Gary_Fullett joined. Janet joined. Gary_Fullett Good evening Ory sorry iwas late today abc163 good evening gary yoohoo good evening gary Ory Hi Gary joe_s hi Gary roger joined. yoohoo hi rog Papa hi roger howdy yoho Gary_Fullett good evening roger papa roger gary yoohoo hi papy yoohoo so whats the good news gary? Gary_Fullett al the news that good to priint Gary_Fullett news to print Gary_Fullett i wnat to point out somethign very important Gary_Fullett and i lost alot on money years ago doing this Ory ny times yoohoo intersting link to get you fired up..... http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/ Gary_Fullett in wyckoff u wnat to buy strngth Gary_Fullett sell weakness Ory thats fit to print Gary_Fullett today many thouhgt it was a good idea to sell wheat and buy corn thinking corn will cathc up Gary_Fullett this is WRONG Gary_Fullett u wnat to buy strngth Gary_Fullett it si storgn for a reaSIN Gary_Fullett the traders know Gary_Fullett which they do theoer campaign on Gary_Fullett this is very importnat understand? wyatt joined. Gary_Fullett sunday is the next webinar Ory sure Gary_Fullett on vsb and vdb Gary_Fullett so bar by bar Gary_Fullett but onspecific bars Ory ? ? Gary_Fullett any questons? Ory vsb vdb Gary_Fullett vertical demand bars Gary_Fullett verticla supply bar Gary_Fullett special bars Ory now i got it thxs Gary Papa yw Papa Thank you Gary Gary_Fullett okay Gary_Fullett lets begin Gary_Fullett are u sure on buyign strngth ad sellign weakness Gary_Fullett cirrecneos especially Gary_Fullett okay Gary_Fullett s and p Gary_Fullett look how i drew my channel lines Gary_Fullett u may ask wy didnt i draw the up channel Gary_Fullett line form the lows Gary_Fullett do u wonder that? hokah left. Gary_Fullett well because the corresponding Gary_Fullett parallel channel Gary_Fullett tels me a story Gary_Fullett tells me Gary_Fullett that the reaction high Gary_Fullett where the line stars Gary_Fullett and connects with another reacionary hi Gary_Fullett and now forms an apex at the 1129 area Gary_Fullett so we want ou r lines ot tell su a story Gary_Fullett so thats the KEY to drawing trend lines Gary_Fullett thats tells story Gary_Fullett u play around wuth lines Gary_Fullett and see how tey fit without forcing them and the charts will speak to u Gary_Fullett understand cleaR? Ory oh yea roger yes sir Gary_Fullett so on te es Gary_Fullett whats stads out to u on this chart Gary_Fullett lack fo supply Gary_Fullett up channle Gary_Fullett understand? Papa yes Ory yes Gary_Fullett ok Gary_Fullett so the cm is smart Gary_Fullett he closed the maret under resiatnce but above support Gary_Fullett for an uncertany for the report Gary_Fullett the reaction high wa s1129 Gary_Fullett ad u can see the horizoantal line PiggyBack joined. Gary_Fullett so its not the reports Gary_Fullett but the reaction to the report that we judge Gary_Fullett okay q on the es Gary_Fullett i sent alot of chahenl parallel charts tonight Gary_Fullett 240 min euro Gary_Fullett this sithe chart that the banks use swetz joined. themick joined. Gary_Fullett so as u know u wnat to draw parallel channels Gary_Fullett u cna se eth elast 5 bars Gary_Fullett that form a tradign erange Gary_Fullett so on the right side of a tradign range si where u get the sow sign of wekanes Gary_Fullett or sign of strngth bar rayw joined. Gary_Fullett but u cna see the upthrust Gary_Fullett which lead to selling Gary_Fullett today the up trend dline wa shit Gary_Fullett at 13118 and reacted Gary_Fullett but drawing these paralel chanels tells u a story Gary_Fullett tells u a story to trade rich joined. Gary_Fullett so on the right side of a trading raneg we look for bars tha show us strngth and wekaness Gary_Fullett understand? Papa yes Ory y Gary_Fullett ok Gary_Fullett gold Gary_Fullett we have discuss ths chart lasy week Gary_Fullett but i said that u cant alwasy look at bar by bar and tell a story Gary_Fullett sometimes it takes a series of bars Gary_Fullett what do u notice on this rally? PiggyBack weak close, low vol PiggyBack clises PiggyBack closes Gary_Fullett to em the rlaly is on lighter volume Gary_Fullett yes what does this tell us roger no demand rayw less supply Gary_Fullett well ray i wojld agree if the backround was strong Gary_Fullett but the back round is selling Gary_Fullett to em we had selling Gary_Fullett and the rlaly is on lighter volume says lack of demand Gary_Fullett if there is selling in the abck round Gary_Fullett back round Gary_Fullett it can be a lack of supply if the amrket techiniclaly is in goo shape Gary_Fullett though if w eget a demand rally ray w u woul d be RIGHT Gary_Fullett so if we get that demand rally Gary_Fullett then rayw u wid be right Gary_Fullett but the back round tells me its prob ly a lack of demand Gary_Fullett understand? rayw yes sb2010 joined. Gary_Fullett so i am NOT sayin gu r worng Gary_Fullett but if the 2 large down bars was suppply then this raly fails here Gary_Fullett and to get that demad u need to take ot rsiatnce Gary_Fullett and demand ove r come supply Gary_Fullett once u get sellingin the back round ddeand must over take this and vice versa Gary_Fullett any q? Gary_Fullett hog s great chart Gary_Fullett see the retest Gary_Fullett okay so w eknwmthe firstretewst tends to fail Gary_Fullett so we look at the retest Gary_Fullett last bar increased volume Gary_Fullett small rnage what does this means? Gary_Fullett i think u r all tired Gary_Fullett this is STUFFING Gary_Fullett effort vs result Randy stopping action PiggyBack lol, breaish Gary_Fullett yes randy Gary_Fullett EFFORT VS RESULT Gary_Fullett is this aborption? Gary_Fullett the ast bar absorption? Gary_Fullett last roger no Gary_Fullett why n ot? roger close below mid way Gary_Fullett true Gary_Fullett the volume increased Gary_Fullett at creek Gary_Fullett so fundsa dn spce s became action roger with teh high vol they had a chance to drive it thro creek and didn't Gary_Fullett by the extra folume Randy because supply is starting to over take demand Gary_Fullett volume Gary_Fullett so if this volume was BUYING volume Gary_Fullett then the close wodl have been high range or a joc jump iver the creek Gary_Fullett not supply Gary_Fullett but selling Randy ok selling Gary_Fullett so all that effort Gary_Fullett little result Gary_Fullett red flag Gary_Fullett anyone knwo what hogs did today ina sug? roger limit down Gary_Fullett yes Ory i think sugar was d .2,,i may be wrong Gary_Fullett so if u reaD THE NEWLTTER Gary_Fullett I SAID TO SELL AND BE SHORT roger overnight down a buck Gary_Fullett So the read was right Gary_Fullett but now u know on the retest of creek Gary_Fullett how we get tere with price and voliume important Ory on sugar Gary Gary_Fullett an y q? roger hogs ory Gary_Fullett sugar is slelign on rallies Gary_Fullett corn Ory thxs Roger roger no prob Gary_Fullett today could ahve bene very critical Gary_Fullett the 2nd bar' Gary_Fullett out of the last 5 to have low end close Gary_Fullett so when u get a rally and settles lower Gary_Fullett and then a few bars tlatr the same thing Gary_Fullett this is sleling form highe rlevels Gary_Fullett and the cm is unloading Gary_Fullett okay im pen for quesions? Gary_Fullett the next webinanr Gary_Fullett si sunday night 7 pm you need to register for it Gary_Fullett and the one for monday too Gary_Fullett 7 [pm cst Gary_Fullett oky ty roger so would half way of todays trade in cz be a sell trigger? 42425 Gary_Fullett steve has some charts that he described in the newltter Gary_Fullett yes roger Ory Gary yw roger thx Gary_Fullett if on lihgter volume too PiggyBack left. Gary_Fullett ty roger k swetz the bossman says I am up :) Gary_Fullett piggy back know that steve loves pork so eh left Ory Hi Steve roger lol swetz lol swetz howdy Ory :) Ory i thought coooookies swetz let's look at the daily chart of ROVI swetz chart #6 of 7 Alvin left. swetz the FIRST thing I do when I look at a chart swetz is determine the TREND rich left. swetz I draw my swings or buying/selling waves to help me cut out the day-to-day noise swetz to help me determine the TREND swetz we can see that after a strong rally from the February low swetz a TR developed from the April high to the May low swetz and the buying/selling waves bounced up and down in a sideways manner swetz so the trend is SIDEWAYS or a TR swetz the alternating buying/selling waves tell us this swetz so seeing that a TR is underway swetz we know from Wyckoff swetz that the trading opportunities are on the RIGHT side of the TR and with the TREND swetz so as this TR unfolds, notice that the VOLUME decreases and the buying/selling waves are getting smaller swetz as demand and supply become more and more in balance swetz sort of like what happens as an APEX forms swetz notice that little sideways action where the up arrow is marked swetz we got 5 days of tight sideways action swetz on very low volume swetz this type of action on the right side of a TR often marks a POTENTIAL SPRINGBOARD position swetz as Wyckoff would say swetz to let us know that very soon, the market is ready to LEAVE this TR swetz it is just a matter of waiting for a BAR that SIGNALS which way ROVI is ready to leave this TR swetz sure enough, in early July swetz we see a WIDE RANGE BAR swetz we see a STRONG CLOSE swetz that CLOSES above the most recent resistance points of this TR swetz with STRONG VOLUME Dmitry joined. swetz this bar has ALL of the characteristics that are normally seen on a POTENTIAL JOC swetz we MUST conclude at this point in real-time that ROVI is ready to leave its TR NOW!!!!!! swetz and so buying here from a springboard position on a bar that has all of the characteristics of a JOC swetz is PROPER trading swetz now say we miss this entry swetz another Wyckoff buy setup would be a BACKUP to CREEK swetz but as we can see we are not getting much of a backup as the smart money does NOT want us onboard swetz but that is okay, we got another little tool to help us get onboard with a low risk swetz and that is buying a SPRING on a smaller timeframe when the daily trend is UP!!!!!!!! swetz so that leads us to the next chart swetz chart #7 of 7, the hourly ROVI chart rich joined. swetz on the hourly chart, I showed where a Wyckoff trader could buy on July 6th which is where the JOC on the daily chart originated swetz but let's pretend we missed that entry swetz and we really like this stock so we are looking for another opportunity to enter this stock swetz with a low risk swetz so we wait PATIENTLY with DISCIPLINE swetz and finally on August 3rd swetz we see that ROVI just barely penetrated $42 to the downside to put ROVI in a POTENTIAL spring position swetz now in real-time, we do NOT know if ROVI is going to just keep falling the next day hokah joined. swetz which is why I like to wait for a TRIGGER swetz some evidence to give me an EDGE that a SPRING is likely going to develop swetz in real-time, we can all see that when ROVI declined barely below $42, it was in a potential spring position swetz we can also see that Wyckoff's principle of EFFORT vs. RESULT looks to be in play on the last hourly bar on August 3rd Dmitry BAG HOLDING? swetz notice the LARGE increase in volume swetz Dmitry - looks that way doesn't it :) swetz but with all of that EFFORT where is the RESULT swetz the close was just barely below the midrange of the bar and ended up closing ABOVE $42 joe_s left. swetz there was a LOT of selling going on but buyers were ready and willing to SCOOP up all of that selling swetz if buyers have truly met and overcome that supply swetz we should immediately see UPSIDE EOM VERY SOON swetz so since we KNOW this AHEAD of TIME Ory maybe vob Steve swetz it is just a matter of seeing if upward EOM occurs and if it does, be READY to BUY!!!!!!! swetz we get that upward EOM the next day and so we BUY!!!!!!! swetz with a stop below the spring low, which is a VERY LOW risk trade Ory so to buy Steve stops would be placed where Steve swetz you can buy at $42.60 Ory swetz $42.55 Ory sorry i,mm slow swetz Ory - I am always slow at the dinner table :) Ory Steve your awesome Dmitry So we see 2 bars of COB swetz so here is an example of buying a SPRING when the daily trend is UP!!!!!!!!! swetz you hear Gary, me, and others talk about buying SPRINGS with the TREND swetz this example is basically what we are talking about swetz a swing trader may already be taking profits on this stock at $44 or so swetz risking about 50 cents to make $1.50 isnt so bad ;) Ory we can guage it at that point swetz for 2 days work Dmitry Why at least $44? swetz well that is about a 3:1 reward:risk ratio that Wyckoff suggests we try to have on trades Dmitry ok Dmitry Steve, but if the next bar wasn't be a upward EOM? but only small bar up. You buy this too? Not? Ory Steve is that condidered a swing trade or semi day trade ?? swetz Dmitry - no I do not buy it swetz Ory - never heard of a semi day trade, either it is a daytrade or it is not swetz if you make a trade and hold it overnight, then by definition it cannot be a daytrade Randy he stated above "a swing trader would be looking to take profits at 44" Ory welll 2 days bad terminology sorrry swetz no problem :) swetz I know we use a lot of terms sometimes like VOB, COB, bagholding, etc. Randy very good detailed step by step description, thanks swetz but try to think about what is happening between the buyers and sellers swetz thx Randy :) rich left. swetz at areas of support/resistance dz joined. Dmitry Thank you Steve. Cool Example! swetz we can all see that $42 is an area of support swetz anytime Dmitry :) Ory thanks Steve,,,,extremly helpfull swetz but HOW the market is trading at that support area is what is important swetz and what is the TREND as that minor support area is being test is what is important swetz the TREND is UP on the daily chart, we can all see that swetz we can all see that in REAL-TIME swetz it is no mystery swetz so we KNOW that we need to TRADE the LONG SIDE since we trade WITH the TREND swetz then we can zoom down to a smaller timeframe to see if we can find a low risk trade setup Ory Wyckoff said to trade with the market,,,,,,,,but if a stock is moving let it go swetz a spring is a wonderful way to buy in a low risk manner when the trend is UP swetz yes sir Ory :) Ory Thanks Steve swetz lets say that after we bought at $42.55 or so swetz ROVI turned down and stopped us out swetz so what swetz our loss is small swetz but at least we traded in a situation where we have an EDGE Dmitry Steve, would you sell some part of position near $45 resistence? swetz the casino doesnt win all the time either swetz but those casino buildings are pretty nice so they must be getting the money somewhere ;) swetz Dmitry - depends HOW it got there swetz if ROVI sliced right through it, there is no way I would sell swetz in fact, I would be looking for a pullback to buy more swetz if ROVI struggled to get to $45 and I saw sellers taking control, then I probably would Ory yes sir Steve Dmitry So if near 45 you saw lack of demand you will get out. Am i right? swetz lack of demand is not enough for me, I would need to see supply come in as well swetz maybe ROVI goes to $45 and just moves sideways Dmitry By supply you mean wide bar, high volume? swetz then I would have to consider that absorption is going on and I would want to keep my position unless I see selling come in swetz Dmitry - that is one way or like what we had at the spring Dmitry (wide bar down, heave volume) swetz effort NOT equaling result and then downward EOM Randy dmity- remember the spring bar- high volume smaller range= ending action swetz was upward EOM at the spring but would be downward EOM at $45 swetz right Randy Dmitry Yes Randy :) swetz I would strongly suggest to really pay attention to Wyckoff's principle of effort vs. result at support/resistance areas swetz effort vs. result doesn't mean too much in the middle of a TR Dmitry It is like stalling action (or churning action) Dmitry --- efort vs res swetz but when we see that principle occur at support/resistance areas, your antennae should perk u swetz up dz seems the buying wave is strong than the selling wave swetz I would agree with you dz swetz Wyckoff's 3 laws should not be taken in isolation but TOGETHER Dmitry EOM usually appear as wide range bar or series of bars, correct? swetz yep Dmitry stan left. Dmitry Good. Nice! Thank you Steve!! Big lesson for me! swetz if a market is moving with ease then the bars will be wide or the wave will be strong swetz glad you liked it Dmitry :) swetz by the way, this ROVI suggestiong was giving August 3rd so NOT hindsight Ory Steve your an awesome educator williammanda should we take the actionso far as the market is moving up? swetz to the NL folks swetz william - the last 4 days in the SnP tell us that the buyers and sellers are temporarily in balance swetz HOW the market moves out of this 4 day action will tell us if the last 4 days are a turning point to begin a selling wave or just a pause or resting spell as buyers absorb the sellers before resuming the current buying wave Dmitry yep yep swetz I am personally long right now william Ory agreed Steve swetz but I have trailing stops in place in case a turning point occurs swetz if the market continues rallying, then I will just keep holding my long positions swetz the employment report is tomorrow, I would venture to guess that the report will likely provide the catalyst for whichever scenario will unfold Ory already factored in swetz you may be right Ory swetz we will just have to watch the price/volume swetz and go from there :) Dmitry For example, Steve if you saw Potentail buying climax how you trail your stop? Below PBC bar? Ory just a guess Steve Randy I think I know your political views from the chat room, do you ever find it difficult to actually think this market is good and justified in going higher based upon our current economic and political reality? In other words predicting vs following the tape? swetz Dmitry - I would likely sell a portion of my position on the BC bar Ory Randy tape is always correct Gary_Fullett forget predicitng and bias Gary_Fullett follow the tape Randy that was not my question ory swetz Randy - I dont worry about political reality when I trade swetz I follow my RULES Ory sorry Randy Gary_Fullett the cm can sin bulish or bearish news Gary_Fullett they ahve a lis of both Randy very good dicipline, obviously swetz RULES are the same no matter who is president Gary_Fullett they releaSE them when in thiere favor Gary_Fullett a berairsh day can be europe swetz if the trend is UP, then I buy Gary_Fullett a bullish day can be earnng swetz if the trend is down, then I short Gary_Fullett they sue news to throw u off sb2010 left. Randy yes, if one could completely avoid the news and talk- isolate themself would probably be much better off when trading. swetz well Randy, imho swetz is the reason that RULES are so critical Gary_Fullett yes for sure swetz because we are all human and can easily fall prey to the news of the day Gary_Fullett i dont have news with mt quote Dmitry If you do NOT read newaspaper you are uninformed. If you do read newspaper you are misinformed. Mark Twen . What is you choice? Gary_Fullett gavin holmes Dmitry yes. he loves it ;) Gary_Fullett the gs story Randy as I stated before- a person must be very diciplined to the wyckoff rules and not let any outside things influence them. Dicipline is the key Gary_Fullett sharks ect lol swetz Dmitry - can be informed but still follow your rules :) Dmitry lol swetz very true Randy Dmitry yes. Right Steve :) Gary_Fullett randy u right swetz but that applies to any trading method dz ::biggrin swetz once you feel that your emotions are getting involved Randy great discussion thanks guys swetz your bias is taking effect swetz then step away!!!!!!!~ swetz do NOT trade swetz because then you are letting your mind HIJACK your rules . left. swetz and then your rules become meaningless if you do not follow them swetz the pros have the DISCIPLINE swetz the amateurs DO NOT swetz the pros and amateurs BOTH having losing trades swetz but it is the PRO that has rules that he follows with discipline that allows him to make money year in and year out Janet left. swetz despite the losing trades that are just part of the business Dmitry If we study wyckoff vere very well (like you our GREAT TEACHERS) should we continue to learn something new methods, tactics, enters, exits in trading? Dmitry It is difficult question for me. Dmitry Beacuse i'm crazy for learn new everytime swetz Dmitry - it would be arrogant of me to tell you what works best for you swetz I can only tell you what has helped me do well Gary_Fullett and w eknow there ar eno ignorant southern gentleman swetz I would say that whatever you do, you need to keep it SIMPLE swetz Wyckoff can work all by itself Randy well lets see what tomorrows report brings us in the way of trading opportunities. Ah yes swetz KISS method swetz but ultimately, you need to find what works best for YOU swetz yes sir Randy :) swetz Dmitry - I can tell you that when I got rid of the "stuff" and stuck to the basics, my trading improved substantially Dmitry :) :) :) Dmitry T.H.A.N.K. Y.O.U. Randy you know the KISS method Dmitry? swetz rock group? :) rich joined. Dmitry KEEP IT SIMPLE (STUPED) roger lol roger swetz Randy yes!! swetz I knew that would wake Roger up :) Randy and yes to you swetz swetz okay folks, have a good night Dmitry yes Randy :) swetz tomorrow should be interesting :) Ory i dont believe in caling anyone stupid roger later swetz thx Dmitry good night Steve and Gary!!!!! abc163 thx swetz swetz over and out dz thank you swetz my pleasure folks ;) swetz :) Dmitry thanks guys! swetz left. rayw take care and good night Gary_Fullett good stuf steve Gary_Fullett all trying to elarn Gary_Fullett and differnt agles of the ame material Ory nite all Gary_Fullett is a way to get it across roger later ory roger thx gary Dmitry that's true Gary Gary_Fullett yw abc163 thx gary Gary_Fullett differnt angles Ory definatelte learning Gary_Fullett amos steve david weis me Gary_Fullett and take what u like Ory Thanxs Gary,,,,,,,,,and gn Roger Dmitry Hats off dz thanks Gary. Gary_Fullett great Gary_Fullett good night all see u tommoerwo Gary_Fullett of for the webianr sunday Gary_Fullett nihgt ty Gary_Fullett left.