Silver Forecast: XAG Stages Breakout, but Can Bulls Drive the Trend?
One of the most important indicators to watch for in a bull market is a rapid development of a large bullish trend that could become a breakout if it is not curtailed by an important breakout. It has been noted that this trend is commonly referred to as a “silver alert” and this can be defined as a rapid increase in price for a short period of time before the price continues to fall back to its previous levels.
For investors who are hoping to profit from this kind of market trend it can be quite difficult to determine when to enter into one of these markets or when to get out. There are three major bull patterns to watch which can become a silver alert for this type of market trend.
The first breakout pattern of the market has been called the XAG Stages Breakout. This pattern was created by Markowitz after he began to study and follow a pattern called the X-Files. After using the X-Files he realized that there were five major stages that are followed by a successful bull market.
When looking at the XAG Stages Breakout you will notice that it is formed by four major bulls who form a triangle. This triangle is then joined to the lower blue line, which is often called the Resistance Line. Each bull has its own support and resistance levels within the triangle. If you look at the chart you will see the bulls have the Support Line on their right and Resistance Line on the left.
As the pattern progresses you will start to see the price of silver move back into the range of the Support Line. When this occurs is a Bull’s price break out. This breakout will be followed by a replacement as it starts to retrace back down to the Resistance Line.
The second of the three major bull patterns which can be used for a silver alert is the XAG Stages Retracement pattern. This pattern can be a bullish breakout or a bearish breakout and both types of patterns can occur at the same time.
This pattern is formed when the Price begins to break out on the chart. Once this occurs, it is followed by a large bearish price retracement which can be followed by a small bull price retracement.
If this pattern is followed, it is likely that the price will remain in the price range that was used when the pattern was formed. or will begin to retrace back down back to the Support Line. if this is the case then the breakouts in the market will continue and become a bullish breakout.
It is important to know how to interpret the pattern to determine if a bullish breakout is occurring or not. If the pattern is broken at the Support Line, this means that the price will likely go back up in price. if this happens then it is likely that the pattern is being followed and a bearish breakout is on its way. The bullish breakout can be used to determine if it is time to purchase or sell.
Another useful method used in this silver forecast is the Moving Average Convergence and Divergence. which is also known as MACD. This method is used to help determine the strength of a bullish trend.
A bullish breakout will start to show the pattern of support when the price starts to climb in price and this is when it is followed by a strong upward movement which is a sign of support. As the price continues to rise it begins to break through the resistance level and this is the time to enter the market. Once the price breaks the Resistance Line then it can enter a bearish breakout and continue on the downtrend. If the price moves off the uptrend then you can exit the market.
The last of the four of these patterns used in silver forecasts is called the Trend Convergence and Divergence. This pattern is formed when the trend is formed by a bearish breakout of the bullish breakout. The MACD pattern follows the trend as the price moves down and then it becomes difficult to find support levels.