Here is 24 hour December Gold futures. Wednesday shows the price “slam”. What is unusual here is that after two bars, price rallies and “retakes” pre-slam levels in one bar. This is sign of strength and alert that a buy could be taken.
The “Buy Zone” is the area between the lowest high of the thirty minute bars and the low of the move. This area is marked on chart.
Price has an A-B-C correction down to this area Wednesday night. Thursday morning price shows a retest of these lows and forms a tight zone of closes – highlighted in green.
At 12:30 am, price has a 4 Close Reversal breakout up and close above the Buy Zone. This is the time to get long.
The Sell Zone will be the area between the previous pivot high and the highest low of the thirty minute bars. This was reached at 5:00 am. At 7:00 am price shows a 4 Close Reversal down. This is a sign to get out of longs if not already.
Lundy S. Hill
Bar 1 is a breakout bar.
Bar 2 is clear out possible reversal of breakout.
Bar 3 shows no follow through of previous reversal bar. Instead, it shows a “99 percenter” up bar.
Bar 4 shows follow through up but reverses and clears out the previous bar with a lower close. Note the body of this bar is INSIDE the body of Bar 3.
Bar 5 is a breaks the body of the previous 2 bars to the downside. This is the third sign of a possible reversal to the downside.
Bar 7 is a 4 Close Reversal down and close below the pivot level.
Late September showed an Upthrust – new highs which were almost immediately “rejected”. More on this in the next post.
This caused Cocoa to fall down to the bottom of the channel.
Late October showed a Yum-Yum break of the channel low. This is time to get short.
This is a “hard” trade to take. As a trader, you are always looking for “bargains”. Trying to sell rallies is weak markets. This could be chasing the market. It has been said that the hardest trades to take are the ones you absolutely have to take.
Price has continued to fall from this point. Note the “L-formation” in late October.
November 17, 2014
George, you have done a great job putting this together, and especially working with me to get it from the hand/eye to being programmed. The concept and geometry should hold up over time and I look forward to seeing how it will perform. Looks like we are on go.
Also, I wanted to thank you again [George] for the time and effort you are putting forth to program and test P-101. From knowing John since the inception of Futures Truth, I have always known that you folks would be the only ones to test any trading program that I might complete. Additionally, I am literally amazed at your background and experience in working with all of the technical trading systems that you have worked with. Truly amazing that you have programmed and run all of the systems that you do. You folks certainly have my trust and I appreciate having the opportunity to work with you in testing my program.