If You Are A Long Term Gold & Silver Investor – Ignore The Bollinger Bands
I find the Ira Epstein metals videos on YouTube interesting and entertaining. However, one needs to decide if you are trading short term futures contracts(they are more valuable for that) or investing in physical and or miners for the longer term. The reason I say this, is he leans heavily on the Bollinger bands and that 90% of the time those will stop any advance or decline, and he is correct about that. Which is why if trading futures on margin you need to heed that warning or you will get killed if you don’t. The problem is that isn’t what you want to do if you are a long term non margined investor at a time like this. When the big breakout comes it isn’t going to follow the bollinger band rule because as I have said before, “this time is different”. The bollinger bands are kind of like the chicken and the egg. Regardless of how or why the algorithm works it gets reinforced in the marketplace by the bankers who manipulate the gold and silver futures market prices. For 50 years since gold and silver futures contracts started trading on the COMEX (expressly for the purpose of manipulating and supressing short term price movements) the bankers use naked short selling of unlimited numbers of contracts to stop any rally. Especially, when you know where the algorithm says they should stop and most traders also use those targets in their calculations. It becomes a self fulfilling prophesy. A long term unleveraged buyer doesn’t want to use those parameters because if and when the manipulation breaks down and ends, the freedom from 50 years of price suppression with no way of putting the toothpaste back into the tube, is going to lead to an outsized move that is going to go above and stay above the bollinger band for quite a long time.(just look what happened to nickel recently and oil two years ago on the downside) Each was a unique situation but so are gold and silver) If you trade gold and silver futures on margin, heed the bollinger bands. If you are long physical, IGNORE them.
Good advice, Chartsmaster.
Sorry but I have to comment.
“the bollinger bands”
WHICH bollinger bands? There are more than two. More than four even.
You never comment on hourly, daily, weekly or monthly bands. Or how many std deviations?
There are bands for every time frame.
Perhaps you are one of those who ONLY looks at daily charts, so this concept would be foreign.
If you are trading short term futures, use the hourly and daily bands (and other stuff too).
If you are investing in physical long term, ordinary T/A probably isn’t the tool anyhow.
BUT .. if you are position trading ANYTHING, bands but only at higher degrees are useful.
For the record, I use mostly 3 std dev bands not 2. And I will look at monthlies before I ever look at dailies.
My Headline said”If You Are A Long Term Investor Ignore Bolinger Bands.” If you are a futures trader for short term , I said they can use them. It wasn’t a dissertation on bolinger bands, just that as Ira uses them in his videos they are fine for futures traders not for long term investors. You seem to agree, so there was no point to your comment. Just looking to troll again after taking a break. Guess a leopard can’t change his spots.
“You seem to agree”
I CAN’T AGREE because you never answer the question … which bands? And that was my point.
You seem to be oblivious of timeframes and key distinctions revolving around them.
And by coming off as a guru with your advice, I think you are doing a disservice to those reading your posts because you ignore TIMEFRAMES IN YOUR T/A. You use words like short term and long term, but your analytical tools seem to be devoid of the charting analogues.
You are just like yesterday’s troll WHO DOESN”T COMPREHEND WHAT SOMEONE WRITES because you want to attack the person writing and not the point he is making. Once again because you are so dense. It doesn’t matter what anyone’s definition of long term is. I discussed trading futures (bolinger bands useful) vs. owning physical or mining stocks for long term (in the context I described) that a possible large upside move was coming because of the end of manipulation.(ignore the bolinger bands, any and all of them, because they might take you out of your position in front of a major melt up. Once again you are so concerned for everyone else about my posts,when they can read and comprehend for themselves. Something you seem incapable of doing.
You are calling Noman a troll for calling you out yesterday. You are a bloviating wind bag who squats on this site and farts all day long. No one wants to come near as it stinks…
Not surprised at the childish response based on your other comments and posts.