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46 The nexi bar gave more evidDoce oJ a nor>-irencJing market by dlppirtg [owei", and then reversing tho djreciion of the previous bar. As staled earlier, it is essential to know and recognize when a market is in congestion. Wfien it is, I dont want to be in it. Such a market belongs to the floor traders, not to me. They love when a market goes sideways. They can sefeiy scalp to their hearts content. I cannot compete with them, because 1 can never rnatch the speed witfi wftich they can react lo tlie action on y\\c floor and place their orders. The rnarkois they hale - trending markets - are where I make my money. Theres a piece ol the market lor everyone, according to their trading style. When a lion kills a zebra, he eats the organs. Then tfie vultures come, and they tCDr at the flesh. When the hyenas come, they eat the bones. The ants and beetles get whats left. Theres something for each of them. So it is with the markets. SF 5 HlhUTE Further confirmation of a non-trending market came with the doji bar that maleriatized next. The market was now in congestion by every definition I could think of. When a market goes into a congestion. I will not trade it until I can define and count a new trend. SP 5 niflUrr 37B6G 37B4G 37026 37B90 37780 37760 37710 37729 37700 76 0 37660 37610 37620 37600 375B0 37560 37510 37520 37500 371B0 37160 3V110 7120 7100 373B0 37360 I. II i 3 0 9 37860 37010 37820 37BO0 377B0 37760 37740 37720 37700 37 37660 37640 37620 37600 37580 37560 37540 37520 37500 374B0 37460 37440 37420 37100 37330 37360 3
I went ahead and did my thing. } started a count. If the market was going to go anywhere, sooner or later I would catch up with it. SP 5 Prices moved a hit higher, but ended up making a reversal bar. This is not unusual for a market in congestion. Since I could now count three segments up. I placed a buy order above the high of the bar. and waited to see if there would be a breakout. 3 e 3 7 613 37B4G 378 37800 37783 37760 37740 37720 37700 37680 37660 37640 376Z0 37600 37580 37560 37540 37520 37500 374 0 37460 37440 37420 37400 373B0 37360 SP 5 nmuTE 3 3 37860 7 40 37820 37B0G 77 0 37760 37740 37720 37700 376B6 37660 37640 3762G 37500 37580 37560 37540 37520 37500 37483 37460 37440 37420 37400 373B0 37360
The fiext bar CDmplctely demoEished the emerging uptrend. I marked the double high as a place lo buy, and went back to waiting. SP 5 HIHUIE [FIJ 37860 37810 37BZ0 37B0O 37780 37760 37710 buy 37720 37700 37600 37660 < 37610 37620 37600 375BG 37560 37510 37520 37500 371BG 37160 37110 7120 37100 373B0 37360 rJext there was an inside bar at about the same price level as the previous congestion aiea, I was still waiting. Notice that the correction to the down bar did not constitute a Ross hook. ROSS HOOKS COME OMLY IM TRENDING MARKETS. This market, by my definition of a trenti, is still in congestion. SP 5 HIMUTE L 1 .. buy l> floss 3 a 3 3 a 3 37B60 37B10 37820 37BO0 37780 37760 37710 37720 37700 37680 37660 37610 37620 37600 375B0 37560 37510 37520 37500 371B0 37160 37410 37120 37400 37380 37360
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