KNOWING THE HOW/WHY/WHEN/WHERE TO ACT SO REALITY
DOESN’T BITE YOU IN THE ASS!
I’m going to skip today’s action because I’m
travelling today to another part of Paradise;
I’m posting early today, so I want to highlight a key feature of the algorithm
so there is no confusion among any of you. I’ll be back tomorrow after travelling to
talk about the day’s action and how it played out vis-à-vis the gold volatility algorithm.
To be sure, no two or more moves are exactly the same,
so trading becomes a study in “pattern recognition”. Remember this if nothing
else; throughout the history of trading [any market but especially gold], the
same collective group behavior among retail traders [that’s you Bunky] has/is/and always will be the same. Over the
years/decades/centuries only THE NAMES CHANGE; everything else remains the
same.
For you “Newbies” out there, and I know you’re sitting
there wondering if you have it in you to do this, the 2 most important
qualities you have to have to make consistent money trading gold is 1)
discipline, and 2) patience. Both are free and you don’t need to have a PhD. to
get them; what you do need is to ask yourself if trading is about “making
money” or is trading something your wife wants you to do because it’s cheaper
than a babysitter. Seriously, which is it?
Remember, if this was “easy”, everybody including your
deadbeat cousin would be doing it; so what makes it “not easy” for Newbies?
Easy Peezee; 1) lack of an algorithm that works [you got no excuse; download it
now], 2) inability to take a small loss when necessary, and 3) lack of
recognizing the proper patterns for a trade when they emerge and then
immediately acting upon it.
Directly below is a fairly typical blast down move from
7/14/2016 which I am highlighting. First chart is the HR1 coming into the day;
what we know here is that already we have a $25+ daily range and the New York day hasn’t even
started yet! So, what are the probabilities this range gets expanded even
larger? Short answer; NOT GOOD! History says there is less than a 2% chance it
goes past $28.
Ok, so now what I’M LOOKING FOR is some kind of move
down that lasts at least 8-10 minutes [and hopefully longer] that culminates in a larger than normal spike down since the
inception [or start] of the move in question. When I see it, I’m now
looking for the first green M1 that shows up to give me a buy signal; hint, it
won’t take long for that to happen, trust me.
Ok, so now let’s move onto the M1 which is directly
below with appropriate commentary.
These large spikes down, especially
after a move down that has been going on at least 8-10 minutes are one of the
best short term buy signals you ever get in gold; while not all the time an
“exhaustion move”, they are nonetheless very good indicators of bottoms. Oh, and by
the way, they are very difficult mentally to get used to buying because the
overwhelming sentiment along with traditional indicators suggest continued
selling and lower prices.
But, contrary to what you’re feeling in your gut that
the market may never rally ever again, there is a very high probability a
bottom [short term at least] is close at hand and it’s time to buy; spend some
time on a demo account and see what I mean. You’ll be surprised at how fast this
stuff can come off of a bottom; and of course, what that means for you is
profits! Until tomorrow…
Have a great day everybody!
-vegas
OPEN A DEMO AND/OR LIVE ACCOUNT AT THE LMFX LINK IN
THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO
IT NOW!”
OUR LMFX GOLD TRADING PAMM WILL BE READY AS SOON AS
LMFX GETS THROUGH WITH UPGRADES TO ITS PAMM SOFTWARE! WE ARE VERY CLOSE; OPEN
YOUR LIVE TRADING ACCOUNT TODAY, FUND IT, AND BE READY TO PARTICIPATE!
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