RANGE BAR 2

See what happens when we don't wait for the close of the bar. Especially with news reports. That mean ole market made you think is was gonna go up didn't it. Made you think it was gonna form a bull pivot didn't it...then a few minutes before the close of the bar...wham! The floor broke.

Now, that we have the direction we want to go short don't we. We're all hot and bothered because we're missing the down move aren't we? some of us jumped in short without a plan didn't we?

Well, well, well. Looks like we have what...another range bar on the 1hr.

But we already know that if we enter short we should wait for a pullback to the floor right...cause our risk is the top of that range bar. So the yellow line would be fine because it's at the floor and from there's not too far from the door.

If you go short enter at the yellow line with your stop above the high of the new range bar. Okay...Okay. Me, Since I'm a sparrow, I won't enter unless price hits the open of the new range bar. But you know us sparrows, that's why we're so small and narrow...

I'm not saying you would be wrong to jump in short now. I'm just saying the lotto line is open for business.

Oh, 3485 would be a good place to take profit, unless of course theres weakness before then. But that's just advice for us sparrows...

Jerry

range bars

Well, I know that you have not entered the market today seeing as how the U.S has two important economic reports coming out at 8:30 am est.

The jobs report and trade data. If you are all I can say is you're just plain hardheaded and the market will soften it up for you by way of your wallet.

I'm just here to remind you once again about range bars. Nope nothing new. Other than pivots there is nothing else I have spoken more about except maybe 3 bar.

Look once again at how price respects these range bars. Like I've said many times before, they are support and resistance within themselves. Knowing this, then common sense tells us to expect price to bounce off the highs and lows of them on the first attempt.

Also, I haven't heard from anyone on this but sometimes I just feel certain things in the air. For instance, I know some of you are confused when trying to do your three bar count and why? Because you're not paying attention to what I commonly repeat...A RANGE BAR COUNTS AS 2 BARS, NOT 1...AGAIN...A RANGE BAR COUNTS AS 2 BARS, NOT 1.

Now, I hope you noticed that immediately after I closed my long trade this morning the market dropped like a stone. So, my 22 pip profit is looking pretty big to me right now. Especially since it was against the current down move. Kinda makes me feel like I stole from the market and got away with it. Not to worry though, it'll get me back soon enough.

Now just to see if you're thinking with just plain ole horse sense, if you go short on a bear pivot at the top of a range bar, where should your target be? Or if you go long on a bull pivot at the bottom of a range bar where should your target be? No, I'm not going to answer that...the charts answer that every time you study them. You are studying them aren't you. I mean all the time. Hours and hours each week, cause if you're not you're not even close to being serious.

I'm not trying to be harsh but it is my job to make you think...it is that process of figuring that draws out vision. And vision is determined by the way you look at life. The way you think...

For example. My mind set. the reason I will take a profit even if my target isn't hit...I didn't learn to do that from market trading or trading in general. I learned to do that by watching birds. And if you're thinking what do birds have to do with markets, then you've answered your own question as to why you're losing money to the markets, cause everything has everything to do with everything.

You ever notice that sparrows don't fly south for the winter. I mean, where I live I see sparrows all winter long and it gets cold in Michigan. Very cold. And during the winter I see many dead pigeons and crows who try to stick it out, but there are many more sparrows and fewer of them are dead. I must ask myself why.

I noticed that if I threw out a slice of bread, there might be only one sparrow, no competition just her. But does she fly in and take the whole slice...nope. She will fly in quickly take a small bite and fly off. And she will repeat that until the whole slice is gone. She's just that cautious. That's why sparrows make it through the winter. They know how to survive.

I take the same approach when trading...I am a sparrow and it gets me through the lean times. That may sound like nothing but it is very profound. It speaks to mind set as opposed to mind GET. For if you're to concerned with the GET...WAY you forget how to GET...AWAY. (smile)

Gotta go. Report time.

Jerry

TRADE CLOSED WITH 22 PIP PROFIT

Okay.

Trade closed at 3557 for 22 pip profit. From the entry at 3535 with stop at 3515. Target is still 3591 but I hope to get back in on a pullback to around that 3535 area.

If I can, even if we only get up to 3 bar again that's another 25 pips and that would be around 45 pips gained on a 30 pip move. Do you see the logic?

These are the tactics of trading with minimal risk. Yes you miss some moves but it keeps you in the game and keeps you in a positon to take advantage of moves because your profit cushion relieves your fear.

Jerry
Email me! click here

TRADE UPDATE

I will close out the trade at the close of the 4hr bar 4:00 am est. I have switched my target to 3565 that is 3 bar resistance. The 4hr blew through the pivot right up to 3 bar at 3563 2 pips away from 3 bar. There has been no pullback to test the pivot so if we don't hit 3365 by the close of this bar I will take profits wherever we are.

The 30 minute and the 1hr are showing volume weakness to match 3 bar resistance. I will look to reenter on a pullback at 8:00 am est at the open of that 4hr bar depending upon what the pivot phase looks like. If I miss the further move so be it. I've made a profit on the trade. Speed and greed
kills.

All based on what I teach in "THE LAWS OF CHARTS AND MEN"

JERRY