RANGE RUN BO-5 SHORT INTO US

BOT TRADING SYSTEM

EURO Zone trading was trading inside the ranges and we had a FBO at the US Open leading to a range run BO-5.  The reversal (PB) fell short of the EMA creating an EMA/SB gap worth another short look.

PA traded inside yesterday's ranges and we had a 50CB at B29-30 long. (a reversal signal at/near a range level is a low risk trade with the range used as the stop).  Another though provided was, we watch for the tendency of a BO-10 to PB to the BO-5.

At B54 area we see a mid level HL support and a "long" was highly suggested.  A B57 50CB TL was support for the bulls and 1310.25 run was anticipated. PA stalled in market around 9.75, and hit the target in after hours.

RANGE BOUND 1/30/12

BOT TRADING SYSTEM


AS we come to the end of the month, and the daily postings, we see a range bound day that ran the ranges in the Euro Zone, and settled on a BO-5 in the lower trading zone to a BO-5 in the upper trading range.

Interesting, we had a 50CB gap reversal followed quickly by another 50CB.  Tends to be bullish.


EURO ZONE to US OPEN:

US MARKET

RANGE RUNS-BOs-REVERSALS OH MY! 1/27/12

BOT TRADING SYSTEM

A play on the line in the Wizard of Oz:  Lions, tigers, and bears!  Well, the bears and the bulls.

The ES today had an Euro Zone Range Run, with an extended bear BO bar  before the US Open.  All after the ranges were calculated and released, but more on that later. By B1 we have an US open at the BO-5 level, it is a 50CB bar, and it hit a bull TL from the buyers down around 1307-1307.5.

PA ran back to test the 50CB BO short bar (pre open) approximately at the SBOT.  SB to BO-5 ping-pong action.  Two failed reversals developed the bear TL which had LH (also SB gaps) back to test the LOD buyer support.

PA hit (testings) buyer support at B34 and 43 establishing a reinvigorated bull.  From the low at B34 to the SB at 1314.25, note the secondary entry about midway where the SB Gap narrowed and we had a SB-5 gap.  Both together were bullish.  The pre market 50CB hits and breaks, as does the SB.  The run ends as a a MAXT at the middle BOT.

US Market

The Pre open Market

Now, for some news related to this Blog.  This blog was started to discuss, document, and hopefully provide some education about playing the BOTs.  It seems like forever that post have been added every evening  reviewing the PA in various markets.  Over and over, reporting how you could trade the PA moves associated with the BOT levels.  They work.  PA in the day hits key levels over and over.

Short of giving out the secret formulas, there is not much more to say.  It's time to take a break.  Continue trading, cut back on chatting and reporting.  The next step is upon us.

I hope you have enjoyed the post.  Hope you have become a better trader or at least added some thoughts to your trading.

The BOT levels were provided all week to any that took time to visit.  We will do it again some day.  For now, new avenues to explore, and some new interest that will require time.

ANOTHER BO-15 DAY 1/26/12

BOT TRADING SYSTEM

IT was anticipated to be a good week.  It has been discussed and reported.  BO 15 was the alert.   Today delivered.

How do you play the BOTS?

1.  long/short the BO
2.  long/short the range run
3.  play the reversals: a long/short  BO that fails and reverses into the range for an opposite BO.


We had all 3 today.  A strong reversal signal at the current HOD that reversed back into range, range run, BO 5/10/15.

1/25/12 THE BIG BO WATCH HITS

BOT TRADING SYSTEM


A LOOK BACK

simple comment fri.  hope you followed  [15:57] <CM> us open sun evening look for pb into range 

LIMITED CHANGE IN RANGES = EXTENDED BO WATCH 1/20/12

THE ranges were slightly modified, and could well have been unchanged as PA extended from the US close to US close in a tight range.  These tight ranges tend to create opportunities for extended BOs in the magnitude of 10-15 points+.

MONDAY  ES 10 PTS    TUESDAY   ES 10 PTS 

 TODAY:  15 POINT BO RUN

THE new format present in the last few days is appealing to me.  Less talk, more read of the charts by you.  After all, you must GET IT in order to develop your trading style.  No one can promise you anything; no one can promise you success; no one can trade for you.

6e:

Posted earlier today, this was the range run, BO short in Euro Zone Market.  BOTs would be 24/7 if the market would stay open.  6E has been a big winner in the tight range BO week.

and the 6E market today

YM TODAY

ES TODAY:

There are only so many ways, so many times to say how great the the BOTs  work.  Thinking out loud:  stay with charts and few words or stop all together and move to the next level...   It is getting time to decide, and the decision affects others.

1/24/12 LOOK AT SOME PA & THE RANGES

BOT TRADING SYSTEM


Not much commentary tonight, just review the ranges and plot them on your charts.  Look for the reversals into range, range runs, and BO moves.



ES

NQ

6E

A LOOK AT RANGES 1/23/12

BOT TRADING SYSTEM

THE ranges for ES, NQ, TF, YM, and 6E were listed on the range page early in the AM EST.  Following is a brief look via charts at possible plays.  These are hypothetical but based upon feedback from users and setups described in prior blog post.  Your actual entries may vary.  The entry area should be fairly clear to you as you review the charts.  The setups used are available with clarity in real time.  Exits vary with users and variations (typical signals) are used where available.  We will called them hypothetical - even if real trades are mingled in- to avoid any suggestion that trading advise is being offered.

YM

















Range runs are a preferred play given the risk/reward assumptions, and YM was in one (anticipated) at the US open.  Plays will exit at the completion of the range run, at the first EMA- close, at a reversal (50CB, MAXT, gap, etc.), or at your desired profit.



6E

The Euro was already in a range run early, and a PB to a TL and EMA offered another entry.  The previous BO was a LBOT +10.  Even without the TL entry, a LBOT play was again available for +10 to +20.

By the US open, PA was holding at the EMA similar to the prior.  This is a long set up.

ES

ES returned into the range at the Sunday evening open (was a watch alert on Friday).  PA BO and a new range was calculated.  PA had stayed in range and was bullish at the US open with a Mid Range-EMA break for the long.  The HOD reversal short ran the range and the previous range from Friday.  This was a 10 point opportunity waiting for an exit setup (the eventual reversal).  Even without taking a long at the reversal, a secondary entry was at the TL/EMA break at the SBOT.  Another favorite play when numerous charting tools align, or collide.

After hours offered another 5 point potential.

1/22/12 EVENING OPEN

BOT TRADING SYSTEM


 simple comment fri.  hope you followed  [15:57] <CM> us open sun evening look for pb into range

AM UPDATE

PA continued to play range tag for the Euro Zone session with a BO  around 5:30 EST that corresponded to a move in all US markets.

LIMITED CHANGE IN RANGES = EXTENDED BO WATCH 1/20/12

BOT TRADING SYSTEM


THE ranges were slightly modified, and could well have been unchanged as PA extended from the US close to US close in a tight range.  These tight ranges tend to create opportunities for extended BOs in the magnitude of 10-15 points+.

Today was filled with 2+ range runs over and over.  The only significant BO was to the bull upside just to please the +10 holders from the LOD traders, and later to the same target for the +5 players.

The first BO was calculated, however a stop hit took the trade off.  What do you do?  If you have confidence, re-enter the trade.  Cost some commissions, but it produced to the target discussed.

If you have a target x or a stop x keep to your plan.  Moving stops can create costly habits.  Move and lose hoping it will bounce back.


What you should be looking for:

1. Range FBO around b3-4 for a short.
2. Range exits at b8-9 with long interest  for the range run.
3. B12-13 reversal range run (did not take)
4. Look for bear TL break. Started at b16-18
5. B19 short at signal, with an eye on the bear TL below the EMA
6. Best setup of the day at b26-28.  Range reversal, 50CB break, bear TL break, B29 gap from lower bull TL B26-28.  Range run toward target with a secondary entry to complete.
7. Target reversal to SBOT.
8. B62 area holding at the SBOT. Anticipated range run
9. B74-75 EMA hold PB  for second leg to garner a +5 for the bulls at B62-64.

Knowing the BOT range is valuable,  Certainly as the day progressed many traders would have some notation around 1308.75 and 1306.  Having a "feel" for what professionals must get in a trade is valuable as well.

EURO ZONE BO FOLLOWED IN US MARKET 1/19/12

BOT TRADING SYSTEM

AN after hours spike hit 1307.50 and revealed market intent.  An early reversal in the Euro Zone quickly reversed in the ranges for a BO-5 run.

The ranges for Thursday were released, and the US opened with a test of the SBOT.  A range run followed the SBOT reversal and trading was good until mid day.  PA seemed flat with a resistance at 1311 that lasted until the end of the day.

The next long was at the HL from the b20 TL,  The extended hold at 1311  and that same TL allowed a short back to the LBOT.  A follow up test of B20 low and another test of 1311 ended the day.

OPPOSITE BO DAY 1/18/12

BOT TRADING SYSTEM


TUESDAY was a narrow range day,  With volatility, these are important for BOs which run for BO-5/10 to extended runs of BO-15/20.  We watch for the BO-10 to retrace to the BO-5 level.  When this occurs, look for  a range reversal/range run to the opposite BO.

Tuesday's bear turned Wednesday's bull.  Anticipated, planned, played, profited.  All from the ranges.  Some bar-to-bar looks, but in relationship to the ranges and the BO levels.


Some key areas to review, and remember for future trading.

1.  Price has traded in after hours around the B)-10 to BO-5 from Tuesday.  At the open, we have a 50CB reversal long.  The objective (re BO-10 back to BO-5) is a range run.

2.  PA holding at the EMA and the LBOT.  The expectation is a BO-5 minimum.  Some were looking for measured moves. Nothing wrong with that.  The ranges and expectations are pre market.  When actual PA hits those expectation and we see other (now that they have some PA) measures offering similar thought, make the trade.


3.  A two bar reversal signal was developing.  In a strong trend, it will often be a PB only.   We see a 50CB setup and PA resistance just above the BO-5 level.  All suggesting a PB, and it was anticipated to hit 1298.5.

4.  A PB test of a prior 50CB at 1298.5.  Support in a trend worth the long.


The BOT System (break out targets) provides trading directions prior to the actual market and is a calculation based upon the PA dynamics in the market.  We long or short based upon the PA rules which look for key areas where the bull or bear will dominate and establish a trend.  These trends are captured as range reversals, range runs, and BOs.

BEAR BO DAY 1/17/12

BOT TRADING SYSTEM

RANGES TODAY:  1301.75-1300.25-1298.75

There are many opportunities, but two stand out:   back -to-back ranges and a tight range day.  We had the latter today.  The opportunity is in the implied BO for 5-10 runs.  Normally, there is a range run play and a BO play, a range reversal play, etc.  With the narrow range, the BO is more important.

We had a SBOT BO in the pre-open, but many still play the Rth charts only.  Either way, bears were in charge.  We had a failed reversal at B4-5 (#1) than ran for the BO-5.  Continued bear support is seen at #2 where the bearish TL held.  More support:  #3 we see additional failure below #2 TL and at the EMA and BO-5 for an additional run to BO-10.

Opportunity in a narrow range day.  Not so much the range, but the implied BO.

SELL OFF TO THE 77-78 TARGET 1/13/12

BOT TRADING SYSTEM

FOR two days we have hinted at a return ( from the mid 90s) to the 1277-78 level before bulls tackle 1300.  Bears got their sell off today in the Euro Zone and pre-US Open.  By B8-9 the range run was complete, and a SBOT develops to 73.  Hmm, a BO-5 from the 77-78.


B11-12 was a 50CB reversal for the bulls back to a resistance at the Mid BOT.  At the first screen shot, some were still looking short as PA played with the SBOT,

[13:39] <CM> perhaps long the db test or wait for 80.25



[13:45] <CM> the scenario btw was for a test of 77-78 before 1300  bears are aware of this..
[13:47] <CM> IE pa was mid 90's  they got theirs  and not eager to give it back  covering  a sh loss

This was perfect.  A HL at the SB, a possible double bottom of the 1273-74.  Bears made money in the sell off from the mid 1290s, and got the test of 1277-78.  They would not be interested in taking new shorts here  only to cover to the bulls.  LONG IF THE LOW TESTS AGAIN OR WAIT AND LONG AT 80.25.

Bulls returned....  smart bears stepped aside.

BULL WEAKENS IN US MARKET 1/12/12

BOT TRADING SYSTEM

RANGES    1288-1293-1296      WATCH FROM LAST EVENING:  POTENTIAL FOR A 1277-78 PB BEFORE A 1300 CHALLENGE.


Nice full range run fir the Euro Zone failed just outside the LBOT and reversed for a bear range run  and a US Open short that hit the BO-5 level.

A 50CB at B15 was noted, and B16 was of interest.  A watch for a long, that would be stronger if we had seen a body (not the doji).

The 50CB reversal hit for a long on B17 back to the SBOT.  It was noted in discussions, that the bull seemed weaker than the bear sell off.

A FBO hit around the SBOT, and a second bull leg developed, albeit it only made it to the Mid Range,

BULLISH CHANNEL FOR US MARKET 1/11/2012

BOT TRADING SYSTEM

REVIEW: (from last few post)

We had two back-to-back days with the same range values, and PA remained true to those ranges.  When we see this,  a significant range BO is anticipated, the BO-15+ variety.  That BO came yesterday.

On the charts for today, we still show the BO-10 and BO-15 (important levels) from the Range Bound BO.  These will be eliminated as PA moves away.

PRE-US MARKET


US OPEN

(A)  Euro Zone activity pushed to the BO-15 level and stalled, selling off back to the Short BOT for today.  The FBO at the SB was indicative of a range reversal.  Key formations at the reversal were the SB(naturally),  a 50CB, and the start of the lower bullish channel TL.  (B)

The range run bounced from channel TL to TL to (C) where we see the Long BOT, the TL cutting at a 50CB level and another reversal back into the range.  These key formations occur over and over and at key levels.  Levels developed "before" PA get to that point.



US MARKET

PA continued to play with the channel  but showing signs of a bear BO.  We could be seeing the early stage of a double top from 1/10 (1291-92) that has the potential to retest a low around 1278-79 prior to conquering the 1300.

RANGE DATA IS RETURNING!

BOT TRADING SYSTEM


GREAT NEWS!

To help our readers, the week of January 23 to 27th the ranges will be posted prior to the US Open.

  A Euro Zone listing may be offered.  It is a 5 hr difference to London, and 6 to Hamburg.

• ES
• NQ
• TF
• YM
• 6E

Our gift to those that continue to support the blog.  If you benefit, please drop us a donation.

Thanks , and enjoy.

CM

BO DAY AFTER DOUBLE RANGE DAYS 1/10/12

BOT TRADING SYSTEM

GO back and read the post for 1/9/12.  It is important to understand the PA for 1/10/12.


When we have no change in the ranges, it can be an important clue to a significant BO in PA.  That PABO came today, beginning in the after hours of the US Market.


 Professionals see this; they know this;  significant PABO are profits!  Getting ahead of other traders is profitable!




Know what the market is saying before the Rth traders, before the masses is where the trading money can be found.

By the BO-15 the run would retreat.  BOT players look for this.  Stalling at a level tends to retrace to last level.

UPDATE:  PA continues PB to prior ranges in after hours

GLOBAL RANGE RUNS 1/9/12

BOT TRADING SYSTEM

TODAY, the ranges remained unchanged.  At the 24 hr open PA fell below the short range into the Lower Trading Range (LTR).  Going into the Euro Zone PA ran the ranges and continued to show FBOs.

It is not rare to repeat, but it does say something about the market.  We are treading water in a range waiting for guidance.  The market has two choices:  1280s run or a 1250 test, both are important levels.


THE STORY MISSED BY RTH CHARTING

24 Open with a run into the Euro Zone, with a FBO at the Long BOT

PA becomes range bound, with additional FBO at the LBOT

What Rth Charters see

Without the ranges, you would see the sell off at the open followed by a bullish run that reverses.  Globally (and with the ranges) it was another FBO.

Since the SBOT BO failed to run to the BO-5 level, a reversal could be anticipated.  B23 offered that, and PA reverses back into range for another range run.  Range runs that began around 2 AM EST and ran for 14 hours to the US close.

Back-to-back range runs generally means a significant BO looms.  Professionals read this as PROFITS.

NEWS PLAYS & FADES INTO A RANGE DAY 1/6/12

BOT TRADING SYSTEM

THE US provided some good news in the pre-open pushing prices higher.  It looked as if the bulls were in control from a nice long run from last evening through the Euro Zone.  Then, more negatives from Italian Bond yields to Germany factory orders.  A few attempts to break back to the Upper Trading Range (UTR) but they failed at the LBOT.

Play the news play the range runs.

The market weakness can be seen visually in the decline TL angle and the PA selves.  Another look is revealing as well:

Regardless if you use TLs, bar counts, x bull x bear bars, MAs, etc. everyone will have an opinion as to the market read.  So many that it can become confusing as to which way is up, or down.

Search out what works for you.  Simplify it.  See that it repeats.

Personal preference is for the ranges.  Where are bulls/bears weak/strong, and where is PA in relationship to those points.  The Break Out Targets (BOTs) provide the information needed to play the range ( +4 points today) or BOs ( a BO-5 today).  Simple, and ahead of the daily PA.  Essentially, there were 7 key trading plays today.

PA rising (range run)      BO  rev-RR      rev-RR            rev-RR                RR          RR

RANGE RUNS AND BOs 1/5/12

BOT TRADING SYSTEM

[07:55] <CM> range targets today  1267-1264.25-1262


THE ranges were released when PA was running the range, a +5 run if it completed.  It did, and those paying attention had an opportunity to capture the LBOT BO for another +5 run (+4 stop).

PA returned to the LBOT for the open.  With the BO-5 reversal, another range run was expected.  Another +5 with a FBO test at B3-8.  B1-7-12-18 was the bases for a "W" pattern.  The right side of the W (or M if bearish) tends to run to the extreme of the prior side.  With B17-18 as a higher low, another range run was in play and targets at 70.5 and 71.5 were established.

The afternoon provided more bullishness.  Shorts were being trapped (unless for scalps).  With range runs and BOs, scalps are not that productive and carry a higher trading stress.  With no clear challenge to the EMA. additional longs were productive to BO-10.

RANGE RUNS FROM THE EURO OPEN 1/4/12

BOT TRADING SYSTEM

YESTERDAY  we were looking for a possible PB to 1265.  Flash forward 24 hours and we hit 1263 BO-5 for the shorts.


Today was follow the range run, and it started in the Euro Zone trading.  Rth traders miss this action and the importance of knowing what the market PA story is prior to the US Open.  The ranges work, and are playable the entire market .

The US Open begins with a PB into the range.

PA failed at the MID BOT and continued the downward pressure from the FBO around 5:30.  There's that 1265.

PA stalled at the BO-5 level and we had a bear TL BO with a three push run back into the range.  Three lesser pushes and the bull begins to wane at the LONG BOT.

NEW YEAR SEES RANGE BOUND DAY 1/3/12

BOT TRADING SYSTEM

PUNDITS like 2012, and money is coming back into US Stocks.

•  We have the golden cross in the DJIA (the 50MA crossing the 200MA). 
•  Unemployment is down in Germany, and they are actually talking to the French to resolve all the other wannabe Euro peddlers. 
•  US Economic news starts on a positive note

Large gap open from the holiday was exciting, but the day fell back into the range trading habit.  The possible PA PB was noted, and PA did reach lows of 1270.5.

[08:05] <CM> nice gap in glob from 12/30 close es today 1276.25-1273.5-1269.75 watch for a test of 1265 area roughly 50% of gap

Early trading saw a nice bullish channel running the ranges and producing a BO.  The FBO of the channel and flat PA that followed doomed the BO-5 run. Price crossed the EMA and ran the range for the bears.

PA lows reversed and started the second market range run.

and was followed by another LBOT FBO and a LH bear move to test the lows.