On Jul 3, 2024, Silver broke out from a 1-2-3 bottom turning bullish on the daily and weekly charts (Ref Fig 1.1 below). The next day was an inside Narrow Range candle indicating a big move in the same direction. The next day, on the 5th of July, Silver gave the perfect opportunity on C5 (2H candle from 5 to 7 pm) (Ref Fig 1.2 below). The candles had the characteristics of 3 Bullish setups
Additionally, the long lower wick went before previous day support but closed very strong above the day's resistance. This is what we typically describe as a sell failure, a trap for the bears.
A perfect signal after a strong Bullish breakout, this signal had all the makings of a winner!
(Fig 1.1 - Breakout from a 1-2-3 bottom pattern on Jul 3 on the daily chart of Silver Micro Futures)
(Fig 1.2 - Big Bullish Engulfing setup on Jul 5 that is also a sell failure on 2H chart of Silver Micro Futures)
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