{"id":41,"date":"2008-08-11T09:36:34","date_gmt":"2008-08-11T08:36:34","guid":{"rendered":"http:\/\/www.futurestechs.co.uk\/blog\/?p=41"},"modified":"2008-08-11T09:36:34","modified_gmt":"2008-08-11T08:36:34","slug":"gold-on-a-big-level-stop-order-strategy","status":"publish","type":"post","link":"https:\/\/www.futurestechs.co.uk\/news\/2008\/08\/11\/gold-on-a-big-level-stop-order-strategy\/","title":{"rendered":"Gold on a big level \/ Stop Order strategy"},"content":{"rendered":"

I think <\/em><\/strong>i did a reasonable job of explaining it on CNBC this morning (you tell me!!) so instead of babbling on too much here I’ll post the link:<\/p>\n

http:\/\/www.cnbc.com\/id\/15840232?video=820121614<\/a><\/p>\n

To summarise I said that 850 is a MASSIVE support level, and that the weakness to here is a buying opportunity, although if 850 breaks you don’t want to be long, and a “stop and reverse” (see below) strategy might be advisable.<\/p>\n

We get “proper” confirmation of a bounce happening if resistance levels like 872.6 and 900 are retaken.<\/p>\n

In Brent Crude Oil I mooted the idea that we might be due a bounce some time soon as we’re getting close to some important supports.<\/p>\n

And in the Bund Futures I talked about a Double Bottom formation which gave us a buy signal last week.<\/p>\n

I steered clear of talking about Equity markets because the short term outlook is a tad confusing, and we haven’t had the best of time calling these of late, if the truth be known.<\/p>\n

“Stop and Reverse” is where you have a position and you get out of it with a stop order, but at the same time you do the same trade to create an opposite position.<\/p>\n

For example say you were long five lots of Gold at 870 with a stop order at 845, that means you want to get out and take the loss on your trade if the market goes down as far as 845. A stop order is defined as a market order that’s triggered if your loss reaches a certain level or price. You should always have a stop order on any trade that you put on, and technical levels can be the best way of deciding where to place these orders.<\/p>\n

Many people place their stop orders below important support levels (like 850 in Gold) and sometimes, if you think the move below this key level is going to trigger a wave of selling, you may want to initiate a short position at the same time. If you put in an order to sell 10 lots at 845, to continue using our example, you would take the loss on your 5 lot long, then create a 5 lot short position at 845. If the market then went to 775, as we expect, you will offset the 25 point loss on the original buy order with a 70 point gain on the short trade.<\/p>\n

Have a good week.<\/p>\n

Cheers,<\/p>\n

Clive.<\/p>\n","protected":false},"excerpt":{"rendered":"

I think i did a reasonable job of explaining it on CNBC this morning (you tell me!!) so instead of babbling on too much here I’ll post the link:
\nhttp:\/\/www.cnbc.com\/id\/15840232?video=820121614
\nTo summarise I said that 850 is a MASSIVE support level, and that the weakness to here is a buying opportunity, although if 850 breaks you don’t want to …<\/p>\n

Read more<\/a><\/p>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[47,57,60,112,150,236,254,260,348,465,466,467,468,674],"class_list":["post-41","post","type-post","status-publish","format-standard","hentry","category-commentary","tag-brent-crude","tag-bund","tag-bund-futures","tag-clive-lambert","tag-double-bottom","tag-futurestechs","tag-gold","tag-gold-futures","tag-oil","tag-stop-and-reverse","tag-stop-loss","tag-stop-orders","tag-stop-strategy","tag-technical-analysis"],"_links":{"self":[{"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/posts\/41","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/comments?post=41"}],"version-history":[{"count":0,"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/posts\/41\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/media?parent=41"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/categories?post=41"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.futurestechs.co.uk\/news\/wp-json\/wp\/v2\/tags?post=41"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}