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16 30948 30291 1 ZB993 2B344 276% 27846 26397 25748 , .............P 25099 24458 D=02i0 0=38200 H=3665B L=38858 C=38625 Figure 31 On the 22nd day of the congestion, Wheat moves up out of the envelope, but does not close outside. The next day when it closes, it just misses again. The third day, it moves outside the envelope again. This time I call my broker and tell him to change the order from stop close only to stop. I get my order filled the following day at 304. It is the twenty-fifth day.
Trading By Tlie Boole - Part I Definition of a Trading Range I often enter a trade based upon the establishment of the envelope when prices have been in congestion for fewer than 25 days, and that will be discussed in the second section of this manual. But here we are talking about what constitutes a trading range for purposes of trading by this method. For my purposes, the definition of a trading range is that prices are in congestion for at least 21 to 29 days. This may happen only two or three times a year for any given market. It may not even happen once in a year for any particular market. When it does, you may have to wait far longer than an average 25 days for the breakout. The point is that when trading the breakout of a range, it is hard to be wrong. Most of the time I will be right if I follow these rules! I can never be wrong about which way the breakout has occurred. Whether prices break out to the upside or the downside, I will be right. My order will already be in place, and the market will have come to me, to where i was waiting for it. The only thing that can go wrong is for a false breakout to occur. If that happens, and it does, 1 will have to grin and bear it as I take my loss. If prices reenter the envelope, I have a choice. 1 can exit immediately, or I can grit my teeth and hope they will break out again. While I am suffering, if I cant stand the pain, I can move my protective stop even closer. Usually, as soon as the trade has been entered, I move my stop to just below the original range high for a long position, or just above the original range low for a short position.
3894B 30291 2%41 2B993 2B344 27695 27846 26397 25899 24450 0=6218 0=29350 =2955 L=29175 C=29225 Figure 32 Calculating the objective for this trade is the same as it was for the previous trade. 1 take the A,B,C swing before the breakout. The formula is 1.00 (B - A) + C. is 30575. A is 28750. is 30000. My projection is 31825. Note that and occur the same day.
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