EURO/DOLLAR 5-8-2007
Hello.
don't panic I'm not going to talk about anything new just those same old boring pivots. I awoke this morning to the anguished screams of the metatrader F12 key. I could hear the keys clicking from my students across the waters on other continents. (smile)
I know everybody's practicing so I just wanted you to see a chart of how the pivots have been performing on the 4hr.
I'm only going back 8 signals but if I kept going back they just keep on performing just like, well...nature.
The red numbers on the chart are the pivot bars and you can see the majical performance after each pivot bar formed. Don't even look at number 3 though cause that will just open up a can of stuff that some of you don't need to get into right now.
The blue letters though, illustrate an important point I've been making. These blue letters are also pivot bars but, they formed a pivot and hit 3 bar or came close to 3 bar all on the same bar. While these are valid signals they were not tradeable signals because they moved too fast to give you an opportunity for a safe entry.
So when you are doing your F12 exercises I want you to pay attention to this because it goes far in relating to what I mean when I say the market moves like a man/woman.
See, when this happens it means that the market has turned on a dime (too fast) and because of that it is off balance. That's why when this happens the market will usually bounce or reverse (fade) off 3 bar. If we were to include the fades in our count, it could be said that 14 times in a row that the market moved exactly in accordance with LCM.
Analogy; let's look at the blue letter B on the chart and put yourself in the same position. At the beginning of B you are standing at the bottom of a flight of stairs you are about to climb. THE PIVOT BAR IS YOU. Now, on your very first step, instead of landing 1 stair step up, you land on the 3rd stair step up.
Okay, after you do that, on your very next step I want you to land on the 4th stair step up with your other leg, that would be a step ahead of your first step. In other words walk up 3 stairs at a time.
Go to some stairs and do this...go ahead, I'll wait. Okay, now that you've tried it you can get up off the floor. (lol) What happened...are you okay? Didn't hurt yourself did you?
So what happened when you tried to do that? Before your second leg could reach the same height (same stair step) as your first leg you started to fall backwards didn't you? In other words, you started up but along the way you started to FADE back down.
This is what I mean when I speak about fading the move. Just like you are off balance when you attempt this maneuver and start to fade, so does the market because the market is a man/woman. If I were betting on you, I would bet that you would fade at this point.
Look on the charts and you will see that this is the nature of things. And even if you're an athlete and you have the strength and agility to successfully make it and land on the 4th step, you will still be off balance when you land and will therefore stumble off balance before falling back down or up like the pivot bar A.
don't panic I'm not going to talk about anything new just those same old boring pivots. I awoke this morning to the anguished screams of the metatrader F12 key. I could hear the keys clicking from my students across the waters on other continents. (smile)
I know everybody's practicing so I just wanted you to see a chart of how the pivots have been performing on the 4hr.
I'm only going back 8 signals but if I kept going back they just keep on performing just like, well...nature.
The red numbers on the chart are the pivot bars and you can see the majical performance after each pivot bar formed. Don't even look at number 3 though cause that will just open up a can of stuff that some of you don't need to get into right now.
The blue letters though, illustrate an important point I've been making. These blue letters are also pivot bars but, they formed a pivot and hit 3 bar or came close to 3 bar all on the same bar. While these are valid signals they were not tradeable signals because they moved too fast to give you an opportunity for a safe entry.
So when you are doing your F12 exercises I want you to pay attention to this because it goes far in relating to what I mean when I say the market moves like a man/woman.
See, when this happens it means that the market has turned on a dime (too fast) and because of that it is off balance. That's why when this happens the market will usually bounce or reverse (fade) off 3 bar. If we were to include the fades in our count, it could be said that 14 times in a row that the market moved exactly in accordance with LCM.
Analogy; let's look at the blue letter B on the chart and put yourself in the same position. At the beginning of B you are standing at the bottom of a flight of stairs you are about to climb. THE PIVOT BAR IS YOU. Now, on your very first step, instead of landing 1 stair step up, you land on the 3rd stair step up.
Okay, after you do that, on your very next step I want you to land on the 4th stair step up with your other leg, that would be a step ahead of your first step. In other words walk up 3 stairs at a time.
Go to some stairs and do this...go ahead, I'll wait. Okay, now that you've tried it you can get up off the floor. (lol) What happened...are you okay? Didn't hurt yourself did you?
So what happened when you tried to do that? Before your second leg could reach the same height (same stair step) as your first leg you started to fall backwards didn't you? In other words, you started up but along the way you started to FADE back down.
This is what I mean when I speak about fading the move. Just like you are off balance when you attempt this maneuver and start to fade, so does the market because the market is a man/woman. If I were betting on you, I would bet that you would fade at this point.
Look on the charts and you will see that this is the nature of things. And even if you're an athlete and you have the strength and agility to successfully make it and land on the 4th step, you will still be off balance when you land and will therefore stumble off balance before falling back down or up like the pivot bar A.
I call these types of bars, "FADE BARS." I'm not saying you should trade the fade. I'm saying that you should not enter at the close of a fade bar because it is too close to the target or has already hit the target leaving no room to profit.
On a fade bar you will wait for a pullback to test the pivot before you enter in the direction of the pivot bar. Now remember this though, if a bear pivot were to occur on after touching 3 bar, and then go back down, that is not a test. That is a reversal...that is what a pivot is...A REVERSAL.
Yeah, Yeah I know what you're thinking. It may work that way when I'm trying to go up the stairs because the force of gravity is pushing down on me but it will be easy enough going down. and you would be right except for one small detail that you probably forgot and it's my job to remind you of these mysteries as the revelator.
Remember what I taught you in THE VOLUME REPORT (ARCHIMEDES PRINCIPLE) ? THE SAME FORCE THAT ACTS ON A CORK OR BALL UNDER WATER THAT PUSHES IT UP TO THE SURFACE...
That's the thing, the mystery like what makes a cloud float even though it is heavier than air, hmmm...
Forces come in pairs. For every force at work in the world there is an equal and opposite force that works against it. If this were not true there would not be BALANCE.
So, imagine that the stairs are under water and there is a current pushing up (the bouyant force) that is equal to the current pushing down (gravity). Then the results would be the same going down the stairs as going up the stairs.
Okay, yeah I hear you...I hear you. You're thinking, okay then, that means that man and market don't operate the same Mr. smarty pants cause I don't feel no bouncy force, and I hear you on that.
But I won't answer that question because then I would have to go into things like the market is consciousness in motion and that shell...that machine...that prison you call a body can't feel it. I would have to go into things like, your real self is your consciousness and once you are free of your body you will feel it and that is what will cause your spirit (your consciousness) to rise once you discard that body...how your consciousness is like that cloud and how you are like the water that makes up the cloud, when you get too cold you turn to ice and must fall because you have changed form and become subject to additional forces.
How the ice, which is still water whether the ice realizes it or not, used to feel the bouncy force before it's heart became cold. It has forgotten than when it has warmed up and turned to vapor it will again rise up upon the force of buoyancy.
Nope, I won't talk of such things because you might per chance pick up on the truth of the matter. That this system of motion was revealed to me by the creator of motion...
I am Jerry...We are water...that is all...
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