How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

[praveen taneja]

I had said, "Trade with an Open mind".... So, don't carry any bias on Mon & Tues.... Trade what you see.....

If I have to provide some levels, then that would be 5265-5305-5340-5380 on Nifty Future..... Be cautious around these levels.... We should see a big move starting/halting around these..... It might even give a move within this range....

Just stay calm and exit if it hits your Stops... Don't remain in the trade when market is going against you....

And be careful with False Breakouts.... ie; price crossing these levels and reversing without sustaining for 5-10mins.... In case of False-breakouts, the move is going to be vigorous.....

Another thing is Gaps... We might get a Gap opening around these levels and market might just keep on moving in the direction of the Gap without giving any sort of Retest....

These are some of the things which traders should be careful... A gap is more likely also because we have had an extended weekend....

But the mantra is: Trade with an Open mind..... and apply all those words of wisdom which you have heard/read but never applied.....

ok Bro and what is option for people who are sitting on 100% cash

On yday when I saw red river is flowing almost everywhere in EU mkts sold all my holding waiting for a good gap down to buy any level below that there is stay away point

 

[EagleOne]

aditya, if you encounter two contradictory WW for same scrip, in different tf, for ex- one ww in 60min is bearish and one ww in daily bullish, then which one to follow???

(p.s. - its not hypothetical, will show examples, right now not able to find charts, in which i have seen)

Very much possible.... and the targets for both the WWs might get fulfilled....

Let Kamleshji handle this googly of yours..... He understands the psychology behind this pattern....

In the meantime, let me also search for this peculiarity on charts....

Hi Vikrit
Depends upon the volume-price co-relation, and in what stages of formation those patterns are. If in resonance (a rarity) both TFs will get fullfilled. If it is just a burst in the lower TF, then higher TF might not register the change proportionally. A vice versa, however, may have a dire consequence for its 'chota bhai' in the lower TF. All in all, in my experience, EPA and/or ETA of both patterns normally don't follow the planned route. In extreme case of dissonance, such scenerio may even lead to mutual destruction of both by going sideways.

(Sorry, Kamlesh, for taking up space in your thread. You know it already that I hate to share my trading 'ideas' publically . But Vikrit and Aditya are among my best TJ buddies. Besides, couldn't resist answering such an intelligent query - a rarity on TJ now a days! :lol

 

[adityasaraf007]

ok Bro and what is option for people who are sitting on 100% cash

On yday when I saw red river is flowing almost everywhere in EU mkts sold all my holding waiting for a good gap down to buy any level below that there is stay away point

Arre Praveen ji... meri jitni umar nahi hai, usse zyada ka apka market ka experience hai....

Aur toh aur main bhi 100% cash pe hi baitha hua hun.... Recently apna broker change karne ke chakkar mein portfolio ke saare shares bhi bech dale.... Naya a/c open hone par waapis khareed lunga....

Apne ko toh bas itna pata hai ki toofan ke pehle wali shanti thi yeh.... (Main trading nahi kar raha tha na.... isliye market shant thi... monday ko shayad trading ke maidan mein utrun toh market mein toofan aa jaye....

 

[praveen taneja]

Arre Praveen ji... meri jitni umar nahi hai, usse zyada ka apka market ka experience hai....

Aur toh aur main bhi 100% cash pe hi baitha hua hun.... Recently apna broker change karne ke chakkar mein portfolio ke saare shares bhi bech dale.... Naya a/c open hone par waapis khareed lunga....

Apne ko toh bas itna pata hai ki toofan ke pehle wali shanti thi yeh.... (Main trading nahi kar raha tha na.... isliye market shant thi... monday ko shayad trading ke maidan mein utrun toh market mein toofan aa jaye....

:clapping::clapping::clapping::clapping::clapping:

 

[HARIVEL]

pls maintain common language!!!

 

[vikrit]

Hi Vikrit
Depends upon the volume-price co-relation, and in what stages of formation those patterns are. If in resonance (a rarity) both TFs will get fullfilled. If it is just a burst in the lower TF, then higher TF might not register the change proportionally. A vice versa, however, may have a dire consequence for its 'chota bhai' in the lower TF. All in all, in my experience, EPA and/or ETA of both patterns normally don't follow the planned route. In extreme case of dissonance, such scenerio may even lead to mutual destruction of both by going sideways.

(Sorry, Kamlesh, for taking up space in your thread. You know it already that I hate to share my trading 'ideas' publically . But Vikrit and Aditya are among my best TJ buddies. Besides, couldn't resist answering such an intelligent query - a rarity on TJ now a days! :lol

thanks buddy for explanation,

so now a days means 2weeks, 5days????

.

 

[vinst]

Comex Gold daily.

Support taken at black line at 'A'is being tested after resistance found at blue line at 'B'.

Overall Gold is moving in red channel and may target lower red line in due course of time.

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click image for full size view


regards,

 

[praveen taneja]

Gold Seeker Closing Report: Gold and Silver Gain About 1%

Please Note: U.S. and Canadian stock markets are closed today in observance of Good Friday. However, bond and currency markets will remain open and March’s jobs data will still be released.

 

[goldmine2013]

thankyou for the information:clapping:

 

[uttamkamlesh]

ok... thanx, have read manual again, will check out your charts once again but the thing is some fluctuation are always there in price, which confuse for points.

for ex this chart-

is this a valid and good WW?? (irrespective of volume condition, assuming vol is there just to understand the points)

and plz guide how to decide where to enter, as bill manual's anything in sweet zone is good. but sometimes price touch the 1-3-5 line come down/up. sometimes touch/go beyond 1-3-5, turn & start going towards target, but in next candle again start going down/up deep in sweet zone; so what to do??


.

1. DANCE WITH THE TREND
First and foremost thing is knowing what is the trend...crude oil is in a strong uptrend, so shorting it is no option, no matter what bearish WW it is forming. WW in line with the trend is tradable.

2. Your points are correct but you already know volume confirmation is a must for WW otherwise it becomes Wedge. Here, the alert is : point 5 has hit extreme of sweet zone area, so as Bill Wolfe has said it there is very little chance for it to hit EPA target.

3. If you go thru the whole thread i have replied to very good queries of Aditya on WW, also one assignment for mastering WW is there.