Silver: Focus On Resilience

Weekly Chart, Silver in US-Dollar, Last Week's Setup:

Silver in US-Dollar, weekly chart as of March 24th, 2021.

Silver in US-Dollar, weekly chart as of March 24, 2021.

We posted this chart in last week's publication.

Weekly Chart, Silver in US-Dollar, Execution on the Plan:

Silver in US-Dollar, weekly chart as of April 1st, 2021.

Silver in US-Dollar, weekly chart as of April 1, 2021.

Since prices moved into our pre-planned entry zone of the yellow circle. We were already able to take partial profits based on our Quad-exit strategy, and we are now holding two runners.

Sideways range entries with quick risk elimination like these are representative of resilience. One doesn’t need to know which one of these entries will be the one where the remainder position size will break through the upper boundary of the range. As long as the entries are low risk, this engagement in a tough sideways zone supports persistent efforts.

Monthly Chart, Silver in US-Dollar, Silver-Focus on Resilience, The Edge on our Side:

Silver in US-Dollar, monthly chart as of April 1st, 2021.

Silver in US-Dollar, monthly chart as of April 1, 2021.

It is a misconception that one needs to be right to make money. But the ego constantly suggests that we should find that best entry price. However, there is no such thing. We need to try resiliently until we get it right, and manage risk and reward ratios over sample sizes; an effort that requires a resilient mindset.

A look at the most critical time frame chart above shows three crucial factors:

  1. A preceding strong directional leg from US$12 to US$30 indicating a trend.
  2. A very favorable risk-reward ratio for the large time frame players.
  3. If you have a closer look within the red box, you will find excellent volume transaction support below the price we are trading at.

Trading is a business no matter what the time frame. You are in charge of wealth preservation and creation, and you are the core anchor. Hence, you need to be in the best shape. Review your business plan and be aware that resilience requires a review of your breaking points.

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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