Silver orders

The almost all markets are selling off this afternoon, I won't be surprised if your order gets filled.  I don't have any gold or silver positions ATM. 

Its looking pretty heavy across the board isn't it?  Will be interesting to see if the silver base line holds or gets busted like golds

I have a small silver short, in at 16.34, showing a small profit

The slow stoch is looking promising for a turn around in silver. 

And gold for that matter (although the DMI doesn't seem to agree)

For gold, both SSTOCH and RSI are coming from oversold, and it looks like the MACD histo is tapering off so these are all suggesting a turn around.  I've found that I rely mainly on MACD, SSTOCH and RSI.  I hardly use DMI or ADXR and so they aren't in my checklist - what's your opinion Nathan?

Nathan... what's the yellow line in your DMI indicating?

Nathan and Alan... study up on using the CCI and see if this gives you a further reading of current action... use 20 as the base setting.

Hi Paul it's the ADX line. Thanks re  CCI.  I will check it out   

Greetings Nathan... yes I am familiar with the name of the line... my question was... "what is this line indicating to you"? My question is in response to your comment about DMI not agreeing.

This prompted my question... what is the yellow line indicating?

Oh haha sorry I misunderstood.  Its pointing up and is over 20 . With the red line high on top  I read that to mean the downward movement is in a trend.   The SStoch is crossing up but because it's deep  in oversold territory  it's not nearly  as strong as if it had exited.  So perhaps instead of saying the SStoch is indicating a reversal and the dmi disagrees. A different observation would be the dmi indicates a downward trend is developing and the SStoch supports it?.   Thanks for  prompting me to reassess my thought process. I only saw it differently when you asked the question.  Much appreciated 

You're welcome!

Hey Alan.  I have come to appreciate and value the DMI more than I have previously.  Justin said its one of his favourites too so he might  have some good insights.   Although the cross over can be laggy  the directional  slope of the upper line is often contracting back down prior to price direction changing. Often the lower line slope is trending up as well to create a contracting lines pattern.  Perhaps that could be something to explore for the checklist.   To avoid excessive  false positives one option could be that  it is only to be included if the MACD has crossed ? 

Thanks for the info and suggestions Nathan & Paul.  The CCI looks very promising. 

However, I'm not clear now what your overall interpretations are of the above gold chart.  My reading is that the DMI may be indicating the early stage of a reversal (up-trend) as the red and white lines may be starting to convergence and the yellow line is heading up.  This conforms with RSI and SSTOCH being oversold, price bouncing off the lower BB, a couple of indecisive candles, and MACD histo slope declining.  So, my bias is up.

Howdy.   🤑 

I didn't actually get to an overall interpretion. Paul was just directing me to pay attention to some possibly skewed thought processes. Prior to the initial post above I had been examining the silver chart. Because of the candle pattern  and the  support line holding up I was bias towards a reversal to the upside.   Using that framework I interpreted the crossover of the SStoch in oversold as supporting my theory.  I then glanced down at the gold chart SStoch and saw a similar pattern.  I immediately applied the same meaning to it without checking out the rest of the gold chart.  In that context I saw the DMI as contradictory. 

You are seeing the DMI as an early reversal sign because of the converging lines.  Conversely I might  see a series of higher highs and higher lows on the top line and interpret that a downtrend continues.  We are seeing the same thing but framing the observation  in different context.  Whoever turns out to be correct will see the successful trade as confirmation that their interpretation of the charts was accurate and will reinforce the bias going forward.  Paul had identified I was in that mode of thinking and asked the question so I would become aware of it as I responded.  The only bullish indicator on the gold chart is the candlestick pattern.  The other indicators haven't actually fulfilled our  checklist I don't think.  In fact did you notice the pending death cross of the 50 SMA penetrating the 200 SMA?  Traditionally a pretty bearish signal but we push it to the side in favour of confirming our preferences.  Your thoughts?