Today, We’ll discuss one interesting chart – Silver using our favourite indicators Doda-Donchian and Doda-Bollinger Bands.
You can download these 2 indicators from "Indicators" section of this website. Ofcourse, they both are free.
On 28th Jan 2011, Doda-Donchian gave buy signal to purchase Silver. This was further confirmed by Doda-Bollinger band indicator. The price faced some resistance and took some time to cross kumo in next couple of trading sessions.
If you notice, apart from Doda-Donchian Blue line, you’ll see one Yellowish-Green line also. This is Keltner line. I’ve added this line, and you’ll get it in next version of Doda-Donchian. To sum up, the buy signal was also confirmed by Keltner line. So, it was a strong Buy signal.
The price managed to stay above Doda-Donchian line as well as Kumo; giving a strong uptrend.
At the time of writing this article, Silver is finding support around $29.80, which is reflected by both Doda-Donchian and Doda-Bollinger values.
If it breaks this level, the next support level is at kumo, from where it will rebound again for the next bull run. Use this opportunity to buy more. Stay invest as long as price is closing above Blue line.