MESSAGE FROM JACKO 439

It is 1.00am NY time Tuesday September 1 and the market is at 1.4350

Because it is a new month I will quckly re-iterate what I said yesterday:

I have my charts open to 300 periods of the 4H time frame.
The Resistance line. By linking up the highest points on the 4H chart from 1.4446 (Aug 5) , and 1.4406 (Aug 27) we can see that the Resistance line is currently at around 1.4380.
The Support line By linking up the lowest points on the 4H chart from 1.3832 (July 8) and and 1.4048 (Aug 17) we can see that the Support line is currently at 1.4150.
The 50% Fib line The nearest 50% fib is from 1.4048 (August 17) and 1.4406 (August 27) and is at 1.4225
From the above, we can see that the initial target on the downside is the 50% Fib at around 1.4225 and the longer term target is the Support line at around 1.4150. But if it bounces UP from the 50% fib, then we know the target is the Resistance line at around 1.4380. (NOTE The Support and Resistance line numbers will change marginally over time due to the slopes of the lines)

Ok,... now yesterday, the market dropped but only as low as 1.4256 (31 pips above the 50%Fib), then bounced UP to near the Resistance line at 1.4367.
Because I was not paying attention, and the market moved quickly, we missed the opportunity to get out at the 1.4260 level.... so we now need to allow the market to go through another drop to close out of this trade and get rid of it.... before it starts to mess with our heads.
So I am allowing the trade to continue to play itself out again. I still have a 100 pip fixed Stop Loss

Edit 3.05am NY time market is at 1.4364 I am now just letting this trade play itself out and waiting for the next down move in the trading cycle

Edit 7.00am NY time Market is at 1.4300 The market (as expected) went up again to the 1.4380 trend line reaching as high as 1.4378. Again, (as expected), the market bulls couldn't hold and it has fallen again. Our long term short at 1.4365 from Friday is looking good again (I apologise for not getting us all out yesterday and then we could have sold again earlier today).
I want to close this trade today.

Edit 8.00am NY time Market is at 1.4310 I want to close this trade today so I am looking to close out just above the 50% Fib line of 1.4225. I have a pending BUY order to close this trade at 1.4250.
(SMS sent at 8.15am NY Time) Now just waiting for order to be filled

Edit 12.10pm NY time Market at 1.4235 My BUY order to close my 1.4365 short trade has been filled. We closed that trade for a 115 pip profit.

Emails

Email 1
I noticed you dont do it personally, but i was wondering why we dont buy from the bounce on the 50% fib line back to the resistance line rather than waiting for the market to go back to the resistance line and then short from there. The 50% Fib is not as strong as a trend line...it is a good target, but not necessarily a strong turning point (not as strong as the TL)

Email 2
I am having a difficulty finding out how the market moves. I know the market moves up and down, but why? market expectations of where people think it should go
Also, why the market ranges? The market is full of traders all using technical analysis...the more basic the TA, the more traders are using it.. The more esoteric, or exotic, the TA, the less numbers of traders are using it . So the most basic (trend lines, round numbers and 50% Fibs) trading styles become self-fulfilling. Market ranges become self -fulfilling when traders realise where the price is heading.