Tuesday, August 28, 2012

Precious metals on the way up

Although I do not generally trade commodities these days, I do keep an eye on these markets, along with the major forex pairs. This is purely my preference, as I concentrate my efforts on stocks, yet historically the majority of the successful CTA's and major trend followers have utilised this strategy on commodities, forex, indices, interest rates etc.

Recently there have been two very good signals given on both gold and silver that show the set up I like to see - brief attempts at new highs, along with a series of higher lows, combined with a contraction of volatility before the meaningful breakout occurs.

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