Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
I quite recently became interested in Xag/Usd/Silver. As a trend trader, it really is the perfect instrument to trade, as the manner in which it trends is second to none! My aim in trading Silver is to get in on a decent enough retracement to be able to hold it for the longer-term until the next major correction takes place. We saw a slight correction in the enormous uptrend several weeks ago when 26.30s got tested before quickly being rejected. The more recent retracement ended at only the .618% retracement of the 31.70, 36.72 swing, and a rapid move ensued up to 38.17, where a daily doji bar now resides. At this obvious sign of possible topping action, I cannot look to buy at this level. Instead, I have tried to project a nice level that boasts an array of convenient convergences for a possible long entry. I have illustrated my plan on the daily chart below:
I am looking for a head and shoulders reversal pattern to form on the daily chart, with the 36.20 previous resistance area as the left shoulder. I would like to see a break in the inner trendline ( drawn in blue), and a retest of its underside to form the projected right shoulder. This could present a trading opportunity to short down to the main up trendline at 31.00. It is at this level that I would like to find a buy setup. There is a convergence of support here resulting from: (a) the daily trendline; (b) previous weekly resistance; and (c) the .618% fibonnacci retracement level of the big 26.36, 36.17 ‘A, B’ upswing.
What is your take on Xag/Usd? I’m a newbie at it and would appreciate all the help I can get 🙂
Thanks a lot, and have a divine weekend!
Other useful blogs:
Forex Crunch:Forex Weekly Outlook- Mar 28-Apr. 1
The GeekKnows– Daily Commentary on Eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
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Winner’s Edge Trading, as seen on: