SILVER TRADE
Silver Trade MUST have: Retracement from prevailing trend that was not significant enough to cause the signal color to change AND price must cross the stochastic 50 line in the opposite direction of the trend AND tick back in the direction of the trend. The candle BODY must correspond with the direction of the trade. This is a concept I learned from Paulus in his EOD thread although I've added some qualifiers. You MUST also have slope agreement of 20 SMA (the steeper the better).
Silver trades are HIGHER PROBABILITY if price dips to the top/bottom of the 5 Smooth price channel but does not close above/below it. Hidden divergence adds to the probability of the trade as does trading in the direction of the slope of the higher time frame.
I trade the Day and 4 Hour although I have used these concepts in the smaller time frames such as 15M.
I hope I haven't confused anyone so far. There are other aspects that I haven't shared yet, trying to keep it simple.
I am a believer in Multiple Time Frame approach. I usually have a profile with 3 time frames: the one I'm trading, the upper and lower time frames to get a better feel for what the pair is doing.
Note: actually the second trade is a GOLD not SILVER trade since the retracement caused the signal color to change.
Silver Trade MUST have: Retracement from prevailing trend that was not significant enough to cause the signal color to change AND price must cross the stochastic 50 line in the opposite direction of the trend AND tick back in the direction of the trend. The candle BODY must correspond with the direction of the trade. This is a concept I learned from Paulus in his EOD thread although I've added some qualifiers. You MUST also have slope agreement of 20 SMA (the steeper the better).
Silver trades are HIGHER PROBABILITY if price dips to the top/bottom of the 5 Smooth price channel but does not close above/below it. Hidden divergence adds to the probability of the trade as does trading in the direction of the slope of the higher time frame.
I trade the Day and 4 Hour although I have used these concepts in the smaller time frames such as 15M.
I hope I haven't confused anyone so far. There are other aspects that I haven't shared yet, trying to keep it simple.
I am a believer in Multiple Time Frame approach. I usually have a profile with 3 time frames: the one I'm trading, the upper and lower time frames to get a better feel for what the pair is doing.
Note: actually the second trade is a GOLD not SILVER trade since the retracement caused the signal color to change.