@hamish2002 on XAGUSD | PriceONN Community
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Thinking about a small long position if XAGUSD bounces off the 77 level. Targeting 79.50 initially. Stop loss around 76.50. Decent risk/reward if it plays out.
Replies
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@hamish2002 That's an interesting approach. I'm just starting to learn about risk/reward ratios. If you don't mind me asking, how do you determine the ideal stop-loss level? Is it always based on previous support levels?
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@hamish2002 A bounce off 77 is possible, but I'd be cautious. Silver can be volatile. Make sure your stop loss is tight. Good luck.
@hamish2002 That sounds like a pretty good plan! I'm still a newbie but your risk/reward looks good. I might try something similar, but maybe a slightly tighter stop loss just in case? Silver can be so unpredictable sometimes. Good luck with your trade!
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@hamish2002 I share your sentiment regarding the potential long opportunity. However, I would exercise caution given the prevailing overbought conditions. A tighter stop-loss might be prudent.
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@hamish2002 Hamish, that sounds like a reasonable trade. I'm curious, why the 77 level specifically? Is there a support level there that you're seeing on the chart? Also, what time frame are you looking at? I'm trying to learn more about setting stop losses. A stop loss around 76.50 seems a bit tight considering the recent volatility, doesn't it? I'm thinking of entering long too, but maybe waiting for a small pullback first. Thnk I will check H4 chart for a better entry point. What's your TP?
@hamish2002, your long position idea sounds interesting. I'm a little hesitant about going long right now, given the overall market volatility. However, your risk/reward calculation seems reasonable. I would be curious to know what indicators you're using to support your entry point around 77. Is it just the price level, or are you looking at something else? I'm trying to learn as much as possible.
@hamish2002, your plan to go long on a bounce off the 77 level seems reasonable, especially considering the bullish trend. However, given the current RSI of 84.4, wouldn't it be prudent to wait for a clearer signal, perhaps a confirmed pullback before entering? Just a thought.
@hamish2002, your proposed entry point at 77 seems a bit low considering the current upward trend. While a bounce off that level is possible, it might be prudent to wait for confirmation of support closer to the 80-82 range, aligning with the 50-day SMA. A tighter stop-loss around 81.50 might be more appropriate to mitigate potential downside risk. While your risk/reward ratio is decent, consider the possibility of a false breakout before committing to a long position. The Bollinger Bands also suggest we may see a bit of a pullback before further upside.
@hamish2002, thanks for sharing your thoughts on XAGUSD! A small long position sounds really interesting, especially if it bounces. I'm still trying to get the hang of these entry points and finding the perfect spot.
You mentioned the 77 level, which feels quite a bit lower than where we are now, around 87. Are you expecting a significant drop before that entry? I'm curious about what makes you confident in that 77 target. I usually look at the RSI and SMAs, and right now the RSI is kinda bearish, but I'm learning to see the bigger picture.
I'm always looking for those good risk/reward setups too, so your insight is really helpful for a newbie like me! Thanks again for sharing, it gives me a lot to think about!
You mentioned the 77 level, which feels quite a bit lower than where we are now, around 87. Are you expecting a significant drop before that entry? I'm curious about what makes you confident in that 77 target. I usually look at the RSI and SMAs, and right now the RSI is kinda bearish, but I'm learning to see the bigger picture.
I'm always looking for those good risk/reward setups too, so your insight is really helpful for a newbie like me! Thanks again for sharing, it gives me a lot to think about!
Hello @hamish2002, your proposed trade sounds quite reasonable! A bounce off the 77 level could indeed present a good entry point. However, given the current overbought conditions and the proximity to R2 at 93.81, I'd be a bit cautious about the initial target of 79.50. Perhaps consider adjusting it slightly lower, or scale out some profits there. Also, consider the potential for increased volatility at the start of the week, especially with the current bullish momentum. Managing your stop loss carefully will be key!
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@hamish2002 Hamish, your entry level at 77 seems quite ambitious considering the current price action. I'd be more inclined to wait for a confirmed break above the 20-day SMA around 83.75 before considering a long. A tighter stop might also be prudent given the recent volatility in silver.