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<DIV><FONT face=Arial size=2>The last few days have highlighted, for the day
trader, how patterns point the way. While clearly there are other
factors to be taken into account, it pays to take note of what the market it
saying to you, rather than listening to other extraneous talk from gurus on
CNBC, for example. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Look at the 'daily' chart below and you will see
that the false breakout of the wedge was very clear, with the 2-bar
reversal. The next bar was a dead ringer to be a down
bar. It might well not continue the next day or start a trend, but
it was good for the next day - and that is what you are interest in. We
then had a Doji Sandwich, so that following bar was another dead ring to be an
up day. You could not blindly sell or buy at the open and know you
would collect at the end of the day, but, you did know the odds were in your
favour that the day was going to be the sort of day it turned out to be.
Not so far or furious, or that Mr G's comments were going to turn to gold for
you - but you would have been long and going the right way, ready to
collect.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>I am not saying it is simple and there are, of
course, other vital bits of information that you need to confirm what you are
going to do in real time; and how you are going to get into the trade,
manage the trade, exit, etc. But looking at what is in front of you
and gearing yourself up accordingly, is what day trading an instrument like the
bonds is all about. You only need very simple tools applied in the
proper way to read a market that mostly takes a measured tread, as it wends its
way through the trading day.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>At the end of the day, it is all a question of risk
reward ratios. If you stick to a minimum of 3:1, but often do 4, 5
or 6 to 1, then you can be wrong quite often and still put bread on the
table. Yesterday, you would have started with quite a modest r/r/r, but as
the market moved, your end result was massively in your favour. Such a day
people might say was luck, but the fact is it was a windfall - but you had to be
standing under the tree with reasonable expectation to gather the fruit, without
being bruised...</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Hope this is of help...</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Bill Eykyn<BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn to read
the tape"</FONT></DIV>
<DIV> </DIV>
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