We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • 🇪🇺 EUR Euro-Zone Retail Sales (YoY) (FEB), Actual: 3.0% Expected: 1.7% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2020-04-03
  • LIVE IN 30 MIN: Strategist @PaulRobinsonFX will run through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market here - https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr
  • Heads Up:🇪🇺 EUR Euro-Zone Retail Sales (YoY) (FEB) due at 09:00 GMT (15min), Actual: N/A Expected: 1.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2020-04-03
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/8Wyy20WdNj
  • The $USD fell as an improvement in sentiment slowed aggressive capital outflows from emerging markets and #ASEAN economies. What do USD/SGD, USD/MYR, USD/IDR and USD/PHP face next? Find out from @ddubrovskyFX here: https://t.co/3SQYf5Y0Vx https://t.co/aEDOjS4CqZ
  • EUR Eurozone Final March PMI Actual: 26.4 Previous: 28.4 Composite: 29.7 Previous: 31.4
  • Russia is unlikely to agree to production cuts if the US does not participate, according to sources
  • EUR Germany Final March PMI Services: Actual: 31.7 Prelim: 34.5 Composite: Actual: 35.0 Prelim: 37.2
  • OPEC+ Alliance are set to debate on at least a 6mbpd cut, according to sources
  • EUR France March Services PMI Actual: 27.4 Previous: 29.0 Composite Actual: 28.9 Previous: 30.2
Silver Channel presents Selling Opportunity

Silver Channel presents Selling Opportunity

2012-01-06 22:19:00
Walker England, Forex Trading Instructor
Share:

Silver (XAG/USD) has slowly been forming a bearish pricing channel on our daily chart, over the last nine months. Channel support is formed by connecting the 2011 high at $49.87 with the July and September 2011 highs. Support of our channel is formed by connecting the May 2011 low at $32.37 to the September low of $26.13. As price now travels between these two levels, it is an opportune time to move to smaller term charts for further direction.

Silver_channel_presents_selling_op_body_Picture_1.png, Silver Channel presents Selling Opportunity

Divergence is a handy trading tool that compares price action, to an oscillator. Today, we will be looking at the XAG/USD 8hr chart and MACD with traditional 12,26,9 settings. The first step of spotting divergence is to spot the trend. In our chart below, we can see our downtrend continue, as lower lows are being created on the graph. Visually, we can see this by drawing a trend line connecting the higher lows being formed on our charts.

Next, we need to view MACD by utilizing the same steps above. We can connect out high points on the indicator for the same time duration that we viewed our price chart. Indicators by nature are lagging and will traverse a chart in the same manner as price. Divergence is spotted however, when price and an indicator take two different paths.

Below is an example of indicator divergence hidden inside of the trend. With price pointing downward under our trend line, but the indicator making a new high, we should appraise this as an opportunity to enter the established trend. The indicator essentially is acting as a spring board, loading up to a new high before rejoining price in creating a new low. Traders may even proceed to enter their trade on an oscillator crossover.

Silver_channel_presents_selling_op_body_Picture_2.png, Silver Channel presents Selling Opportunity

My preference is to sell entries Silver on a MACD crossover near $29.00. Stops should be set over resistance at $30.00. Primary profit targets may be set at $27.00, for a clear 1-2 risk reward ratio. Secondary targets may be set near our daily channel support line, at $21.40

Alternative scenarios include price breaking higher over short term resistance towards our channel line.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.