First TA book which I read was the ” Technical Analysis of the Commodity Markets” by the living TA titan John J Murphy. I borrowed it from a friend who was a commodity analyst at a major International miner listed on ASX, NYSE and LSE. After I read it, I end up buying the “Technical Analysis of the Financial Markets” version of the same book. Highly recommend this book for anyone wanting to learn TA before they waste their hard earnt $ on some of the so called TA courses on offer and potentially picking up wrong habits/information. Most of those courses are rubbish and I mean it. TA is self – thought in my humble opinion which should involve lots of practice on historical charts to start with and a good source of educational material from someone with good credentials like Murphy. Look no further.
To the Dr now. In summary, the trend definition of Dr Copper is as follows :
MAJOR TREND : BULL
INTERMEDIATE/MEDIUM TREND : FLAT ( Trading Range) see boundaries as marked with support and resistance lines.
SHORT TERM TREND : UP and also a BULLISH PIVOT on hand in the current week.
Let’s try and make it even simpler for practical application.
When a MAJOR TREND is UP, what do I look for during a FLAT MEDIUM TERM TREND like the one that Copper is in ? A TURN in the SHORT TERM, preferably with a SHORT TERM BULLISH REVERSAL off the SUPPORT. See SHORT TERM TREND definition again for a clue if you wish.
Low point of the penultimate bar is a danger point that must hold on EOW closing basis.
As for EXIT, can I use a trailing % stop or a simple moving average exit ( on a close below) or a bearish pivot or any other ? Yes up to me which.
Weekly Copper Chart is courtesy of StockCharts.com
I don’t trade copper but I trade ASX listed Copper miners with short as well as medium/long term view.
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