PA can at times seem to be mute, murmuring, or shouting about a trade. This is where your reading skills are tested.
Today we had an early Euro Zone range run which had an effect on the US Open, where we see a FBO for shorting. We traded last evening in the after hours, and the BoT Range was set early. No worry, there was plenty of action for the US trader.
A Bear/Bull TL was developing after the initial market shorting. Tighter and tighter it was ready for a major, extended BO. At this level, the read was: if shorts can not continue, we would see a FBO followed by an extended long run BO. That occurred, and was a nice trade run to the high signal.
Selling followed in two phases: above the 50CB and then the 50CB BO.
A very nice day to read.
THE LONG
POST LONG REVERSAL SHORT
50CB SHORTING
THE FINAL PICTURE
Hi CM,
ReplyDeleteI'm new to your blog. I saw sometimes your comments on the BPA chat. i do not understand how you determine the LB, MB and SB. Do you use the premarket range, or there's something different.
many thanks
good evening. The BOTs are a process that i have developed for a trading strategy. Today, the BOT levels were calculated from the Euro trading. Last week, we had an after hours (US) calculation. The LB will often be near a BO level from a prior LB, i.e. a +5 or +10 and similar for the SB. The actual method has not been released, but if you have followed the post charts or the chat charts/videos you would see the buy/sell signals flashing. This is an important part to BOTs. Where are the key Buy/sell levels? It is not as simple as finding PA highs and lows. Also, the MB is not 1/2 of the SB-LB range. It will often be a 50CB buy/sell signal after the SB or LB has been calculated. This is a simplification, but the signals are important, as well as previous levels until PA itself breaks out of a given range.
ReplyDeleteHello CM,
Deletethanks for your response.
What is 50CB?
I'm only rarely in the chat so I do not know what flashing signals you refer to. Are these the arrows in your charts?
regards
yes, the signals are the arrows in the chart. They begin to "flash" and can be permanent at the bar close. It is actually four signals: a star and an arrow for both bull and bear. The best are the double signal which looks similar to a western spur.
ReplyDeleteThe 50CB is approximately the 1/2 point in a control bar. Yesterday a 50CB developed in the break out bar and at(visual) the BO-5 level. 50CB's are key support and resistance levels; will be tested by PA immediately (few bars) or later. A failure to break, PA tends to resume the prior trend. A break, look for a new trend in break direction.
Try the terms page for additional information.