As I noted in my post yesterday, SLV was setting up for a possible short or long. The long set-up was triggered and I went long on the downtrend break near support levels. My long is at 139.20. Price has shot up right into trend line resistance(see 240 min. chart). I would exit long positions here if price can not penetrate resistance.
Gain on a hypothetical $100,000
$15,596 , + 15.5%, S&P + 2.1%
Purpose of blog
To help the short-term trader identify levels in ETF's in which to enter/exit for an edge to make money. Long-term investors can also benefit from information on this blog to help them get into or out of a prevailing trend. All set-ups that are posted I trade myself.
Trading methodology
I do mostly swing trades (trades that last from 2 days to 1 week). I identify support and resistance levels on a weekly/daily chart and then drill down to a 60 or 15 minute chart to find my entries according to my rules of execution. I use a stop loss based on support/resistance on every trade to help minimize the losses that will occur. I either exit a winning position at (1) a predetermined level (2) end of a trend, or get stopped out for a small loss.
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