If one where to ask my:" What's the one think I should learn from you about chart analysis?"
I would answer:
"Learn to identify the real Pendulum-Swings, Swings and Pivots, and how to put them into context.
Why would this be my answer?
Because this is what you need to become a very good at to use Forks, Action/Reaction the right way.
I often say, that one could trade just with this one technique, if he would master it.
However, below I show you the weekly chart of Copper, the April contract.
As you can see, this guy is stair-stepping up perfectly.
We are above the U-MLH and had a test/retest on it, why I don't expect a immediate tripple test at the
U-MLH. And I also don't think that Copper shoots up immediately above the WL1. But hey, who am I to say it will not happen? ...at every moment, everything is possible.
Now, because I have no clear idea about the future moves, I see the chances for a potential sideways movement, a slower grind, but not a further move to the south, because price is above the Centerline.
In such situations, I often use a Strangle to accommodate my greed for trading.
This gives me a PTG of $372.50 on the Put side, and $285 on the Call side p.c., with 59 days to expiration.
Let's see how I get challenged from the market...
I closed this trade (small profit) to free money for high volatility trades.
Most often I play the markets with options. So after the mini crash we had, volatility exploded which means very, very high credits for me when selling options.
This is called "Money Management".
If you can throw your money where it makes much more then where it's working now, you have to consider it - at the end of the year this makes a nice difference.
Use opportunities when they're offered, but don't do it just to be greedy...