Trade Strategy 10.28.14

Yesterday was Cycle Day 1 (CD1) and as such, expectation was for price to probe lower to find a new secure low. Trade Strategy 10.27.14 That is in-fact is exactly what happened, as sellers pushed price lower by a distance of an Average Decline (21.50) observed on CD1 to secure a new higher low at 1944.50. Here is the calculation: 1965.75 (HOD) minus (-) 21.50 (Avg Decline) equals (=) 1944.25. Actual LOD = 1944.50…Close enough for me!!

Today is Cycle Day 2 (CD2)…Expectation is for further upside to reach Cycle Target 1966.25… Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Range = 22.50; Possible High = 1966.25 based upon Average Cycle Rally Projection; Max Possible High = 1973.75 based upon clearing and converting CD1 high. TargetMaster Range Breakout Target is 1982.50; Possible Low = 1954.50 based upon average range on CD2. Three-Day Central Pivot = 1949.50.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: IF PDH (1965.75) is cleared and converted, THEN there is a 65% chance of reaching Cycle Target 1966.25 and STATX Zone 1969.25…Strength above this zone targets 1972.50 – 1974.00.

Scenario 2: Failure to hold above PDH (1965.75) suggests price needs to consolidate recent gains…Levels to be mindful of on pullback within prior day range are: 1962.50 – 1965 (VTMP); 1952.- 1955 (ORRMP). Violation of this zone targets the 3DCPZ at 1949.50.

Trade Strategy: We have been maintaining our trade setups in alignment with the bull (long-side), since that is where dominant action has been. We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus of Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined   ALWAYS USE STOPS!

Good Trading…David

Habitude Eleven
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.


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