Jan 26th 2019, Silver Chartbook

Silver – on the dot

Last week we identified the turning point for Silver by the day (chart-book from Jan 21st).

Here is the chart from last week.

Entry opportunity for the reload called on the dot:

Silver in US Dollar, daily chart as of January 21st 2019.

Silver in US Dollar, daily chart as of January 21st 2019.

And this is the price action of Silver versus the US Dollar since then:

3 percent move up within a week:

Silver in US Dollar, daily chart as of January 26th 2019.

Silver in US Dollar, daily chart as of January 26th 2019.

After a thrust up of nearly 50 cents into a resistance zone, it is now advised to take partial profits. No matter what time frame you are exposed in (besides long term monthly or annual holdings), this zone near 15.75 USD warrants most likely for a temporary pause.

Especially since the risk reward ratio is limited, taking some gains off  the table is a fair move money management wise. This can be seen on the weekly chart here where the light blue line represents the next distribution zone:

Silver in US Dollar, weekly chart as of January 26th 2019.

Silver in US Dollar, weekly chart as of January 26th 2019.

Looking at the typical behavior at supply/demand zones, marked as red squares here on this daily chart, it illustrates how Silver behaves near support/resistance. The yellow wicks of the candle stick represent typical overshoots and as such have also limit the risk/reward ratio. As such target exits for partial profit taking are prudent.

How Silver trades:

Silver in US Dollar, daily chart as of January 26th 2019 trading behavior

Silver in US Dollar, daily chart as of January 26th. 2019 trading behavior

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By | 2019-01-26T13:55:35+00:00 January 26th, 2019|Tags: , , , , , |1 Comment

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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