Blue bar high and low!

8/23/2010

Today we gapped up to bigger resistance. In our member video last night we had the 616 and the 619 area as our upper levels for today. The TF high the 618 level and we had blue bars telling us that the move up was coming to a end. From the blue bars at 616.00 the TF dove down to the 604.00 area and we also had blue bars at the 605.00 area to tell us we were at a important low!

From that low the TF corrected perfectly up to our sell zone and our sell signal was at 609 and the TF fell down to the 602.00 area and then we had blue bars to tell us that the move down was over as well.

The blue bars are there to give us real time knowledge that without the Kill Zone indicator would not be seen. We have rules that say we trail the stop to the prior blue bar once they appear and let the market take us out of the trade. This is valuable on many levels not just to say to exit the trade. What if you were not at your computer to see the sell signal but you turn your computer on to see we are at a blue bar low? This would give you the rules to NOT go short because the move is most likely over.

Trading is about getting odds on your side for that moment in time in a way that you can repeat. It is also knowing the direction and knowing when that direction might end. with trading it is about going one more step or question further to really understand how and why the market moves like it does.

Happy Trading,

www.eMiniSchool.com

PS. We do not trade every color change. We do not have a magic indicator. The indicators are built for the patterns we trade. They are there to confirm the pattern and give us a visual on where to enter and where to exit.