WHAT ARE BOTs ?

From time -to-time a question comes up about the BOTs.  Frequently, the question shows a confused understanding of what the BOTs are actually reporting.

 BOTs are not used for trend or channel BO's, or similar BO's.  Traders can point to numerous BO's of this type that fail;  fail enough that it is difficult to correctly predict when one will not fail.  Most will wait for a clear BO, then participate on a PB.

 BOTs are calculated prior to the market open and are used to segregate the market into three zones:  Bullish, Neutral, and Bearish.  The "break out" in  Break Out Targets (BOTs) refers to the calculated price points that professionals will move the market into the Upper Trading Range (Bullish) or the Lower Trading Range (Bearish).   A LB BO is that point that suggest the bulls will push the market higher, and the SB BO is the opposite, the bear sell off.  A failure at the BOT or a reversal from a TR into the BOT is expected to run to the opposite range.

In the current market, a BOT BO is expected to trend for +5 to +10 for the ES.  Today it hit early in the trading day, then was available later in the PM when we discussed a trade where the EMA had moved into the UTR and price held at the Long BOT.  Price was expected to move higher to test the 50CB level.  Today, we see 50CB setups at the +5 and +10 levels.

BOTs look at the BO in the market.  The point where the bull or bear will take command.  No questions about entering above or below a bar, or is B4 a XYZ or a ABC.  No bar counting, or is the MACD positive, nor any of the host of trading techniques/systems/indicators.  I was reading some commentary, and it usually goes like this: "" shoulda went long at x; this looks like the low  going long here";  more low.  The point is, most traders, and I assume they are trading, seem preoccupied with the high or the low or what is bar 4 doing. Just seems like too much confusion and doubt, and that is not healthy for trading.  This discussion goes on when price runs to a BOT, reverses at a BOT, breaks a BOT, or rises/declines to a BOT where it often stalls and reverses.

 BOTs take away the confusion, the doubt.  If a reader of this blog has not seen that, or practice with the BOTs, then there is nothing else to say.  You will try it or you will ignore it.