BTFD Anyone? Update

So you say you want to buy the fucking dip? Let’s look at the hourly PSLV Elder Impulse chart and see what it says. First, early in the trading day the red bars that indicated a short trade gave way to blue bars, signaling exit from those trades to neutral. The MACD histogram has a positive slope but the 13 hour EMA (pink) slope is negative. A green bar will be painted if the slope of the pink line goes positive. Stochastic is embedded below 20. A good entry will be when stochastic crosses back above the 20 level.

A gap exists between 18.20 and 18.50. 95% of all gaps fill, so it is most likely that price will at some point pass through this level. Of course, there are the few times when the gap will not fill. I am sure the gold chart has gaps unfilled back in the 400s that will never fill. But, if we get another push down tomorrow to challenge support at 19.10, it makes a further drop to the gap more likely. A good strategy might be to place a bid in that gap. This would set up the best possible trade in my opinion, with a stop just below the swing low at 17.60.

At any rate, watch for the bullish stochastic cross and a green bar. Our trading risk has been reduced but is still considerable. BTFD

via PSLV – 60 min Elder Impulse System, Portrait.

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