Bearish Cypher setup on Silver + Long term view!
Updated
We are getting a Bearish Cypher pattern on the Daily Chart for Silver along with
1. Overbought stochastic levels,
2.Previous Structure Resistance,
3.Bearish diversion on the MACD Histogram.
4.I am also seeing Bullish Cypher Patterns on the USDOLLAR, DXY, UUP etc.
I believe that we are in a very bullish environment for precious metals right now and that this is the beginning of a new Bull market however nothing goes up in a straight line and these pullbacks are vital for significant price appreciation in the future.. My own personal back testing shows that I win over 75% of these Cypher setups and if they all play out correctly, we will have very interesting chart setups to look for again as a Successful Cypher pattern on SILVER would have created a Long head and shoulders on the Daily Chart and the same goes for the USDOLLAR except on the Short side of course.
I have Targets set at the .382 and .618 Retracement levels of the C to D leg (Use Fibonacci Retracement tool to pull a Retracement from C leg to D leg) I have set my Targets a little above each retracement level to increase my odds of getting filled in the event that this pattern plays out accurately. My Targets are a little smaller than normal due to the possibility of forming head and shoulder patterns that could disrupt the retracement due to anticipation and speculation.
I know there are a lot of questions surrounding the precious metals right now so I hope I was able to put a different perspective on this for you. If anyone has any questions regarding my setups, please feel free to comment and I will be sure to get back to you! Thanks everyone!
$MMAKE Some Money$$!
P.S If you are curious to how the Cypher Pattern is created and what my rules are for them, Scroll up on the chart and you will see examples of a Bullish (right) and Bearish (left) Cypher Pattern directly above price current price action. you may need to scroll up on the chart a little.. Targets are the same for bullish or bearish cypher patterns.
1. Overbought stochastic levels,
2.Previous Structure Resistance,
3.Bearish diversion on the MACD Histogram.
4.I am also seeing Bullish Cypher Patterns on the USDOLLAR, DXY, UUP etc.
I believe that we are in a very bullish environment for precious metals right now and that this is the beginning of a new Bull market however nothing goes up in a straight line and these pullbacks are vital for significant price appreciation in the future.. My own personal back testing shows that I win over 75% of these Cypher setups and if they all play out correctly, we will have very interesting chart setups to look for again as a Successful Cypher pattern on SILVER would have created a Long head and shoulders on the Daily Chart and the same goes for the USDOLLAR except on the Short side of course.
I have Targets set at the .382 and .618 Retracement levels of the C to D leg (Use Fibonacci Retracement tool to pull a Retracement from C leg to D leg) I have set my Targets a little above each retracement level to increase my odds of getting filled in the event that this pattern plays out accurately. My Targets are a little smaller than normal due to the possibility of forming head and shoulder patterns that could disrupt the retracement due to anticipation and speculation.
I know there are a lot of questions surrounding the precious metals right now so I hope I was able to put a different perspective on this for you. If anyone has any questions regarding my setups, please feel free to comment and I will be sure to get back to you! Thanks everyone!
$MMAKE Some Money$$!
P.S If you are curious to how the Cypher Pattern is created and what my rules are for them, Scroll up on the chart and you will see examples of a Bullish (right) and Bearish (left) Cypher Pattern directly above price current price action. you may need to scroll up on the chart a little.. Targets are the same for bullish or bearish cypher patterns.
Trade closed: target reached
Bearish Cypher Pattern on SILVER was successful. Target 1 reached today! I am going to keep 25% of my position open to see if we can hit Target 2 however I will be rolling stops to break even just in case we don't quite get to target 2. I will post another update by the end of the week, if I see something that tells me to take profits. Thanks everyone. please feel free to comment if you have any questions regarding my ideas. good luck trading!$MMAKE SOME MONEY$$
Trade closed: stop reached
Target 1 was successful (shown on the chart above). I closed 75% of my position at Target 1 and left the remaining 25% on to see if we could reach target 2. I suspected that we might not reach target 2, and this is why I decided to only hold a small portion of the position open for it. Target 1- successful
Target 2- Stopped out at break even.
Nice Profit!
This was another successful trade, to bad we were not able to reach target 2 but this is a good example of how important money management and rules are. I was very confident that target 1 would be reached. I knew before I entered this trade that I would be looking to buy to cover the majority of my shorts at target 1 while rolling stops to break even for a "risk free" trade. Yes a little money was left on the table but that is no harm, we traded with the trend and we made a nice profit while managing risk. This was a great example of how to manage a trade. It is so important that you take profits and put money in the bank while trading. I could have been greedy (I have in the past) and looked to get rid of 25% of my position at target 1 and 75% at target 2 but I would rather put money in the bank and hold onto a small portion of the position to see if it will run. you will be surprised at how many times that remaining 25% of your position goes on to make as much money as the 75% of your position (taken off at Target 1). By trading this way, you are putting profits in the bank asap (Target 1) and then rolling stops to break even therefore your remaining position does not turn into a loss but has the potential to be a biggg money maker. This is how you "hit big" in trading. Once and awhile you will get that trade that just keeps running for you and makes a big profit. This was a good trade.
look out for an idea regarding gold and silver, the recent highs have been broken as of today and I will be sharing some new analysis with you. Hope this helps, good luck trading!
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