silver Chartbook

Progression

The definition of progression

One of the main definitions for progression is “the process of developing or moving gradually towards a more advanced state”. One of our main goals is to enrich our readers in the “decision making processes” within the market. Certainly, sharing entry and exit points for securities only, is meager (e.g. teach a man how to fish…).

Merriam-Webster defines progression as “a sequence of numbers in which each term is related to its predecessor by a uniform law“. This is an essential feature of trading. To improve we need to measure, but it is simply not enough to just measure in dollars and cents. Analyzing your trades however and their progression through time is extremely helpful. It supports finding good exit points, and learning from your own mistakes improves future entry and exit timing.

A third definition of progression is:”the movement of musical parts in harmony“. Finding harmony in ones process of market participation is a goal worthwhile aspiring to.

Within this context let us have a look at our last trade in the silver market and its progression through time after entry.

60 minute chart of silver 6/3/2019, low risk entry and two targets reached:

Silver in US-Dollar, 60 minute chart as of June 3rd, 2019

Silver in US-Dollar, 60 minute chart as of June 3rd, 2019

First of all, our goal of prices leaving the entry zone quickly is achieved. That is the first sign of a healthy start for this trade.

The financing target is reached and half of the position size is taken off for profit taking. The next goal for “trade health” is check marked. Now we have a zero risk position on and are playing with market´s money. This allows for an unbiased mind and clear thinking towards prosper future exit points.

Silver, weekly chart as of June 3rd 2019, confirmation of a resistance break:

Silver in US-Dollar, weekly chart as of June 3rd, 2019

Silver in US-Dollar, weekly chart as of June 3rd, 2019

We mentioned in last week´s chartbook release, that once the upper yellow resistance line is broken the probability of advancing prices will have increased. Luckily that scenario has manifested. Most importantly checking ones trade time progression through various time frames is a barometer for how well a trade is on its way.

June 4th 2019, Silver/US Dollar, 60 minute chart, more profit taking:

Silver in US-Dollar, 60 minute chart as of June 4th, 2019

Silver in US-Dollar, 60 minute chart as of June 4th, 2019

It is unlikely to precisely pick tops or bottoms, but if one finds exits before times of sideways progression, during which capital is unnecessarily exposed to risk, one is working in the right direction of keeping risk at bay.

Certainly, emotions like fear and greed can at times be a hindrance to good trade execution and as such proper planing and following through on ones plans is imperative.

Daily chart June 4th 2019, Gold/US Dollar, good timing:

Gold in US-Dollar, daily chart as of June 4th, 2019 Progression

Gold in US-Dollar, daily chart as of June 4th, 2019

Most noteworthy, progression should never be viewed isolated but always with related markets in sight. In the case of silver, gold is such a peer.

As a result, the daily chart above shows clearly that entry timing was in good alignment with this related market. Further, sitting on support and trading sideways made a gold entry here similarly ideal.

Gold chart (60 minute time frame) of June 4th 2019, absolute harmony:

Gold in US-Dollar, sixty minute chart as of June 4th, 2019 Progression

Gold in US-Dollar, sixty minute chart as of June 4th, 2019

Progression is harmony

With reason we mentioned at the beginning of this article one of the definitions of progression which is to include the concept of harmony. All mastery should entail this aspect of seemingly effortless achievement of greatness. May it be athletes achieving the mere impossible or a craftsman having honed his or her skills with the help of generations of mentors like in old family businesses, to mention only a couple. Aspiring to such harmony  is honorable. Likewise finding yourself within a trade so beautifully advancing in price climb like in the chart above, you might just feel as elated as those, who consistently find trades like these.

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About the Author:

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.

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