But in looking at the gold market, let me give you the basics, because that's what this is about: when you're over the 18-day moving average of closes.
You look at the 18-day averages, your line in the sand, The number itself is neutral when you're over, you have a bullish bias and that's a filter that if you get other buy signals, you want to go with them. I teach traders that when you're over the 18-day average, you get a sell signal; it's one thing to come out of a long position. It's a very different thing to go short and I wouldn't recommend that.
When we take a look at what's happened, we've had a 50% bounce. What do I mean? You got up to the $2150 area, you fell back here into $1990 and you've come back into the $2070 - $2060 area. You're about a 50% bounce in the market, as the market got overdone on the downside and now it's looking for its footing. The footing's been found temporarily, you're in an uptrend.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
Be it education, market information or trading platforms, we provide solutions.
Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.