I am sorry AK100 but I think thats terrible advice. Price doesnt just move randomly down 5% because a stop was triggered. There is some high volume selling going on and its bad advice to not be pay attention to it. I am not saying silver will go to 10 but you need to pay attention to what the price is telling you not just dismiss it as some aberrant move against your overarching theme.
Eh? Price can easily fall 5% in a random move especially with something like Silver. Study your market history, not just in that metal but in general commodities. Silver is in the midst of a parabolic bull move and the price action you saw yesterday after the main close normally always happens in these types of moves. Massive selloffs, followed by massive moves to the upside, and then some more of the same. Let me tell you that there's a 95% chance that the ultimate top is Silver is not going to be pretty. Chances are it falls 20%-30% in a matter of days, then blows through the recent high by another 20%-30% then dumps another 20%-30% then blows through the highs again etc. Then when almost every short has been topped and tailed, that's whan it will make its ultimate high. Remember Nasdaq and the big go-go stocks of the late 90s. Some of them got trashed 30%-60% in a matter of days only to get bid up several more hundred percent. So like I said, yesterday's selloff was nothing that special, just some stops being triggered in a generally thin market which is why it quickly bounced back over the following 12 hours. So expect more of the same and for long term holders of Silver yesterday's move was irrelevant and don't get involved in the short term price movements - let the short term punks play their games......
I didnt mean to come off derogatory. Yes you are absolutely right that in parabolic moves you have huge price moves both ways. In the long term this will mean nothing even if price falls to 30. If your time horizon is months and years you are correct. However, your very description of massive price moves both up and down is the reason I am a mid term trader. I only wanted to show that these moves arent completely random but somewhat predictable through price action and support/resistance. If you are a mid term trader these are a necessity and I think if you are a long term trader such as yourself they are also important to note since its comforting to know that support was actually not violated yesterday. I simply cant disregard huge moves against me either up or down as irrelevant. A 5% move to support and subsequent rebound is not the same as a 5% move through support and subsequent selling. Any succesful trader needs to know that and I am not sure that all of the people on this thread are aware of the levels to watch and thus are more uncertain and uneasy and more prone to making a mistake.
No offence taken Interesting to note however that the 5% move only took out 2 days of lows. That's one of the reasons why it can't be classed as that important.
=============== P TT; On the time of your huge drop question; momentum spike,1 yr candle, volume spike, 1 year candle on leveraged contracts, top tail candle, parabolic sell signal .... Not much happened on on cash silver at all; looks like tek wise hints were on chart2-22-11, not that many or any daily charts mean much compared to a weekly or monthly. Not that 1 year momentum , or or 1 year volume spikes , or parabolic sell signal means much to MANY silver bulls[especially cash markets]. Local dealer only buys silver & gold; never sells....... murray TT