CLIFF NOTES: in Mark Douglas’s amazing work, on page 132 of Chapter 8 he defines an edge as “nothing more than an indication of a higher probability of one thing happening over another.” My edge is pattern recognition based on square roots and the inverse of those square roots. As my friend and mentor Larry Pesavento (www.tradingtutor.com) said “defy the human condition and do the work.” If you spend as much time as I have in front of charts you’l find that in the midst of the chaos there is patterns that appear and they give you an edge.
My exemplar below is, simply, silver and the PATTERN that existed from $8.00 to 50 and then back down and the PATTERN that is now coming into play at/around 14. What does this mean? Well, see above – it mean it’s an edge and it might hold and, then again, it might not.
All of these charts are real time w/ ZERO “could of, would of, should of” … the PATTERNS work, technical analysis works and get ready to rumble at 14/oz.
ROCK ON, ok?
for a view of Part 1 and Part II of “Silver following the script” please see the following: http://bartscharts.com/2013/11/08/silver-following-the-script-part-ii/ this will take you to Part II and inside of Part II is a link to Part I.
Summary: key level is 19-60-19.80 on spot silver. IF that gives away, THEN an move into the 13-14 region is a real possibility.
the first post on Silver:
here is an update to the chart .. if our 4 is correct, we should see a strong move to the downside start to develop as we are then POTENTIALLY in a wave 3 of 5 of the 5th and final wave down into our BUY zone of 14. the only thing we need to contend w/ is IF (the BIG IF) the 50ish level was a macro 3 or 5. I can move into either camp …however, I do believe 14 will give us a nice buy signal (the first one in 2+ years)