Silver, Impact Scope

November 19, 2020

As a trader, you can occupy your mind with a lot of data and create scenarios for each different event. This will create an unmanageable workflow plan since anything, and everything can move the markets. A more principle-based approach is grouping all events into their impact scope. So instead of creating individual insurance policies for fire, flood, storm, earth quick, and so forth, you’d rather have one umbrella insurance based on impact only. Meaning, make your risk decisions in trading only based on the scope of the impact, irrespective of the cause. This simplifies your toolbox on how to react to extraordinary events and prepares you in a way that your mind isn’t overwhelmed with too much evaluation of various scenarios. Silver, impact scope.

The markets are a game already with too many variables that overwhelm the left-brained market participant. Cornering risk, the most important component in market play, through reducing impact criteria is useful. When working with charts, we deal with three major aspects:

  • price

  • volume

  • time

From these components, we derive trend, range, volatility, and other subgroups of impacting nuances.

In effect, the only worthwhile question to be asking is: “Do we have a low-risk trade that is worthwhile taking”?

Silver, Weekly Chart, Silver-impact scope, Price:

Silver in US Dollar, weekly chart as of November 18th, 2020

Over the last six months, the price of Silver has been bullish. The weekly chart above describes our most likely scenario of the future for Silvers price behavior.

Silver, Monthly Chart, Volume:

Silver in US Dollar, monthly chart as of November 18th, 2020

On the monthly time frame, the volume analysis of the Silver market shows a six hundred percent increase from the twenty-day moving average volume (99.89k) in March of this year. It confirms the reversal price pattern (purple circles).

The following month’s volume node (yellow circle) exceeded a temporary high (424k) of the last five years by more than threefold. This confirms the larger turning point from a sideways market into a bullish directional market.

Silver, Monthly Chart, Time:

Silver in US Dollar, monthly chart as of November 18th, 2020 b

Looking at the market from a time perspective, we project a doubling in price within seventeen months. The standard deviation model contraction maximum was in June this year. In other words, this confirms that Silver is in an expansion cycle right now.

Silver, impact scope

We can’t stretch enough how valuable a free mind in trading is. Debate and any other unresolved questionnaire in one’s mind are counterproductive for executing trades. Reducing data by grouping it in the impact fields of:

  • How will this affect the price?

  • How might this affect volume?

  • What time frame are we talking about?

It can at times of action substantiate a solid course of action. Postponing reason, causes, and details to a later time reduces trading errors by a large margin.

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Most silver is produced as a byproduct of copper, gold, lead and zinc refining.

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