Silver 1D Short Trade : Retracement After Bullish Momentum
Updated
The trade is not intended to be short-term but rather based on a daily timeframe, which could span several days or even weeks. The key signal for this trade will be if today’s daily candle closes bearish, confirming the weakening bullish momentum and setting up a favorable short trade.
Trade Setup:
• Entry: Anticipated upon confirmation of a bearish daily close.
• Target: A retracement towards the 29.800-29.600 area.
• Stop-Loss: A tight stop-loss has been placed to manage risk. This will be adjusted as the trade progresses based on daily price action.
Risk Management: Since this is a trade based on the daily timeframe, it’s important to manage the position with the understanding that the trade may take time to develop. The stop-loss is placed tightly to protect against any sudden reversals, but as the trade progresses, it will be adjusted accordingly. This strategy allows for dynamic risk management, where profits can be secured incrementally if the market moves in our favor.
This trade idea is built on the expectation of a cooling down period after recent bullish activity. The key will be the daily close, and traders should be prepared to adjust positions based on evolving market conditions. Stay patient, manage your risk carefully, and let’s see how this trade unfolds.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Trade closed manually
I decided to close the position in the 29,800 area after yesterday’s price action manipulated the previous high and then moved in our anticipated direction. I allowed the market to absorb the high-impact news before making this decision . Gold and silver have once again demonstrated how volatile they can be during such events! In such volatile days, it’s often better to stay away from the market and simply assimilate the information. If you don’t fully understand the behaviour of the instrument, it’s challenging to adjust your strategy effectively. Overall, it was a well-managed trade. Have a good day, and enjoy the profits!Disclaimer
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