The PRICE ACTION Chronicles

209 Pages·2012·35.97 MB·English

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PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
The
PRICE ACTION
Chronicles

Price Action in the S&P500 stock index futures

This volume covers a candid day by day
explanation of my trading method
between late April and late June of 2007.
One day it maybe seen to cover the last
stages of an amazing Bull market that
began in 2003.

[C] Bryce Gilmore 2007

All rights reserved:
Bryce Gilmore & Associates Pty Ltd.
Queensland. Australia.

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PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
PRICE ACTION CHRONICLES

PRICE ACTION METHOD:
Our price action method is an approach to short term trading
opportunity created out of the market money flow.

Our method is based on the continual and repeating habits employed
by “smart money” market participants.

It is amazing the way you can predict a lot of the shorter term
market moves with this method.

The price action method gives you the opportunity to trade at precise
levels with very tight stop losses.

CONTENTS:

Cover, Contents and disclaimers 1-4

Chapters:

1 One Day at a Time 5-10

2 Each day is a new day 11-14

3 Pre Opening - Monday 23rd 15-25
April, 2007

4 Tues 24th – Fri 27th April, 2007 26-42

5 A New Week Ahead 43-55

6 Federal Reserve Meeting week 56-71

7 After the FED announcement 72-83
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PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007

8 Day after ES Larger degree 1:1 84-89
And 61.8 return.

9. What is the RISK on any trade? 90-93

10. Back in the RANGE AGAIN 94-115

11. The Beat goes on 116-136

12. Has the Trend Reversed? 137-157

13. Contract Rollover Approaching 158-172

14. Contract Expiry Week 173-189

15. Think what you like but 190-194
Trade what you see!

16. The Finale 195-208

Those who want to find a way will; those who don’t will find
an excuse.

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PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007

This communication has been authored by Bryce Gilmore certain proprietary terms and routines are
subject to personal copyright: Some rights extend back to 1987.

Bryce T. Gilmore [C] 2007

It is illegal to transmit, copy, print or pass any portion of this book to any party without the permission of
the author. - please read all of our disclaimers below.

Price Action Chronicles – One day at a time – Edition – [c]2007

DISCLAIMER : Edited by Bryce Gilmore (C) 2007

Conditions of supply : read this

This communication has not been prepared by taking into account the financial circumstances and
investment needs of any particular investor; and investors using this book as advice should therefore assess
whether it is really suitable to their own circumstances and investment plans; and before acting on any
educational investment advice contained in this book, you should contact your own licensed investment
adviser to consider whether the advice is appropriate in light of your particular investment needs.

Technical education is a hypothetical study of markets and because it may have worked in the past there is
no guarantee it will work in the future. You must understand that trading approaches using technical
analysis is a matter of probabilities, as is every avenue of speculation.

The author is not a Broker or registered Investment Adviser and therefore is not licensed to give trading
advice of any sort or make specific trading recommendations.
All charts and comments are offered for educational purposes and are the personal opinion of the author.
The author's opinion is not meant to be construed as an invitation or solicitation to trade, for trading advice
consult your broker or licensed investment advisor.

Notice read this - To comply with the ASIC IDS guidelines (Internet Communication of security
information)
ASIC recommends before acting on the basis of what is said in this communication you should review:-
(1) Asic's web site at www.asic.gov.au has a list of licensed advisors.
(2) Visit Asic's consumer website www.watchdog.asic.gov.au for general guidance about investing.

For a further overview of the purchase terms and conditions see :

http://www.wavetrader2004.com/

PUBLISHED BY:
Bryce Gilmore & Associates Pty Ltd
Bryce Gilmore - Proprietor
Inc. 1983 - ABN 63 006 187 686
6 Heywood Place, Helensvale. QLD 4212.
Australia

Phone/Fax [phone] - Mobile [phone] - Email: [email protected]
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PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
Chapter 1

One Day at a Time:

It is absolutely amazing how perceptions of the market can change from one day
to another.

It was only a day back when the ES fell from a new high; it did this overnight
under the influence of some bad market activity in China. In fact the ES reached
a 1:1 support in the Globex session prior to opening in New York.

The day session opening on Thursday had left a gap on the day chart and
proceeded to fill the gap, albeit it took a few hours. I did say to the WTL room
members the gap fill was the best play at the beginning of the day as nothing
fundamentally had changed with the US stock market overnight.

Presently the US market is moving along with Q1 profit reporting releases each
day and to be honest the reports are coming out with good news, more to the
disbelief of the bears than anyone else.

Chapter 1 5
PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
Let’s look back a few days and then I will continue on from there.

Friday the ES traded back to a dual 38.2/50 retrace level on a return to retest
the previous highest high 1484.50 and then to everyone’s surprise proceeded to
rally for the rest of the day with only two corrections of 1.75 points apiece.

Chapter 1 6
PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
By the end of the day the high had extended to a 1:1 Double Drive target of
larger degree.

The scene is now set for Monday’s trading session.

The interesting thing right now in the big picture, is that we have the Dow Jones
Industrials, Dow Utilities and Dow Transports all trading to new highs. If you
were to take any notice of DOW Theory then the market is in a fully fledged bull
market.

You have little choice but to only believe what you see in this business
irrespective of the recent news.

Sub Prime loans and even quality loans on real estate are failing at an alarming
rate right now, yet the consumer is still spending, even gasoline prices at
extremely high prices don’t seem to be causing any halt to the stock market
advances.

The old saying is that the stock market climbs a wall of worry and that certainly
looks to be the case right now.

Chapter 1 7
PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
The only two major US stock market indices yet to reach and surpass their
year 2000 highs are the SPX and the OEX.

The OEX and SPX charts are progressing with higher lows and higher highs
indicating a bull trend in progress.

Chapter 1 8
PRICE ACTION CHRONICLES (Volume 1) - © Bryce Gilmore 2007
There are two possible views one could have: 1st. The major stocks still have
plenty of room to move up to catch up to everything else or 2nd. These stocks
are not moving up as quickly due to a perception they are already fully valued.

Nevertheless whichever you believe there is no denying that the market is
steadily going up, and so far does not look like falling down outside of some
scary corrections we are experiencing from time to time.

The trend in stock markets is not restricted to the USA alone as stock markets
world wide are trading at historic levels across the board; from Europe to
Australia and every possible major financial center in between.

These are interesting times we are living in to say the least; nevertheless as time
passes by and I progress with these daily chronicles you will see the advantage
in trading the markets ONE DAY AT A TIME using our PRICE ACTION METHOD.

There is no point holding an opinion of where the market will trade outside of
the current trading day if all you are interested in is making money.

The market will go up and down along the way to wherever it is heading no
matter what you think it will do long term.

Each day offers OPPORTUNITY to profit using our method and that is all I care
about. As we move along it will become apparent to you that believing what you
see and not what you think is the safest way to stay consistently profitable.
Chapter 1 9