Gary_Fullett joined. Gary_Fullett good evening Mr_Steve good evening Gart Gary_Fullett there are 4 chats for tonight Gary_Fullett 2 by me 2 from steve Handles1 hey Gary_Fullett good eveing steve Gary_Fullett one of the charts is the 5 min es Gary_Fullett an i want to show the 5 min bar by bar Gary_Fullett something we havent really discused Gary_Fullett but i have mentioned it many times Gary_Fullett but never really showed with a chart Gary_Fullett but first any questions? Gary_Fullett comments ect? Mr_Steve emeni chart ? Gary_Fullett yes Gary_Fullett and a stock chart Mr_Steve ty Gary_Fullett and steve has 2 charts Gary_Fullett first i wnat to say thnak you Mr_Steve git em Mr_Steve got em, sorry Gary_Fullett i heard some nice commnets that while i was gone the chat room ran well Gary_Fullett i like that Gary_Fullett the synergy is good Gary_Fullett so thnak you Gary_Fullett okay no q lets begin. Gary_Fullett lets take the stock first warren joined. Gary_Fullett on thursdays when i send charts want to send u a wyckoff principle chartr Gary_Fullett so Gary_Fullett as i mentione dmany times Gary_Fullett markets tend to make a top via buyign climax Gary_Fullett or wider action Handles1 go canada go n joined. Handles1 playoffs....hawks .....nucks Gary_Fullett habs Handles1 yucks Handles1 lol Gary_Fullett so tops tend to eb made with wider action Gary_Fullett lows tend to be make with lack of intere4st low rices Gary_Fullett well I wanted to shown an example Gary_Fullett GM arena yikes handles borat joined. Gary_Fullett bottoms tend to be made Gary_Fullett bywith a lack of interest and low pries Gary_Fullett so mlets look at the stock Gary_Fullett u have a low Gary_Fullett and a wider bar and a deceent close Gary_Fullett 3rd week in feb Gary_Fullett we have a few lows Gary_Fullett with small range Mr_Steve no dates on this emini are you at the 1015 area? Gary_Fullett this was a lack of supply Gary_Fullett i am on the stock chart not the es Gary_Fullett abm stock Mr_Steve sorry, got it Gary_Fullett great Gary_Fullett so the small bars Gary_Fullett and marginally new lows Gary_Fullett says a lack of sellers Gary_Fullett they are stauated woth longs Gary_Fullett i mean shorts Gary_Fullett the small ranges tels us a lack of interest Gary_Fullett so even htough a market can be beairsdh Gary_Fullett and show no demand Gary_Fullett if we have a lack fo supply will lead to demand Gary_Fullett well thats what we have here Gary_Fullett with a so then we get a large rlaly Gary_Fullett with high vooume Gary_Fullett see thios Mr_Steve yes Gary_Fullett from the bottom we call this vob volume off the bottom Gary_Fullett is this a shakeout of trhe shorts? n n n dk Gary_Fullett now we cna assume n I thought a shakeout came from a TR Gary_Fullett volume off the bvottom Gary_Fullett and not a shkaeout Gary_Fullett most ly it does Gary_Fullett but a hskeout Gary_Fullett is a quik Gary_Fullett hypodemc move 1 way Gary_Fullett then reverses Gary_Fullett shakeorts dont ahve to ome from trading ranges n If it were to be a shakeout, it would have to be one of longs, not shorts Gary_Fullett in this case Gary_Fullett would be a shakeout of the shorts Gary_Fullett was a quick up rally in a bear market Gary_Fullett the trend is down Gary_Fullett shorts in con trol n right, reversed my thinking... Gary_Fullett shakeout is counter trned Gary_Fullett so if this was a shakoeut Gary_Fullett the trned owuld continue lower Gary_Fullett shakeout the sshorts then make ne wlows Gary_Fullett so the next few bars important n The vol is not that low relative to the bars, at the low,copared to vol and ranges in Jan, which were larger, so more was being transfered with the vol at lows n compared Gary_Fullett the market broke the last 2 bars aftre th e big up bar Gary_Fullett voluem si lower than the large up move n correction, low vol in Jan, larger ranges Gary_Fullett but u didnt get the action in jan lioke u got in march Gary_Fullett BUT the price is at lower levels Gary_Fullett so that mpvbe is pcr mopre espensve Gary_Fullett the price in Jan is higher priced Gary_Fullett so pct wise the move in march is huge Gary_Fullett so the next 2 bars after Gary_Fullett that large up Gary_Fullett the next 2 bars Gary_Fullett are a retest on liughter olume Gary_Fullett lighter Art joined. Gary_Fullett so we can think maybe not a shakeout but some demand Gary_Fullett we get a rally Gary_Fullett 5 bars afte the wide bar swetz joined. Gary_Fullett it is an up bar Gary_Fullett with an increase ion volume Gary_Fullett says some demand Gary_Fullett but the ket Gary_Fullett no new lows Gary_Fullett afte rtyhT WIDE BAR Gary_Fullett AFTER THA wide bar Gary_Fullett so lack of follow thru to new lows Gary_Fullett that wide bar Gary_Fullett was probbaly NOT a shakeout Gary_Fullett but rather a VOB Gary_Fullett volume off the bottom Gary_Fullett any q? n n Gary_Fullett when u get lack of folow thru Gary_Fullett this tells u alot Handles1 es es es Handles1 lol Mr_Steve I would like for you to sometime read the DJI or the S&P of what went on in this last rally some day Gary_Fullett 5 min es todays saction Mr_Steve From January Gary_Fullett did u observe somewhting? Tommy left. drk joined. Mr_Steve me? Gary_Fullett i tought u observed xomething Mr_Steve Just the V bottom, and I missed many chances to take a trade not seeing strength and pull backs. Made some nice ones but lost many more Gary_Fullett stocks Gary_Fullett tend to make v bottoms Mr_Steve I look for double bottoms and doubble tops in stocks and indexes. But it was weird this time. I used P&F charting for inter and exits mainly Mr_Steve I do not know, just a weird market in stocks Gary_Fullett well stocks tend to make v bototms Gary_Fullett but i am sure they all have thoer own chrateristics Mr_Steve I am thinking opposite Gary_Fullett othe rmarets yes Gary_Fullett not so much in stocksa Gary_Fullett stocks swetz stocks do not make V bottoms in my experience :) at least not in the larger timeframes Mr_Steve OK who is correct? Gary_Fullett in my expiericne with many stoc ks they do Gary_Fullett but therer are so many stocks Gary_Fullett I am sure there are many many ways they tpp or bottome swetz just look at the charts yourself Steve, dont take mine or Gary's word for it, find out for yourself :) Gary_Fullett right Gary_Fullett groups in divuidual stocks Gary_Fullett since there are so many swetz but I will tell you that only ONE major bottom was a V bottom and that was in 1987 Gary_Fullett I am sure many top of bottom Gary_Fullett not wth a v botom Gary_Fullett or other ways Gary_Fullett thats why watching the action mor eim portant than anything Gary_Fullett we can watch the tape Mr_Steve 2003 quartly we had one Gary_Fullett 5 min es chart Gary_Fullett todays action Gary_Fullett what stands out on this chart? Gary_Fullett looking at the whole day Gary_Fullett the VOLUME n Sahllow rally retracements Gary_Fullett trhe whole day u had light volume Gary_Fullett also Gary_Fullett after we topped n I mean light vol Gary_Fullett there really wasnt ending action Handles1 1-0 van Gary_Fullett but the marrket borke Gary_Fullett and continued lower Gary_Fullett as longs just iquidarted Gary_Fullett and voloume light Gary_Fullett so sellers realy ddint come in Gary_Fullett was more of a lack of demand Gary_Fullett but as u cna see Gary_Fullett wew the market Gary_Fullett broke Gary_Fullett u had a series of small trading ranges Gary_Fullett that were distribution Gary_Fullett lower highs Gary_Fullett lower lows Gary_Fullett with small traiding ranges Gary_Fullett and mark down Gary_Fullett i drew alot of horizontal n This almost looks like the wkyl chart from the Oct high Gary_Fullett lines ot show this rhonda what chart? wkyl? Gary_Fullett 5 min es n Gary is doing 5 min Gary_Fullett the bar that sgtand sout is the bar Gary_Fullett the wide abr n I happen to see a wkly chart, looks similar Gary_Fullett with increased volume Gary_Fullett told u selling rhonda weekly sorry n sorry for the inturupt Gary_Fullett juts follow the horizonatal traIding ranges Gary_Fullett so wa sa alck of demand to rlaly Gary_Fullett at the 885 resiuaTNCE Tommy joined. Gary_Fullett so after the resistyance Gary_Fullett the makrts break was fom a lack of demand Gary_Fullett to push higher Gary_Fullett from reistance Gary_Fullett so wa snegatove Gary_Fullett in the day Gary_Fullett U never see a heavy voluiem down bar Gary_Fullett u have selling Gary_Fullett so the gradual grinding Gary_Fullett and erosion Gary_Fullett the down fed upon itself for longs to get out Gary_Fullett do usee this Gary_Fullett so this chart was an example of a break form a alck fo demand at resiatnce of 885 Gary_Fullett any q? Doc Bulls/Celtics in overtime Doc yes, see it n Have to leave, see you tom'w... n ty rhonda bye n n left. Gary_Fullett yes doc Gary_Fullett 4 game in OT Doc y Gary_Fullett okay 2 other charts Gary_Fullett steve charts Gary_Fullett any q Gary_Fullett on markets or in general? Gary_Fullett okay Gary_Fullett tonight we do the monthly chrats Gary_Fullett and tommorow the weekly charts swetz okie dokie Gary_Fullett cookie time swetz I thought it may be kind of interesting swetz to see how I attempted to catch a test of the what appeared to me a strong selling wave from the April 17th high swetz by trying to use UTs and test of UTs to find low risk trade entries swetz the 4th chart shows the strong selling wave to which I am referring Mr_Steve first chart 10min? swetz yes sir Steve swetz the last chart, the hourly chart shows the little move up against this strong selling wave swetz but lets look at the 3rd chart, the 10 min chart swetz on this chart I labeled where my short trades were from the last few days swetz and as you can see not all of them worked out like I would have hoped swetz but lets discuss them one at a time swetz starting with the 1st short trade made on April 27th Tommy left. Tommy joined. swetz I was looking to go short on an UT using a supply bar for entry AH_Tex joined. swetz on April 27th after the large gap down, we can see that buyers immediately overcame the sellers thereby rallying the SnP swetz demand entered on the 5th bar of the day swetz with that huge spike up in volume that went along with a wide range bar that closed at the high swetz at this time, the only conclusion we can draw is that the market should head higher swetz which it does swetz then finally at the 10:10 bar swetz Wyckoffers noticed something interesting swetz as the market rallied, the ranges of the bars became more narrow and the volume decreased bar by bar until the 10:10 bar when volume increased BUT the range narrowed once again swetz a nice example of Wyckoff's principle of effort not equaling result swetz right then and there, an antennae should go off in our head swetz that sellers are attempting to make a stand right now swetz and this is happening when the SnP is testing that little congestion area that is on the far left of this chart swetz so after this red flag bar, the very next bar has a wider range and poor close swetz so once again, we are seeing evidence that sellers are trying to gain the upper hand swetz so we Wyckoffers look for a TEST of this action to see if have ourselves a trading opportunity to go short swetz sure enough on the rally to TEST this red flag bar, notice the total lack of demand Mr_Steve . swetz finally this little rally ends with an UPTHRUST swetz so here we are, we got what we wanted an UT setup that came from a weak rally that followed a red flag bar that indicated that sellers were attempting to take control swetz once the very next bar showed WIDER SPREAD, INCREASED VOLUME, and a POOR CLOSE swetz it was time to go short NOW swetz with a stop a little bit above today's high swetz the risk was very small swetz as many of you know, my rule when I day/swing trade is to sell/cover 1/2 my position once I get 2 to 3 times my reward vs. my risk personkid joined. swetz so as this selling wave progressed swetz I am just trailing my stop until finally I get stopped out of 1/2 my position on the bar I have marked and I move my stop on the remaining 1/2 position to breakeven swetz the market basically goes sideways for the rest of the day and I am still short 1/2 my position swetz the next day, the swine flu news comes and that supposedly caused the large gap down swetz I dont know about you guys but when I get a gift like this swetz and I dont see any downside follow-through, I quickly cover the rest of my shares swetz notice that the 1st bar on April 28th closed at the HIGH of the bar swetz I was going to give it a chance to continue lower, but after a large gap down like that, the smart money seemed to be willing to step in to overcome the retail sellers that always overreact to good or bad news swetz but I am not done yet, I am still looking to short UTs swetz after the morning rally, the SnP went into a TR hugh left. hugh joined. swetz after first, at least to me, it had potential JOC characteristics based on the 13:40 bar Gary_W joined. swetz which had wide spread, a strong close, and volume increased swetz I believe I mentioned this to folks in Gary's chat room at the time swetz I also mentioned that the potential JOC was just that a POTENTIAL until it was PROVEN with a successful backup swetz for all we know, the action could still be an UT swetz so I watched the attempted backup develop, watching each bar as it unfolded to see if I could determine which scenario was the more likely to occur swetz the bar that made it clear to me was the bar where I got short swetz if the backup was for real, the market should have rallied immediately after the blue bar that tested the creek area swetz but the very OPPOSITE occurred swetz volume INCREASED but the SELLERS were the ones who controlled the action swetz we KNOW this because the market DECLINED Tommy left. swetz so I went with it by going short with a stop above the day's high swetz the market kept falling into the close so I expected downside follow-through the next day swetz I was still short my whole position, I had not covered anything because I had not reached my 1st profti objective (i.e. 2 to 3 times my risk) swetz well, unfortunately for me, the SnP makes a large gap up the next morning and I get stopped out of my whole position for a loss Art left. swetz see nothing is 100% guaranteed in trading, not even for a Wyckoff trader :) Tommy joined. swetz so the market keeps rallying makes a little TR and does a JOC that was tested on the wide range red bar which was the same time that the stress report was released swetz so volatility increased substantially swetz but I didnt worry about that, I was just watching each bar unfold with the help of Wyckoff's principles and my rules to keep my emotions in check :) swetz so after the test of the minor creek, we get 2 up bars with the last up bar showing wide spread and the highest volume all day long swetz up to that point swetz at that very moment, I was thinking this market is going to keep going higher swetz buyers were coming in and overwhelming the sellers swetz the strong close and wide spread tells us this Tommy left. swetz but then look at the very next bar swetz just when the buyers were in total control of the SnP swetz we see a wide range down bar that NEGATES ALL of the upside progress that was made on the preceding bar FranknMiss left. FranknMiss joined. FranknMiss ugh swetz lol Frank swetz we have an important potential bearish COB occurring swetz and I immediately start thinking that an UT is developing swetz if this market was to continue higher, the reaction should be WEAK swetz NOT strong swetz all of the folks who bought on that last wide range up bar are now sitting in a losing position swetz they are trying to figure out , what in the heck just happened swetz now we Wyckoffers see the potential COB developing swetz and so all we have to do is to wait on a TEST swetz to PROVE the POTENTIAL swetz we get that test 2 bars later swetz notice that volume has decreased substantially swetz where are the buyers? swetz and look at the close, below midrange swetz the buyers are losing control right here and now swetz so as soon as I see downside follow-through, I go short swetz with a stop above the day's high swetz I see volume increasing, the close is poor, the range widens swetz so far so good swetz the very next bar unfolds just like I would have expected swetz more downside action swetz everything is progressing just like the action after an UT should swetz UNTIL the END of the DAY swetz I have that bar marked swetz notice the EXTREMELY HIGH VOLUME swetz se got some MAJOR BUYING going on and the buying is overcoming the selling swetz how do we know this? look at the POSITION of the CLOSE swetz right near the high of the range isn't it? swetz at this point, I am only up less than $100 bucks and see evidence that important buying is going on swetz if this UT was for real, this type of ACTION SHOULD NOT be happening swetz the SnP should have kept fallen swetz BUT it DID NOT swetz so I have got to COVER swetz which I do swetz now maybe somebody knew something because today, we see a large gap up swetz for folks that don't follow Wyckoff would likely not have recognized the strong presence of demand that we saw swetz near the close yesterday swetz but we Wyckoffers see it :) swetz so today, we get the gap up, I was away from my computer this morning swetz but I get back around lunchtime, I can't miss my favorite hour :) rhonda lol swetz first thing I notice when I pulled the SPY chart up swetz was the 2 wide range down bars that I have marked with a dark red arrow swetz and I think, here we are, the SnP is in a position to JOC swetz it rallied above that strong selling wave that I mentioned at the beginning of tonight's lecture swetz but where is the upside follow-through, where is the demand? swetz what we see instead is downward EOM on increased selling swetz increased volume I should say swetz the ONLY thing that can CAUSE that is SELLING OVERCOMING DEMAND swetz so here we are again, the market is once again in an UT position swetz which can be better seen on the last hourly chart that I sent swetz so I am looking to go short on a rally swetz I want to see a WEAK RALLY swetz so after the SnP reaches 870 swetz it begins a rally swetz notice as this rally progresses, the VOLUME is SHRINKING swetz where are the buyers? probably at Disney World with Gary :) swetz if this market is going to JOC, we should see buyers jumping over themselves to get into this market swetz but we DO NOT swetz in fact, what we see is a rally struggling to penetrate the 1/2 point that I have marked swetz a rally that is merely testing the vertical supply bar swetz that I have marked S/D swetz and look at that last up bar in this rally swetz I have it marked with an arrow swetz notice the NARROW RANGE but VOLUME INCREASED swetz Wyckoff's principle of EFFORT vs. RESULT swetz is showing up once again :) swetz the effort of the buyers did not make much upside progess or result swetz the close was about midrange, sellers were coming in to meet the buyers swetz so once I saw that the next bar started heading down, I went short swetz with a stop above today's high swetz now because this short entry is a lot farther away than I would have liked swetz I had to reduce my postion size to deal with my dollar risk tolerance Mr_Steve . swetz after the rally, we get a reaction to once again test 780 swetz I mean 870 swetz we get another rally which makes a LOWER high swetz the sellers are overcoming the buyers at a lower level now swetz the market subsequently closes at the low of the day swetz putting it in another UT position swetz now FOLLOW-THROUGH tomorrow will be the key swetz if this UT is a trap to get the weak longs in, the CM will crush them swetz if the "smart money" traders are happy with their postions, they will not want company swetz now these are a couple of "ifs" Mr_Steve Can I ask a question? swetz I dont have a clue where they stand and I dont honestly care swetz I just follow my rules based on Wyckoff's method swetz sure Steve, shoot :) Mr_Steve What ryme or reason are you using to draw your line from low to high? Mr_Steve High of day, low of day or what between? Mr_Steve single line swetz horizontal lines? swetz the thin pink line? Mr_Steve the ones that are running from low to high, single line swetz oh my swing lines Mr_Steve yes Mr_Steve High, low? Mr_Steve or turning points swetz I use 7 bar highs because there are 6 10 minute bars in an hour swetz my swing points are based on the next higher timeframe swetz 6 bar highs on a daily chart because there are 5 days in a wekk swetz week Mr_Steve Got it thanks swetz 8 bar highs on my hourly chart because there are 6 1/2 hourly bars in a day Mr_Steve ty swetz anytime :) swetz Wyckoff himself would use number of points to define his swing charts Mr_Steve I have not got that far in my studies swetz but I found that time works better swetz any other questions? rhonda no Thanks Steve! swetz cool Rhonda, then I expect you to make some money tomorrow :) rhonda Good Night all swetz gn Rhonda rhonda LOL ok just for you swetz :) Mr_Steve Thanks Steve Gary_Fullett bulls win 3 ot vs boston rhonda missed that GEOY trade loved that Gary_Fullett great chart Mr_Steve night all Gary_Fullett I hope everyone appracites the work personkid greatly swetz Jordan must have come out of the stands to lead the Bulls to victory :) Gary_Fullett with a cape swetz lol, yep rhonda Gary the bugs that bit you we call noseeums rhonda you cannot see them Gary_Fullett right right Gary_Fullett i knew an n rhonda Florida is so buggy Gary_Fullett i have over 100 of them swetz rhymes with posseums :) Gary_Fullett for 4 hrs outside Gary_Fullett lol rhonda you can see them though Gary_Fullett but u can t eat those rhonda lol Gary_Fullett very small swetz my car always sees them :( swetz lol Gary rhonda Night all take care rhonda left. swetz well I just wanted everyone to see ALL of my SnP trades this week Gary_Fullett lol swetz the good and the bad Gary_Fullett did well swetz but you will see that so far despite the market begin up for most of the week Mr_Steve left. JWC Thx for the show and tell, good work, gnight swetz these trades as a whole made money Gary_Fullett its great jwc swetz because the UT entries give low risk trades in a TR JWC left. swetz and Wyckoff understood this 100 years ago FranknMiss yes but u said something that is hard FranknMiss waiting for bar to print is hard - my waiter dosent work swetz lol, well if looking at 10 minute chart, keep your eyes closed for the first 9 1/2 minutes :) FranknMiss i'm exploding inside! Gary_Fullett yes.. swetz that is where PATIENCE and DISCIPLINE pay off Frank swetz Frank - I actually had the same problem FranknMiss i know - i know swetz I couldnt wait for the bar to print swetz I just KNEW that the bar would go in my direction swetz sure enough as soon as I would enter a position while the bar was still unfolding swetz I would be on the wrong side FranknMiss yep swetz I just wasn't following my rules swetz I wasn't showing the patience and discipline that a pro trader has swetz so I KNOW exactly where you are coming from swetz I am the KING of TRADING MISTAKES swetz :) swetz but to make it, those mistakes MUST be corrected warren gn all and thanks Gary and Steve swetz gn Warren :) warren see you in the morning and slap my hand if I go against the trend! swetz okay folks, if no other questions I bid you guys a fond farewell swetz lol Warren FranknMiss gn thanks guys swetz I got a lady from California coming to see me tomorrow, I hope she is hot :) AH_Tex Thank you! Nite all warren left. AH_Tex left. swetz so probably won't see you until tomorrow afternoon Gary_Fullett lol Gary_Fullett be a good boy swetz always a southern gentlemen :) FranknMiss stay wid the southern girls swetz those yankees are the ones you can't trust :) Handles1 left. FranknMiss steve swetz lol Frank FranknMiss can cook swetz well she is from Southern California so that should count for something Gary_W left. swetz but you are right, she MUST be able to cook :) swetz actually it is about trading, so we will see Gary_Fullett lol at least cookies swetz lol Gary, good point :) swetz left. FranknMiss tks gary gn FranknMiss left. Gary_Fullett chichlote chips Gary_Fullett okay time to do charts Gary_Fullett see u all tommorw ty Gary_Fullett left.