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TFC Commodity Trading Forum

Re: Dec Crude/Silverbear
In Response To: Dec Crude/Silverbear *PIC* ()

Thanks Trades,
I'd put my $$$$'s on the RSI reading as it seems to react better to price. I have always traded on the short side as long as the RSI remains below the 50 - and long as it stays above the 50. Except for that one (very minimal) break around July 25, I would stay short. Of course, that it not always easy - depending on what instrument you use to trade. The problem lies with the drawdowns. While the long term trend is certainly down - there are some pretty wide swings that can give you second thoughts about it.

Have you taken a look at the Copper chart? When it trends - it trends well - I think that you can put on some very manageable trades and ride them for a nice bit of change. I'm doing some back testing over the next few days. Important #'s coming out tomorrow and Friday - I'll be watching to see how it reacts.

Best,
S