Loading ...Noise reduction
The beauty of monthly candles is it’s noise reduction properties. If you’d be looking ONLY at smaller time frames, your emotions and nav would of been whipsawed to kingdom come!
Anyhow, gold expressed in gbp is bouncing hard on the magical and mystical arc! Very positive for gold if we close month at of above current levels!
Edit: adding chart for silver expressed in gbp
Edit: final thought.. is it me or its an insane coincidence that gold and silver are bouncing on different parts of the arc, at the same time? Just beautiful
Yes but many here are short term traders .
Buy and hold in this sector can be lethal
So we need noise !
Short term traders should seriously consider not trading against a higher trend (timeframe). You reduce your probabilities of having a successful trade. The higher trend can “kick in” any moment and wipe your counter, higher trend play. Example.. anybody shorting gold expressed in gbp would of gotten stopped out fast when the monthly chart defined support areas “kicked” in. Another advantage of respecting a higher trend is that it that it can compensate for “bad timing” on smaller time frame plays that are both long. Instead of hitting your stop loss.. the higher trend can “kick in” and help you not get triggered by strongly resuming the upwards trend
So, yes, trade any time frame you want, but at least have a peak at the higher time frames to see if you are in harmony with it. Remember.. the trend is your friend, especially the bigger ones.
Poetry.
The British had Shakespeare, Led Zeppelin… now Technical Analysis!
If you are in a consolidation pattern on a daily chart then ignoring the monthly charts is a good idea.
Just swing trade the pattern.
To each his own .
Buy and hold is not for everyone in this sector…You can lose money and lose interest and faith.
Technically Gold is in a Bull phase since Jan 2016…but those who bought and held are NOT happy they did for the most part.
There was a good time to sell after the first rally …and a good short to be had
But of course I understand your points guys