Chart 3 – March 6, 2007 at 2:00 The Optimum Long Entry 

This chart is a good example of the what

an optimum entry point looks like for a

long trade.

Notice first that the 4H actually led the

entry to the trade and broke the 20 line

first. This is the best possible situation as

we know that the lower time frames are

building a strong up trend.

The rest of the time frames have nice

parallel lines, they are all moving at the

same slope and all have their stochastic

lines about the same distance apart. In

other words the stochastics are almost

identical on each chart.

Just for the record, this trade would have

netted you anywhere from 50-200 pips!

Take this chart and post it on your wall

as a reference.

Chart 3b – March 7, 2007 at 2:30 The Optimum Short Entry 

This is a chart of the optimum short entry setup.

This is an example of cheating a little and

entering when the 1H is halfway through the

candle. Trading live is much different than

looking at historic charts. During this time frame

the movement was quite simple to see.

Again the 4H leads the trade entry and the

downward stochastics of the other time frames are

making identical moves.

Another easy trade and the pips gain anywhere

from 90-200 pips.