How to Trade Gold Miner ETFs in a Bear Market

Everyone is wondering if gold will be the safe heaven during this crisis. In addition to the actual community itself, gold ETFs can provide some of the best trading opportunities in volatile market conditions. If you know how to trade gold miner ETFs, you will see numerous high-quality trading opportunities on a daily basis.

This video lesson will show you how I traded the 3x Bear Gold Miner’s ETF $DUST last week, using one of my favorite trading setups:

Criteria For The Rubberband Trade

Timing is essential for playing the rubberband setup. You are going counter-trend. The reward vs risk on these trades is GREAT, but you may need to what for a specific set of conditions to make it a high probability setup.

Many trying this trade mistime it, and get caught underwater because they’re too early. Timing reversals isn’t easy. You have to be willing to take a small loss if the price action is telling you the trend hasn’t ended yet.

Here’s what we NEED to see to have a high conviction Rubberband Short trade:

-Extended/parabolic, up 3 days in a row or more

– Stochastics over 90 (telling us it’s overbought, we want to see under 20 if we’re trying to long)

– Stock is trading outside of Bollinger bands

-Exhaustion gap (see this article here for description of this)

– Intra-day setup/pattern

This setup also works to the LONG side as well. It is all the same criteria. Remember, the highest conviction trades have MULTIPLE factors that align to make it high probability.

Trading setups are like recipes. You need MULTIPLE ingredients to make the end product is high quality. Make a checklist before you take your trades, and it will help make sure you are taking a high-quality setup you can trust!