(This is Part 4 of a series. Go back to Part 3.)
In this silver daily chart we see that the STX, once the market has accomplished its initial penetration of the indicator on the upside and a brief violation on the downside, thereafter performs quite beautifully, preserving the trader in the move yet with a minimum of risk, and constantly adjusting itself to reflect the highest probability of the potential risk and reward that the trade offers.
But now suppose we want to trade the subsequent down move following this secondary up move? For that we must again adjust our sights to look for the signs of elegance, and we move to a 60-minute chart. The behavior of the STX on this downmove is typical as well of its behavior on the other three hair-raising drops from May 2006 to March 2007:
(This is the end of Part 4. Go to Part 5.)
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