Hi Ankur,
From the chart you will note the trend in Silver is down. So a big spike upwards will give way and is used to trigger SL for shorts. If you have the patience, (takes a long time since commodity trading is approx. 12 Hours plus) you will get a good opportunity to short any spikes.
I have observed, that after making a low for the day, (where intraday players will be all short), there will be a huge spike in prices, which will be over the high of the day. All intraday shorts will be wiped off. Those taking a long position based on the price move upwards, will also be stopped, as the price will retreat from the highs to near the lows and close somewhere in the middle. So the longs lose, shorts lose, and the smart players with big pockets make money. This happens over and over again.
Trading silver, crude etc. (both of which are in an downtrend) requires a trader to just watch the charts doing nothing - as indicators will give many buy and sell signals. It is important to wait for a range to form and to get a good gauge of the market trend, and then enter - Only when a good opportunity is given to enter in direction of the LT trend.
At the moment, crude and silver are heavily oversold, and a bounce can be expected. Crude more so, as the sell off has been huge, fundamentally due to low demand and excess inventory (from Iraq, Kurdistan, Libya making its way in the international market) However, due to fresh skirmishes in the Ukraine border (after a ceasefire was agreed with Russia) crude along with precious metals can give a smart bounce - which will be an opportunity to short, basis intraday chart on a smaller TF.
Silver EOD attached with notes. Trust this clarifies. (Stating the obvious : Everything can be perfectly explained in the chart. However, trading in realtime is a different reality. But it pays to trade with the long term trend)
PS : Long term trend : Basis visual pivots. Lower Lows (LL) and Lower Highs (LH) is downtrend and Higher Highs (HH) and Higher Lows (HL) is Uptrend. This along with Supertrend signal on EOD basis 10,3 is the LT or rather direction to take a Swing Trade. This is dual confirmation and a firm trend.
Counter trend opportunities will be available and last for a few days at most. Check this basis 5 Days, 15M chart, which can provide additional confirmation. Ensure price break above range of HH, but avoid signal if the same is on gaps. Such as Silver which has gapped up today and is buy as per Supertrend 10,3 For me this is an avoid for now. Will look to short on a spike above the high of the day with a small SL.
From the chart you will note the trend in Silver is down. So a big spike upwards will give way and is used to trigger SL for shorts. If you have the patience, (takes a long time since commodity trading is approx. 12 Hours plus) you will get a good opportunity to short any spikes.
I have observed, that after making a low for the day, (where intraday players will be all short), there will be a huge spike in prices, which will be over the high of the day. All intraday shorts will be wiped off. Those taking a long position based on the price move upwards, will also be stopped, as the price will retreat from the highs to near the lows and close somewhere in the middle. So the longs lose, shorts lose, and the smart players with big pockets make money. This happens over and over again.
Trading silver, crude etc. (both of which are in an downtrend) requires a trader to just watch the charts doing nothing - as indicators will give many buy and sell signals. It is important to wait for a range to form and to get a good gauge of the market trend, and then enter - Only when a good opportunity is given to enter in direction of the LT trend.
At the moment, crude and silver are heavily oversold, and a bounce can be expected. Crude more so, as the sell off has been huge, fundamentally due to low demand and excess inventory (from Iraq, Kurdistan, Libya making its way in the international market) However, due to fresh skirmishes in the Ukraine border (after a ceasefire was agreed with Russia) crude along with precious metals can give a smart bounce - which will be an opportunity to short, basis intraday chart on a smaller TF.
Silver EOD attached with notes. Trust this clarifies. (Stating the obvious : Everything can be perfectly explained in the chart. However, trading in realtime is a different reality. But it pays to trade with the long term trend)
PS : Long term trend : Basis visual pivots. Lower Lows (LL) and Lower Highs (LH) is downtrend and Higher Highs (HH) and Higher Lows (HL) is Uptrend. This along with Supertrend signal on EOD basis 10,3 is the LT or rather direction to take a Swing Trade. This is dual confirmation and a firm trend.
Counter trend opportunities will be available and last for a few days at most. Check this basis 5 Days, 15M chart, which can provide additional confirmation. Ensure price break above range of HH, but avoid signal if the same is on gaps. Such as Silver which has gapped up today and is buy as per Supertrend 10,3 For me this is an avoid for now. Will look to short on a spike above the high of the day with a small SL.
Hi DSM,
thanks for ur reply
can you pls tell me about LT trend nd firm trend
what does this mean ?
thanks
thanks for ur reply
can you pls tell me about LT trend nd firm trend
what does this mean ?
thanks