Today we are going to check back in with SLV. See the quote above from yesterday. I sure did not expect this to happen the next day, lol. These volatile markets move so fast. But if you look we did just this. We went down just below the 200 day SMA, just enough to excite the bears, then the bulls issued them a pie in the face and ripped the price back above the 200 day SMA. Now it is still early in the day so we have to see if this holds of course. On the 15 minute chart though there is a bull flag forming, so it's looking possible we will get another up move. If we close above the 200 day SMA that would give me a lot more confidence. So, as a learning lesson here, when and where would I move my stop loss up? Passing the test does confirm it is support, and there are bulls watching and willing to buy whenever we dip below it. That's a good thing. But, SLV is also a volatile instrument so I do not want to put my stop loss too close to current price. So, what I would do is watch for the next higher high. If/when we get above 16.44 that would confirm a new higher high and higher low. At that time I would move my stop loss up to probably ~1% below the 200 day SMA (once again to account for volatility and another fake out break down like this morning). At that time I would also look at other support areas that would be in the area near the 200 day SMA, as having it below multiple support levels if possible is a good thing.pmward wrote: ↑Wed May 20, 2020 12:43 pmAlso, stop loss moved up again in SLV today, current stop is in the general vicinity of about $15. Guaranteeing more profits. I would like to see us get a pullback/retest of the 200 day SMA and bounce to confirm that as support, that would give me confidence to move my stop up even higher to just below the 200 day SMA. Trailing a stop is a bit more of an art than a science. In a volatile asset like SLV you have to give it some room, as I don't want to get shaken out during normal market volatility.
Also of note, I did add on to my SLV, GDX, and GLD positions this morning as all 3 tested support this morning. I've always been more of a breakout trader than a support bounce trader, I'm trying to expand my horizons a bit with a new technique that is a bit more fitting in the current market environment.