So here around noon (Africa time) I'm in the middle of consolidation on the 15 minute chart and I notice a near perfect ledge shaped WW forming.
I'm short one contract and long 1450 puts.
I add another short - takes me to the end of my margin - at 1458.90
And the ledge breaks.
I close one of the contracts at the width of the ledge ~ $2 for a quick $200, but I'm still long 1450 puts and a couple of 1475 puts and one contract at 1457.90 from yesterday.
I stay put. I still have a long-term target line and SNR lines that say that gold may go to $1415 - another $40 or $4000 on one contract, plus about the same in my 1475 puts. Target lines from one WW and one TF on daily suggest 1435, which I'm $20 away from. They converge late Thanksgiving Day.
What I've learned from my FIRST consistent use of WW, having learned them > 20 years ago, but only now having the time to use them consistently are these points:
1. WW Point 4's are very important. Study where they are formed and you'll see how they are predictable. Even easier with stocks! And they get to point 5 very, very quickly.
2. Just trade ONE product. From last night unto now (6 PM Africa time), I'm up with realized and unrealized profits of $1,350.
3. If you cannot afford a futures contract and can stomach the immediate draw down on the spread, buy the puts most ATM and with the biggest open interest and narrowest spread. Gold only trades 14K contracts a day in all its options, you have to swallow the spread, if you trade gold. Stock's its easier, but gold trades 24 hours, so I can pick it up anytime and look for a WW on any timeframe
4. Do not use WWs alone. Need Fib off the point 5, and/or SNR and/or TL to be very confident. Latest ledge trade shown here has not retraced -YET
5. Do not look at the news or Seeking Alpha. Markets are predictable. If gold continues down as the US stock market opened just 20 minutes ago, the news will say gold continues down because people are pouring money into equities. IGNORE THE NEWS. WW analysis told me last Monday it was going down and this after a down days on Nov 19th and 20th, when conventional wisdom should cause Gold to rally.
Thanks for listening
I'm short one contract and long 1450 puts.
I add another short - takes me to the end of my margin - at 1458.90
And the ledge breaks.
I close one of the contracts at the width of the ledge ~ $2 for a quick $200, but I'm still long 1450 puts and a couple of 1475 puts and one contract at 1457.90 from yesterday.
I stay put. I still have a long-term target line and SNR lines that say that gold may go to $1415 - another $40 or $4000 on one contract, plus about the same in my 1475 puts. Target lines from one WW and one TF on daily suggest 1435, which I'm $20 away from. They converge late Thanksgiving Day.
What I've learned from my FIRST consistent use of WW, having learned them > 20 years ago, but only now having the time to use them consistently are these points:
1. WW Point 4's are very important. Study where they are formed and you'll see how they are predictable. Even easier with stocks! And they get to point 5 very, very quickly.
2. Just trade ONE product. From last night unto now (6 PM Africa time), I'm up with realized and unrealized profits of $1,350.
3. If you cannot afford a futures contract and can stomach the immediate draw down on the spread, buy the puts most ATM and with the biggest open interest and narrowest spread. Gold only trades 14K contracts a day in all its options, you have to swallow the spread, if you trade gold. Stock's its easier, but gold trades 24 hours, so I can pick it up anytime and look for a WW on any timeframe
4. Do not use WWs alone. Need Fib off the point 5, and/or SNR and/or TL to be very confident. Latest ledge trade shown here has not retraced -YET
5. Do not look at the news or Seeking Alpha. Markets are predictable. If gold continues down as the US stock market opened just 20 minutes ago, the news will say gold continues down because people are pouring money into equities. IGNORE THE NEWS. WW analysis told me last Monday it was going down and this after a down days on Nov 19th and 20th, when conventional wisdom should cause Gold to rally.
Thanks for listening