For all of you traders trying to trade silver, I suggest looking for divergences like this. Most of you are just going to it because of the volatility and the potential profits you can get from it, but you need to make sure you’re getting optimal entry points, because I’m sure some of you know, it can blow your account at the blink of an eye.
So I suggest looking for divergences, let me explain what you’re looking at here.
Silver is making a lower low on the chart, while the oscillator at the bottom is making higher lows, this is your first indication of the potential divergence. In this case, this is a bullish divergence.
Pair this with a bounce off a support level, VWAP, 200 moving average, and combine them to have even more confirmation.
You HAVE to make sure you get the best entries possible with SIL, it’s tough to trade while it’s this volatile, but if you can dial in the entries, it becomes much easier.
Hope this helps some of you. Have a great week!
