back start next
[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [ 47 ] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57]
47 The followiriCj price bar [iieaded soudh so I pieced a count on my clart. SP 5 nmiz I ll 37QG0 37040 37820 37800 37780 37760 3774G 37728 37708 376 37660 37648 37628 37680 375B0 37560 37540 37520 37500 37480 37460 37440 37420 37400 7 0 37360 No downtrend materialized. The next bar failed to make a new lovw end closed higher tiian it opened, creahng a reversal bar and a double bottom. SP 5 3 8 3 t i 11 37B60 37B4G 37820 37BG0 37788 37760 37740 37720 37700 37580 37660 37640 37620 37600 375CG seIl3756G 37540 3V520 37500 374B0 37460 37440 37420 374G0 373 0 37360
The following bar reversed again. What had happened was that the trading range was still there, only it was getting wider. To me, that means a weakening maritet. If it were getting tighter, I would e>(pect an explosive move. However, wfien a congestion widens, I expect short untradable trend egs until the market widens out enough to make the legs worth trading. SP 5 ttlhUTE T LJ  37860 37010 37DZ0 37800 37780 37760 37740 377Z0 37700 37680 37660 37640 37620 376O0 37580 37560 37540 37520 37500 37180 37160 37140 37420 37400 37380 37360 Prices broke a bit. but 1 wasnt expecting theni to really break out of the trading range. It usually takes from 21-25± bars before a breakout can be expected. I could now count two segments up, so I marked tliem on the chart. SF 5 nihUTE  ] I 37 60 7 40 7 20 37890 377B0 37760 37749 37728 37700 376B0 37660 37640 37620 37600 37580 37560 37540 37520 37500 37480 37460 37410 37420 37400 37360 3 8 3 3 8 25 1
As might be expected Sn a trading range, the next bar reversed, closing near its lows. Ahhough it doesnt work perfectly, this metfiod of counting segments to identify a trend, and understanding when a market is in congestion, has wonderfuliy kept me out of untradabfe trading ranges and congestion areas for many years. So, although this part of the book may be not as exciting, the wise trader will pay great heed to what Irn showing here, Krtowing when to trade and when to siL and wait is worth a fortune - it has boori for me. Still, because 3 will not prejudge a market - I let it tell me what it wants to do - 1 dutifully drew my trend line and numbered n-ty segments. 1 called in a buy order above the high and waited. SP 5 HlflUTE The next bar again confirmed the trading vange, and killed the uptrend. Just for grins. I counted the bars in the range so far. There were fifteen. Ive drawn a box around the bars. I like to test niy methods to see if they still work. To make it a bit easier for me to finish ttiis series, Im gomg to cfiange the chart scaling a bit. You rnay not even notice. SF 5 rtlhUTE  3 8 III 1 37060 7 40 37820 37800 377B0 37760 37740 37720 ....buy 37700 376B0 37660 37640 37620 37600 37580 37560 37540 37520 37500 37400 37460 37440 37420 37400 373[iO 373 0  37B60 37840 37820 37800 37780 377G0 37740 37720 37700 376B0 3766G 37640 37620 37600 37580 37560 37540 37520 37500 374B0 3746G 37440 37420 37400 373B0 37360
[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [ 47 ] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57]
|
Menu
