So as we come back to these markets and we look at the gold, one of the things we've been talking about, is the market action. This was our first test that we just made this a weekly chart of the 18-week average of causes. We're down for the week, by 1.6%. So, here's your test coming in, you can see how the market fell apart and today was a huge outside day to the downside – that is very important to understand that is a signal the market's got a problem, but this all began back here.
And this is so important to understand outside days, at least to me, it is. When I come back and I do my analysis on charts – here you go with the market that has an outside day up.
Here's your outside day up. Outside days are often continuation patterns unless they're violated. So, since the market has been coming up, I'm looking for a continuation, but what cannot happen is the lows, and this was the low of February 1st; it that has been taken out within two trading sessions, you have what's called a "bull trap." The market comes down, takes it out. Unless it goes right back over that top saying, 'Hey I got you' and then, 'No, I don't.' What happens is the market starts on a correction mode. Now, where it goes, and so on.
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.