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105

19128

9913 9630 9416

9M 8918

0783

STOC 5 3 1

67 - 67 0=0525 0=9225 H=9303

L=9209 C=92i7

Figure 35 0525. The daily oscillator for the Bonds came out of overbought. The weekly oscillator was up. I placed an order to buy the breakout of the high for the day, but was not filled.

On 0526, I placed an order above that days high at 93-02 with a contingency profit stop at 93-12 and a protective stop at 92-04.

I was filled on 0530 (the next trading day), at 93-13 on the open, and immediately stopped out at 93-12, thereby losing 1 tick, i didnt like the low close so I didnt order any Bond trades for the next day.



19128

9913 9416 B918

8783

STOC 5 3 1

xK= 68 )= D=0531 0=9228

H=94 L=9217 C=9302

Figure 36 0531. Bond prices closed near the high for the day. The weekly oscillator was still up. The daily oscillator had turned up.

I placed a buy stop at 93-05, a contingency profit stop at 93-15, and a protective stop at 92-16.

On 0601, I was filled at the high of the day. When the market closed, i called in a protective stop at 92-22, just under the low of the day.



Trading By Tlie Book - Part Vi

1578 1512 1455

1348 1225 116? 1118

in

......../Vr""y--V...............w...........V.......

STOC 53/t

:K= 29 v3-- 29

D=B601 0=1193 H=1288 1=1185 C=1198

Figure 37 0601. The weekly oscillator for Cocoa had been fiat for two days. It then notched up, and the daily oscillator stopped correcting.

I placed an order to buy above the high at 1209, with a protective stop at 1181.

The next day, 0602, prices gapped up. Prices chopped around for a few days, and came within 1 tick of taking out my stop.

Then prices jumped up only to start down again, and then up again. I gave Cocoa lots of room because it likes to make saucer bottoms. Finally, prices began a steady uptrend for 6 days. I moved my stop up to 1187. See Figure 45 for the conclusion of this trade.



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