V.4:8 (299-300): Letter to Jake by Stuart J. Pahn

V.4:8 (299-300): Letter to Jake by Stuart J. Pahn
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Letter to Jake by Stuart J. Pahn

Dear Jake, You asked me to explain some of the main factors I consider when making a trade. Let me use my most recent trade as an example. As the attached equity run shows, I sold short a contract of June Comex gold on May 1, at $345.10, and covered it May 6 at $343 for a gross profit of $2.10, per contract. The accompanying chart shows the daily price action of June gold with a couple of moving averages superimposed and volume plotted below the price bars. As a long-time Wyckoff student, I usually begin analysis by examining the price/volume relationship....

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