GUNNER24 Trade of the Day 02/17/2021
The 1:3 Trade: Buy Platinum at 1218.00 / Cover = exit 40.00-GBTC & 13.95-GBTC Bitcoin Trust long positions at 51.50 or higher
Dear GUNNER24 Traders,
The 1:3 Trade: Buy Platinum at 1218.00
Our 1:3 trades are A) adjusted to a longer term, having a spacious stop-loss for the development not to be endangered and B) have to show a risk-reward ratio of more than 1:3.
On Sunday, in the free GUNNER24 Forecasts Newsletter of February 14: "Update on Platinums`s Bull Market", I examined the platinum again and found that the current bull market may well reach the 1430$ to 1450$ within weeks, before the bulls should get some more serious trouble.
Please click at blue link above or here on this monthly GUNNER24 Forecast chart to re-read the complete platinum analysis which explains in detail the likely path into 1430$-1450$ uptarget range:
Above is platinum within determining monthly Candle up setup as presented on Sunday. Watch that the most important activated nearest monthly uptarget is the 1435$ at the lower line of 2nd double arc for the 13th month candle of the bull market what will be the March 2021 candle.
This 1435$ monthly uptarget is the shortterm uptarget of todays 1:3-platinum long setup.
The Gentleman`s long entry area is the classic backtest of on weekly closing base upward broken upper line of 2nd double arc support which runs at about 1220$ for this February and next due March candle.
Many traders and algos must have recognized the "heavy" buy signal triggered by the official last week`s 1264.5$ closing auction, because as soon as the new week started with the US holiday-Monday, the white metal also began to rise hard.
What happened after the 1264.5$ Monday open shows many typical signs of a short squeeze, as the PL # rallied within just 21 (Fib number = possible turn number) !!! trading hours into current 1348.2$ year high. That was a 85$ rally in less than 1 trading session.
The above highlighted 2-day holiday candle (Monday+Tuesday developments together) shows a very long upper tail and unsusal high trading volume after fresh year highs were made. This is very bearish development as it points to a short squeeze first into fresh year highs, followed by a buyers strike or bullish exhaustion next starting at 1348.2$-year 2021 top. This a typical signal of a shortterm or intermediate cycle top finally in. That stronger bear or significant turn signal is accompanied by a bearish daily Slow Stokes outlook and the so far very ugly looking todays-Wednesday candle, so that the possible or anticipated backtest of the 1220$ monthly GUNNER24 Support Arc can now take place quickly, perhaps even as early as today.
And we should stick with it, that a PL # long opened at 1220$ support surroundings should ultimately be very successful!!!
The weekly platinum through GUNNER24 Setup Lens now presents like follows:
After the accurate perfect & successful backtest of the former major Blue Arc resistance at the December 2020 Spike Low the last couple of weeks, without much ado platinum succeeded in marching to the natural uptarget of the 1st double arc within at final bear market low anchored Low/High GUNNER24 Up. Usually that perfect backtest of former longlasting Blue Arc resistance means a very serious and above all sustainable bull market continuation signal.
With the high close of the last candle at 1264.5$ the natural strong resistance of the 1st double arc together with the natural 1200$ Gann number resistance is unambiguously overcome and a next GUNNER24 Buy Signal in the weekly time frame is fired, so the PL # likely within a few weeks and sometime in course of March 2021, has to work off the lower line of the 2nd double arc uptarget at a 1430$ to 1435$ or so:
==> Chosen shortterm uptarget is the 1435.00$!, as there runs a combined future weekly and monthly GUNNER24 Uptarget Magnet!
With this week candle showing a visibly negative spike high caused by a buyers strike starting at this year fresh highs it becomes obvious that the bears are able to defend the weekly closing base resistance magnet formed by the 1274$ GUNNER24 Horizontal and the 2*1 Resistance Angle at least for today and possibly also for the coming days.
And with the PL # actually trading near the 1240$ and likely printing a bearish daily reversal by todays-Wednesday close a rapid test/backtest of the monthly 1220$ Gentleman`s long entry point within a fewdays or even within a fewhours no longer seems so impossible, indeed seems extremely possible!
We are eager to buy the possible downer into likely very strong monthly 1220$ arc support and therefore place the 1:3-Buy-Limit order at the 1218.00$. The Buy-Limit order is valid until end of February 2021.
==> Place SL for our long attempt at a 1187.00$.
Risk = 31.00$. Potential reward = 217.00$. Risk-reward ratio 31.00/217.00 or 1:7.00
Please use ETF, options, CFDs, FOREX or warrants mirroring this trade setup. Buy when PLJ1 Platinum April 2021 contract trades at 1218.00$ til end of February 2021!
GUNNER24 Trade of the Day orders for 02/17/2021:
Orders: Buy-Limit at 1218.00. Stop-Loss (SL) at 1187.00. Shortterm uptarget at 1435.00. Buy-Limit order is valid until 02/26/2021.
Cover = exit 40.00-GBTC & 13.95-GBTC Bitcoin Trust long positions at 51.50 or higher
We are long Grayscale Bitcoin Trust (GBTC) at 13.95$ since 26. October 2020. NO Stop-Loss (SL)!! and at 40.00$ since 15. January 2021. NO Stop-Loss (SL)!! Shortterm uptarget and possible main uptarget at 52.00$.
Within Trade of the Day 01/15/2021 - click here on blue to re-read our last bitcoin/GBTC rally forecast - we worked out that GBTC usually should continue to rally into a shortterm bull market uptarget of 52.00$. This 52$-GBTC relatively exactly corresponds to the "bigger round 50.000$" natural major W.D. Gann resistance number on Bitcoin continuous futures contract (BTC #):
Yesterday the shortterm uptarget and possible main uptarget on GBTC shares at 52.00$ was worked off at so far 52.15$ alltime-high. Yesterday`s BTC # alltime-high arrived at a 51.065$.
The above at # 1 // October 2020 Low anchored weekly 9/10/11 Candles up setup we`ve used 1 month ago to identify the importance of the 52$ for GBTC. 52$ was expected to be hit at natural uptarget of lower line of 3rd double arc. The 52.15$ top of yesterday exactly has hit and was retraced by that lower line of 3rs. So, price at natural uptarget. The bitcoin flirting here with the major important round 50.000$ natural W.D. Gann resistance number of course also.
Als that price magnet stuff at natural price resistance magnets is noticed in course of the 21st bull market week. So, this high Fibonacci number time magnet maybe is signaling that the main trend has to turn soon and maybe in course of this week.
==> A main trading rule is this one: Whenever price mets the time, a trend change is imminent!
Cause the 50.000$-bitcoin and the 52$-GBTC are main price targets on a yearly base and at same time perhaps stronger radiating resistances, there is an about 15% probability that here and now the 50.000$-bitcoin and the 52$-GBTC like to trigger the final highs of the entire year 2021.
Bitcoins’ nature has been to show substantial retracements and the next way prices could unfold into the bigger combined weekly & monthly support of 40.000$-bitcoin and the 38$-GBTC, above visualized with the orange-dotted lines. The 38$ to a 35$ for GBTC is natural very strong future support area of the downward sloping 2nd double arc, thus usually should stop any deeper corrective move and consequently could also trigger a next monthslong rally cycle which could hit the 60.000, 70.000, a 80.000 maybe, until the end of 2021.
GUNNER24 Method forecasts with a 70% odd or so that some more higher alltime-highs have to be printed until 2021 is over. But now here with the 50.000$-bitcoin finally worked off the risk is now clearly to the downside!
Please cover = exit the 40.00$ and the 13.95$ GBTC longs at or above 51.50$!
GUNNER24 Trade of the Day order for 02/17/2021:
Market: Grayscale Bitcoin Trust (GBTC)
Cover-Orders: Sell-Limit order at 51.50 to close the 40.00 & the 13.95 long-position. Sell-Limit orders are valid until 02/26/2021.
Markets, Money Management and Trade Size
I will merely analyze the market. There are so many instruments in the world outside our GUNNNER24 Traders use to trade, and hundreds of popular ones among them, often depending on a trader’s time horizons... I don’t consider me able to adjust the market recommendations to all the popular ETFs, different CFD or futures contracts. All I’ll analyze is pure market action - the index, stock or most current contract and forex!
The trade size you should use depends.
A) On your account size:
I usually follow the rule of thumb which says, never bet more than 1% of your account size for each trade. So I avoid overtrading...
Let’s say you have got a 30.000US$ account granting you a nominal buying power of 300.000US$ up to 500.000US$ and even more, depending on your broker and instrument. In that case your trade size shouldn’t be more than 3.000US$-5.000US$ taking into account your buying power.
Another - more conservative - method is taking into account the available margin. Usually, 30.000US$ account value equals 30.000US$ available for margin trading. So the trade size is 300US$ taking into account the margin.
Within Trade of the Day I ask you not to bet more than this 1% per any trade.
The other point to consider for determining the trade size is:
B) if your trading style is rather active, supposing you regularly have 30-50 open trades, just as I have - CFD/ETF, here some stocks, there a future contract. So I often trade risky somehow, but I split the money/bets. Even in such a nice trend as the stocks are showing currently, I never ever trade too risky. I never load the boat with 70% let 90% of my account size. 50% is the maximum.
I trade for my living and for my kids and wife as well. A regular income is important. The big-bang bet isn’t! The market would win such a big-bang bet for sure!!
When I have a lot of open trades, maybe up to this 50% of my account size/available margin I avoid trading more. So if you are an active trader having a lot of trades running at rev limiter (50% account size) please avoid trading even though we/I give you some fresh recommendations, because this would rise YOUR risk!... During the test phase that happened frequently. We had 3-5 open trades sometimes and that’s why it’s elementary important that we/you have to use tight SL. Order management is absolutely crucial for Trade of the Day.
You’ll have to place really each and every order accordingly, you know. Forgetting only one time the SL would make this trade getting worse and worse…
Based on the George Douglas Taylor Trading Technique that I’ve been studied and originally traded for years transferring it onto the modern markets by constant observation a five day pattern of the single days of the week has resulted.
The crux is not so much that the entire week has to work perfectly. Perhaps it does just at a 50% because the day patterns may shift by one or two days. In the strong upwards trends sometimes you see 4 buy days and only 1 sell day. It’s important to recognize that the day proceeds ideally-typically and to trade accordingly.
My personal trading style has always been the contrary to that of the crowds because the crowds always loose. Especially in gold and silver trading I like to buy the corrections Monday to Wednesday and on Friday if the day patterns correspond with some important GUNNER24 Signals.
I use to go short intraday just on Thursday when the week high is sold off AND provided that the corresponding GUNNER24 Setups signal so covering the shorts when the cycle is resumed.
The ideal five day pattern in an upwards trend – precious metals and US stock market – Do use those patterns for your intraday and swing activities!
Monday: Buy day. Strong up-day. Low established first. It often ends at the day high. Unthinkingly you may buy all the intraday corrections because the week high comes later in the course of the week.
Tuesday: Buy day. Weaker up-day. A higher high is produced. As early as now the crowds ponder whether the prices mightn’t run too high partially going short already. For me it’s the day when I can cover my Friday and Monday longs. In intraday I try to go long in case of corrections until the Comex opening.
Wednesday: Sell day. Actually the day for covering the longs and for the first short entry. It’s got some different forms. It closes at the same level as it had opened. Frequently at first the high is established because more and more traders short the market. Here the longs fight against the shorts. You recognize that if many teeth, many nicks, many spike candles are to be seen in the chart. On Wednesday I use to do nothing. Only at a 20 to 30% the shorter hearts are pleased because during the whole day there’s only sell-off.
Thursday: The classical sell short day. Because the Wednesdays often close as they had opened the market participants have to cover their shorts because in the beginning the market runs quickly upwards…! And frequently they turn their positions into the high direction being caught on the wrong trail again. Then the market often lays down a beautiful sell-off. In the evening mostly a strong rally follows. That’s where we cover the shorts.
Friday: Classical buy day in the upwards trend. It’s nothing for weak hands. Here’s where you buy the positions near the Thursday lows which you cover again next Tuesday/Wednesday. If you discover that the prices have steadied or even are rising a little bit by closing the five day cycle should continue in the following week.
In the charts we work with the following symbols: