If you caught last weeks charts in focus (CIF’s) I posted a video for you discussing the Silver and Gas markets, with both of these markets showing very different price action stories.
Watch that Charts in focus video here; [VIDEO] Hunting Short Trades on Silver & Watching For Breakout on Gas | 15th May 2017
Whilst I know that a lot of you are starting out with Forex markets, as you will find in the lesson; what markets and pairs I trade, it is far better to go with and trade the best price action stories and best setups (as long as the market still gives us an edge of course), rather than force ourselves into one or two FX pairs or markets and miss trades on others markets.
When you are first starting you need to learn you craft and learn you edge over the market, but once you have an edge and can make money, you need to turn that edge over as many times as possible in as many markets as possible because the more times the edge plays out, the more money you make. If you stay in only the one or two markets, then you only make money in one or two markets.
The caveat to this is what I said above; the market still has to give you an edge. So if you can only make money on the EURUSD and then you go to the Silver market and lose, then making more trades on Silver is not going to make sense.
Silver Charts
In last weeks video I said that price had just pushed off a strong major daily support level and that there was a major resistance overhead that was a high probability level to hunt short trades.
With price making such a strong move lower on the daily chart and there also being such a lot of space to potentially move into, there was always going to be a very high chance of price moving back into this major resistance and traders being able to take advantage of it.
As you can see on the 1 hour chart; price moved into this level and formed an obvious trigger for traders who were watching this level with a bearish 2 Bar Reversal / BEEB that sent price lower and back into the next support level giving trades plenty of time to manage their trades effectively, take a little profit or move to breakeven.
Silver Daily Chart
Silver Daily Chart – Zoomed Out
Silver 1 Hour Chart – 2 Bar Reversal
Gas Charts
When posting the video and discussing the price action on gas I was looking for price to make a breakout through the major resistance level.
Price had made a recent run higher and was sitting just below the daily level. Price is yet to breakout either higher or lower and as so often happens and has been happening for an extended period of time in this market, price is now back ranging sideways.
Looking forward in this market; a breakout higher would offer the best and highest probability trade setups as there is a ton of space.
This could lead to freely moving breakout setups and also quick re-test trades or traders hunting long trades as we often discuss in the previous CIF’s.
Natural Gas Daily Chart
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