I had a trader ask me the above question. It is a very good question. So I am going to answer it as precisely as possible – and as simply as possible.
Those TBL lines represent probable future points of support or resistance.
Price oscillates over time as traders buy and sell a market.
Those oscillations vary in magnitude with the time frame in which you choose to trade.
Price often oscillates between points of support and resistance.
Having an idea where those future support or resistance points are is a powerful tool for constructing and monitoring a trade.
Entering a trade in which the oscillations are likely to be of small magnitude make it very difficult to make a profitable trade.
Trades can be constructed on an assessment of probability – or on hope.
A profitable trade requires an oscillation magnitude sufficiently large enough that 80% of it equals at least twice your risk, PLUS the spread PLUS any commission. Trading lesser magnitude oscillations is an invitation to ultimately losing. Good trades are the result of good assessment of the probability of success.
TBL lines are a critical tool in that assessment.
Of course, you do not need TBL to trade on hope. For that you need luck.
However, if you want to assess probability for future oscillation magnitudes, those TBL lines are very valuable.
Along with my other indicators for monitoring trend and market momentum, TBL lines give me the edge to consistently make money in the markets. I have never seen a market that the TBL lines do not apply to over time.
I have been using them for almost twenty years – and they still perform magnificently. You have to learn to use them – so they are not idiot proof – but the market chews up and spits out idiots on a regular basis.
TBL is available to any trader in any market at a very low price. It is an incredible value -if you take the time to learn to use it.
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Author & Trader
Thanks for the method !! Very solid, very logical entry and exit and genius SRV’s !!Denis DRussia
Great system – couldn’t trade without it !!Frank YDavid, Panama
the SRV’s are spot on !!Tom CUSA
I trade the US Bond Markets exclusively – amazed at the accuracy of the SRV’s !!George SNew York, NY
“The SRV’s are amazingly accurate”.Tony Texas
….very impressed with the whole philosophy – both personal and trading, expressed in the book. I will read and revert !!Richard DUSA
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