Trade Strategy 11.05.14

Yesterday was textbook Cycle Day 1 (CD1), as price probed lower the distance of an average range observed on CD1 (18.75) to find a “secure low” at 1995 handle. Once traders were confident that this low was secure, the rally began in earnest settling in balance at VTMP. Overnight Trade continues the rally pushing price higher to currently 2017 handle as of 8 am ET…achieving an average cycle rally of 22 handle off CD1 Low.

Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 84%; Odds of Rally > 10 = 45%; Average Range on CD2 = 22.25; Possible High = 2017.50 – 2022.00 based upon average rally occurring on CD2; Possible Low = 1984.25 based upon violation of CD1 low. TargteMaster Range Parameters = 2024.25 – 1988.25.

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

Today’s Hypotheses:

Scenario 1: IF price clears and converts PDH (2013.75), THEN there is a 87% chance of reaching initial average cycle target of 2017.50, followed by 2022.50. TargetMaster Range Breakout Level 2024.25.

Scenario 2: Failure to convert PDH (2013.75) suggests pullback to 2004 – 06 zone to find renewed buy response. Violation of settlement (2005.50) targets 1995.75 – 1993.50 STATX Zone.

Trade Strategy: Our tactical trade strategy will simply remain unaltered…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 Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.






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