XAGUSD - stop run of recent consolidation before mewn.
Updated
Long term I am incredibly bullish on silver in these ranges. The monthly looks like it has been bull flagging for almost two years and the ranges are getting smaller and smaller. The monthly bbands are the tightest they've been since early 2000s. Fundamentally, silver is very cheap compared to historical gold/silver ratio and industrial use (solar panels) will only continue to rise. I simply do not see it going down significantly. It is going to go up. They certainly wont let it go crazy without fucking everyone first, so they let it break up a bit and raid that liquidity before letting it drop again.
I believe it is simply a matter of time before they raid the stops below this long consolidation period before it springs out of this wyckoff zone. The bar with the arrow highlights exactly the kind of down candle I look for in these situations. The loss should be taken if the daily closes below that bar. This is an amazing risk reward trade and if this setup happens, I will be entering heavy. Safer play is to wait for confirmation of spring before entering, but that significantly reduces risk reward and safe is boring.
I believe it is simply a matter of time before they raid the stops below this long consolidation period before it springs out of this wyckoff zone. The bar with the arrow highlights exactly the kind of down candle I look for in these situations. The loss should be taken if the daily closes below that bar. This is an amazing risk reward trade and if this setup happens, I will be entering heavy. Safer play is to wait for confirmation of spring before entering, but that significantly reduces risk reward and safe is boring.
Note
It happened. Was hoping for a larger bounce to create a sexy daily rejection wick, but stops are tight and my entry was solid at 16.095.Note
Swap cost was too expensive to hold this on leverage while it consolidates, but I am long silver and silver miners in many other ways low/no lev. I'd be extremely surprised if those lows are retested.
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