The 3Dimensional Trading Breakthrough

The 3 Dimensional Trading Breakthrough
5. Determine the Volatility Expansion % range of the prior day’s session
by multiplying the range by its appropriate decimal value. This value
is what you will have written down on the worksheet, standing for
tomorrow’s day session open (DSO). Alternate: Have a trendline
breakout value instead.
Prior Day’s
High
Prior Day’s
Low
Day Session
Range [high
– low]
% of Range
to Buy/Sell
Tomorrow
.7640 .7640 .7640 .7640
.7590 .7590 .7590 .7590
50 points 50 points 50 points 50 points
28 points
55% of range
[.55 x range]
35 points
70% of range
[.7 x range]
55 points
110% of
range
[1.1 x range]
75 points
150% of
range
[1.5 x range]
6. Now we must wait for the DSO for tomorrow’s trade. Once the market
opens, I will take the volatility expansion % ranges and both add and
subtract that value from the opening price. Here is the importance of
coming up with these two prices from the DSO.
First, once the market opens, I will immediately record that price on my worksheet
and compare today’s opening price with yesterday’s high and low prices. I am
specifically looking for a classic Larry Williams “Ooops” buy or sell signal. If I am
long going into the new trading session, and the market opens above the prior day’s
high, then I must be aware of the potential Ooops sell signal. It’s just the opposite
if I am short going into the session. If the market opens below the prior day’s low,
then I must prepare for a possible Oops buy signal. The opening price will tell you
immediately if there is a potential gap reversal (“Ooops”) trading signal.
Second, if the trend is up, and the market moves up a certain volatility expansion
percentage above the open, then this tells me that there is continued/renewed
buying interest in this specific contract. If I am long, I am going to “hold what I
got.” I will then recalculate my plan for tomorrow once the market closes, or if the
market later turns around in the session and moves to the volatility expansion %
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