When trading using a clearly defined set of rules, it can easily become frustrating for an inexperienced trader to get stopped out of a position, only for price to then reverse and start moving back in the direction of your trade.
Some see that as a weakness of their method. Yet I, and many other traders who religiously follow their rules (be they automated or not), see that as a strength.
Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts
Thursday, September 14, 2017
Saturday, September 02, 2017
An example in trade management - the breakout stop
A few days back, I posted here about the potential long set up on Gold that was forming. Lo and behold, later that day price broke out.
Once you are in a trade, the next stage to consider is the ongoing trade management and the use of stops. So we will look at the updated gold chart (shown below) to see how I do this.
Once you are in a trade, the next stage to consider is the ongoing trade management and the use of stops. So we will look at the updated gold chart (shown below) to see how I do this.
Monday, August 28, 2017
Some random charts
It's been a while since I have posted some random charts, but here goes:
It is interesting to note the pattern currently developing in the German DAX. You can clearly see the 'staircase' of higher and higher lows in place from early December last year before price stopped moving up in June.
It is interesting to note the pattern currently developing in the German DAX. You can clearly see the 'staircase' of higher and higher lows in place from early December last year before price stopped moving up in June.
Saturday, December 08, 2012
Looking at the bigger picture
It's always worth zooming out on a chart every once in a while to look at the historical price movements and trends on an instrument, and to place any current trend into context.
I've shown some charts below of interest (using monthly candles). What is interesting here is how certain markets have been in a non-trending phase the last couple of years compared to the nice trends in the preceding decade. This explains the difficulty that trend following systems have had generating profits over the last year or two. In those instruments that HAVE trended, the movements have been far more volatile, which again makes it more difficult to generate profits.
I've shown some charts below of interest (using monthly candles). What is interesting here is how certain markets have been in a non-trending phase the last couple of years compared to the nice trends in the preceding decade. This explains the difficulty that trend following systems have had generating profits over the last year or two. In those instruments that HAVE trended, the movements have been far more volatile, which again makes it more difficult to generate profits.
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.
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.
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