Jan 14th 2020, Silver Chartbook – An early stab

An early stab

Participating in the markets is full of conflicts. This is due to the fact of the high variability of the market which has as such many choices and many moving parts. In this week´s case we have a confirmed short signal on the weekly and therefore larger time frame, while the smaller daily time frame indicates a low risk long entry. Typically a top down approach is to be followed. Meaning higher time frames supersedes lower ones in their value. Not in this instance. In strongly directional markets low risk entries are rare. This warrants for rather risking to be possibly stopped out versus hoping for the weekly or monthly reentry point, which might result in just sitting there watching prices contentiously advancing without a significant retracement.

An early stab, weekly chart, silver/US Dollar 01/13/2020, “short signal?”:

Silver in US Dollar, weekly chart as of January 13th 2020

Silver in US Dollar, weekly chart as of January 13th 2020

At first glance the weekly chart shows a confirmed short entry from a candle stick pattern perspective. At closer view one can make out quite an array of demand zones right below price. This in conjunction to a directional market is the first warning sign that there is a possibility for this short not to work out. The last red candle not having closed yet, this picture might look different by the end of the week.

 



Silver/US Dollar 01/13/2020, daily chart, “aggressive long entries planed and executed”:

Silver in US Dollar,daily chart as of January 13th 2020

Silver in US Dollar,daily chart as of January 13th 2020

On Thursday the 9th of January we posted in our telegram channel an entry zone at a demand and supply region (green color box). On the 13th of January prices had penetrated into this zone and allowed for an aggressive entry with low risk. Odds stacked up since the same scenario occurred simultaneously in the gold market.

An early stab

In a game of probabilities and a high degree of moving parts, ones only choice is establishing a hierarchy of rules on how to stack odds in ones favor. The importance here is to have a systematic approach as flexible as the complexity of the played market game. It is hard to fix a Swiss clock with a hammer alone. Establishing a hierarchy of the used rules prior to implementation on individual cases is key since the market is counter intuitive and as such exploits the application of hunches.

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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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