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TFC Commodity Trading Forum

Re: Trades - Gold chart./Silverbear *PIC*

Here is another perspective.

You will notice I pointed out a 1-2-3 breakout. In addition we have a crossover of the 18 bar moving average. This signals a buy as soon as the price moves beyond the previous days close. I would then exit to lock in profits based on the price exceeding the upper bollinger band. This decision is ultimately made using the 3 minute, 10 minute and 30 minute charts to help me gauge if the price will move beyond that point or stall there.

I sit on the side the next day because i have a theory that the price tends to drop to the 4 bar MA if it opens near, but not above the upper bollinger band. I generally wait untill this occurs, which it did early the next day. Once the price has met the 4 bar moving average again, and I get corresponding buy signals on the intra day charts, I once again enter untill my 3 minute and 10 minute charts tell me the market has lost steam for the day. Then I exit near the top.

Tomorrows trade will be based on where the open is. If it opens near the upper Bollinger band, but not under it, I can buy some more. However, if there is a gap between the band, and the price I may wait as that is a sign of impending correction. I prefer to wait untill it comes down to meet the BB and enter on strong signals from my intraday charts.

These methods are not fool proof, and I do miss trades on occasion. However, they have prevented me from getting wipsawed on uncountable occasions. The money I saved by not trading far exceeds any I loss on moves I missed because of the plan.