Livermores Market Key

[barjon]

Bramble:

You know how strong my belief is in the Market Key. But it has just totally left me speechless. I literally cannot believe what I am seeing. Someone just asked me to give them a stop for a long term trade long in Barclays based on the Key.

I asked him for the recent extreme high. Take that price and move the decimal point one place to the left to make 38.24 (stocks over 30) Subtract the natural reaction of 6 points: 32.24. Subtract the penetration filter of 3 to make 29.24. (at this point the path of least resistance changes) Move the decimal place one place back to the right: 292.4

Pull up a chart of Barclays on the Daily. Look at that price.

Tell me: is there a universal mathematical formula to chart the markets just needing the extreme highs and lows of each day?

Did Livermore know it?

And did he reveal it?

td

It's always that natural reaction "6" figure that gets me - 'course he does stick an "approximately" caveat in it all the time .

jon

 

[trader_dante]

td

It's always that natural reaction "6" figure that gets me - 'course he does stick an "approximately" caveat in it all the time .

jon

Yes the approximation makes it difficult and requires discretionary imput. But what baffles me more is why everyone that has studied the key converts the parts that are concrete - the number 6 and the number 3 into percentages.

$6 in a $30 stock is not 20%. It is $6.

Why this should be so is one of the greatest mysteries to me of all.

 

[london_lad]

Hi TD, how are you great man. Btw, just to add the spookyness. Remember, how S&P turned around from 666. I dont know what this Market Key is all about, but will start reading up on it. I have just started reading RSTO at http://stockvision.org/books/Edwin_Lefevre-Reminiscences_of_a_Stock_Operator-EN.pdf

 

[rawrschach]

How do you figure the 6 point reaction rule into FX?

 

[trader_dante]

How do you figure the 6 point reaction rule into FX?

I don't.

 

[rawrschach]

I was asking TheBramble