Posted by Soldtoosoon on 29th of Jan 2026 at 06:32 pm
No one catches the top. If they said they did, they're
lying. Probably best to follow what Matt said, and use
a CLOSE below 9 or 10 dma. I hate hard stops,
1. Doesn't the use of any indicator at the CLOSE leave a trader
vulnerable to a major sell off intraday?
2. What is a DMA and what are the advantages to using it vs
either an SMA or EMA?
3. Assuming the DMA fluctuates during the trading day, why is it
better to use vs a hard stop based upon a support level or trend
line? I had the impression Matt often uses hard stops based
upon support levels.
Posted by Soldtoosoon on 29th of Jan 2026 at 11:38 pm
Matt and others are more expert at this, my humble answers:
1. Yes, in the event there's a big down day without any
recoveries in the near or even mid-term future. You are
weighing that against what you just experienced, which is an
intraday recovery. I've been victims of intraday "shakeout"
recovery before. Or as Steve used to call it, "liquidity
grab". The myth was always that when the market maker (or
algo traders) see hard stops, they move the price down to trigger
the stop sales to "grab liquidity", then they move the price up
after taking your shares on the low. I think that's why Matt
likes to see a CLOSING price below your stop point (9 dma).
2. DMA is day moving average. If you're using a daily.
price chart, then the standard moving average is based on day
moving average. so 9 DMA 20 DMA 50, 200.
3. You have to choose your poison. If you choose to use
closing price for the day, then you avoid intraday shakeout or
liquidity grab. If you choose hard stop, then you NEED to be
happy with the price you sold it at. Nothing wrong with that.
You just need to be happy with where your stop was triggered.
If it went up later, c'est la vie. You've made your
money.
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No one catches the top.
Placing stops on long term precious metal positions
Posted by Soldtoosoon on 29th of Jan 2026 at 06:32 pm
No one catches the top. If they said they did, they're lying. Probably best to follow what Matt said, and use a CLOSE below 9 or 10 dma. I hate hard stops,
Thanks. Three follow up questions: 1.
Posted by RichieD on 29th of Jan 2026 at 09:03 pm
Thanks. Three follow up questions:
1. Doesn't the use of any indicator at the CLOSE leave a trader vulnerable to a major sell off intraday?
2. What is a DMA and what are the advantages to using it vs either an SMA or EMA?
3. Assuming the DMA fluctuates during the trading day, why is it better to use vs a hard stop based upon a support level or trend line? I had the impression Matt often uses hard stops based upon support levels.
Matt and others are more
Posted by Soldtoosoon on 29th of Jan 2026 at 11:38 pm
Matt and others are more expert at this, my humble answers:
1. Yes, in the event there's a big down day without any recoveries in the near or even mid-term future. You are weighing that against what you just experienced, which is an intraday recovery. I've been victims of intraday "shakeout" recovery before. Or as Steve used to call it, "liquidity grab". The myth was always that when the market maker (or algo traders) see hard stops, they move the price down to trigger the stop sales to "grab liquidity", then they move the price up after taking your shares on the low. I think that's why Matt likes to see a CLOSING price below your stop point (9 dma).
2. DMA is day moving average. If you're using a daily. price chart, then the standard moving average is based on day moving average. so 9 DMA 20 DMA 50, 200.
3. You have to choose your poison. If you choose to use closing price for the day, then you avoid intraday shakeout or liquidity grab. If you choose hard stop, then you NEED to be happy with the price you sold it at. Nothing wrong with that. You just need to be happy with where your stop was triggered. If it went up later, c'est la vie. You've made your money.