First trade! Buy a gold ETF tomorrow. I chose this one because I liked the leverage, so less capital gives you the same profit as if you invested more money.
We have several things that will work in our favor with this trade
- Breakout above very stubborn resistance
- Breakout on high volume from ascending triangle
- Two stochastic buy signals
- Favorable risk/reward ratio
- High probability of success with this type of breakout (~75%)
Click on the picture to enlarge.
The probability of a bullish ascending triangle breakout hitting its price target, according to the Thomas Bulkowski studies, is 75%, which means that there is a 25% chance of failure.
Our stop is a close below 43.75, and our target price is 47.50, resulting in a probability adjusted risk-reward ratio of 11.
This is a very favorable trade, and I had a video, but it is still opening. Hope you can jump in!
~Christopher Diodato
EDIT: 1:26 PM
Renowned technical analyst, Sam Collins, has just recommended a strong buy for all gold ETFs. Beat you too it! =)
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