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YMH2, (3, -1) formula, 3x Stretch profit, 26 January 2012


Hi,
January 26, 2012, The March $5 Dow (YMH2) futures opened at 12694 and 12688 was the previous settlement. 12656 was the first A session reversal low. If you had Limit at 12688 - Stretch = 12654, that was too low for a fill, 12688 - Stretch = 12654. But if you weren't greedy and placed a MIT a few ticks higher, 12660, you would have been long at 12660. The YMH2 long 12660 printed the (-1) of the (3, -1) formula. The (3, -1) formula strategy fades that first move, (-1) of (3, -1) and therein begins the count of three Strtch calculations in the opposite direction, i.e., (3) of the (3, -1) formula.
Stretch = 34
[Note: (The open, i.e., 12694 ... 12694 - 34 = 12660, correlated with the 1.618% of the Stretch measurement from the previous B session's reversal high into the 12656 reversal low, 12660),

12694 - 34 = 12660 .......... = Open - Stretch = 12660 (low = 12656)

12660 + 34 + 34 + 34 = 12762 = Fade + Stretch + Stretch + Stretch
12786 = high 26 January 2012
Namaste