READING THE RANGE AND 50CB'S 9/27/13

There is as many ways to trade as there are traders.  It is impossible to sort through all the nuances and variations that occur.  So, what does the trader, new or seasoned, do?

Start with something simple, something you can replicate.  Most important, something you can understand.  Traders will use indicators and EMA's, bars, candles and so on.  Read (the free stuff) online trading literature and search the finance/investments section of the public library.  The more you read, the more you see.  The charts will seem to come alive for you as your understanding grows.  Take time to learn all you can.  Trading is not an overnight deal, unless your not planning to stay very long.


BOTs and 50CB's

The Break Out Targets are a calculation of the strength of the market within a given range.  We have a bull break point- the LB or Long Break Out, and we have a bear called the SB, or Short Break Out.  So BOT's gets shortened to LB or SB and represents the area where one side seems to have the ability to dominate.

The 50CB is  a Control Bar, or a bar that represents the dominate trade in a micro sense, but is believed to have an impact beyond the micro when we add the 50CB Trend line (50CB TL).

When we have the levels and capture the 50CB and it's TL, we have a trading system to help direct the trades.  What is expected to develop remains the focus and will help keep a trade open when PA fluctuates.

This is for illustration, but the bias or perceived strong position is showed for each pair:  the 50CB, the 50CB bull TL, the 50CB bear TL, and the LB and SB.



A LOOK AT TODAY:

Those in the Trading Room see the discussions and trade snapshots.  The trades are omitted in the blog, but look at the tools discussed and see where you thing a trade was taken and which side-bull or bear.