Well the CCI 20 indicator was developed by Alexander Elder who's development a lot of interesting indicators. So while price is always king it pays to get a heads up warning with some of the oscillators. Notice each time the CCI 20 clears +200 a price high tends to be close. And when it goes below -200 a low is nearby. His rules are to wait for the oscillator to cross back below +100 to short and wait for it to cross back above -100 to get long again. And this indicator is the best I've ever seen for showing postive and negative divergences which show the momentum. You can see there is a strong loss of momentum on these recent highs. And Silver really hasn't done anything much at all overall relative to its selloff and is still the most overbought like you say even more than when it hit $50. So to see such overbought status and not even a Fib 38.2% retracement yet is a concern. The recent rally is not surprising as the comments by Mario Draghi promising to buy bonds to prop up the Euro countries economies and especially Friday morning's weak jobs report that confirms Ben Bernanke's comments about doing whatever necessary to keep the economy intact. This means more QE which is the only reason Silver and Gold rallied Friday. My big concern is see Thursday night into Friday morning 'before' the jobs report Silver fell over 73 cents. And Gold was down over $10 or more. A lot of traders would have been stopped out. And if you didn't get stopped out you have to ask why not and just how far would Silver have to plunge before you would throw in the towel. If that jobs report had been bullish there would have been no expectation of QE ahead and Silver would have continued to plunge. And hanging on to a plunging Silver market is financial suicide.So as you say Silver is a crazy market. But as I mentioned there are easier ways to trade it without rolling the dice with pure Silver. That ETF:CEF can be bought cheaply and thrown in a drawer with no chance of a limit move or margin call like Silver is capable of. And its 55% Gold which most of the time outperforms Silver which is now more of an industrial metal than a precious one. There are a variety of markets that are less volatile with better odds of success with less stress. Trading Silver is like trading Natural Gas. That market much like Silver has lost a fortune for most traders as it goes from soaring to crashing trends and then trades sideways chopping up even conservative traders. Especially using tight stops. As far as the RSI 10 goes I have been using it along with the RSI 21 as it does catch short term swing trades better than the RSI 21 that catches fewer but more reliable longer term ones. So those were my thoughts on it and explanation fwiw. Be sure to post those pictures of you 'new life' soon. I'm sure we'll all enjoy them.............. And good luck on your Silver trade. Hopefully you have an exit strategy that will save your ass "when" Silver decides to trash its holders.
