Precious metals are a popular topic of conversation these days. This week I will answer your questions re Silver, including “using your charting system is it time to buy Silver?”
Let’s look at a current daily chart for Silver. Using my Simple Simon setup, money flow indicator plus a trend line (green line), “what will I be watching for buy signals”? I will be looking for the price to close above the trend line (green line) and over my blue signal line. In addition, I want to see positive money flow (middle box).
Finally, I would also like to see some higher-volume buying days like we saw on September 18 and October 16, (bottom box). Until these conditions happen, I would be hesitant about buying Silver. This example is for educational purposes only. I do not give buy or sell recommendations but teach others what to look for in order to make better educated financial decisions.
What can we learn from this analysis? It is close to impossible to pick a perfect entry or exit point, but if we take the time to learn which signals gave previous (profitable) buy and sell signals we will have a much higher probability for (profitable) buying and selling decisions in the future. Like always, no system is 100 percent.
Some scoff at my trading systems. However, using my systems would have kept many investors from buying in at higher prices.
Next week, I will be answering your questions regarding another shiny metal - Gold.
Source-Stockcharts.com, thetraderseye.com
Full Disclosure-I do not hold any of the securities listed in this column.
DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and retired associate professor of finance at John A. Logan College. For questions and seminar info, he can be reached at thetraderseye@gmail.com. The information above is for educational purposes only and is not intended to be financial advice. Your decisions to buy, sell, short, or hold any stock or investment product is a direct result of your own decision, free will, and research.
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