SPECIAL UPDATE: “THE TEACUP HANDLE TURN”

 

“If the shoe fits, wear it!”

The Addendum To “Scalper’s Algorithm: The Final Solution”, “The Teacup Handle Turn”, is now available over in the right-hand column under “Download Links”. Briefly, for those that don’t know, all the files in the “Download Links” section come from my shared file folder at box.com, and are available free to anybody; simply decide whether you want to view online and/or download to your device. In addition for you chess fans out there, I’ve also added my “Super Duper Chess Library: Part II” as well. Between the original and Part II, there are well over 1GB of chess readings, spanning approximately 200 different books, ranging from rank beginner to grandmaster level. I hope you enjoy them as much as I do.

The Addendum is a fairly simple file, only 7 pages in length, and covers the current bull market in EURUSD; at some point in the future, when a bear market shows up, I’ll update the file and present bear market information. I would only add, to spend some time looking at the two examples of EURUSD from last week that I use in the file, and make sure you understand how important it is for price to “attempt” to continue to move lower and the effort fails … whether it fails 1) at the same low, 2) a little higher, or 3) even a little lower, the point is it fails, and starts to rally. In a nutshell, that’s “The Teacup Handle Turn”, and I give it that name cuz usually, when it starts climbing from the low [interim low or in some cases the day’s low], it parabolically starts climbing like the handle on a teacup. Flip the teacup over, and in bear markets, what starts out slowly usually turns into some kind of parabolic waterfall … again, just like the teacup handle.

As I point out in the file, first we need to establish what kind of market we are in … bull, bear, or neutral … sometimes it’s easy, sometimes not, but we need some kind of empirical evidence to back up our claim that EURUSD is, in fact, in a bull market. Second usual criteria, is the fact, usually through observation in your daily trading, that the algorithm is not performing well cuz it’s too slow to capture the turns, and way too many times price is already 10 – 20 PIPS higher before we get a “buy signal” on the M1 … which is fine as long as it continues to go more, but when it doesn’t it exacerbates the loss and exponentially raises our risk profile to levels I find unacceptable. Third, I point out, and it’s important to be cognizant of this, the vast majority of “The Teacup Handle Turn” formations will be at interim lows, not the daily low or new daily low. Most times a new daily low will bounce off other candlestick formations I cover in the file.

As always, the 50% retracement line remains important, as well as “situational awareness” of the daily range, and what to expect next; a new low to buy, in my opinion, is much better with a daily range of 80 – 90 PIPS, than one with a daily range of 45 PIPS, that occurs early in the trading day. That 45 PIP low is either going to go lower, or reverse and cross the 50% retracement line and go higher; it makes sense to me, that other things being equal in a bull market, the 45 PIP low has a higher probability of going lower than the 90 PIP range low, and would be a better scalp candidate. Of course, sometimes it doesn’t work out that way, but the important thing to remember is “situational awareness” of the things in the marketplace that are going on that might influence the price of EURUSD going up and/or down.

If anybody has any comments/questions about “The Teacup Handle Turn”, email me and I’ll get back to you ASAP with a personal response. Thanks for reading my work, and enjoy the file!

   

Have a great rest of your weekend everybody!

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