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Silver follows the rules.... Print
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Sunday, 19 January 2020 10:13

Following the rules.....

We're still here!

WW3 or something equally dreadful didn't happen despite the headlines.

There's an old saying 'you don't hear the bullet that gets you' and the corollary, if the headlines and commentators are convinced of imminent disaster, it won't happen.

The 'bullet' that hit the western world in 2008 came out of the blue for most commentators. They didn't see it coming. And the collapse of the Chinese economy, endlessly touted by financial commentators and bet on by hedge funds over the last decade - it hasn't happened yet.

Silver follows the rules

Following up on the last two newsletters, an update is due. As the last instalment reached your inboxes, Silver spiked to a blow-off top.

As the chart shows, it completed it's fifth wave on this four hour chart. Looking closely, that fifth wave is sub-divided into another five, smaller, waves.

The fifth of the fifth is usually followed by an a-b-c correction. Wave rules state that a five wave move is followed by an a-b-c move against the main trend. It is likely to run to at least the end of wave four.

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 Fractals

As can be seen, waves forming on the low time frames can usually be seen as fractal parts of a larger wave structure in the higher time frame charts.

When they combine and meet together, a reversal is highly likely. As traders we need an edge and wave theory is one of the few techniques that can give us an idea of what is about to happen.

The Dynamic Wave Trader

As mentioned last time, it is still possible to purchase the course at a substantial discount. The current offer ends on Friday this week when it will only be available to Traders Class members.

Dynamic Wave Trader course.

Best regards

P.S. Don't miss the discount. Read on for details of the Dynamic Wave Trader with special pricing...

 

 

 

From the blog

An excellent start to the New Year

To say that confusion and division reign is something of an understatement!

Dare I mention the 'B' word? Very definitely not in polite company. It has the potential to reveal the rawest of emotional responses. Trump? Again, avoid anything other than the consensus view that he is most unlike any POTUS we have known before. Privately, we can perhaps attempt to debate with ourselves, if we have open minds, but these seem to be in short supply.

The markets are reflecting the mood with pundits taking their positions. Strong Dollar or weak Dollar? Collapsing stock market or no need to panic? Interest rates too high in the US or must they rise in the EU?

Certainty

The only thing we can be sure about is that the political and economic landscape has entered what may be a long period of major change. The certainty is most likely, ongoing uncertainty. Open minds are needed now more than ever.

A great start to the New Year

Despite the stock market tumble in December, Gold and Silver took off and stock markets are recovering for a great January so far. The US Dollar has now dropped back from the brink of plunging China into crisis. So, perhaps, armageddon and the 'everything' collapse will have to wait a while.

Consistency

TMEST also had a good start to the year. The chart of one of our favourite currency pairs, the CADCHF gave us a quick 126 pips and there could be more to come. It's not just currencies of course, we have also taken profits from the Gold and WTi Crude oil trend reversals.

This is one of TMEST's most consistent reversal patterns. The horizontal red lines picking out the entry and exit. The previous down trend ended with a break out, pull back and higher low, or BOPBHL pattern.

TMEST is a part of 'The KISS system of trading for life' that I will be presenting at the RTCT online summit, in February and at the Forex Show on Friday 22nd. No charge, sign up here.

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