A. T-bonds Trader Control data: July 30, 1996: Bracket

B. July 31: Breakout Up

C. August 1: Trending Up

D. August 2: Trending Up

E. August 5: Trending Up

F. August 6: Trending Up, 3 Day Congestion Developing

G. August 7: Trending Up, 4 Day Congestion Developing

H. August 8: Bracket

I. August 9: Bracket

Month 8: The Commercial Trader & Volume Analysis

Introduction

A. Commercials Re-Balance the Market

B. Commercials Go-With Trending Markets

C. Limited Risk Trading

D. Measuring Commercial Activity

E. Three Quantitative Measures of Commercial Activity

VOL/PRICE TIC

VALUE AREA

QUADRANT

F. Example for the soybean oil

Month 9: Review of Reference Points

Index

SECTION 1. Reference points

***** Data from Trader Control database *****

1. Bracket Screen of trading candidates

2. Visual check of the selected Overlay. Is it regular?

3. Overlay reference points

a. Bracket limits upper/lower

b. Octants upper/lower

c. Bracket value center price (midpoint)

d. Bracket value maximum TPO price

e. Location of close (quadrant)

f. Overlay consistency (if trading 10 day brackets,

5 day must be in bracket or newly trending

g. Observe shape of Overlay (more than 1 apparent dist?)

h. Locate earliest and latest action (Rotation Profile)

i. Gaps in Breakouts

j. 'Nodes' in trends

4. Reference points plots: Overlay, Visual Graphics

4A. NOTE: Steps 2, 3, 4 are easy to do on Visual Graphics

5. Determine your acceptable risk (octant, $ value, other)

Determine your minimum bracket (5, 10, 20 day).

6. Check Rotation Index/Quadrant of Close (Internal Trend)

(Balanced markets only)

7. Check commercial activity for capping or trading-with

8. Second set of reference points from Day Market Review

a. Open

b. High - low range

c. Close

d. Day (profile) point of control (POC)

e. Value area, today & yesterday

f. TPO's total

g. TPO's above POC (less is bullish) (Mkt Prof Theory)

h. TPO's below POC (less is bearish) " " "

i. Trade Facilitation Factor

j. Shape factor (less is better) " " "

k. Volatility

l. Total volume

m. Commercial volume

n. Public volume

o. New highs - lows, % high

*p. Initial Balance

*q. Initial Balance range, Close location, Pct of total

*r. Value Area range

s. Attempted direction

t. Value Area direction H, A, Z, L or blank

* Items added June 1997

d. Value area wider or narrower

e. Value area location in Overlay (higher or lower)

l. Ratio: Public vs Total (you calculate)

p. Initial Balance

9. Check half-hour bars for consistency

10. Set your entry price and conditions for entry, stop

11. Set your target if trading responsively

12. Do not change your strategy during the trading session!

B. Use of Reference Points

Details of Continuation

SECTION 2. Data

A. Trader Control Package

B. Market Review (New)

C. Market Profile

D. Liquidity Data Bank

SECTION 3. FAQ-E on Reference Points

FAQ Index

A. General

B. Futures Data

C. Market Generated Data: The Market Profile (tm)

The Liquidity Data Bank (tm)

D. Market Generated Data: Overlay Demand Curve (tm)

E. Reference Points

F. Home Study Course

G. Trader Control Package (TCP) (tm)

H. TCP Visual Volume Graphics

I. Data Retrieval, Viewing, Printing

Reference Points

Home-study first quarter reference points:

Market Condition: Upper/Lower Limits, Upper/Lower Octants, Middle

Internal trends in bracketing markets

Commercial price action

Pauses in trends (congestion)

End Index

Pink Handout "Lesson 1 on the Visual Graphic"

** You can get the information on this diskette from the Internet.

Home Page: http://www.cisco-futures.com

Get the account and password from CISCO.