HOW TO USE SIGNALS
Here at The Gold And Oil Guy, we are known for our unique technical analysis, which differs from most other analysts. The difference is that we trade what we see on the charts and do not guess or alter our view based on economic data, Fed, news, world affairs, or our emotions (fear/greed).
The key benefit of swing trading is that it provides multiple trading signals and quick results.
All trends and trades are short-term, and the trade length will vary between 3-30 days.
When our technical analysis models change, we update the asset trend direction and price levels for the reversal, entry, stop, and target levels. We will send a detailed update when needed.
You will receive two pre-market morning reports. The Futures Signals and ETF Signals. Both cover the main assets and look to trade similar moves, but they will not always be in alignment. To keep things simple, especially at first, you should follow and trade Futures or the ETF signals to avoid confusion and analysis paralysis. This allows you to trade whichever investment vehicle suits your style and skill best.
The Futures and ETF symbols are color-coded:
Green = Short-term bullish or positive
Red = Short-term bearish or negative
Black = Sideways, no trade
SAMPLE: ETF REPORTS & TRADES – CLICK HERE
SAMPLE: FUTURES REPORTS & TRADES – CLICK HERE
When we say something is on a buy signal, you could have been long from that buy price level from an earlier report you received, or you can enter the trade and play the remainder of the move if you are comfortable doing so. Also, sometimes we can give a short-term buy or sell signal for an asset but then suggest it not be traded, and the signal should be ignored, at least for the near term.
Knowing the trigger price of the buy or sell short signal allows you to:
1. Quickly see how many days ago the new trend started.
2. Help you figure out how far the price and move to take partial profits
3. Help you manage risk better by tightening stops.
When we give short-term upside targets, we suggest taking some profit off the table once reached and/or adjusting the sell stop accordingly, which we provide sometimes. If we give more than one short-term target, then you wait – call it the five-minute rule – to see if it fails at its first stop or wants to accelerate to the next.
When an asset changes direction and reaches (elects) a sell-stop price level, we do not want to be long, and the suggestion is then to flip the trade direction.
Sometimes we say that a long or short signal has been reached (elected), which might be before the asset confirms the price for a buy or sell signal. This can happen when larger cycles overpower our short-term analysis and trigger. Some of these trade signals can have much larger moves which can last several weeks.
Updates provide both buy/long trade signals and Sell Short signals. These allow you to profit from both rising and falling prices.
If price levels (entry, stop, targets) are reached at any time, including pre-market or post-market extended hours, they are considered reached/triggered. You can trade those hours with most brokerages.
Also, note that once our models confirm a reversal, we get an acceleration in that direction, but there will be pullbacks/corrections along the way if you miss an entry. We will share more entry levels to get into the position when the price pulls back favorably.
Always be extra cautious trading around significant events like the Fed. Because these specific trades are short-term, it’s likely not worth the risk to hold positions through the news unless you are willing to accept large percent swings and can stomach the noise, which may or may not work in your favor. In addition, Fed price swings will likely trigger any stop-loss order you have for these short-term trades, so be aware.
We calculate the risk/reward ratio, and if we are happy with the outcome, we share the trade and its details with you.
It is prudent to take profit once a target is reached or to alter the stop accordingly. Managing positions and risks is the key to account growth.
After you follow the daily updates for a couple of weeks, you will get a feel for them and see how we monitor the short-term momentum trades and how remarkably accurate they are.
PLEASE NOTE THE FOLLOWING:
To bring these signals to you, I have contracted another technical trader who I have known for many years, and he lives and breathes shorter-term momentum trades and helps me run this newsletter. There will be occasions when we take a day or more off for holidays, but we will let you know in advance of the pending holidays. On these days, there will not be any reports or updates posted.
Other than your member account dashboard, there is no overlap between this service at The Gold And Oil Guy and those that are run at The Technical Traders. Though some of the symbols may be the same, different timelines are used, and the goals of each strategy are also different. If you are a member of both communities, please do not bring questions or comments from the message boards of one to the other. This will cause confusion on all sides.
If you are a new trader, it is highly recommended that you follow along with the trades for a period of time until you fully understand how they work and are comfortable with their execution. We are able to provide these timely trades and keep the cost low by everyone understanding how the newsletter and alerts work and following the analysis. My team and I are available for assistance, but there will be no hand-holding, frequent updates, daily videos, etc. Here, we aim to lessen the ‘noise’ and just deliver actionable signals to active traders who are already comfortable trading.
Chris Vermeulen