Silver Struggling To Shine

One such rule is buying a known support area, if and only if developed trading rules determine there is an entry signal, based on past, similar market set-ups. There was one such opportunity on Wednesday, marked as Buy on the chart. It was prior to the Lying Ben comment that in line with all previous broken promises, the promise to taper would also be broken, and there would be none.

Good luck often comes to meet preparation, and we got “lucky” at a known support. The next day, note how small the price range was. That is the market giving us factual information that buyers were being matched by sellers who prevented the range from extending higher. The recommendation was to exit half the position to lock in a great gain and see what develops on the balance, with a large potential profit cushion.

Most were waiting for the Fed announcement before deciding what to do. Established rules said to engage from the long side, which was prior to the “announcement.” If we were wrong, the risk was small. If the signal were timely, there was an opportunity for profit. One can never know how much potential profit may result, but in this instance, it was substantial, given current market conditions.

Charts tell us whatever we want to know about the market, in whatever context we choose to view it, and even take advantage of the available information. At the time of the trade decision, everyone else had the exact same chart structure available to them. Many simply choose not to learn how to use it. They prefer formed opinions or beliefs over facts.

silver price daily 20 september 20131 price

 

This article is brought to you courtesy of Michael Noonan from Edge Trader Plus.

Related: iShares Silver Trust ETF (NYSEARCA:SLV), ProShares Ultra Silver ETF (NYSEARCA:AGQ).

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