RANGE RUN BO AT THE OPEN 7/24/12

BOT TRADING SYSTEM

TODAY was a range run break out day from the open.  A selling TL ran from B1 to B45 where we see the next selling signal.  As Pa continued the sell off, the EMA was repeatedly tested and held the bulls in check.  mid way down the TL we say a MAXT  reversal.  In this case, a failed run by bulls at the EMA, a continuation of the bear trend.

A late rally stalled and we had a massive control bar (CB) of nearly 10 points.

 
Additional commentary can be found on Mirc at #Chartmaster

BOT 101: RANGE BOUND RANGE RUN DAY 7/23/12

BOT TRADING SYSTEM

BOT 101: when a break out at 5 points fails, expect a pullback to the BO level followed by a range run to test the opposite BOT level.  In a range bound day, PA will be contained by the BO5 levels.

Well, at least that is what we had today.  The SB5 held and we saw across the markets buy signals at the B5 and B10 double bottom base.


[10:17] <CM> b5 signals across 5m mkts
[10:18] <CM> putting in a base roughly 1333 771.4 2548 12535


[10:39] <CM> per bot-o-tology  a fbo of sb5 likely  to see range pb to sb  range run to lb 42.25  we end up with a range bound day..


And so it was...

SELLING CHANNEL TO THE +10 LEVEL 7/20/12

BOT TRADING SYSTEM

WHEN we look at yesterday's sellers, their support level dropped.  When we look at buyers, their support level stayed constant.  When that support broke, PA  drifted lower in a bearish channel to the SB10.

The channel offered both buys and sells.  Only the B16 buy signaled across the other markets and this was shared in the chat room:

  [10:41] <CM> s/w pa from 8am est  h's and l's  61-65 range  expiration day    another tight range to play..  next entry must be signal across all mkts..

[10:48] <CM> b16 1:4  1 of 4
[10:50] <CM> 2:4
[10:50] <CM> b17 3:4
[11:04] <CM> back at t1

The long ran back to the T1 (target 1) for the exit.  The last respectable long as PA pushed down another 5 points and entered a narrow trading range to end the day and week.

RANGE BOUND DAY: BOT +/- 2 POINTS 7/19/12

BOT TRADING SYSTEM


THE story  is about watching a professional walk across Niagara Falls on a tightrope.  Over and back, over and back with no problems.  Then he goes over and back with a wheel barrow.  Then asks you to get in the wheel barrow....


Watching is paper trading.  Good for the mechanics, how to use the tools.  But  not even close to the ride in the wheel barrow, where it gets real; the risk and the reward.


Get in.  Focus on your charts, the PA entry and exit strategies. not the dom frantically trying to take every order.  Play the chart, not the +/- in the dollar window.


****************************************************************************


Today was a range bound day, and was noted as such early.   Also noted that today was likely a +/- 2 points from key levels (the BOT).  No fancy quotes from the chat room tonight.  If you want the information, join us on Mirc at #Chartmaster.


Instead, here is the chart with notes added.  T1 and T2 were targets for trades.  Tight trading days are contracting in nature and will be more difficult to play than break out expansion days.  Difficult, but profitable........

MARKET BUY SIGNALS BEFORE THE NEWS 7/18/12

BOT TRADING SYSTEM                                Mirc chat   #Chartmaster


EARNINGS Reports continue positive and Housing flashed a surprised improvement.  Well, when rates are at all time lows, positive news should kick in sooner or later.

Interestingly, the BOT System flashed buys around 8:50 AM EST across all markets, and we were at a BOT support.  Signal and support:  you do not have to twist my arm very much to act!.  Similar to yesterday we had a a large move at the open as PA pushed toward the LB5.


Special note:  to streamline terms, Long Bot Break Out (LBBO-5) will now be referred to as LB5, LB10, etc.  Breaks of the Short Bot will be recorded as SB5, SB10, etc.


The market information was posted in #Chartmaster:


[09:12] <CM> 1357 to 52.75 since mid euro zone trading  looking for a long bias going into us open   52.75-54.75
[09:14] <CM> 8:50 am est buy signals across mkts
[09:18] <CM> short interest at 52.25  outside the buy range



B1 offered a PB into the buy range, and the PB at B3-4 offered add-on or new longs.


[09:30] <CM> b1 pb in bullish trend
[09:35] <CM> and opening trade is completed  http://screencast.com/t/g8wyjy6dMh
[09:36] <CM> http://screencast.com/t/3fUyOO1r
[09:47] <CM> long taking exits 58.75-59.75
[09:53] <CM> the pb was your opportunity for a new long..
[09:53] <CM> t=62.5


The target was set at 1362.5 for exit consideration.  The LB10 was at 1364.5.


We had a 50CB TL develop off B5 that was a LB5 BO bar.  That bullish TL was the support behind longs to the LB15 where PA stalled and was considered an extended run for the day.

[11:37] <CM> 80 later  about maxed for today (name deleted)  1369-70 upper reach  stalling here as you noted  

The TL was key here.  We had PA stalling at a BOT level and a TL reversal would run back to the prior level as a minimum (theory in BOTs).


[12:33] <CM> lb15 seems to be stalling and we do have signals across the mkts  but I'm reading this as long exits, not shorts entering.  again, the TL is the better option


[12:59] <CM>  if you extend the TL  pa TL and ema are about to meet..  a bo likely to pb to prior level 64.5 area  :)


At the end of the day we see another buy signal at a key level that was exited at new highs.

BOT RANGE RUN IN AN INVERTED H&S 7/17/12

BOT TRADING SYSTEM                  find us on Mirc at #Chartmaster


TODAY the chart has a new twist: longer term BOT levels (multi-day) and the daily BOT levels.  Slight differences today, and a watch for future trading.

 Some notes on trading today as key areas were discussed to help traders decide on possible entries.  Actual entry advice can not be given, only "educational" discussions of market conditions.

[10:12] <CM> gm all  introducing a new term long term bot v day bot   LT-5  and SB-5  close  exits here for the shorts  entered earlier at LB  TL and SB  (link deleted)

Shorts had numerous opportunities:  the stalled LBBO, the break of the TL, the range reversal, and the SB itself.

[10:12] <CM> the LT is something I'm working on ie multi day bot levels
[10:14] <CM> 47.5 lower risk long
[10:15] <CM> bulls need to test 50cb of b7  roughly 49.5
[10:15] <CM> buyers around 45.5 b7-9
[10:16] <CM> also 50cb level approx area pa hits ema (estimate)

The 50CB area is an important level for bo's and failures that continue the prior trend.

[10:18] <CM> we also have +10 from the highs at 56-56.5
[10:19] <CM> 46.5 prime long  at sb-5  (actual SB-5 was 46.75)
[10:19] <CM> that is your long range entry points

[10:29] <CM> tight stop out of trade  (link deleted)
[10:30] <CM> and the chart view  (link deleted)
[10:31] <CM> if we count this as a 50cb fbo  pa should continue down  thus the importance of the tl's

[10:35] <CM> if you like bracket trading  L49 S-45  short target the bo-10  41.5-42.5
[10:35] <CM> it keeps you out of the thrashing
[10:37] <CM> correction sb-10 is 41.75
[10:40] <CM> ok fbo 50cb correct  (call) here is the LT-10 AND SB-10  EXIT WAS slightly higher to guarantee the trade (link deleted)

[11:04] <CM> playing the reversal  (link deleted)

[11:05] <CM> target prior buyers around 45-45.5 (link deleted)

1[11:11] <CM> txk (name deleted)  that "tightening" at the 15 level made me think pa was restricted to run much lower  and even so had tight stop  the reversal at the 10 level looks  like the reversal pattern yday  push bar w tail a reversal bar with a tail and a signal flashing

[11:12] <CM> also a failure (fbo or a stall) at the 10 level often reverses to the 5 level

[11:37] <CM> ema bo all lower risk longs

[11:39] <CM> 49-49.5 prior 50cb we were working  should hit  second target the sb 51.75

[11:41] <CM> sb-5  46.75    LT-5 47.5
[11:42] <CM> b26 close lower risk long

[11:47] <CM> first target exits

[11:50] <CM> could, thinking more up  b28-29 entries for the 50cb bo

[12:02] <CM> inverted H&S working (link deleted)

[12:17] <CM> mkt overview:  about +15 dn from the stalled lbbo at the open  pa ran the range and hit a sbbo  to +5  +10.  at the +10 we saw a reversal pattern developing for long considerations  upper target set and hit

[12:22] <CM> this close bulls want a test of the high  t1 56 t2  57.75  (target 1 & 2)
[12:23] <CM> day range w/b sb10 to lb5


LT5 and LB5 both hit as anticipated.

Another fine day for traders..

RANGE RUNS AFTER A SB-5 REVERSAL 7/16/12

BOT TRADING SYSTEM

NEW BOT Rangers were provide last evening that were still valid at the US Open.  We quickly had a Short  scenario at the Short BOT (SB) for an anticipated 5 point run to the SBBO-5 level, or SB-5.


Buyers were noted, and an advisory was released:

 [09:50] <CM> longer term time frames we are still sideways  we are looking at a pb to 42  a short +5 from the sb
[09:54] <CM> the issue is weak pa just below the prior lows  seeing this as a fbo reversal
[09:56] <CM> b5  cont trend and was a fbo rev attempt  bo-5 still target
[09:58] <CM> two targets  42.5 and 42  slight difference in pa calculations  current v longer term
[10:04] <CM> b7 buyers    sh stop to 45.75
[10:06] <CM> the target is unchanged but the buy strength was unknown  so move stop just about prior push  max profit in sh run  and get out if a bottom reversal

[10:08] <CM> b8 additional buyers noted  these can be exits at/near the bo-5  this is important to note  perhaps the sb5 will bottom and reverse

Well, PA did reverse and the PB was to the SB=EMA=PA and prior lows.  Next advisory, a range run was expected.

[10:30] <CM> pa got back to prior lows and ema  the expectation will be a range run  counting the pa at/near bo5 as a reversal
[11:01] <CM> target numbers  for longs  52-52.75  overnight bots 51.25-49.75-47.25  we continue to play in the lower part of the range

Two trade styles were presented: a well cap account and a moderate account.  You should develop a trading plan at 1-2 C's, then work your way up as you become successful.  Do not go ALL IN until 1) you trade the best trades consistently and 2) you get out of non performing trades with minimum risk exposure.