The advance in the precious metals markets has been impressive. It is remarkable that the advances in Gold and Silver have not been accompanied by aggressive commercial selling. In fact, the net commercial short position in Gold is little changed from the Dec 2016 low – meaning that commercials have NOT sold into the advance. A similar profile exits in Silver. Speculators have a COT profile in both Silver and Gold that suggests a sizable war chest for buying.
I just have one major problem with the Gold market (and to a lesser degree with Silver). Historically there have been recognizable chart patterns marking major highs and lows in Gold. Gold seldom makes a major trend change without “ringing a bell” with classical chart construction. Gold did not display a chart bottom at the Dec 2016 low. Nor does Gold presently display a recognizable continuation pattern. Some chartist consider the trendline connecting the Sep 2011, Oct 2012, Jul 2016, Apr 2017 and Jun 2017 highs to be important – I am not among such chartist. I hold down trendlines in very low technical regard.
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How much patience should a trader have with a losing trade?
The question on losing trades, all traders must answer for themselves, and there really is no right answer. The answer for any given trader must depend upon his or her trading approach, markets traded, risk tolerance and other factors.
For me, the answer to this question is quite simple and multi-layered.
My initial risk per trade seldom exceeds 70 basis points and is limited to 100 basis
I aggressively advance protective stops within days (sometimes hours) after entering a trade.
My goal is to bring a trade to as close to breakeven as possible, as quickly as possible!
https://www.peterlbrandt.com/wp-content/uploads/2017/08/losing-Trades-Peter-Brandt-Factor.jpg9211233Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2016/03/Factor-Research-Trading-Services-300x79-300x79.pngPeter Brandt2017-08-07 09:52:082017-08-07 10:13:07How much patience should a trader have with a losing trade?
I want to present two perspectives of the “Trendline” as a classical chart configuration – the first perspective through the lens of Robert Edwards and John Magee (“Technical Analysis of Stock Trends”) and the second perspective through my experience trading chart patterns for nearly 40 years.
Most stocks sooner or later will follow the major swings of the market. Individual stocks in a sector or industry group might form similar chart patterns due to economic cycles or sector rotation. These individual stocks can be affected by other factors such as commodity prices.
https://www.peterlbrandt.com/wp-content/uploads/2017/05/Tech-charts-public-blog.jpg8221233Aksel Kibarhttps://www.peterlbrandt.com/wp-content/uploads/2016/03/Factor-Research-Trading-Services-300x79-300x79.pngAksel Kibar2017-05-18 09:09:172017-05-18 09:10:47Long Term Charts - Video Tutorial - Guest Post
Huge H&S bottom patterns continue to form on the weekly graphs of some major European banks. UBS, Credit Suisse and Deutsche Bank are shown in the charts below.
https://www.peterlbrandt.com/wp-content/uploads/2017/05/European-Banks-Peter-brandt.jpg8141222Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2016/03/Factor-Research-Trading-Services-300x79-300x79.pngPeter Brandt2017-05-15 10:29:382017-05-15 10:30:11A Turn of Fortune for European Banks
The Cup with Handle is a bullish continuation chart pattern that marks a consolidation period followed by a breakout. It was developed by William O’Neil and introduced in his 1988 book, How to Make Money in Stocks. Cup with handle is a chart pattern that has a well-defined horizontal boundary. Breakouts from chart patterns with horizontal boundary are usually strong and reliable. As its name implies, there are two parts to the pattern: the cup and the handle.
https://www.peterlbrandt.com/wp-content/uploads/2017/05/Cup-and-Handle-Aksel-Kibar.jpg8231233Aksel Kibarhttps://www.peterlbrandt.com/wp-content/uploads/2016/03/Factor-Research-Trading-Services-300x79-300x79.pngAksel Kibar2017-05-10 10:17:552017-05-10 10:18:34Cup and Handle - Guest Post
Impressive Precious Metals
/in Public Blog /by Peter BrandtImpressive Precious Metals
The advance in the precious metals markets has been impressive. It is remarkable that the advances in Gold and Silver have not been accompanied by aggressive commercial selling. In fact, the net commercial short position in Gold is little changed from the Dec 2016 low – meaning that commercials have NOT sold into the advance. A similar profile exits in Silver. Speculators have a COT profile in both Silver and Gold that suggests a sizable war chest for buying. I just have one major problem with the Gold market (and to a lesser degree with Silver). Historically there have been recognizable chart patterns marking major highs and lows in Gold. Gold seldom makes a major trend change without “ringing a bell” with classical chart construction. Gold did not display a chart bottom at the Dec 2016 low. Nor does Gold presently display a recognizable continuation pattern. Some chartist consider the trendline connecting the Sep 2011, Oct 2012, Jul 2016, Apr 2017 and Jun 2017 highs to be important – I am not among such chartist. I hold down trendlines in very low technical regard. Read MoreHow much patience should a trader have with a losing trade?
/in Public Blog /by Peter BrandtHow much patience should a trader have with a losing trade?
The question on losing trades, all traders must answer for themselves, and there really is no right answer. The answer for any given trader must depend upon his or her trading approach, markets traded, risk tolerance and other factors. For me, the answer to this question is quite simple and multi-layered.- My initial risk per trade seldom exceeds 70 basis points and is limited to 100 basis
- I aggressively advance protective stops within days (sometimes hours) after entering a trade.
- My goal is to bring a trade to as close to breakeven as possible, as quickly as possible!
Read MoreGold Trendline – Bogus or Bullish?
/in Public Blog /by Peter BrandtI want to present two perspectives of the “Trendline” as a classical chart configuration – the first perspective through the lens of Robert Edwards and John Magee (“Technical Analysis of Stock Trends”) and the second perspective through my experience trading chart patterns for nearly 40 years.
Long Term Charts – Video Tutorial – Guest Post
/in Public Blog /by Aksel KibarMost stocks sooner or later will follow the major swings of the market. Individual stocks in a sector or industry group might form similar chart patterns due to economic cycles or sector rotation. These individual stocks can be affected by other factors such as commodity prices.
A Turn of Fortune for European Banks
/in Public Blog /by Peter BrandtHuge H&S bottom patterns continue to form on the weekly graphs of some major European banks. UBS, Credit Suisse and Deutsche Bank are shown in the charts below.
Cup and Handle – Guest Post
/in Public Blog /by Aksel KibarThe Cup with Handle is a bullish continuation chart pattern that marks a consolidation period followed by a breakout. It was developed by William O’Neil and introduced in his 1988 book, How to Make Money in Stocks. Cup with handle is a chart pattern that has a well-defined horizontal boundary. Breakouts from chart patterns with horizontal boundary are usually strong and reliable. As its name implies, there are two parts to the pattern: the cup and the handle.