I just spent half an hour putting together two very juicy looking precious metals setups for you guys when silver suddenly fell off the plate, probably due to Draghi sneezing or passing some type of verbal flatulence. Gold fortunately seems to be less affected and if you act now you may just be able to snag one grade A entry:
I’m waiting a few more minutes for Draghi to finish and if she holds plan on grabbing a long position near 1200 with a stop a few ticks below 1197. However if that spike low gives then the entire formation is going bust and we may actually try a short entry on a retest of the 100-hour SMA.
Otherwise I won’t be doing much [...]
One aspect I hate about winter, beside the dismal weather of course, is that we seem to hopping from one long holiday into the next. With the obvious result that pretty much nothing gets done. The situation is even worse over here in Spain where we’ve had on average at least one regional holiday scheduled every week. I kid you not. And that list doesn’t even account for Las Fallas which starts on March 1st and gradually turns Valencia into the Mediterranean equivalent of Sodom and Gomorrah by the time it ends on March 19th. I often wonder when those Spaniards actually do work as statistics claim that they work more hours per year on average as the Germans and of course [...]
I’m going to cover two important topics today which both relate to realized volatility (RV) and in particular how to trade your way around it. If you’ve been a trader for a while then you probably have noticed that volatility profiles differ substantially on the short term when compared with the long term. In essence volatility has a tendency to decrease toward the long term. Nevertheless many traders treat those charts the same when designing their systems, e.g. how and where they enter, where they place their stop loss, and how they handle campaign management.