Support / Resistance
Markets broadly exist in two states: trends or trading ranges. In other words, a market is happy with the current price (and accepts it) or is moving to another price. Of course, this makes everything sound a bit more predictable than it actually is: trends can seemingly go on forever,
Breakout
Take a look at the chart below. We were looking to enter a short in gold (or silver), based on the long downtrend, and then a bounce that was likely setting up to be a bear flag. We also knew that there was reason to be cautious and to expect
Failure Test
Two things to note on this chart of Corn futures: 1) The clean failure test above the summer's highs, followed by a sharp selloff to the bottom of the range. 2) Price is unable to rally strongly off of the support at the bottom of the range. This