Saturday, October 20, 2012

Gold and silver on the slide

While taking a quick look at the charts of gold and silver it is clear to see that the uptrend from a couple of months ago is over, and that price is now going in the opposite direction.

Both the uptrends signals given in August were almost text-book, in that there was a contraction of volatility and a higher low created before the breakout occurred. We can now also see that there was a contraction in volatility and a lower high given immediately prior to the short signal being given earlier this week.

Trend following really can be that simple, providing you have the confidence and discipline to follow the rules, and ALLOW yourself to focus on what the chart is telling you.

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