Feb 19th 2020, Silver Chartbook – Ignition on the monthly time frame – green light

Ignition on the monthly time frame – green light

For those traders who like to be early in the moves and are willing to take some extra risk for extra rewards, we just found first system confirmations. For the monthly time frame in the silver market our trading model is giving a green light. The green arrow in the monthly chart below illustrates the potential that we see for the long term. Ignition on the monthly time frame – green light.

Silver Monthly Chart – Ignition Point:

Silver in US Dollar, monthly chart as of February 19th, 2020

Silver in US Dollar, monthly chart as of February 19th, 2020

The last candle in the monthly chart above is not quite finished yet. It shows bullish reversal strength so far. If one waits in trading until all lights are green, price has often moved away from low risk entry zones. The chart shows clearly a most favorable risk reward ratio for the long term player. We have been posting in our telegram channel first long term position building entries.

 



 

Silver Weekly Chart – Reversal Pattern:

Silver in US Dollar, weekly chart as of February 19th, 2020

Silver in US Dollar, weekly chart as of February 19th, 2020

The weekly chart shows prices trading about 1.5 standard deviation from the mean (red dotted line). This allows for prices still being able to advance over the short term and points towards direction to the upside. A reversal pattern with this week taking out last weeks highs, is an additional edge. Even though this is not yet confirmed since the last candle is still printing. A possible inverse head and shoulders formation is in the making. Silver prices bouncing this strongly from the 20 simple moving average (yellow line) alongside with gold´s daily chart being extremely bullish supports our positive conviction. When trading larger time frame setups, we always seek confirmed lower time frame patterns to be mutually in place. Finding this criteria fullfilled here on the weekly chart, allows for first position building entries.

Ignition on the monthly time frame – green light

It isn’t just the timing from a technical analysis aspect that makes us bullish on silver. The fact that its supply is limited but the demand is constant is for the longer term investor an edge not to be ignored. The good news for future silver prices is that there is an overall net bullish factor, largely stemming from new demands in solar photovoltaic systems and many green applications. The inflation rate also affects the price of silver since silver is seen historically as a great hedge against it. In times of high inflationary policies, investors will increase their demand for silver to protect against losses in purchasing power of their fiat holdings. Most of the news focuses on gold as a reserve but central banks across the world buy and sell silver bullion. With gold trading even stronger right now, silver finds itself, classified as a precious metal in a small group of valuable commodities including platinum and palladium, pushed along upwards.This represents an additional edge. In conclusion it should not be missed in ones wealth preservation portfolio.

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:

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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