We have talked about the Trade Selection Tool in the previous post and the variables that need to be fed to the tool, one set being longer term and the other set shorter term. Just to recapitulate, the longer term variables are
The daily trend on US indices - Dow and Nasdaq
The weekly trend of the commodity
The daily trend of the commodity
The daily trend of sister commodities, applicable to metals
The determination of the longer term trend on the charts has been dealt in detail in the post "Understanding Long Term Trend - A Comprehensive Guide" in the section on Technical Tools. It is applicable to both the daily and weekly trend, as well as indices and commodities.
Once you have determined the longer term trend across the above variables, how to use it in the tool would be covered in detail in a subsequent post in this section. Please click on "Next Post" to discover the Win Ratio of each setup across our chosen basket of commodities - Set Up Strength - Win Ratio
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