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Exhaustion Bar Trade Exhaustion bar trades signal the end of the move and occur when the buyers or sellers throw in the towel on their bad trades or hesitancy to enter the market on a trade they saw. The key to this possible exhaustion is the increase in volume compared to the volume in the...

The Retest Failure Trade (RTF) is designed to trade in bracketed market conditions. The market is in a bracketed state about 70% of the time and one has to know how to trade a bracketed market to add to their bottom line on a regular basis. 1. The first low was set at 691.25 at 1154 AM...

Charles Cochran's Comments for Tuesday 3/3[/b] F2 Comments: We entered the day with a trading range call with the market’s direction to be determined by the ES’s direction. The ES basically sold and the Bond did rally to 125-27, where the buying stopped. The buying currently dries up...

The 3-2-1 Methodology is based on 3 Rules, 2 Patterns and 1 Indicator. 1. Rule#1 – Low Volume numbers ( LV #’s) are support/resistance and should be traded as such. LV #’s stop the buying/selling and can be leaned against for trade entry. If the LV # does hold, the market should...

Charles Cochran's Opening Comments for Monday 3/2 (06:57)_Stock markets round the globe have been heavily sold over the weekend. AIG got another cash infusion. Has to be getting close to 200B in guarantees and direct cash infusions. HSBC is shutting down all US operations and raised 17.5B in...

F2 Comments for Friday 2/27 The Bond rallied off the much better than expected GDP numbers hitting 126-24 before the selling in the ES stopped. Stability in the ES brought sellers into the financials and the Bond was still being sold into its close. The close was weak. The market is pointed...

Retest Failure Trade The Retest/Failure Trade (RTF) is one of our staple trades. As markets trade sideways/in a bracket about 70% of the time, the retest of support and resistance is the expected market reaction at the edge of a bracket. This trade capitalizes on this phenomena. 1. The...

Early Comments for Friday 2/27 from Charles Cochran (06:56)_The Bond found buyers lat night off of the weakness in the ES. The inverse relationship continues. If ES takes out 739, I would assume that the Bond will trade higher. If not, sideways to lower. Longer term supply should keep the...

F2 Comments for Thursday The market found sellers OVN and never retested the OVN session high. Volume is low in the distribution too. The structure was mixed for today’s day session based on skewing. Based on the value area’s movement, the market is pointed lower. Some news to move...

1. Rule #1 is Low Volume numbers are support and resistance and stops activity. Can lean against these numbers to gain trade location. They offer high risk reward trading opportunities. The low volume numbers at 758 and 743.50 did stop the buying and selling. And the market did trade back to...

Recap for Wednesday 2/25 F2 Comments: The sellers ruled today. While the market did rally just past our recommended sell zone at 127-31/128-03 with a high of 128-075, it did sell and then some. Obama’s speech signaled more debt for as far as the market can see. More supply almost always...

Example of MoM's - Moves Out of the Middle 1. Today's screen capture shows two Rule #3 Moves out of the Middle (MoMs) and the moves expected from the Rule #3 set up. 2. MoMs are created when all the business that needed to be completed in a price area is done. As the market comes into...

5 Year Note Auction on Wednesday F2 Comments: The market did rally as per the analysis hitting 129-12 before the buying was over. Supportive news, a weak ES and the 2 Y Note auction all combined to produce the rally. Bernanke’s comments started the buying in the ES. The Bond began its...

Hedging Market A market with a higher percentage of hedgers is more orderly and better defined at the edges. In essence, it is more predictable.

Fed Chairman Bernanke Testifies Today F2 Comments: Bottom of current trading range held and market traded higher today, primarily from the weakness in the ES. The selling in the ES was present into the close. If the selling continues in the ES, the Bond should trade higher. Tomorrow’s news...

3-2-1 The 3-2-1 Methodology is based on 3 rules, 2 patterns and 1 indicator. The 3rd Rule is new moves start at Balance Points. do not fade this move at your #1 support/resistance levels as they have the potential to break out of the current trading range and start a new directional move...

Retest - Failure Trade Example The TIE software and research supports three basic trades: for trending markets, a setback trade; for bracketed markets, a retest failure trade; and for the end of the move/change, an exhaustion bar trade. Today's retest/failure trade (RTF) set up when the...

Foreign & US Market Weakness Supports Bonds F2 Comments: The market traded higher but option expiration was not a factor. Stock market weakness was. The market hit 129-02 before the buying was over. It was a range trade w/a lower bias as longs took profits before the weekend. A bird in the...

Moves Out of the Middle - MoM's Market Profile and the 3-2-1 Approach to Market Analysis work equally well in any market. This thread will focus exclusively on the ES. The ES came to a balance point over the last 3 days of trading at 789.50. All the business that had to be completed was...

Bonds React Negatively to Administration Spending F2 Comments: The day session opened at resistance at 130-08/12. 130-125 was the OVN session’s high. The Bond was sold off its opening and didn’t find buyers until 129-16±. 130-00 then proved to be resistance and when the heavy selling in...