Monday, February 13, 2006
YAWN....another day......
The first bar trade, by the rules, was voided since the high and low was taken out on the next bar....so it was up to the third bar to get the week going.
The third bar triggered short, but the stoch on the 70 tick didn't make it down to oversold so, BY THE RULES, we have to wait for the next cycle down. Since we use the top of the setup bar plus a tick as our first stop....it was nerve wrecking to say the least and it missed us by this much..........
Again, by the rules, once the stoch gets down in the oversold area and then we take out the high of the last bar we take half off and move to breakeven. So it was back to even and since we moved to breakeven we got nailed......oh well....NEXT.
The secret sauce was red all day, so looking for shorts was the way to go for sure.....we had a short setup at "C", that worked.....but I would like to talk about "D", "E" and "F" because if you look at the loser, it should tell you what you need to do and need not to do.
WELL "D".....there was a setup just using the 50 CCI ZLR...but not the stoch....
THEN "E".....there was a setup using the 50 CCI ZLR and the stoch......but......
THEN "F".....there was a setup using the 50 CCI ZLR and the stoch.....but this one is the only one that triggered if you use price as your actual trigger. Like the first and third bar setup, if you use price to confirm the setup bar...in this case, if the low is taken out without taking out the high....then short the babe.
Once in the trade, when the stoch on the 70 tick goes to oversold, half off and move to BE when the high of the last bar is taken out and let it ride baby.....oh yea, also we had symmetry at that little 717.20 area which is a perfect little setup.....
Now some believe that you don't need price to confirm any of their 27 setups, trend, countertrend, you name it......well that is fine with me since someone needs to be order flow. Now you might say to yourself, HEY, this guys was a big fan of that little minded club....and yes I was, and like I have always said......I found one thing that works for me and I bang the living crap out of it...everyday. The rest is just noise......and I hit the mute button on those setups long ago.
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