USE THE RULES AND LET THE MARKET WORK 1/17/14

Rules are developed to let trades work with the market.  Look for 50CB's , use the price break out points (S-BOT and L-BOT), and use the BOT range.  When more than one rule is in play, the trade has a higher level of confidence.

• Price will trade the range, break out of the range. 
•  Price will test a 50CB:  breaking will continue the trend, failing to break with create a reversal.
• When price consolidates (narrow trading range) moving averages will contract making it easier for price to break through the resistance (bull move) or support (bear move).

•  Range runs that fail will reverse and are expected to run the range.
• Price that breaks the break out target is expected to run for a +5 run.

• On a swing day or break out from consolidation, price will push through the break out +5 and run for BO-10 to BO-15.
• Price that stalls at the BO level, is expected to reverse to a prior level (BO10 back to BO5) and (BO5 back to the BOT).
• The reversal, like other price moves, will seek a CB50.

Put it all together, and trading risk can be managed long enough to give a trade a chance to succeed.