Wednesday, November 01, 2006
3 Leg Bull Break Complete...But,
Review of last night's trades. As observed before I hit the sack last night, PRICE was expected to challenge 1378.75. Challenge it did! It was breached by 1.50pts at 1377.00. This completes the 3 Leg Bull Break - translated: BEAR - lower highs, and lower lows.
However, as stated on today's heading...the concern here is the high of Leg 2, which is only at 1387.25, and we are not very far away from it.
We are heading down, based on last night's completion of the 3rd Leg. But I will keep a close look at the Leg 2 High at 1387.25 tonight. A BREACH of that level will instead pull us back into Leg 1, of the Bear Break
To recap, the 3 Leg Bull Break (on the TREND chart) is as follows: Leg 1 low is at 1378.75. Leg 2 high is at 1387.25 & Leg 3 low is at 1377.00
09:20pm As per observation stated this morning, we are now just 1.25pts away from the Leg 2 Bull Break high of 1387.25. A reminder - A Breach of this level would give us a Leg 1 of a Bear Break.
09:49pm Here we go...!
10:04pm We are now in Leg 1 of the Bear Break.
10:41pm Putting a BUY Stop at 1386.75
10:47pm LONG triggered at 1386.75 / STOP 1385.50
10:51pm Stopped out at 1385.50 / -1.25pts. It's always a challenge to see which trade works,and which doesn't. But you just have to take them, so long as the signals present themselves. You can't pick & choose as it would be detrimental for one's trading mentality.
10:57pm TREND chart has just turned down, giving us a warning for LONGS, as PRICE heads down to challenge the last Oscillation Support low of 1380.75 (TREND chart). At the same time, it could also be the end of Leg 1 of the Bear Break, given the Minor PPF (at 1387.00 - 10.47pm). We are heading down for Leg 2 of the Bear Break. This low must not breach 1377.00 to validate Leg 2.
11:06pm A wild 4 pt move up & down...
11:11pm SHORT 1385.00 / STOP 1386.00 - PRICE has to breach 1382.25 - If not, I'll be out.
11:15pm Moving STOP to 1384.50
11:16pm Folks, we are heading down...look out for 1377.00 to invalidate, or validate the early Bear Break altogether.
11:22pm Still holding out for more...but will be careful to not let the profit slip.
11:26pm Taking profit soon...3 X Divergent bottom on the Trading chart.
11:28pm Out at 1380.75 / + 4.25pts
11:29pm PRICE hasn't failed going down...Am just taking profit first. Feels much better pyschologically, especially with the 1st trade of the day being a loss.
11:38pm TREND chart seems to be turning up...Will look for Minor PPF of support to go long. A PRIME PPF confirmation of support would be even better.
11:45pm Still waiting for that opportune LONG. The LONG will be cancelled if we break the session low of 1380.00
11:47pm TREND chart just turned up. SHORTS beware !
11:49pm LONG 1382.25 / STOP 1381.25
11:52pm Protecting this trade. STOP moved to 1382.00
11:54pm Preserving profit - out at 1382.50 / +0.25pts
11:56pm My decision is very clear. Having made +4.25pts to cover the earlier loss of -1.25pts, I didn't want to risk the net +3.00pts. PRICE is heading back up, but if a PRIME PPF of Support can happen on the TREND chart, it would give us confirmed Leg 2 of the Bear Break, and point to a move up to challenge 1387.50 (to breach) for Leg 3 of the Bear Break.
12:14am We are now in PRIME territory on the Trading chart...TREND chart still pointing up. Do we break thru 1380.00, or do we challenge last PRIME Resistance at 1384.25. Will wait & see...
12:23am We are still not out of the woods...this PRICE movement has to clear 1384.25
12:28am It looks like we are still heading down.
12:51am Calling it a night. The +4.25pts was sweet...makes up for last night's 4 frustrating trades.
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2 comments:
Hi,
Was a fellow forumer on CNA forum and came across your postings and Blog.
Just wondering if you would be interested in linking up each of our blogs in our links page.
I am currently writing 2 different blogs, 1 on options trading and another on CFD Trading.
Am interested in forging a link exchange here with you should you be interested.
hope to hear from you.
Rgds
Terence
Hi Terence,
you "were" a fellow forumer...meaning that you don't post on the CNA forum anywmore?
Sure...am always open to linking other blogs by fellow traders. Already have a link to Growmoney Blog by Decipher...
Send me your details...
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