Ral's Morning Report
Oct 20, 2006
Fundamental Rule
“On
every trade: an entry, a target, a stop…no
exceptions”
NOTE:
GBP. Thursday
candle pattern was a “Sunshine” pattern. This occurs when the open is above
the low body point of the prior candle. And the high and close is above the high
of the prior candle. As the name implies it is a bullish pattern. The contextual
importance of the pattern is enhanced under “bear” conditions. Yesterday,
for example, the prior session was a “new high bear close.” When this was
not triggered short, it becomes a set up for a substantial move higher. This was
supported yesterday by the daily re-entry long price > 1.8740—which was
also above the 13-S. Today's market is currently awaiting the UK GBP which will
be released 8:30 GMT (4:30 Eastern). A rise of 0.6-0.7% is expected and it is
anticipated that this increase or higher would be supportive of GBP move higher.
The daily 3-set has triggered long > 1.8782.. The GBP failed to complete a W2
msh and is now eyeing the nullificaiton of the downside structure (requires >
1.8882). [Note. This is excerpted from ral's GBP Alert! published
each morning by 5:30 EDT and available at
http://www.ralockhart.com/dailyfigures.]
RUSSELL.
732.70 is the Fall
Equinox Critical Price (FECP). Friday's close at
773.20 keeps FECP long with a maxgain of 45.10. LWVS is short from 764.52.
Reversal today is at >781.51. Daily 3-per at 8th ordinal gain-taking high.
Russell closed in bull state with 13-S at 751.44. Daily 3-per triggers
today: Long > 777.80 Short < 763.30.
GOOG.
404.03 is the Fall
Equinox Critical Price (FECP). Thursday's close at
425.80 keeps GOOG long FECP. Today's trading: Long > 454.91 short
< 416.70. GOOG closed in bull state with 13-S at
418.48. The new MTR upper limit is at 437.85. Goog now llong 3-per daily, 1st
ordinal high.
DAILY PATTERN TRADES
FOPS Candidates:
CTXS, COST, DELL, GRMN, ROST, SPLS
TOPS Candidates:
None
Bull State/Bear State Ratio for Naz100: 59 bull/
38 Bear = 1.55 down
from 7.08 (>2.62 = over-bought; > 4.68 = hyper-overbought)
ECONOMIC REPORTS
None
scheduled.
Ral's TRADING PIVOTS &
FRACTAL DIMENSION
Range
resistance and support calculations are based on
whole candle values (open, high, low, close) and are geometric
in nature. Fractal
range support
and resistance calculations are based on growth as a power
function and are typically larger
ranges than simple geometric-based ranges. Knowledge
of fractal growth price points is minimal in the trading public.
A
CONSTANT REMINDER: The "3 T's and C's plus
1" of trading. Before any trade, always know the TREND, always know the
TRIGGER for trade entry, and always know your TARGET (both for gaintaking and
stop-setting). Before you trade, know the CONTEXT (in relation to both price and
time), be aware of the CONVERGENCE points (in price and time) of signals, and
constantly examine your COMMITMENT to following your methods, to learning
something new each day, and to keep your CURIOSITY constantly in play.
NOTE
ON VALUE OF FOCUS MARKET TRADING. Focus
markets are followed in ralroom with signals both for daily time frame trading
as well as within-session trading. The three focus markets are very money
efficient, that is, providing high leveraged profit opportunities with minimum
investment dollars. GBP requires
a Forex trading account and may be traded on $1,000 margin in a regular contract
(opening balance starting with $3-5,000) or mini-contract traded on $50 margin
(opening balance starting with $300-500) size. Russell
requires a futures account to trade the futures
contract. For longer term signals, the Russell tracking stock (IWM)
and its options may be substituted to advantage. GOOG
is best traded with options either for daily time
frame signals or within session trading. A 1000 share position in GOOG
may be controlled with 10 option contracts for a
cost of about $14,000 at the start of a monthly option series and declining cost
for at the money contracts throughout the cycle
TRADER
RESOURCES
Glossary
of ral’s technical terms: http://www.ralockhart.com/dailyfigures
Ral’s “daily figures” address: http://www.ralockhart.com/dailyfigures
Ral’s
Calculators: http://www.ralockhart.com/dailyfigures
Ralo24:
http://ralomatic.com
Ralo24
Weblog: (coming soon)
Ral's
GBP Alert!: http://rals-forex-alert.blogspot.com
The
Manual Project: http://www.ralockhart.com/orderinfo.htm
Ral's GBP Alert!: http://www.ralockhart.com/dailyfigures
Good trading all!
Ral
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