Obscure_Trading

XAG Market Structure Breaking Down

Short
OANDA:XAGUSD   Silver / U.S. Dollar

The chart above shows a 12hr outlook of Silver (XAG). The light blue trend line shows the macro lower highs that are being printed and this line has been respected several times. The current price action is now in an area revisiting this downtrend. This does not mean a reversal is imminent but gives us an indication that this is where a reversal would occur if it's going to. Let's look at the chart below for a close look at recent price action.


We are now zoomed in to the 1hr price action and can see the more recent market structure shown by the yellow line. The price action squeezed between our larger blue downtrend and this yellow uptrend before finally hopping outside of the yellow trendline. The price breaking the yellow trendline does not mean that a reversal is confirmed, it's simply the first potential point for the bears. But immediately following that trend line break, the price action has created a lower low as well as a lower high, both of which are very good signs that the bears are beginning to take control.

Not financial advice but this is sufficient for entering a short for my trading strategy. The short position shown on chart is simply a guide, as this will be the beginning on a new trend. My strategy is not to take a blind take profit but to continue monitoring this until the bulls begin to take control again and only then do I close my position.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.