Trading By The Book - Part VI

b58S

6320

t>.

6190 6068 5939 5800 5678 5540

out here-30 short her

,out 1 here n.

STOC 5 3 1

>:l{= 36 -/3= 36 5=0483 0=6076

H=6126 L=6064 C=6i2i

Figure 23 0403. The weekly oscillator for the Swiss Franc was still down. The daily oscillator and prices began to make a correction. The following day prices gapped up so I didnt try to sell a breakout of the low.

The next day prices gapped down at the opening and filled the gap made the previous day. The daily oscillator was now overbought. I placed an order to sell a breakout of the low at 6138 and was filled the next day as prices made a low of 6137. The following day I was stopped out as prices made an outside day. 1 took a 30 point loss and placed an order to sell a breakout of the low. I was filled the next day at the open, at 6084.

Prices went down for two more days, and I moved my stop to 6054 hoping to make back at least my previous loss.

The next day prices gapped up at the open, taking me out of the market with only a 7 point gain. I was now looking at a big W on the chart, so I started an envelope.

1570

1512

1455 1340 1282 1225

1167

1110

(-short here

K-out here

25 /

y,\../V„

"•pt-

XK= 4B /J)= 48 0=1498

H=1415 L=1369 C=1371

Figure 24 0403. Cocoa prices formed a ledge. The weekly oscillator was dead flat. The only indication available was from the daily oscillator. It had been signaling an upside breakout. Then the daily oscillator turned down and prices just broke the bottom side of the ledge. I place an order to short below the low of the breakout day, and was filled.

Prices fell nicety. I took profits on one contract at my objective and I trailed my stop on a second contract keeping it tight. Ive shown my entry point and the level at which i got out with a profit.

Trading By Tfie Boole - Part VI

1B128

9913

941b 9201 8918

STOC 5 3 1

;K= 52 yJf- 52 DB425 0=8916

H=8925 L=8908 C=8921

Figure 25 0425. The weekly oscillator segment for Bonds had been pointing up for three successive days.

The daily oscillator had been overbought, had made a correction, and was beginning to turn back up. I placed a buy order at 89-26, looking to go long on the breakout of the high at 89-25.

Since I use commando tactics with the Bonds, I placed a contingency profit stop order ten ticks higher at 90-03, along with my protective stop.

On 0426, I was filled. Prices moved up, filled my profit objective, and I was out of the market. I didnt like the close (too low), so I didnt place any more orders

On 0427, prices moved up and closed near the highs. Both oscillators were giving a long signal, so I placed a buy stop at 90-12, a contingency profit stop at 90-22, and a protective stop at 89-15. I wasnt filled and the daily oscillator turned down, so I placed no more orders even though the weekly oscillator was stiil pointing up.