HOMEWORK 4-27-2007

I know I promised to follow up on 3 bar equilibrium today but we have to take advantage of this current market configuration (pivot) as it is occurring. I believe due to the psychology of primacy and recently provides you with the best learning experience so from time to time I will postpone a lesson/s if you will be better served.

For those who responded to the homework assignment. You can see how price at this time has bounced up off the pivot test as if scripted by L.C.M.

HOMEWORK

1. Now, this bounce up off the pivot could have been anticipated because…

A. The test bar closed on lower volume

B. The test bar also formed a bear pivot on lower volume

C. The bear pivot formed by yesterday’s close needed to be tested

D. There was an intraday pivot, (1hr & 30min) bounce up above the green pivot test line on the chart I sent you last night.

E. All of the above

2. The green line on your chart represented…

A. Support line for today’s trading
B. Resistance line for today’s trading

WHY?

3. When a down bar closes below the low of the prior bar on lower volume, we should expect the next bar to…

A. Either stop or slow the down move
B. Continue the down move

WHY?

4. The yellow line on your chart represented…

A. Resistance line for today’s trading
B. Support line for today’s trading

WHY?

I know it seems like a lot but you’ve got the whole weekend. I don’t expect a response until Monday. But, I will respond before Monday if I get your answers before Monday.

P.S. ANSWERING THE OTHER QUESTIONS FIRST WILL HELP YOU WITH QUESTION 1.

When we are young majic is all we believe, till we are conned by those who deceive, then what we know is all we can see, blowing majic away like wind and leaves.

By what we know we're tossed to and fro, who to turn to, which way to go?when we remember that we are all child-ren, then once again we find a friend.

If we can forget what we 're taught to know, the face of revelation again will show. Ideas unknown we now can get, things forgotten we unforget.

Childish heart swallowed by consuming debt, too hard to believe because we fret, all that we believe is all we can get. And when the circle becomes complete, we find the child they tried to beat.

When faced with the choice, to just survive or truly live we remember that MAJIC IS ALL THERE REALLY IS...

Jerry

TRADING MAJIC

MAY YOU BE LED BY THE MOST HIGH AND HAVE A BLESSED WEEKEND.
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