KILL PULLBACK
AT THIS POINT WE CAN KILL THE PULLBACK LIMIT ORDER. AT THE CLOSE OF THIS 4HR BAR WE WILL HAVE A VALID FOLLOW THROUGH BAR TO THE SHORT PIVOT IF WE GET A CLOSE BELOW 9806.
WHAT WE ARE WITNESSING NOW IS A REVERSAL TEST OF YESTERDAY'S 4HR BULL PIVOT. WHICH MEANS THAT IF WE CLOSE THIS BAR BELOW 9806 THE ODDS ARE HIGH THAT WE WILL TEST THE BOTTOM OF THE 4HR RANGE BAR FROM YESTERDAY AT THE 9753 AREA.
BUT REMEMBER THE DAILY RANGE BAR IS STRONGER THAN THE 4HR RANGE BAR AND REALLY THERE IS NOTHING UNUSUAL ABOUT WHATS GOING ON.
THE MARKET IS TESTING THE DAILY BULL PIVOT,WHICH IT NEEDS TO DO IF IT IS TO CONTINUE UP. THE LOW OF YESTERDAY IS THE LOW OF YESTERDAY'S OUTSIDE BAR THAT FORMED THIS CURRENT BULL PIVOT SO UNTIL THE MARKET BREAKS THIS LEVEL, THE BIAS IS STILL UP BECAUSE THE DAILY PIVOT IS STILL IN PLAY.
AS LONG AS THE DAILY PIVOT IS STILL IN PLAY THE BIAS IS STILL UP. THE INTRADAY LEVELS ARE SECONDARY SUPPORT/RESISTANCE TO THE DAILY.
THE CLOSE OF THE DAILY RANGE BAR FROM LAST WEEK IS THE REAL TRUTH AT 9787. IF WE BREAK BELOW THIS THEN THE OPEN OF THE 4HR RANGE BAR IS NEXT.
THIS IS WHY IT'S GREAT IF YOU CAN MONITOR THE MARKET BECAUSE THAT WAY YOU COULD HAVE BEEN SHORT AT THE FORMATION OF THE BEAR PIVOT AND YOU WOULD NOT CARE WHERE SUPPORT WAS FOUND BECAUSE YOU WOULD JUST TURN AROUND AND GO LONG ON A BULL PIVOT, WHICHEVER SUPPORT LEVEL WAS FOUND. YOU DON'T REALLY CARE.
THE ONLY THING IS THAT WHEN YOU ENTER AT THE CLOSE OF A PIVOT BAR WITHOUT WAITING FOR THE PULLBACK, YOUR STOP HAS A MUCH LARGER RANGE, BUT IF YOU WAIT FOR THE PULLBACK YOU RISK MISSING THE MOVE.
SO, THIS IS REALLY WHERE YOUR VOLUME RULES CAN HELP YOU. SAY YOU ARE LOOKING TO ENTER SHORT ON THE 4HR PULLBACK TO THE PIVOT. HOW DO YOU KNOW THE PULLBACK IS NOT GOING TO MAKE IT BACK TO THE PIVOT POINT SO YOU DON'T MISS THE MOVE.
OKAY, LOOK AT YOUR 30 AND 60 MIN. SEE HOW YOUR VOLUME RULES COULD HAVE CLUED YOU IN THAT THE PULLBACK WAS OVER AND WAS NOT GOING TO REACH THE PIVOT POINT.
THE LAST BAR ON BOTH THE 30 AND 60 MIN BOTH CLOSED UP ON LOWER VOLUME. THIS WAS A SIGNAL THAT THE PULLBACK (TEST) OF THE 4HR SHORT PIVOT WAS OVER.
ALWAYS, ALWAYS, ALWAYS... LOOK DOWN AT LEAST 1 TIME FRAME FOR YOUR EARLY SIGNALS.
JERRY
WHAT WE ARE WITNESSING NOW IS A REVERSAL TEST OF YESTERDAY'S 4HR BULL PIVOT. WHICH MEANS THAT IF WE CLOSE THIS BAR BELOW 9806 THE ODDS ARE HIGH THAT WE WILL TEST THE BOTTOM OF THE 4HR RANGE BAR FROM YESTERDAY AT THE 9753 AREA.
BUT REMEMBER THE DAILY RANGE BAR IS STRONGER THAN THE 4HR RANGE BAR AND REALLY THERE IS NOTHING UNUSUAL ABOUT WHATS GOING ON.
THE MARKET IS TESTING THE DAILY BULL PIVOT,WHICH IT NEEDS TO DO IF IT IS TO CONTINUE UP. THE LOW OF YESTERDAY IS THE LOW OF YESTERDAY'S OUTSIDE BAR THAT FORMED THIS CURRENT BULL PIVOT SO UNTIL THE MARKET BREAKS THIS LEVEL, THE BIAS IS STILL UP BECAUSE THE DAILY PIVOT IS STILL IN PLAY.
AS LONG AS THE DAILY PIVOT IS STILL IN PLAY THE BIAS IS STILL UP. THE INTRADAY LEVELS ARE SECONDARY SUPPORT/RESISTANCE TO THE DAILY.
THE CLOSE OF THE DAILY RANGE BAR FROM LAST WEEK IS THE REAL TRUTH AT 9787. IF WE BREAK BELOW THIS THEN THE OPEN OF THE 4HR RANGE BAR IS NEXT.
THIS IS WHY IT'S GREAT IF YOU CAN MONITOR THE MARKET BECAUSE THAT WAY YOU COULD HAVE BEEN SHORT AT THE FORMATION OF THE BEAR PIVOT AND YOU WOULD NOT CARE WHERE SUPPORT WAS FOUND BECAUSE YOU WOULD JUST TURN AROUND AND GO LONG ON A BULL PIVOT, WHICHEVER SUPPORT LEVEL WAS FOUND. YOU DON'T REALLY CARE.
THE ONLY THING IS THAT WHEN YOU ENTER AT THE CLOSE OF A PIVOT BAR WITHOUT WAITING FOR THE PULLBACK, YOUR STOP HAS A MUCH LARGER RANGE, BUT IF YOU WAIT FOR THE PULLBACK YOU RISK MISSING THE MOVE.
SO, THIS IS REALLY WHERE YOUR VOLUME RULES CAN HELP YOU. SAY YOU ARE LOOKING TO ENTER SHORT ON THE 4HR PULLBACK TO THE PIVOT. HOW DO YOU KNOW THE PULLBACK IS NOT GOING TO MAKE IT BACK TO THE PIVOT POINT SO YOU DON'T MISS THE MOVE.
OKAY, LOOK AT YOUR 30 AND 60 MIN. SEE HOW YOUR VOLUME RULES COULD HAVE CLUED YOU IN THAT THE PULLBACK WAS OVER AND WAS NOT GOING TO REACH THE PIVOT POINT.
THE LAST BAR ON BOTH THE 30 AND 60 MIN BOTH CLOSED UP ON LOWER VOLUME. THIS WAS A SIGNAL THAT THE PULLBACK (TEST) OF THE 4HR SHORT PIVOT WAS OVER.
ALWAYS, ALWAYS, ALWAYS... LOOK DOWN AT LEAST 1 TIME FRAME FOR YOUR EARLY SIGNALS.
JERRY
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