BOT TRADING SYSTEM
Market PA repeats itself with some regularity. Range bound days are market consolidations and eventually produce an extended break out run day of 15-20 points. Today was another in the range bound series and followed the BOT Rules. A failed BO ran the range to the opposite extreme for a BO. PA found support at the BO 10 level and reversed to the BO 5 in two legs, then pushed through the range for a long BO 5, where PA traded in a narrow range for several hours.
CHART HIGHLIGHTS:
1. ranges in place, market in a bearish sell mode.
2. Market open, B1-2 run the range. B2-3 forms the "r" reversal pattern at the LB. PA that exhibits key characteristics at a BOT level has a higher rating for success. Add an EMA, etc. and we have three or more reasons that makes the PA worth noting, and ENTER the trade.
3. After the SB BO, we have a PB test that ends in a 2 bar doji at the SB and EMA. Again, a significant chart pattern of interest at 2 key points on the chart. ENTER the trade.
4. Two strong selling legs to the BO 5 level, followed by a third leg push to the BO 10 level. A limit buy developed around the 1398.25-1399 as buyers entered at the support level discussed in the chat. BOT Rule here: when PA holds/stalls at a BO level, PA tends to PB to the prior level. Buyers pushed the PA through the range for a BO 5 on the opposite extreme.
5. Selling at the resistance around the BO 5 for a PB to the EMA.
6. Extended range bound PA between the BO 5 and the LB. Stay out or stay with scalping.
7. Double top at the BO 5 and a 2 bar doji reversal. Three reasons to ENTER the trade.
Anyone can enter a trade. Whether it is a reasonable trade or not is the question. Experienced traders will look for a reason to enter and exit. Follow your rules, and ENTER the trade when two or more key elements come together.
Thank you for this excellent explanation. I'll might give more input for another blog this evening :-). You're GREAT!
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