Keep it simple
Dec 14, 2005
A lot of attention has been
shifting to the precious metals in the past few weeks, and there
is no shortage of opinions, and certainly no shortage of forecasts.
At Traderscorporation, we have received our fair share of emails
asking for our opinions, outlook, and forecasts. Most folks are
quite disappointed when we say that we honestly don't know. We
follow the markets, not predict them. And as a follower of the
markets, there is one most important indicator we follow, and
that is price. We cannot argue with price.
The simplest way to follow
a market is to simply follow price action. Upon a pullback or
consolidation, resistance is created. Upon the break of that
resistance, or what we call a TLB (trendline break), we buy.
Upon a rally, support is created. Upon the break of that support
or TLB, we sell. That is it, folks - we have a TLB today and
profits should be taken.
Of course, we can dress it
up a bit by throwing in a couple of moving averages, and a simple
direction indicator. Voila! A priceless one of a kind trading
model, available only at www.traderscorporation.com
(a shameless plug)
Silver - the regular model.
Silver - the deluxe model.
When it comes to technical
analysis, less is more. Aspiring technicians often employ too
many indicators, and often they contradict each other. Keep it
simple and don't forget about price.
Dec 14, 2005