My use of VSTOP and the Multiple Time frame VSTOP has become part of my "autocharting" procedures to identify a price action that triggers a VSTOP to flip and then price action will trigger the VSTOP to flip and then price action to impulse to the MTF VSTOP. We see the black circle and arrow a time where the VSTOP flipped to bullish and shorly thereafter the price action impulses to the MTF VSTOP The last time that happened was Feb 2001 and silver went up 9.5x against the NASDAQ after that.
This system I am tinkering with is still in its nascent stages and so I don't have a lot of back testing to look at to show results. Buyer (of this free post) beware.
A Key point:
First touch of the MTF either leads to a long term consolidation or rejection. The "touch" may not even connect so typically a take profit a few percent below appears to be prudent. This does not neccesarily apply to this because silver was still in accumulation.
If this uptrend is simular to the last we should see most, if not all, of the following price actions occur:
On this tear there should be a retest of the MTF VSTOP as support and the base of the EMA ribbon. That would be the biggest sign to long and to go big. That is shown at the purple arrow. The EMA ribbon is going to be retested multiple times but the biggest retest will be when it has completed its bullish stack, with all short term EMAs above the longer term EMAs. Going big there will be emotionally difficult. We see that it happened at the bottom of the Great Recession.
Also, the VSTOP is set to calculate at the close. If you see a mega green candle on the monthly chart that is so big that the VSTOP is pregnant, or inside the candle, it is generally time to go down to a lower timeframe and use the stop on that timeframe, which should be higher, to get more gains. That is a sign that the top is about to blow off.
Finally we can see through the black parallel channel that price action between this pair can still channel or create tradable chart patterns over a decade. The signal there, in hindsight, is very clear
This system I am tinkering with is still in its nascent stages and so I don't have a lot of back testing to look at to show results. Buyer (of this free post) beware.
A Key point:
First touch of the MTF either leads to a long term consolidation or rejection. The "touch" may not even connect so typically a take profit a few percent below appears to be prudent. This does not neccesarily apply to this because silver was still in accumulation.
If this uptrend is simular to the last we should see most, if not all, of the following price actions occur:
- mostly green months as the price action soldiers through to the top of the EMA ribbon
- a burst through the EMA ribbon to the MTF VSTOP,
- a retest the EMA ribbon as support,
- price action goes on an absolute tear.
On this tear there should be a retest of the MTF VSTOP as support and the base of the EMA ribbon. That would be the biggest sign to long and to go big. That is shown at the purple arrow. The EMA ribbon is going to be retested multiple times but the biggest retest will be when it has completed its bullish stack, with all short term EMAs above the longer term EMAs. Going big there will be emotionally difficult. We see that it happened at the bottom of the Great Recession.
Also, the VSTOP is set to calculate at the close. If you see a mega green candle on the monthly chart that is so big that the VSTOP is pregnant, or inside the candle, it is generally time to go down to a lower timeframe and use the stop on that timeframe, which should be higher, to get more gains. That is a sign that the top is about to blow off.
Finally we can see through the black parallel channel that price action between this pair can still channel or create tradable chart patterns over a decade. The signal there, in hindsight, is very clear
- VSTOP bearish
- MTF VSTOP bearish
- EMA ribbon confirmed as resistance
- Channel Support flipped to resistance
Over the next 10-15 years I would be delighted to see a channel to help me trade silver against the NASDAQ.
Please see the linked idea as to price targets on the Silver NASDAQ pair.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
