What actually happened was that the price peaked at 86 in March and then headed

What actually happened was that the price peaked at

This preview shows page 171 - 174 out of 263 pages.

peak around $90 two months later in March. What actually happened was that the price peaked at $86 in March and then headed back down. That was pretty close to our educated guess. The next run-up started at the Support Price of $78 in April 2007, and again, we’d estimated about a two-month run-up to Resistance at $95. And that’s what happened. This repeated pattern told us that BNI traders were psychologically tuned to about two months of upward price moves and a price change of $12 to $17. So we expected something like that for the next breakout. That’s why, as the price went through the $90 Ceiling, the Big Guy traders began to think about $102 to $107 as a top. As you can see in the graph, it made it to $112, which then became the new Ceiling. Then the price came down fast, hit $90, and bounced. The old $90 Ceiling had become the new $90 Floor.
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The $90 Floor held, as did a $112 Ceiling, for a total of six months. Then in October, the price broke through the $90 Floor and headed down. In this final picture, we can see the FACs that BNI made on its price journey from 2004 to 2009, including the big price drop through the $75 Floor. As the stock market crashed in late 2008, the price of BNI also crashed down through our MOS Price of $72. As it went through $72, the FACs kicked in and, given previous distances between Support and Resistance, we could see the price was likely to fall to about $60. As it bounced off $60, it was time to buy. Then (and again I know this sounds cruel) we waited and hoped for another big drop.
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The price bounced off $60 in January 2009, climbed up from $14 to $74 in a bit less than two months, and then plummeted through the $60 Floor. Where was it going? Probably down the next step to $50, right? In fact, it went down to $51, started up, and that triggered another buy. This is the power of having the FACs. Without the FACs, we have only value and price to determine when to buy. We would buy as soon as the price hit our MOS of $72 and, using the MAC method, buy more in a month. But with FACs, we can pick a Stockpile Price and not be worried we’re going to miss buying at a good price by trying to wait to buy at a great price. We can see the great price coming and wait for it with a good deal of confidence. As FACs form up, we’ll sit tight and let the price test the Ceiling. If it bounces off the Ceiling, we can hope it will break down hard enough to blow through the Floor. And if it does, then we look back at previous price ranges and times and we’ll have an educated guess about how long and at what price to expect that Floor to stop the price drop. If it cracks our expected Floor, then we just set a new Stockpile Price at the new expected Floor. Obviously, a general market meltdown is a big help, and a general market meltdown isn’t at all impossible in these times. Hey, we can only hope. I know that sounds cruel. I don’t mean that in a mean-spirited way. I
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