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HIGH PROBABILITY TRADING STRATEGIES FOR ANY MARKET AND ANY TIME FRAME

FIGURE 5.18 Reversal at Time Band for High

Figure 5.18 shows the result. A high was made on October 11, right in the October 10–12 Time Band for a high. The Dynamic Trader software includes a Time Band function and displays the Time Bands in the indicator window. The center range of dates along the bottom of the indicator is the Time Band of the H-H and L-H overlap period (October 10–12). The Time Band range is also displayed in the overbought zone above the indicator, so we have an easy visual of the Time Band and momentum position. On October 11, right in the Time Band for a high, the DJIA made an outside reversal day with a momentum bearish reversal. Nice setup for a short trade. Earlier you may have noted that I said a “comparable” high should be expected. A high made in the Time Band should be comparable to the highs made for the period of the raw data for the Time Band. In this case, since the DJIA was in a bull trend during the period, the declines off the recent highs have been from a few days up to two weeks. The Time Band itself does not provide any information as to whether the high will be more significant than recent highs, only that a high comparable to the recent highs should be made. That itself is good and useable information for a trade strategy. If the pattern and/or price and/or larger time frame momentum position suggested the market is in

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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