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54

Trading By Tlie Book - Part IV

4598

4528 4458 4388

iTtJ

4138

2 stops he

4839

ST0C5"3""1

xK= 15 •/])= 15 D= 8215 0=4875

H=4998 1=4059 C=4093

Figure 12 Prices continue down, but on 0215 they close near the high of the day, indicating an almost certain retracement is in the offing. 1 move my stops to just above the close of the previous day, at 4103.



4590

4516

4442

4368

4295 I

4147

/.1

4073

2 stops lilere

5""3"1

XK= 20 /J)= 20 D= 021? 0=4034

H=4090 Li4032 0=4054

Figure 13 IVty luck continues to hold on 0216, as prices make a high at 4100. The next day, 0217, they continue to move down again. I think to myself, "Maybe the oscillator will turn down, and Ill get a double bottom." I move my stops to 4091.



4590

4516 4442 4368 4295

4221 4147

4873

XK= 38 yJ)= 38

D= 0221 0=4879 H=4135 L=4073 C=4118

Figure 14 Its 0221. Prices move sharply up, taking out my two stops. I thought, Perhaps this is another correction." But the weekly oscillator has turned flat.



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