Posted July 22, 2014 By Phil Elrod
Why I call it “Music of the Market”
Look closely at the price bar action relative to the horizontal lines.
Those horizontal lines were put in several days before the day of this chart.
It is not very apparent but there is a line at the top of the chart.
Those horizontal lines (like the staff lines on a music sheet) are a road map to price action. I cannot imagine trading without them.
The secret to creating these lines can be found in my eBook SEE THE MUSIC OF THE MARKET.
Figure 1 Copper Futures 200 Ticks per bar 7-22-2014
Wouldn’t you like to have such a roadmap when you trade?
Posted July 19, 2014 By Phil Elrod
I know you think you have good intentions.
But I have a message for you to think about.
Paving the road to hell with good intentions does not change the destination.
Posted July 9, 2014 By Phil Elrod
When I trade it’s almost always a trade based on pure technical analysis. The one exception is when I trade gold or silver. As I discussed yesterday, the futures markets for gold and silver are ruthlessly manipulated by the bullion banks, led by JPMorgan, whose naked short position alone in silver is proof positive of such manipulation – and the government sits by with their thumb “you know where” and does nothing. Anyway, I do like to trade these markets from time to time, but technical analysis is not near enough in such markets. You have to be aware of the fundamentals as well. I try to enter long only after the bandits have done their damage by driving prices doiwn.
For the fundamentals of the gold and silver markets the best source available, without paying for the info, is Ed Steer’s Gold and Silver Daily newsletter. I read it daily and it is well worth the time – even if you do not trade them, but are only just interested in the precious metals markets.
Casey Research has a free publication worth reading as well, and Ed Steer’s newsletter is affiliated with them as well. If you want to trade gold and silver stocks, Casey Research has several good newsletters/advisory services that are possibly worth the money.
The point is that when the manipulators have attacked the price of gold and silver and driven it down, a very good trade is possible when the metals rebound. But it is a fundamentally initiated trade because technical analysis cannot tell you when the crooks have finished their attack and will back off and let the market rise for awhile.
If you want to subscribe to Ed Steer’s newsletter or any of Casey Research’s other offerings, the link is: www.caseyresearch.com.