September 11th 2021, Silver Chartbook — Silver is your best strategy
There are two software development strategies. “Waterfall,” which produces a product sequential, sending stages of development through various departments until it is finished. And “Agile strategy,” which, on the other hand, is all focused on “time to market.” It identified that product placement is doomed to fail if the rate of change outside a company is faster than the rate of change inside the company. It focuses on a parallel effort of teams to produce an MVP (minimum viable product). Investing isn’t much different. If you follow sequentially through news and buy an investment when the media finally shouts it off the rooftop, you most likely are the one holding the bag and are beyond late to low-risk entry timing. Right now, Silver is your best strategy.
A contrarian and more “agile strategy” is not following a stream of data but individually make an overall independent assessment of a sum of data and purchase a product like physical silver when it is out of favor, hence cheap.
Silver in US-Dollar, Daily Chart, Accuracy through principles and experience:
A subset of agile software development is “Scrum”. In “Scrum” meetings, various departments meet to reach a common goal quickly. We have emulated this outcome-oriented parallel effort in our daily call. It gets posted daily for free in our free telegram channel. It is a 24-hour outlook that comprises market analysis in a principle-based fashion, from variables like risk, market psychology, statistical edges, inter-market relationships, time of the week, seasonal relations, relative strength/weakness, and money management, to name a few. We have, throughout the decades, stacked odds in a way for these daily forecasts to be highly accurate.
The daily chart above shows how bears dominated this week’s price action. It doesn’t show that traders who followed our daily calls avoided many losing trades. Even though there might have been areas of interest and seemingly valuable entry points, inter-market relationships and choppy trading made it sensible to keep market exposure to a minimum regarding new entries. It is especially true for Friday’s silver price movement. We warned to stay sidelined, expecting that the bounce wouldn’t hold up based on the time of the week. Our indications showed there would rather be a likelihood of further price declines in the upcoming week.
It is fools gold trading from a support/ resistance perspective only, assuming certain price levels will work as borders. While this might be true for a brief period, it is not proof of a turning point. Even worse, getting stopped out in an overall environment that is not conducive for low-risk entries only to see the turning point work out eventually is damaging to a trader’s psyche. Our focus is magnified on a low-risk approach.
Silver in US-Dollar, Monthly Chart, purchase physical silver now for cheap:
While in the microanalysis, bears still are at even keel with the bulls, a monthly chart analysis shows that low prices like right now for physical silver acquisitions favor the long-term investor who aims to hedge bets for wealth preservation purposes. We would even go as far as speculating that the micro environment price behavior is purposefully trying to discourage and distract the longer-term speculators for various reasons. Again, this shows that a contrarian investment approach might be the most profitable and low-risk one. Gathering fundamental data outside the trading noise and distraction commentary of media is the most prudent way to the long-term success of your objectives.
With another look at the chart above, we can see that “the mean” (blue line) plays a significant role in silver’s price support. Moreover, we have additional support (green rectangle) from a transactional volume analysis. On the commodity channel index oscillator, we can also make out a possible pattern repeat (orange circles)
Silver in US-Dollar, Weekly Chart, Already within entry zone:
Trading a monthly chart for a multi-year long-term hold position, we fine-tune our entries on the lower weekly chart. We can make out on the weekly chart the significant rejection of the US$22.00 price level (long yellow wick to the downside, forming a “hammer” candlestick formation five weeks ago). With many other edges examined, we see a high likelihood for prices to stabilize above that zone. Consequently, we consider the entire yellow square as a range to add to our physical silver holdings. With a triple-digit target projection, an ultra-precise entry timing for a physical silver position is less important. Realizing that owning physical silver in this political and economic climate is an essential risk hedge is much more important.
Silver is your best strategy:
The principle of today’s topic between sequential actions and parallel efforts becomes even more illuminated in the learning curve to market participation itself. It is speculated that most market players give up shortly before a breakthrough after years of effort. They are either running out of funds or find themselves psychologically drained. It is based on our tendency as humans to focus on a complex problem by trying to master one aspect after another of the challenge sequentially. Technical analysis typically has the biggest allure, and successively market entries come first.
Consequently, after years of mastering low-risk entry points, finding out that exits are much more important can be frustrating, to say the least.
It is imperative to focus on all aspects of system development at the same time. Psychology, money management, technical analysis, execution skills, and so forth need to have an equal place within one’s development curve. Otherwise, the rate of change of the market itself will catch up with your efforts. You will not get a foot in the door.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.