Where the price stands
The last closed price on silver is . That sits right in the middle of the zone I've marked as the working range: -. The lower boundary lines up with the recent weeks' low (), and the pullback itself came down from , so the decline has been sizable and price is now working through the lower part of that move.
The picture here basically mirrors gold, and my logic is the same. You could draw a dozen levels on the chart and try to play every wiggle, or you could take a single range and build everything around it. The second option gives you less noise and fewer bad entries.
Why one range instead of ten levels
When the market enters a zone after a sharp decline - a zone where buyers have already shown up before - most of the internal levels stop working as reference points. Price just churns inside, hunts stops, and comes back. Any five-or-six-line markup during this phase turns into a generator of false signals.
So for me the key figures are just two: and . Everything that happens between them I treat as internal range noise, not a standalone signal. This approach immediately kills the urge to chase every move.
Short term: working inside 59,68-62,09
For short trades I watch local trends on the M5-M15. That's enough to see which way the current impulse is heading and to trade the move from one side of the range to the other.
In this mode the boundaries act as targets. If price is climbing from , the target is . If the pressure is downward, the target becomes . I don't look for continuation inside the range - I look to collect the move to the edge and see what happens there.
This mode calls for discipline on size and holding time. A trade inside the range doesn't live long, and there's no point dragging it "to think it over" across the whole zone.
Medium term: boundaries as starting points
Here the logic flips. For a medium-term position, and aren't targets - they're where the conversation starts. It's the price reaction at these levels that will shape the next scenario.
How price approaches and behaves there will tell me more than any construction drawn inside the range. Same goes for on top: what interests me isn't the touch itself, but what the market does afterward.
Until price reaches one of the boundaries and shows a reaction, I don't have a medium-term decision. That's the whole point of this setup: not to guess in advance, but to wait for the spot where the market reveals its hand.
What invalidates the current setup
As long as price stays between and , the whole scheme holds. Once the range is left and price closes outside it, the short-term "edge-to-edge" logic stops being relevant, and I move to assessing the new structure.
The level matters on its own: it's the low of recent weeks. A break below it changes the character of the entire pullback from , and from there a different markup is needed - not an attempt to stretch the old range over a new move.
In short
- Silver at is sitting inside the working range -
- The pullback is developing from , and the lower boundary matches recent weeks' low of
- Inside the range I trade local trends on M5-M15, using the boundaries as targets
- For the medium term, and aren't targets - they're points where I watch for a price reaction
- A break out of the range with a close outside it invalidates the current setup