16, 2005 Commentary (weekend edition)-
Well, as I
mentioned last week, it sure is a long, long time now between commentaries. I
got so desperate to share something I was looking at this week I posted it to a
forum. Now for all you forum readers, I'm not saying I just posted at the forum
out of desperation, but what I mean is I like to share my thoughts and such
with my core readership here, and I couldn't do that. So I posted to a forum
where those readers could see it, but my readers here couldn't. I don't think
Alas, though, that problem is about to come to an end. I finally
made a decision about the ongoing debate regarding a members section. Although
I didn't formally ask for feedback like I had planned, I have gotten enough
e-mail on the topic since I started this website to have a good handle on what
the readers think, and want. I decided to base my initial service on that
information, and see how that works.
I plan to launch this with the upcoming month
of February, starting, obviously, on the first of the month. I have laid out a
outlining the details of the service. I'm pretty excited about it. It will give
me the chance to post something the minute I mark up my own charts, if I so
I plan to post many of the setups before the potential trade area
is hit so the subscribers can see ahead of the fact what I'm watching. I'll be
able to update management changes when I make them. I will be able to discuss
anything and everything that I see or that I feel is of relevance to my ongoing
mission of providing good, solid trading education, designed to help traders
develop their own comprehensive 'Trading Plan'.
I won't have to 'hold back' like I
do in the free commentary. My target audience is my core readership; those that
have the books and feel I can help them. I get the same repeating e-mail over
and over about how much my books have helped him or her, and how I'm now top on
the list for their educational process. If you are one of those people, I think
this service is for you. This is a chance to hear my best thoughts, with
detailed references to the techniques and to specific pages in the
I can lay out the why of what I am doing in tutorial fashion, in a
timely manner. It won't be as timely as a live chat room, but then again I
won't be focusing on tick charts, either. I will utilize many different
timeframes, from tick charts to monthly charts, but I will have a lot of daily
and 60-minute charts with setups well in advance so they can be followed as
they unfold. I will be doing my 'trader talk' just like what so many have said
they love about the books, but this time where it can be followed as it
unfolds. This is a chance to listen to me on a frequent basis.
On top of all
that, I think this is a great chance for my international readers, too. I will
be accepting international PayPal for this service, so regardless of where you
are located, as long as it's on the long list of PayPal countries, you will be
able to sign up for this very conveniently. I know it has been a chore for my
international customers to order my books. I wanted to make this as easy as
Two quick things before we move on to some charts. Before you
e-mail me and ask if I have a 'free trial', please read this FAQ. The other thing is I know
I am going to get a lot of e-mails asking me for more details than I have laid
out on the membership page. All of these e-mails will come from those that
haven't bought any books, I suspect. Those that have my books know exactly
where I stand, and understand the value of my work.
are those that want it all for free (I believe you get what you pay for, or at
the least that if it's free it's almost always worth about that much). They
will send me endless e-mails asking about what is in the service, how it
compares to other's services, how the price isn't right compared to what this
or that other service does, telling me how great this or that other service is,
how they give free trials, and so on.
Please don't send me those types of e-mails.
If you don't have the books you are still welcome to sign up, and you will
likely be able to glean a lot more of what I do from the service than what you
could from the free commentary, but without the books you will only have bigger
pieces without the full understanding of what it is I am trying to show. It
really makes no sense to sign up for a reason like that (Hey, I can sign up for
one month, get all the info, and quit. That's a better deal than $400 for all
the books.), as you will not learn what is in the books that way, trust
My target audience is those that want more from me. They send me
e-mails asking if I have anything else, or if I can offer anything else. That's
why I created the phone support offering, and the mentorship and course. This
is one more option, and a convenient one for those that aren't ready to fly to
my area for a mentorship. It's a way to see me apply the methodology in a much
more timely fashion than the books, on an ongoing basis, with a lot of
discussion and explanation thrown in.
Those people won't have very many questions
for me except 'Where do I sign up?' They won't need a free trial, they'll want
in immediately. They won't have to send me endless e-mails trying to prove to
me how so and so is a much better deal, or how my stuff really isn't all that
useful or unique (even though they have only read a small selection of free
commentaries!). They know the value of my techniques and insight to them, and
that's all they need to know.
Now, I'm sure some people are wondering why I
am going on and on about this, and maybe a few will advise me that I shouldn't
be so 'personal' like this 'in public'. They'll tell me I'd probably sell more
stuff if I were more 'tactful'. Ah, well that's the point. Those that know me
and follow me closely appreciate my no punches pulled, straight shooting
approach. I'm telling it like it is, regardless of the consequences.
There are a
lot of people out there that aren't part of the target audience, and although
they are welcome to sign up, all the information that I feel is needed to make
a decision is on the membership page and in what you have learned about me from
the books and the large stockpile of free commentary and free articles. If your
response to what you read on the membership page isn't along the lines of 'Wow,
that's what I've been waiting for, it's about time. This is great. I'm
in.', then this service likely isn't for you.
If you have to think and think and
mull it over, and try to get me to prove it's better than this or that, you
aren't in the target audience. I won't try to say any more about the service
than what I already have. (If you do have an obvious question about the service
or the sign up that I just didn't think of, don't be worried about asking me,
though, that's not what I mean here.)
I'll stop at this point, as I think I have
set a new world record on verbosity and the beating of a dead horse. I truly
think that this is going to be a really helpful service, and I'm looking
forward to sharing my innermost trading thoughts. Keep an eye on the What's
New page for updates as the launch date approaches.
Let's look at
some charts. I'll show what I posted to that forum. I saw a setup forming in
all the indices at the same time. I looked over the 'context' and I felt it was
a key setup and area. What was most important to me was what happened with this
area, not just the one potential trade I may get out of it. I wanted the one
trade, but in the larger 'context' I wanted to see what happened there. That
would tell me something about the market's larger scope intentions.
I'll show this in the DIA, although
my main focus was on the ES. The traded timeframe was the 15-minute
This is the point where I posted to the
forum, but I had the area set up shortly after the C point was formed. (In the
members section I would have posted this well before the point shown on the
chart.) Notice the time symmetry, too. Also note that incredible rush up into
the potential trade area, and think about how most people are thinking at that
point. Does that bar look like a sell?
I started to see many other things coming
together here, too. Let me add some more data, and a few lines, to the
I drew a line in from two swing-low points,
and cloned that to make the top line. I dropped it down to meet the swing-high
point you see in the center of the chart. This was done as soon as that bottom
point was formed. It hit right at the grouping area. Then I saw another
I added a very 'unorthodox' line in just
because of where it hit. Although not a regular part of my methodology, if I
see something curious, I add it in. This was curious. And although it isn't
shown this way here, everything so far was on the chart as soon as the C point
was formed. Now I'll add in some median lines and parallels.
The chart is getting a little bit hard to
read, but bear with me. I added on two sets of median lines and parallels that
I had on the chart from before. Notice that two lines hit right at the
potential trade area. There is at least one more set that has a key line also
hitting right there, but I can only show so much before the chart is too hard
to follow in a venue like this.
The point is that this was a very key area
for me. Now it should be clear why this area was a lot more significant to me
than just the one potential trade. Take a look at the 'context' and make an
assessment. See if you can see what I am looking at. I'll finish by showing the
reaction to the area.
The chart is a bit cluttered, but just take a
look at how the DIA came off that area. All the indices responded in a similar
manner. This is the methodology at its finest. Notice the structure of the only
pullback of size in that downtrend off the pattern? Hmmm, looks
That's it for now. I'll be back next weekend with another free
commentary. I hope the reaction to the new members offering is very positive,
as I have put a lot into that, at the request of many of my serious readers. It
will be done with the same Kane Trading quality that you have come to
The next free commentary will be next weekend's edition, posted by
Sunday, January 23.
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