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109

Trading By The Book - Part VI

1579

1512

1455 1340 1225 1167 1119

oat-W

;

25 I

ST0G5"3/f

,1.........-\-~r--

0=6712 0=1245 H=1254 L=1232 C=1235

Figure 47 On 0712, the weekly oscillator for Cocoa was flat. The next day it notched up as prices rose. The daily oscillator came out of oversold on that day, and so I placed an order to buy a breakout of the high side of the ledge that had previously formed.

I was filled on 0714, and the weekly oscillator pointed up when that day was over, because of a sharp rise in prices. This was a breakout of a ledge, and so I was looking for quick short term profits. I kept my stop tight, and was out with a small profit in two days.



Trading By The Bool< - Part Vi

18128

D=8713 0=3862

H=9889 L=9724 C=9?39

Figure 48 0713. The weeicly Bond oscillator had been down two days. Another down day would make the third day down. The daily oscillator was not yet oversold, and had falling tops.

1 placed a sell order at 97-24, a profit order at 97-14, and a protective stop at 98-09. The next day, I was filled at 97-24, and out at 97-14 with a ten point profit.



Trading By Tlie Book - Part VI

19128

9913

9416 9201 8918

B703

filled ianoNput on this dai

STOC 5 3 1

XK= 51 51 D:8?14 0=9726

H=9898 L=9701 C=971&

Figure 49 0714. Since everything still looked like a short for the Bonds, I decided to go for it. I placed a sell stop at 97-00, a profit stop at 96-22, and a protective stop at 98-09. The next day was an inside day, but everything else looked good.

I moved my sell stop to under the low of the inside day, at 97-06.

I placed a protective stop at 97-19, and a profit stop at 96-29. Everything was tight and this trade appeared to be low risk.

The following day I was filled and then out with a profit.



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