Cycle Day 2 Low Retest


Yesterday was a textbook Cycle Day 2 (CD2) as price pulled back to retest CD1 low successfully. Confident of a new “secure cycle low”, the rally began pushing price higher to close near high of day. The rally off the low produced gains equal to Average Cycle Rally of approximately 17 handles. Price has now exceeded the Three-Day Central Pivot Zone between 1983.50 – 1985.50. Any pullback to this zone should be viewed as buying opportunity…Remember, the Three-day Cycle Strategy has a bullish bias, so we continue to defer to the strength of the Bull.

Today is Cycle Day 3 (CD3): Possible High 1995 – 2000.75 based upon bullish cycle expansion measurements. Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Range = 21.25

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

Today’s Hypotheses:

Scenario 1: IF price penetrates and converts PDH (1989.75), THEN there is a 45% chance of reaching 1992.25 – 1994 Money Box Zone, with upper cycle expansion targets layered between 1995.50…1997.75 – 1999.25 Xtreme Zone.

Scenario 2: Key support “marker” is 1982 handle…Violation of this level suggests deeper pullback to find renewed responsive buyers…Downside levels to be mindful of on pullback are 3DCPZ (1983.50 – 1985.50)…1980 Prior Day Open Range MP…Prior Low 1977.25. Violation and conversion of PDL (1977.25) targets 1974.25…1971.50 – 1966.75 Xtreme Zone.

Trade Strategy: We will defer to the bulls strength and bullish cycle bias…As such, we will look to buy pullbacks to key decision Point Pivot Zone (DPP’s) highlighted in above scenarios. remain aligned with dominant force as core to our daily strategy…Aggressively taking Bull/Bear Stacker and Premium & Discount Setups will assist in reaching our goals.

Remain Focused…Take the Trade…ALWAYS USE STOPS!

Good Trading…David

Habitude Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.



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