SILVER - My buy areas and the logic behind it.

4 Agu 2023

SILVER Personally accumulating silver, these are my areas I want to look out to buy. Market microstructure typically shows that low volume nodes on Volume profile and past low liquidity when revisited with "relatively" low volume creates support and resistance areas as you are seeing a lack of participation from one side, high volume in these areas mean aggressive sellers/buyers are still willing to cross the bid/ask spread to break into a new liquidity area (reevaluating the asset) in finding a new Point of Control, Watching the volume/candle "volume spread analysis" or how volume is affecting the price, cause and effect in these key areas when they eventually hit... PoC's are market fair value, the low volume nodes above and below the last accepted PoC are seen as expensive and cheap until the market wants to re evaluate and search for new liquidity or a new PoC. if i'm going to buy a car and re sell, this is not an area I want to take my chances to buy and make a profit. Not financial advice, but my study of market microstructure, how the balance of liquidity works has proven to me how markets react in these areas.

4 Agu 2023

Catatan

I also wonder if silver is truly undervalued as historically its has been in a 40:1 ratio to gold and its been 81:1 for the past while, which it can see pretty volatile corrections. i also wonder if the market has just adopted a new intrinsic value of silver and silvers intrinsic value is really in the 80:1 range. It is consumed at a much higher rate than gold, used more in products like solar and electronics and mines are able to yield much more of it.

ID LIKE TO HEAR OTHERS OPINIONS ON THE MATTER.

THANK YOU!