GBP 2ND POST 5-24-2007
This post is to give you an example of how strict adherence to LCM should have kept us in good position today. I’m feeling that many of you did not get out on the 1hr bull pivot. Why do I say that? Because the market rose just high enough to take out my suggested stop price before busting down…
You would be surprised how many people across the globe are following my calls. You don’t get too many with the guts to make public calls and explain when I why they are making those calls. So, when we do find someone like that, word spreads like wildfire.
The only problem is that my LCM STUDENTS KNOW WHAT I’M TALKING ABOUT WHEN I SAY THINGS LIKE PIVOT, TEST, AND SWING BAR. SO IF I SAY GET OUT ON A BULL PIVOT ON THE 1HR, MY STUDENTS WILL KNOW WHAT THIS MEANS AND BE OKAY.
THOSE WHO ARE NOT MY STUDENTS HAVE NO CHOICE BUT RIDE OUT THE TRADE TO THE STOP LEVEL, WHEN THEY DON’T KNOW THAT WE ARE ALREADY LONG GONE.
So, let’s take a look at how my students should have done it today.
SHORT ENTRY AT 9863 ON TEST (PULLBACK) BAR TO 1HR BEAR PIVOT POINT.
EXIT: AT CLOSE OF BAR (1) 9867 CLOSE OF 1HR BULL PIVOT BAR. (4 PIP LOSS)
LONG ENTRY: ON TEST (PULLBACK) BAR (2) TO BULL PIVOT POINT AT (9860).
EXIT: CLOSE OF BAR (3) AT 9879. WHY…VOLUME RULES. WE GOT A BAR WITH A HIGHER CLOSE ON LOWER VOLUME. My students who have the ARCHIMEDES PRINCIPLE-VOLUME REPORT know that this is definitely an exit signal. Then double that exit signal because it hit 3 bar resistance to the bull pivot.
Result (19 pip profit).
Summery: 2 trade signals 2 exit signals = 19 pip gain – 4 pip loss = net gain of 15 pips
Now, when we do it that way, strict adherence to LCM, this is what we end up with. And now we avoid what was obviously an operator shakeout. Now if this current 1hr bar closes below bar 3 with higher volume, as it looks like it will, we are in a position of profit already and we have no fear of trading this soon to be bear pivot.
Did I trade it this way. Honestly no I didn’t. However I normally would when I can stay awake. I took my 4 pip loss. Updated you and was about to return to bed. Then of course I see the current swift down move after the U.S. data and just cannot help illustrating this scenario to help you along in your progress. Yeah I know what you’re thinking. That’s why I’m having so much trouble getting rid of this rotten sinus infection.
So, just do something for me. Whenever I make a special note for you to get out when a specific event takes place, please do it. For me to make that special note then you know I had a specific reason. And that reason was that the market had not closed below 23% Fibonacci from yesterdays up move, and we didn’t have a valid 4hr pivot.
But if you took my suggestion and got out on that bull 1hr pivot, you should have no fear to trade this bear pivot that just formed. So, I’ll leave you with this.
If you trade this 1hr bear pivot that just formed, only go short on a pullback (test) of this pivot, and only do so if you get a 15 or 30 min bear pivot below the 1hr bear swing bar 9863 from this bear pivot. that's bar# 3 in red on your chart.
Jerry
THOSE WHO ARE NOT MY STUDENTS HAVE NO CHOICE BUT RIDE OUT THE TRADE TO THE STOP LEVEL, WHEN THEY DON’T KNOW THAT WE ARE ALREADY LONG GONE.
So, let’s take a look at how my students should have done it today.
SHORT ENTRY AT 9863 ON TEST (PULLBACK) BAR TO 1HR BEAR PIVOT POINT.
EXIT: AT CLOSE OF BAR (1) 9867 CLOSE OF 1HR BULL PIVOT BAR. (4 PIP LOSS)
LONG ENTRY: ON TEST (PULLBACK) BAR (2) TO BULL PIVOT POINT AT (9860).
EXIT: CLOSE OF BAR (3) AT 9879. WHY…VOLUME RULES. WE GOT A BAR WITH A HIGHER CLOSE ON LOWER VOLUME. My students who have the ARCHIMEDES PRINCIPLE-VOLUME REPORT know that this is definitely an exit signal. Then double that exit signal because it hit 3 bar resistance to the bull pivot.
Result (19 pip profit).
Summery: 2 trade signals 2 exit signals = 19 pip gain – 4 pip loss = net gain of 15 pips
Now, when we do it that way, strict adherence to LCM, this is what we end up with. And now we avoid what was obviously an operator shakeout. Now if this current 1hr bar closes below bar 3 with higher volume, as it looks like it will, we are in a position of profit already and we have no fear of trading this soon to be bear pivot.
Did I trade it this way. Honestly no I didn’t. However I normally would when I can stay awake. I took my 4 pip loss. Updated you and was about to return to bed. Then of course I see the current swift down move after the U.S. data and just cannot help illustrating this scenario to help you along in your progress. Yeah I know what you’re thinking. That’s why I’m having so much trouble getting rid of this rotten sinus infection.
So, just do something for me. Whenever I make a special note for you to get out when a specific event takes place, please do it. For me to make that special note then you know I had a specific reason. And that reason was that the market had not closed below 23% Fibonacci from yesterdays up move, and we didn’t have a valid 4hr pivot.
But if you took my suggestion and got out on that bull 1hr pivot, you should have no fear to trade this bear pivot that just formed. So, I’ll leave you with this.
If you trade this 1hr bear pivot that just formed, only go short on a pullback (test) of this pivot, and only do so if you get a 15 or 30 min bear pivot below the 1hr bear swing bar 9863 from this bear pivot. that's bar# 3 in red on your chart.
Jerry
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