Today's market action - a real example

Today's market action - a real example to demonstrate the power of the trap-zone and how to apply it to trading.

Before moving on, look at yesterday's chart first and spot the trap-zone.

• The zone's lower boundary should be able to be drawn in half hour after the market open
• The zone's upper boundary should be able to be drawn in half hour before the market close

As mentioned before, once the boundary is touched, the market motion will be bounced off from the boundary, especially for the first time touch, unless the trap-zone is broken.

So today, the market is bounced off from both the upper and the lower boundaries. A perfect real time example ! Then complete one of the trap-zone dynamics: expanded in the time dimension.

At the end of the trap-zone, there is a bull's money-making zone, which is already ended today. Now what's the market doing is to form another new bullish trap-zone. Once this is complete. The expected transition from a trap-zone to another trap-zone will be over, and will mark the end of the DOWN wave and the expected UP wave starts. As mentioned before, I expect three waves (DOWN-UP-DOWN) coming in the near future. More details with regard to this outlook, please refer to the old post here.

By the way, I have set up the blog to send the comments automatically to my E-mail account. SO I won't miss them and I will answer those questions sometime later when I got my hands free. Too busy every day and all the time.