Gold & Slv Pullback Before Next Leg Higher Weekly Cypher Pattern
Hey Traders, we have a Weekly/Daily Bearish Cypher Pattern on Silver, coming in at a previous level of structure resistance. Gold & Silver have had a nice run up and I believe this run will continue however nothing goes up in a straight line and if it does, it is an unsustainable move. With that said, I am seeing a healthy uptrend in regards to the metals & the commodities complex in general. A healthy uptrend consists of higher highs & higher lows. It is always best to trade with the trend to keep the probabilities in your favor. If you are new to trading, I would never recommend trading against the trend however a professional trader that has been consistently profitable for multiple years can use their discretion in these circumstances.. Professional traders are more likely to be disciplined & understand the consequences of discretional trading therefore they are less likely to fall into the habit of making discretional trading decisions..
I have been watching this Weekly/Daily Cypher Pattern form for awhile now and I have several reasons as to why I think this may be a good counter trend trading opportunity.
1. Multiple Fibonacci Extensions Confluences.
2. Moving Average Cluster (Shown on chart below). These Moving Average Clusters can act as a magnet and pull price in there direction after a prolonged move higher or lower.
3. Daily Cypher Pattern
4. Weekly Cypher Pattern
4. Previous Level Of Structure Resistance
5. Targets will be taking at a price level that does not exceed the most previous low. In other words, even if price does hit both of my targets, we will still have a higher low on silver.
I do not expect a reversal here but I do expect a little give back before the next leg higher! I will be taking up a small short position using the Aggressive Entry shown on the chart above. If Target 1 is successful, I will roll my stop loss to my entry price in order to lock in profits & minimize the chances of taking a loss on Target 2. I will also be looking for Long trades at the lower pivot point. If my conditions and criteria's for a long entry are met near the lower pivot point, I will exit my short positions to lock in profits & re-enter into a long position.
Aggressive Entry Breakdown:
Entry Price- 18.03
Target 1- 17.32 (Risk/Reward- 0.87)
Target 2- 16.80 (Risk/Reward- 1.38)
Stop- 18.92
Conservative Entry Breakdown:
Entry Price- 18.40
Target 1- 17.32 (Risk/Reward- 2.07)
Target 2- 16.80 (Risk/Reward- 3.07)
Stop- 18.92
Moving Average Cluster & Structure Resistance
Weekly Cypher Pattern:
I hope this was helpful, keep in mind that this is a countertrend trade therefore our position size should be smaller than normal while also aggressively managing the trade on a lower timeframe. I will be looking to
re-join the trend as soon as price reaches a level of support or my lower pivot point shown on the main chart of this idea. Thanks traders and I will be updating this trade along the way!
I have been watching this Weekly/Daily Cypher Pattern form for awhile now and I have several reasons as to why I think this may be a good counter trend trading opportunity.
1. Multiple Fibonacci Extensions Confluences.
2. Moving Average Cluster (Shown on chart below). These Moving Average Clusters can act as a magnet and pull price in there direction after a prolonged move higher or lower.
3. Daily Cypher Pattern
4. Weekly Cypher Pattern
4. Previous Level Of Structure Resistance
5. Targets will be taking at a price level that does not exceed the most previous low. In other words, even if price does hit both of my targets, we will still have a higher low on silver.
I do not expect a reversal here but I do expect a little give back before the next leg higher! I will be taking up a small short position using the Aggressive Entry shown on the chart above. If Target 1 is successful, I will roll my stop loss to my entry price in order to lock in profits & minimize the chances of taking a loss on Target 2. I will also be looking for Long trades at the lower pivot point. If my conditions and criteria's for a long entry are met near the lower pivot point, I will exit my short positions to lock in profits & re-enter into a long position.
Aggressive Entry Breakdown:
Entry Price- 18.03
Target 1- 17.32 (Risk/Reward- 0.87)
Target 2- 16.80 (Risk/Reward- 1.38)
Stop- 18.92
Conservative Entry Breakdown:
Entry Price- 18.40
Target 1- 17.32 (Risk/Reward- 2.07)
Target 2- 16.80 (Risk/Reward- 3.07)
Stop- 18.92
Moving Average Cluster & Structure Resistance
Weekly Cypher Pattern:
I hope this was helpful, keep in mind that this is a countertrend trade therefore our position size should be smaller than normal while also aggressively managing the trade on a lower timeframe. I will be looking to
re-join the trend as soon as price reaches a level of support or my lower pivot point shown on the main chart of this idea. Thanks traders and I will be updating this trade along the way!
Trade closed: target reached:
Hey Traderss, Target 1 & 2 have been met on the recent short cypher pattern trade.. I am expecting the metals to continue higher here. I am currently long the metals again and will be publishing an idea regarding that trade asap! Thanks Traders!
