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Great & Minor Reversals... Print
Written by Site admin   

Great & Minor

Reversals

Setups, Entries and exits 

Dear Trader

Great Reversals are just that. They often run on and on for thousands of pips. Over the years, I've sent out a regular newsletter and, from time to time, it featured some truly great reversals. However, although these major reversals can bring in the big bucks,they don't happen often enough!

It's the minor reversals from patterns, failed patterns, trends, corrections and range reverses that bring home the regular, day to day profits. As traders, that's what we do, spotting low risk entries that run all day or maybe a week or so.Take our profits and move on to the next setup.

It's the 'how to trade' features ofGreat and Minor reversalsthat are featured within this new trading system, but it's the failed reversals that so often become the super profitable ones that can give us very satisfying profits.

Fails that come good.It is said that markets exist to 'confound and muddle the majority of traders for most of the time'. The unexpected runs from these 'failed' moves work to the savvy traders benefit.Read on here, take the no risk trial and learn how these 'failures', and many more, can be amongst the best trades you will ever take.

Best regards.

 
And the Gold & Silver charts Print
Written by Site admin   

20/07/2020

The Charts and Gold?

It becomes a one way bet. But beware, Gold is always vulnerable to a twitchy Federal Reserve which might want to knock it back from time to time, particularly as it's within a whisker of the 2011 high.

Does it have a target?

These are always difficult to predict once past old highs. However, there is an alternative view involving an eventual new Gold standard, as Jim Rickardssuggests here.

For traders, Silver just might be the better bet.As mentioned at the start of the year, Silver has been under-priced in relation to gold. The Silver/Gold ratio meanders historically at around the 60 level, but has recently been as high as double that at 120+.

The ratio is now settling back into a down trend, currently at 93. The Silver chart is way behind Gold. Today it's starting a catch up that could well have long legs as the ratio gradually slips back to its historical norms.

Inflation has only one way to go.Yes, there is clearly a global down turn in trade and hence GDP growth is unlikely to come back to 2% any time soon, many see this as a drag on Gold, but.....

Inflation likes reduced supply (companies closed down, global supply lines cut back, etc.). It also likes increased demand and purchasing power from greater money availability. Responses from governments are supplying both in bucket loads.

The 'Helicopter' money andModern Monetary Theorybrigade are seeing their dreams come true. As long as money, and it's purchasing power, is handed out without any corresponding increase in real economic growth, the real arbiter of value, the Gold and Silver price, has only one way to go.

 
Gold & Silver reaching Escape Velocity Print
Written by Site admin   

20-01-2020

Back in the 70's inflation was rampant. The post war economic stability of the fifties and sixties was replaced by economic chaos.

Tricky Dicky Nixon, aided by Paul Volker, kicked it off when they had little choice but to float the US Dollar and drop the peg of $35 per ounce of Gold.

Anyone living on a fixed income and in rented property, became a pauper. Those who owned hard assets of precious metals, land and property couldn't believe how their perceived wealth was multiplying before their eyes.

It was the best of times and the worst of times.

The rest is a history of endless money printing which far surpassed economic growth. The associated booms, bubbles and busts since the seventies can all be traced back to that decision.

The Gold price rises over time as a function of inflation and money supply. Notably, the 1979/80 spike in gold reflected inflation that kept rising. Inflation then became out of control, rising from 11.35% in 1979 to 13.5% in 1980. Paul Volker then burst the bubble with a series of shock interest rate hikes.

Gold bugs worked out that the yellow metal knew the real price of assets. The assets, and gold, still had the same utility value as they ever did, it was just the paper currency used to buy them no longerrepresented that value.

The response to the 2008 Global Financial Crisis was more money supply.QE became embedded as Gold hit a new high. It slipped back and then, this year, the Coronavirus response lead to this.....

This is then the argument for Gold that has historically acted as an anchor to monetary systems. See the next post the charts.

 
A Great Reversal? Print
Written by Site admin   
Saturday, 04 July 2020 10:05

In the last newsletter the US$ featured. The big question was, is this a Great Reversal taking place as we watch the charts unfold.

It all takes time of course, and we will only know the answer when, and if, it does in fact collapse. We may have to wait some time!

When the US Dollar falls, the Euro tends to rise. It's an inverse relationship that is never perfect but does create opportunities for traders. As the US Dollar was topping, the Euro was bottoming, bounded by those red lines that pick out support and resistance zones from way back.

Everything has a life cycle and markets are no

Read more...
 
Another Great Reversal Print
Written by Site admin   
Wednesday, 03 June 2020 12:50

Could this become a Great Reversal?

The US$ interbank liquidity crisis and then the effects of Coronavirus, forced the Fed to inject massive reserves into the international banking system to stop its dollar from moving ever higher. The DXY chart suggests it might be working.

It show two classic reversal patterns that have been used by traders ever since technical analysis began.

In March the dollar crashed lower, then shot higher which could be the start of a Broadening pattern, occasionally found at major reversals.

Price action oscillates widely and eventually breaks out moving the same distance from the extreme as the depth of the pattern. That gives a target around the 2018 lows.

The bigger pattern is a potential double top, the first high at the end of 2016. Double tops are very common and again have a target based on the depth of pattern.

If the DXY were to break below those 2018 lows it could run on down to at least 80 where it spent the first five months of 2014 before breaking out of it's last major, triangle, reversal pattern.

 
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From the blog

Free money coming soon.......

Free money

Coming soon to the

Western World...

Dear Trader and Clickevents reader

We've heard (and never believed) all that Central Bank promotional clap trap about QE & government bond buying. How it had to be done to avoid a banking system collapse and that it could be reversed just as soon as economic conditions normalise.

Japan set the QE mould, decades ago now, following their real estate and stock market bust in 1991. The US sub-prime and CDS fiasco triggered the 2007 banking bust which was neatly exported to European banks. Bailouts and QE became inevitable.

Normalisation.

It'll never happen.

Read more...

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