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TRADERSWORLD
www.tradersworld.com | Jul/Aug/Sep 2016 Issue #63
A Winning System
Fundamental Analysis
Sacred Science 17 Created in the U.S.A. is prepared from information believed to be reliable but not guaranteed us
without further verification and does not purport to be complete. Futures and options trading are
Sacred Science 18 speculative and involves risk of loss. Opinions expressed are subject to revision without further
notification. We are not offering to buy or sell securities or commodities discussed. Hallikers Inc.,
one or more of its officers, and/or authors may have a position in the securities or commodities dis-
Dan Zangers Chart Pattern 19 cussed herein. Any article that shows hypothetical or stimulated performance results have certain
inherent limitations, unlike an actual performance record, simulated results do not represent actual
trading. Also, since the trades have not already been executed, the results may have under - or over
Sacred Science 24 compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated
trading programs in general are also subject to the fact that they are designated with the benefits
Kjtradingsystems.com 25 of hindsight. No representation is being made that any account will or is likely to achieve profits
or losses similar to those shown. The names of products and services presented in this magazine
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Contents
The Power of Ensemble Forecasting by Rob
Hanna 85
TRUST: THE HEART OF DISCIPLINE By Getting Past the Fallacy of Almost There: What
Adrienne Toghraie 41 It Really Takes to Create Success in Trading
Two Worlds Collide When Trading by Rande
OBJECTIVE WAVE ANALYSIS by George Krum Howell 118
by George Krum 45
Trading range psychology and the Great
Profitable Trading with Binary Options by Gail Malaise by Clif Droke 122
Mercer 51
How to Automate Your Trade Signals by Steve
The EUR/USD: The Big Picture by Jaime Wheeler 126
Johnson 53
SIZE MATTERS by Al McWhirr 131
FUNDAMENTAL ANALYSIS. By Jacob Singer 58
Pattern Trading Tools by Duri Duddella 135
Gold Buy Signals by Stephen Kalayjain 62
What The Professionals Know and You Dont
High Probability Price Prediction for Trading and -- One of the Best Kept Secrets In the Financial
Investing by Thomas Barmann 66 Trading by Andrew Pancholi 144
THE NEWS & INFORMATION: HOW IT EFFECTS Trade Chart Patterns Poster 148
THE GLOBAL FINANCIAL MARKETS by Samuel
Bassey 78 Master Trader Course Review by Larry Jacobs
150
Elliott Wave Analysis
Case Study + Fibonacci of United Technologies Amazon Kindle Books 152
by Peter Goodburn 81
The intent of this course is to provide a trading strategy that Low risk, high reward trades averaging
allows for large returns from low risk investments. Trades 1:10 risk:reward ratio!
have an average risk:reward ratio of 1:10, with a Trade setups with minimum 500% return
minimum return of 500% per trade to maximum returns & average 1000% return!
exceeding 5000%. The strategy employs powerful, straight BIG trade setups return 2000% 5000%
forward analytical techniques explained in Ganns How to when they hit!
Make Profits in Commodities to identify high value trade Uses simple Gann-based analytical tools,
setups which can be employed using highly leveraged easy to learn & apply!
options strategies to generate large but safe returns. Strategy works with small trading
accounts to make big gains!
The analytical techniques and strategy taught in this course Uses classical Gann risk management and
do not require any prior Gann knowledge or any past account management to produce the BIG
trading experience. They can be easily understood and returns like those Gann is famous for
applied by any trader, new or seasoned, to great effect with A simple technique for beginners a new
very little time or difficulty. The strategy is based strategy for seasoned traders!
upon leveraged position trading so requires little time or Online Forum for Q&A, and also for
effort to manage. Minimum capital requirements are very ongoing trade analysis and identification!
low, so someone with an account as small as a few $1000
can effectively implement this strategy. 463 Pages - Online Student Trading Forum
STATEMENT OF INTENT
HOW TO TRADE LIKE This course presents a detailed analysis of the entire
W. D. GANN sequence of 322 trades from 1915-1931 presented in WD
Ganns US Steel trading course. The specifics of these
trades and of Ganns Mechanical Method provide profound
An Exploration of the Mechanical insights into the mind of one of the greatest traders of
history.
Trading Lesson on U. S. Steel With detailed charts accompanying the analysis, the
reader will discover great insights in reading market action
BY TIMOTHY WALKER and learn to understand the specific rules and triggers that
2 VOLUMES - TEXT & CHARTS Gann used to manage an account through every phase of
market activity.
SUEDE HARDCOVERS - ONLY $595.00 This course shows how Gann could turn a $3000 account
GANNS MECHANICAL METHOD TRADING into over $6 million in 15 years. But it also shows
extraordinary returns in shorter trading periods. For
SYSTEM APPLIED TO THE MODERN S&P500 instance, from his initial investment of $3000 in February
1915 until October 21 of the same year, Gann produced a
IN 2014 PRODUCED 570% ON A $5000 E-
1,337% return increasing the account to $40,123.
MINI POSITION IN ONLY 3 MONTHS! GANNS FAMOUS SWING TRADING SYSTEM!
Once upon a time a man uttered a phrase that went something like, May you live in interesting
times. He didnt define what is and isnt interesting. His wish was probably a curse but it is
interesting all the same. I propose that all times are interesting in some way and to someone.
For traders, however, some times are very much more interesting than others.
Another man said, Practice makes perfect. He didnt tell the whole story either. Surely he realized
only perfect practice makes perfect. If a trader practices with poor methods or techniques, they
end up with a mastery of poor methods and techniques. They probably end up poorer for the
experience too.
As traders, we get to make choices regarding which methods and techniques we study. We get to
decide if we keep a method as being valuable or we get to cast it aside as worthless. For example,
not many people will choose the trading methodologies of Bernie Madoff for their thesis. However,
we can practice things the great masters of the past instructed us to practice.
Many of us become students of W.D. Gann (he was/is a fascinating man). But there is a problem
that comes with proper study of Mr. Ganns many works. It literally takes decades to study his
decades of study. Thats logical I suppose. He almost requires it of his students. But we can boil
his teachings down into less time consuming studies.
Mr. Gann told us he used natural laws. I believe he showed us that markets tend to vibrate. In
my book Market Vibrations, I show modern-day examples of his teachings at work. 60 years past
his death, his teachings still echo into new reality as time passes. He said they would. Ive proven
him to be correct. He spoke of a Law of Vibration. The fact is that most everything vibrates. From
violin strings to cellphone communications, from magnets to bean prices to atomic hydrogen,
from rocks to galaxies vibrations are EVERYWHERE/EVERYTHING. Any true law should cover
everything.
Last March, my new book was released and it included a number of market setups that I was
watching and preparing to trade, all of which were shared with the first purchasers of my book,
since they were included in the book. Since then a number of these trades have taken off and
earned us some profits, enough profits, in fact, to have paid for the entry cost of my book for
those who played along and followed these clear signals. In the Online Forum for the book, we
discussed each of these trades and their setups, so that people can learn, hands on, how to
evaluate potential trades.
It was my hope that we could circle back to this at some future date and show you that Im not
making this stuff up on the fly. This was a public domain trading setup posted online that coincided
with the books release. All the following charts can be verified to have been posted in March at:
www.sacredscience.com/Roberts/Market_Vibrations_Author_Samples.htm.
Beans were basing and allowing accumulation to occur. They were also at buying points per my
research into Mr. Ganns work. Mr. Gann tells us how to think about these things. We need to be
patient sorts for these types of long-term trading thoughts.
Heres the updated bean chart as of 6/9/2016. Weve just passed Mr. Ganns Birthday. I try to
honor Mr. Gann throughout the year but his birthday is special. It was also D-Day of World War II.
But thats beside the point here. For Beans, from the low I identified to the recent high has been
around $14,800 (34%) per contract, if you were trading the commodity contracts.
I generally advocate attempting to avoid trading the commodity contracts while attempting to
grow my trading leverage a bit with other vehicles like options. Options also help me control my
risks but they can be illiquid markets.
In those same marketing materials, we also posted a recent buy candidate for Chipotle Mexican
Grill (CMG). Here is that original chart posted on the same page online in March
The next chart is from 6/10/2016. CMG has run up nicely and youd have needed to manage your
trade to protect profits. From the low to the high, the market advanced almost 36%. Thats not a
Another decision point is almost upon us. We could have a double bottom here. Honestly, Mr.
Ganns teachings have me happy to end up either long or short in this situation. Whatever the
direction, odds favor a nicely tradable move. My book explains how to approach such a trading
point and to read it as a specific setup, providing a clear strategy to take advantage of the next
move whichever way it goes.
In the same initial marketing materials, we also included an Apache Corporation (APA) chart. It
didnt elaborate publicly that we should have already been thinking about long trades, but it has
been further discussed in our Online Web Forum. However, anybody who has read my book should
have been thinking about the trading setup at the lows.
I also spoke of BABA. Thats the Chinese ALIBABA. On that chart I also didnt provide the specifics
publicly. But I was providing hints. BABA was interesting or it wouldnt have been in the marketing
materials.
From bottom price to top price (thus far), thats around a 45% increase. If this one convincingly
breaks upward, it might present another interesting point to enter a long trade.
Heres is what has been happening with Crude Oil. I was long Crude from near the bottom, though
this was before the book was released. Finally, it has reacted in accordance with Mr. Ganns
teachings. From low to high is a 52% increase so far. This setup was also covered in pretty good
detail in the book for a few reasons.
Please note that some trades will lose. Thats part of reality. You need to approach losses like they
are a business expense. First, you have to define your business properly. Expenses are a lesser
part of profits. Losses are needed to help you understand gains.
Dont try to kick your way through a dark room filled with bedposts and ottomans. Markets are
designed to break toes that way. Television and news and subscription services probably dont
serve you well. They make their money off you trying to trade rather than them trading. Think
about it. You need to learn to make your own decisions.
You can learn some very simple things. You can then try to build them into your psyche. Its up
to you. It really is your choice. I cannot guaranty your success. Mr. Gann said that these proper
techniques and strategies pretty much ensure success. However, reality says that it really is up to
you and your ability to play the game.
I should note that my presentation above used the absolute top and bottom prices. Those are
THEORETICAL values for trades. Youll have to make your own entries and exits for whatever
market you choose to trade. Your returns and my returns will be lower than those values if were
following the rules.
I struggle to find the best trade for each trading situation. I can hunt home run trades. They are
out there to be found all the time. However, they arent what I consider to be the wiser trades.
After all, we can also hunt the types of market vibrations that Ive highlighted here. If you ponder
the potential, it really can be pretty hard to lose money if you catch 25%-85% market moves a
few times per year The charts above demonstrate that such returns can be found in only a few
months, if one knows where and how to look.
We will continue to post further updates of these trades and others that we have given in the book
or the Online Forum as they progress, since many of them are still in progress, being longer term
trades.
Gordon Roberts
Web: www.sacredscience.com/Roberts/Market_Vibrations.htm
Email: institute@sacredscience.com
FOR A DETAILED WRITEUP ON GOULDENS COURSE INCLUDING CONTENTS, SAMPLE TEXT & FEEDBACK SEE:
WWW.SACREDSCIENCE.COM/GOULDEN/BEHINDTHEVEIL.HTM
TECHNICAL ANALYSIS REVISED! Dr. Gouldens advanced technical trading course Behind The Veil
presents powerful trading techniques based upon the deepest
BEHIND THE VEIL scientific and metaphysical principles applied in a different way
than courses in the past. It unveils many mysterious and difficult
AN APPLIED TRADING COURSE USING theories and applications similar in approach to those of W.D.
ADVANCED PRICE/TIME TECHNIQUES TO Gann and shows a tr ader how to use these pr inciples to
successfully analyze and trade the any market on any time frame.
PROJECT FUTURE TURNING POINTS...
The techniques developed by Dr. Goulden will teach traders how to
BY DR. ALEXANDER GOULDEN identify future pivot points following which profitable market
FORECASTING RECORDS moves ensue. All of the timing tools needed to forecast these pivot
points and the geometric tools used to identify price entry and exit
DR. GOULDEN PRODUCED 7 FORECASTS points, and to determine the nature of the ensuing trend are
IN 7 DIFFERENT MARKETS. HIS RESULTS demonstrated in the Course. Based upon a deep level of
WERE IMPRESSIVE, 7 OUT OF 7, metaphysical and cosmological insight, these techniques identify
PRICE LEVELS, TIME TURNING POINTS, AND TRENDS,
YIELDING 3,161 POINTS IN 7 DAYS, WITH though proprietary HARMONIC, ASTRONOMICAL &
7 TRADES, IN 7 DIFFERENT MARKETS! GEOMETRICAL techniques developed by a Cambridge scholar.
FOR A DETAILED WRITEUP INCLUDING CONTENTS, SAMPLE TEXT & CHARTS, FEEDBACK & MORE SEE:
WWW.SACREDSCIENCE.COM/PRANDELLI/LAWOFCAUSEANDEFFECT.HTM
Prandellis Polarity Factor System forecasting
PRANDELLIS NEW TRADING COURSE! model is based upon the power ful insights of the
THE POLARITY FACTOR SYSTEM great market master, W. D. Gann, and particularly
upon his Master Time Factor, presented in one of his
AN INTEGRATED FORECASTING & TRADING STRATEGY rarest and most secret courses. Prandelli has
INSPIRED BY W. D. GANNS MASTER TIME FACTOR redeveloped Ganns Master Time Factor and
created proprietary software to create yearly forecasts
BY DANIELE PRANDELLI of the market with an accuracy similar to that
Black Suede Hardcover 242 Pages & Software produced by Gann in his Supply and Demand Letter,
almost 100 years ago. This PFS timing technique
CREATE DIRECTIONAL TIME FORECASTS forecasts market tops and bottoms with a high degree
LIKE WD GANNS IN MULTIPLE MARKETS of accuracy, giving clear directional indications. It
also includes a sophisticated risk management system
S&P, CORN, WHEAT and strategy to trade the forecast, which Prandelli
FOR A DETAILED WRITEUP & EXAMPLES SEE: uses for his own trading. Integrates seamlessly with
WWW.SACREDSCIENCE.COM/PRANDELLI/PRANDELLI- the Planetary Longitude lines from his first course.
POLARITY-FACTOR-SYSTEM.HTM
Over his 50-year trading and advising career, W.D. Gann developed approximately 40
different trading tools, calculators and/or mechanical methods to trade the various stock,
options and commodities markets. Gann was a prolific writer and published six market related
books beginning in 1923 with The Truth of the Stock Tape, 1927s The Tunnel Thru The Air,
1930 Wall Street Stock Selector, 1936 New Stock Trend Detector, 1937 How to Make Profits
Trading in Puts and Calls, 1941 How To Make Profits Trading in Commodities and 1949s 45
Years in Wall Street. In addition, Gann published and released several very expensive private
courses ranging from $1500 to $5000 that sold from the early 1920s to 1950. Several of the
private courses pertained to a specific trading approach based upon a swing indicator and
chart formations that Mr. Gann considered to be low risk, high reward opportunities.
Todays technical analysis has a large variety of recognized chart patterns. Some have
colorful names like the cup & handle and black swan formations. Most of the simple patterns
Gann highlighted were useful for identifying relatively low risk entry points on his mechanical
swing style charts. Over his career, Gann sold a number of these courses under different titles
that each used the same Mechanical Method and Trend Indicator, which in essence was a
simple swing charting approach. He sold a version for Wheat-Corn-Rye and Oats, a version
for Cotton, one for Stocks, Soybeans, etc., but each course is essentially identical other than
the title marketing to a specific market audience.
The swing indicator is used on multiple time frames to determine the trend of the market
and aid with stop loss placement and pattern recognition. This indicator is used primarily on a
1-day chart for the minor indications and a 3-day chart as the higher time frame for the main
trend. That said, Gann also recommended to chart the swings on a weekly chart and monthly
chart. The monthly chart should go back 15 to 20-years so that all of the important tops and
bottoms can be easily seen as well as the old levels of support and resistance. Gann taught
that chart formations that developed over several weeks, months or even years where of
much greater significance that those registered by the 1-day or 3-day swing charts.
(1) If todays high is greater than yesterdays high and todays low is greater
than yesterdays low, move the Trend Line up to the highest high.
(2) If todays low is less than yesterdays low and todays high is less than
yesterdays high, move the Trend Line down to the lowest low.
Many software programs and trading platforms have several swing indicators that allow for
this specific type of charting or something comparable. The example below illustrates Ganns
Mechanical Swings from Market Analysts charting tools. The indicator is green for up mode
and red for down.
FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING FULL CONTENTS, AND SAMPLE SECTIONS SEE:
WWW.SACREDSCIENCE.COM/FERRERA/THE_PATH_OF_LEAST_RESISTANCE.HTM
Full time trader and best selling author Kevin Davey can improve your
trading 2 ways:
Don't let your trading fall behind - get Kevin's help today
www.kjtradingsystems.com
Step 1.
Option trading has many more advantages than trading stock, but, as you probably know, it is a
bit more complicated, as well.
And, for the individual trader, options can be a little intimidating. Thats why many investors
trade options by purchasing Out-of-the-money options (often short-term options), since they
cost less than long-term options, and its a simple strategy.
For example, Out-of-the-money calls are especially popular because they are cheap and seem to
follow the old Warrant Buffet paradigm we all love: buy low, sell high.
As a beginning option trader, you might be tempted to buy calls 30 days from expiration with a
strike price of $120 at a cost of $0.15, or $15 per contract.
Purchasing 100 shares of FB at $100 would cost $10,000. But, for the same $10,000, you could
Imagine FB hits $121 within the next 30 days, and the $120 calls are trading at $1.05 or $105
per option contract just prior to expiration.
But dont let this glitter FOOL YOU . . . because not losing money is just
as important as making money!
One problem with short-term, Out-of-the-money options is that you not only have to be right
about the direction the stock moves, but you also have to be right about the timing.
To make a profit, the stock doesnt just need to go past the strike price but also must do this
within a defined period of time.
In the case of the $120 calls on FB, youd need the stock to reach $120 within 30 days to make a
profit.
This dual objective of having to be right on direction plus on timing really lessens the probability
of an option trade being a winning trade when buying options.
And everything that I teach my clients is based on managing risk and increasing the probability
of winning trades.
In the Facebook option trade, you are wanting the stock to move more than 20% in less than a
month. This would be like a 2 Standard Deviation move!
Not many. In all probability the stock would not reach the strike price, and the options would
expire completely worthless.
Based on probability, using Standard Deviation, there is only about a 5% chance of this stock
reaching $120 to $121 by expiration.
Imagine that FB rose to $110 during the 30 days of your options lifetime.
But, since you were wrong about how far it would go within a specific time frame, youd lose
your entire investment.
So, based on this trade example, a better goal for every trader would be to select trades based
on what provides the most consistent, positive returns, not a one-time big winner.
And consistency is derived from making HIGH PROBABILITY trades based on reliable data and
facts.
Where theres a big disadvantage, such as the one you saw in the option buying scenario, you
can usually just look at the flip side of the coin and see an equal and opposite advantage.
In this case, being a SELLER of options gives you a huge advantage over being a buyer of
options.
All of the pros know this and take advantage of it, and so can you.
So as a Seller, all of the things in this example are the same, but in your
favor, instead of against you.
This is why a lot of people take advantage of Selling Options for Profit
Generation & Hedging . . .
By selling options, we are, in essence, selling time.
An option is like a coupon that must be redeemed by an expiration date or else it is no longer
valid.
Step 2.
The most important option factor for income generation is understanding the concept of TIME,
and thats pretty simple, as you just saw . . .
Option Income Strategies are very tied to Time Value and the impact it has on the price of an
option.
Time value (TV) (extrinsic) of an option is the premium a rational investor would pay over
its current exercise value (intrinsic value), based on its potential to increase in value before
expiring.
This probability is always greater than zero, thus an option is always worth more than its
current exercise value.
Take a look at the following chart to see just how predictable and
powerful this option paradigm is! And answer the question that follows:
So if the underlying security price was to go sideways, having no directional trend, would you
have wanted to have BOUGHT an option 120 to 90 days out, or would you have rather SOLD an
option?
This is the common natural time value progression for all options.
Note: Once you know these variables, then you are ready to price an
option & know what its option premium should be.
Step 4.
Based on this sideways price movement Out-of-the-money (OTM) option buyers will lose
approximately 70% of the time.
Market makers know these statistics and, therefore, tend to trade from the sell side.
This is the professional money, so you need to think like a market maker.
Market Makers use mathematical market probability statistics for pricing the movement of an
option to its expiration.
Knowing the probability of an underlying security finishing within a certain range at expiration is
key when determining what options to buy or sell and what option strategies to implement.
These statistics forecast how likely it is that an option will fall within a certain price, up or down,
by its expiration.
The Implied move is an estimate of a +/- standard deviation move of the underlying security by
its expiration.
Based on these probability statistics, Selling options & option spreads, when used correctly,
provides the highest probability trade set-ups for generating consistent profits and is also a
great way to hedge risk . . .
And its all based on the math of probabilities . . .
It will tell you the value of an option based on the underlying move.
It is also used to measure the probability of a price move on the underlying move itself.
An Option Delta of 68/70 equates that the strike has a 68%/70% probability of being ITM at expiration.
An Option Delta of approximately +/- 16 is equivalent to the outside point of a 1 STD Implied move at
expiration.
This equates that the 16 Delta strike has only a 16% theoretical
probability of being ITM at expiration.
This added option strategy for profits and hedging will make a dramatic and positive difference
in ones trading performance when used correctly.
Step 5.
The goal of every trader should be to select trades based on what provides the most consistent
positive return and not always the greatest return.
And one of the best ways to achieve this is by knowing the income option strategies that are
available and then selecting the one that is best for your trading style and trading plan.
Income Strategies
Covered Calls
Calendar Spreads
Diagonal Spread
Long Iron Condors
Credit Spreads
Strategy: Selling one call with a lower strike while simultaneously buying
one call with a higher strike in the same month.
2. Bull Put Credit Spread is best when you think the market will probably
go up
Strategy: Sell one put while simultaneously buying one put with a lower
strike in the same month.
Strategy: Combine Bull Put Credit Spread and a Bear Call Credit Spread
Step 6.
(1) Buying Directional Calls Vs (2) Selling Bull Put Credit Spread
Strategy 1: Bought the ATM June $207 Call Strike for $11.40 or $1,140
per option contract
Strategy 2: Sold the $187/$182 OTM Bull Put Credit Spread. Spread sold
below Wynns prior low of $189 which was 9.50% below its trading price
of $207 on May 1st.
Entry: May 1
June Monthly $207 call original cost: $1,140 per option contract
June Monthly $207 call original cost: $1,140 per option contract
CONCLUSION
Whether trading a small account or large account selling options and option spreads will have
a major positive impact on your trading bottom line while reducing your trading risk. These low
risk trading strategies offer income and profit while also providing the perfect hedging strategy.
The single trader can easily execute these option strategies that can turn that small trading
account into a large trading account and with much lower risk than the traditional buy only
option strategy.
Larry Gaines has become one of the leading coaches for successful traders and investors. He
continues to develop and host, every month, new trading educational programs to help traders
and investors generate greater income from their investment capital with less risk exposure.
He founded PowerCycleTrading.com and the Power Cycle Virtual Trading Room following over 30
years of professional trading experience in the commodity and equity markets.
During his tenure as head of an international trading company that often traded a billion
dollars worth of commodities in a single day, he learned first-hand the necessary elements of a
successful trading system and the use of options.
Using this in-depth knowledge and experience, Larry developed the Power Cycle Trading Model
to allow for greater profits with a more disciplined, systematic degree of trading success.
www.TradersWorld.com
www.TradersWorldOnlineExpo.com
Visit TradingOnTarget.com
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on Discipline for Traders
Adrienne Toghraie, Traders Success Coach, writes
articles that are dedicated to those of you who have mere
minutes a day to absorb helpful ideas and creative solutions
to nagging problems about discipline in trading.
Your ability to trust yourself will determine your ability to be disciplined in trading.
Without trust there is no dependable relationship between you and yourself, between you and
another person, or between you and your faith in your ability to follow your own trading rules.
All of these relationships exist, whether you are consciously aware of them or not, because your
conscious and unconscious mind divide up into parts, which have different and often competing
roles and belief systems.
In order to gain long-term trust, four elements must be present. The first element is inner
security. The foundation of inner security starts when you are in the womb. Infants must know
that their basic needs are being met: they must feel that they are safe in their environment,
that their need for nourishment and comforts will be met, and that they are loved, wanted and
accepted.
Too many of the traders with whom I have worked did not feel loved as a child even though they
recognize the fact now that their parents loved them. But, being aware that they were loved
does not change the insecurity in their inner child.
The second element in creating self-trust is knowledge. Many people call me and say, Im ready
to trade because I just finished reading a couple of books about trading. Unfortunately, there
are many people who enter trading believing that they dont have to have an extremely good
education to become a successful trader. I know that a person is ready, educationally, to trade
when he says, Ive read almost everything in trading that is out there. I have a business plan
and a system that is back-tested which I believe will be profitable. Assuming what he says
is true, the only thing needed for his success is whether he has the inner security to trade.
Education builds trust in your ability.
The third element necessary to build trust is evidence. For a trader, the evidence he needs is
Successful back-testing gives a trader the confidence to believe that the probabilities of making
money are in his favor.
The fourth element in building trust is the experience of repeated success in real-time trading. I
enjoy working with traders who experience a setback because of personal issues or because they
have not adjusted their system to changing markets. It is easy to direct them to even greater
success because they have already experienced success through their own study and self-
discipline.
If you would like to measure the level of trust you have for yourself and for others, all you have
to do is look at your day-to-day behaviors. They will also indicate whether or not you have the
discipline necessary to become a good trader. Here is a quiz that will give you an idea of the level
of trust you have in yourself and others through your daily behaviors.
Do you have a pattern of always being late (15 minutes, half an hour, etc?)
Do you break or miss many of your appointments?
Do you make commitments to yourself and break them such as:
starting diets and exercise regimes and breaking?
promising to stop a negative behavior and then breaking the promise as soon as you are
tempted?
6. Do you fail to follow through with plans and promises to yourself and others?
7. Do you borrow money and then not pay it back?
8. Do you break the promises you make with your children?
9. Have you betrayed your marriage vows?
10. Do you break serious traffic laws without thinking about it?
11. Do you justify breaking rules at work or in other settings in your life?
12. Do you believe that, Rules are meant to be broken?
Is it ever okay to break your trading rules? The answer is No, Never! If you have anticipated
all contingencies, you will have a rule for everything, so you wont be breaking rules. Youll be
following the contingencies. For example, if you say, Im going on a diet and Im never going to
eat anything fattening, suddenly you will have an overwhelming urge to eat a piece of chocolate
cake. However, if you will make the rule about going on a diet to include a periodic slice of
chocolate cake as part of the diet, then you will not be breaking your rules. The result is that
you will stay on your diet.
The same principle of creating rules you can live by applies to your trading. Your rules must
cover special conditions and exceptions. When they are part of your rules, you will find it not
only possible, but easy to stay within your rules at all times. The message that you then send to
your unconscious mind is that you can be trusted.
Basically, you start by keeping your agreements. This may sound easy, but it is not. If you
are unable to trust yourself to keep even small agreements because of a pattern of broken
agreements, this could present a challenge. It is essential that you must keep all your
agreements. For that reason, if you want to send your unconscious the right message, you need
to make only those agreements which are very easy to keep and which you have a strong desire
to keep. They may be things which you want to do so that you know you wont break them. You
may develop back-up systems so that you cant forget. The important thing is to do this one
step at a time. Dont overwhelm yourself with agreements. The danger would be that you would
slip up and then fall off the wagon as soon as you fail once.
Each time you keep an agreement, acknowledge your achievement and reward yourself. Give
yourself a verbal pat on the back. You may even have a special treat you give yourself each day
for keeping all of your promises, agreements and rules. After a month of keeping each and every
agreement and then rewarding yourself, you will have established a strong pattern of self-trust.
From that point, trading discipline is no longer a problem.
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In the realm of technical analysis few theories have captured the investment publics
imagination in the same way as the Elliott Wave Theory. After all, who would not get excited
about a theory that, in the modest words of its creator, claims to be based on Natures Law,
and to have revealed the Secret of the Universe?
When it comes to its practical application to trading, one must agree however with its key
proponent, Robert Prechter, who wrote that despite the basic simplicity of the concept itself,
Elliott wave analysis is not easy to do it is one thing to recognize that the Wave principle
governs stock prices, while it is quite another to predict the next wave and still another to
profit from the exercise. If that is not enough to pour cold water on your wave enthusiasm,
consider the well-known fact that no two self-respecting Elliott wave practitioners will agree
upon not only a future, but also a past wave count.
While none of this should detract from the major achievement of wave theory which
is that it gives investors a general framework for market and human society observation --
the problems associated with its successful application to trading still remain and must be
addressed. The key problem stems from the complex wave count rules which open the door to
subjective wave identification and interpretation in order to fit the requisite number of waves
into a larger degree wave. Therefore, we sought to introduce an objective way for visualizing
waves or swings, which is immune to subjective definition and implementation, and can serve
as a basis for an unbiased and improved analysis.
The Swing Price indicator (Chart 1) is a swing/wave recognition overlay which marks the
beginning and end of price swings detected by the indicators algorithm. Up swings are painted
green, down swings are painted red. By overlay we mean that the indicator has no relation to
price levels but solely to pattern, and is overlaid over the price chart to merely highlight price
swings, not actual price levels. What sets it apart from traditional wave definition methods is
that the analysis is done automatically, in real time, based on precise mathematical rules, and
not on a forced, ex post facto 12345, ABC, xyz, etc. count. In addition, it incorporates a time
element, a subject which will be discussed briefly below:
Chart 3
Chart 4
If a price overlay looks too abstract to some, we have also developed an indicator which
combines price pattern and pivot point recognition into one simple but very effective tool
(chart 5):
While there are many rumors that suggest binary options are not profitable, with the right
mindset and indicators traders can make money with the Nadex Binary Options.
Today, June 15th, is a great example of just how easy it is to make money with the Nadex
Binary Options, even when the market is not moving because of impending news announcements.
The U.S. indices were barely moving. Yet, there were two signals issued. One signal said to
buy the 2-hour binary option for the e-mini Dow Jones at 17615 with a minimum expiration of
48 minutes (or the equivalent of a 2-hour binary option). The other signal was for the e-mini
S&P 500 to buy at or near 2070.50 with a minimum expiration of 48 minutes.
The chart below shows where price was on entry. Basically price was at the TradersHelpDesk
Trend Average True Range indicator (plus sign on the chart below).
The beauty of binary options is that price doesnt need to move. It just needs to stay above
the strike price. In this case, binaries were entered to the long side for the following strike
prices with and expiration at 1pm New York time:
US 500 (underlying instrument is the e-min S&P 500) > 2069.8. Risk of $55 per contract
was paid on entry.
Wall St 30 (underlying instrument is the e-mini Dow Jones) > 17614. Risk of $58 per
contract was paid on entry.
Typical behavior would be for the ATR to offer support for price to go up or at least bounce
thus the charts indicated that price would stay above the ATR for the duration.
Although the trader can allow the binary to expire, in this case, a profit target was set at
$80 for both binaries. Of course, at any time during the trade, the trader can exit the position
with Nadex Binary Options, which is very useful if conditions change (ie price closes below the
ATR level).
Within one hour the profit target was achieved.
The profit (excluding exchange fees) were:
S&P 500, $25 per contract traded or $50 trading two contracts
Wall St 30 (uses the YM as the underlying), $22 per contract traded or $44 trading two
contracts
Total profit on trading 2 contracts on each instrument was $94. The return on investment
was 41.59%. Considering price is hardly moving (less than 10 points on the e-mini Dow and
12 ticks on the e-mini S&P 500), making a return on investment of 41.59% in less than an
hour is not bad.
Of course, if the market is trending, then binary options give the additional advantage
of allowing the trader to build on a great signal, as well (sort of like adding to positions in
futures and forex without the unlimited risk exposure). For example, a trader with a bias to
the upside, can build long positions using the 2-hour expiration in combination with the daily
expiration. Since a new 2-hour expiration is offered every hour on the indices between 8am
2pm New York time and one daily expirations, one setup can actually generate eight setups.
TradersHelpDesk offers state-of-the-art indicators for trading binary options, as well as
The Bear Trend from the May 2014 High is Probably Not Complete
Chart 1 is a EUR/USD monthly chart. Lets first look at the facts. The May 2014 high
completed a corrective high off the July 2012 low and resulted in a very strong bear trend to
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Long term analysts are calling for a correction in the stock market that should last
approximately five years. Elliott Wave charts are suggesting that the present wave is major
WAVE V up, with an ABC correction to follow. This can be seen in the chart in Figure 1, where
the Elliott Wave count is suggesting a WAVE V failure, a very bearish indicator.
With computer trading gradually taking over market trading, a wave five failure is becoming
more and more common. In the book, Elliott Wave Principle, by Frost and Prechter, published
November 1978, they show charts in the initial pages, where WAVE 5 is equal to WAVE 1. For
the most part, five-wave formations have clear-cut wavelike characteristics with infrequent
irregularities except for what are known as extensions.
The book further explains Failures. (page 32) Elliott used the word failure to describe a
five-wave pattern of movement in which the fifth impulse wave fails to move above the end
of the third. Failures give warning of underlying weakness or strength in the market and tell
us more about the reality of stock market life than most of us care to hear.
In all my years of stock market trading (I started in 1969), I have found that a WAVE 5
failure leads to a long term Bear market. In recent years, with computer trading becoming
more and more active, I have noticed that WAVE 5 failures are becoming more and more
common. Is this because of the algorithms used in the computer programs or is it because
computers are becoming more and more intelligent in analyzing the market? Time alone will
tell.
My chart in Figure 1 is a monthly chart of the S&P500 index with an Elliott Wave count
suggesting a WAVE V failure. This is confirmed by both the RSI 14 and MACD indicators which
are both in SELL mode.
Figure 1.
Figure 3.
The Presidential cycle in Figure 2 shows how the share market always tends to correct in
the final year of a Presidents term of office, and only starts correcting upwards when a newly
elected President starts exerting his influence on the financial market. With President Bush,
the chart shows that it took two years before the market started recovering. With President
Obama, recovery was immediate. What for the year 2017? Whoever the next President will be,
Gold prices declined in October and November of 2015, falling to the 1,046 level in early
December. Gold had significant support at the 1,040 level. This was the level at which the
International Monetary Fund sold 200 metric tons of gold to Indias central bank in 2009,
prompting a move in gold prices up to the 1,100 level. The U.S. dollar was gaining strength
with the expectation that the Federal Reserve was going to be more hawkish than dovish. This
rally in the U.S. dollar put heavy pressure on the gold commodity. When the Federal Open
Market Committee (FOMC) decided to raise the federal funds rate by 0.25% at their December
meeting they were optimistic that the U.S. economy was going to gain strength and that their
2% inflation target would be met in 2016. The Federal Reserve also forecast four rate hikes in
2016. Everyone was bearish gold with the thought that the Federal Reserve would maintain
a very hawkish tone. The selloff in gold ended once the Federal Reserve was done with their
comments for 2015.
I started to see some significant buy divergences on the daily chart for gold. There were
two great buy divergences in gold that I caught below the 1,100 level. Gold investors did not
seem to believe the Federal Reserve in any way. Typically when the Federal Reserve has a
significantly hawkish tone it will put downward pressure on commodity prices. Gold continued
making higher highs. Gold investors respectfully disagreed with the Federal Reserves 2016
rate hike forecast, providing underlying support of the commodity.
In late January I stated that if gold took out the 1131.30 level on the weekly chart it would
test the 1,300 level within the next six months. Gold closed above this level in the week
ending February 5th, providing a significant buy signal on the weekly chart for gold. With this
significant buy signal gold continued to trend higher in the months ahead.
interest rates for the longest period of time, setting their interest rate below zero for the first
time in 2012. The experiment of negative interest rates has not been effective in stimulating
economies.
Gold is in a perfect scenario for a move to higher levels. The technicals are significantly
bullish for gold on the daily, weekly, and monthly charts. With the worldwide economic
slowdown and weak U.S. economic data expectations for hikes in the federal funds rate during
2016 are low. Central banks are attempting to be as dovish as possible in both their language
and approach. Gold traders do not believe that the Federal Reserve will be raising the federal
funds rate with the current worldwide economic slowdown. I do not believe that the FOMC
will choose to raise the federal funds rate at any meeting before the November presidential
election. I believe there is a 50-50 chance that they will choose to raise the federal funds rate
during 2016 after the election is over.
-Stephen Kalayjian is the Chief Market Strategist of KnowVera and the creator of Pattern
Recognition 101. More information on Pattern Recognition 101 can be found at www.
patternrecogition101.com. Sign up for his daily newsletter, The Kalayjian Report, at www.
kalayjianreport.com. Follow Steve on Twitter at @stevekalayjian.
TRADE ALERTS
Day Trading
Assets ready for a price move.
Swing Trading
DOCUMENTATION Long-Term Investing
Photo sharp documentation.
Individual session recordings. Schedule your personal consulting hour and find out
which concept fits your trading or investing needs.
Today, you are invited for interpreting the actual chart situation with the help of mathematical
models to specify the future happening with high predictability.
Price moves of all underlying assets show a cyclic nature, with at times radical directional price
moves in the one or other direction. Simple math models will not allow predicting such dynamic
happenings; however, pre-stages of stronger price moves can be measured and their outcome
predicted in a Markov chain, where the measuring of the happening of NOW helps us to predict
the future.
Markov chains are mathematical systems that hop from one state (a situation or set of values)
to another. For example, if you made a Markov chain model of price behavior, you might include
upwards moving, sideways moving, and down moves as states, which together with other
behaviors could form a state space: a list of all possible states. In addition, on top of the state
space, a Markov chain tells you the probability of hopping, or transitioning, from one state to any
other state---e.g., the chance for a price move from currently being sideways will move up in a
defined time period, without moving down first.
You might see now, why simple moving-average-based systems like MACD, Stochastic, CCI, RSI,
and Bollinger Band do only consider one dimension of trading, relating the happening of the
past to portray the future. Ask yourself, what does the price move from the last 50 and 200 days
have to do with the price action of now? If trading or investing was manageable with such simple
math: one moving average crossing over the other is giving an indication to go long or short in
an asset; everybody would be rich already.
Using this knowledge and combining chaos theory and Markov chain with filtering mechanisms
from the signal transmission theory: Hamming distance and analogue digital conversion,
NeverLossTrading was developed into a high probability trading system, where mathematical
relations are used to predict the future by the happening of NOW.
Chart-2 shows our newest development: NeverLossTrading TurnPoint trading, where multiple
algorithms help you to determine new price directions, price limiting and price breakout lines
(horizontal lines: NLT Box Lines).
You take the help of a computer to analyze the underlying price pattern, filtering patterns which
more likely lead to a directional price move from others that do not.
In technical terms: you are filtering the signal from noise, determining instances that have the
underlying pattern that might lead to a price action from those that do not produce a predictable
future happening.
Math is the science we use to translate the natural model of changes in supply and demand
into something predictable: Institutional investments stand for more than 85% of all market
happening and help us to make the price action predictable.
When institutional leaders take action, other market participants notice this and act. When a new
price direction develops and is confirmed by the price action of other institutional investors, it is
time to participate in a directional trade:
Our models are not auto trading systems: the final decision is yours and we share with you
how to balance the power of the human mind with the power of data analysis by real time
computers, which you can operate from the comfort of your home or any place with internet
connection.
Based on this knowledge, NeverLossTrading and TradeColors.com were developed and are shared
as mentorship programs; working together one-on-one with experienced- and new traders over
longer periods of time to ensure the learned is applied accordingly.
Price Momentum Change measured as acceleration in the price move of the underlying.
Statistical Volatility Change: price moves per observed time frame.
Price Move Constellation over time.
Volume Momentum Change in the observed time frames, similar but measured differently to
price momentum change.
In a simple summary: with the help of multiple algorithms, pre-stages of a change in supply and
demand are detected and dissected that might lead to a directional price move; however, trades
are not immediately accepted, other market participants have to confirm the new price direction
and only when this is given, a trade or an investment is accepted: see chart-3.
Using real time data, NeverLossTrading algorithms paint the happening with the help of modern
vector graphics on your chart, helping you to easily spot and follow supply and demand patterns
that repeat themselves based on the happening of NOW for all asset classes and all considerable
time-, tick- or range-frames and is applied by day traders, swing traders and long-term
investors.
NeverLossTrading is not a promise that you never lose a trade, the brand name comes from
teaching trade repair concepts: when a trade goes against you, you have the ability for a trade
repair, with the potential that you can even turn a loser into a winner: Never Stop Loss Trading
was a bit lengthy.
If this is the case, how can you benefit from long-term price happenings that are for example
expressed in the NLT Long-Term Investor Alert?
In our teaching, we share the relation of weekly- and 4-hour charts; however, the question is:
How to put this into action?
Carry the symbols with weekly NLT Top-Line Signals (Power Tower, Early Up, Early Down) onto
your watch list for the entire week.
Use the NLT TurnPoint lower study signal and trade the buy- or sell signals, preferred at NLT Box
breakouts (this study indicates assumed institutional buy-/sell-programs).
Either trade very short-term after signal confirmation, for 1-candle; or hold overnight on a
stronger directional price-move: up to 4-candles. When trading for a 4-candle-price-move,
please consider that after a 2-SPU price expansion, we assume an 85% risk of the price-move
for haltering or reversing and thus you better take profits. The dot target on the charts is set at
1-SPU. In case you have a stock symbol with a last hour NLT TurnPoint signal that is confirmed
on at the opening of the new week, trade this instance for two candles and exit your trade.
At the above chart, the chosen trade was with the direction of the PowerTower candle; however,
if you find a confirmed NLT TurnPoint signal that points in the opposite direction, it is valid too.
We report symbols with the referring chart setups on multiple time frames.
When you are using NLT Top-Line, you are even in possession of a scanner that helps you to find
symbols with a desired strong individual price move setup.
On the JPM chart, the lower study signal is moved to the price chart for demonstration purposes,
indicating that an institutional buy program was confirmed and followed through for 4-candles.
The stop is set 2%-of-1-SPU below the low of the trade initiation candle and produced a very
favorable reward/risk constellation on a one- or four-bar trade.
Let us continue to validate the JPM signals, moving to the left, looking at the orange early-
up signal (scroll up and see the JPM Weekly Signal Chart) on the weekly chart on 01-25-2016
candle at the price action of the 4-hour chart.
Chart-7: JPM 4-Hour Chart 2/1-2/5/2016 with two confirmed signals on 2/2 and
2/8/2016
If you are not yet subscribed to the NLT Long-Term Investor Alert, you can subscribe online:
http://neverlosstrading.com/Alerts.html
In case you are not yet familiar with NLT TurnPoint trading, our latest development, please feel
free to email us: contact@NeverLossTrading.com
Another alternative to participate with a limited risk in weekly NLT Top-Line setups is to engage
into specifically defined option trades, with the following imperatives:
Favorable SPU-based price-offer to buy put or call options inexpensive; allowing for high
leverage, as demonstrated below in our SPU-related calculation table: Option trades carry a high
risk; hence, you want to trade for solid returns.
This type trading is explained in the NLT-mentorships and we also show you how to repair trades
that do not work in the desired direction.
SPU is an NLT-in-house development to calculate the expected price move after institutional
engagement is detected and confirmed: SPU stands for speed unit, a statistical volatility
measure specific to NeverLossTrading.
Let us know if there is a system that catches your attention and feel free to receive a personal,
live demonstration: contact@NeverLossTrading.com
If you are not yet part of our free trading tips, reports, and webinars, you can sign up hereclick.
Many of the US-stocks trade at other exchanges around the globe and thus, new price points
are established prior to the US-market opening and investors will quickly catch up to those. Our
scanners use an algorithm to find stocks, which have institutional pre-market attention and we
can take trades on various time-bases to follow the anticipated directional price moves.
In this publication, we focus on what we call the NLT Speed Trade, which is showing the
following repetitive chart setup:
A price-move signal on the selected stocks, initiated in the first five minutes of the market
opening; closing the trade the latest by 9:46 a.m. EST.
From our NLT Pre-Market Movers Alert, we also accept trades initiated at or after 10 a.m. EST, for
day trading the selected stocks, which we will not further explain here.
The NLT Pre-Market-Movers-Alert is sent out on a daily basis prior to 9 a.m. EST, highlighting
stocks, futures and FOREX pairs, where our scanners found institutional activity and trade
potentials.
BHI (8) Energy Equipment & Services $ 44.82 $ 1.29 2.9% Potential $ 0.45 1.0% higher @ $ 44.80 0.0% down up Change Strong Down 0.1
APA (1) Oil, Gas & Consumable Fuels $ 54.01 $ 1.55 2.9% Potential $ 0.54 1.0% higher @ $ 54.06 0.1% HF up new up Breakout Breakout 0.1
CAT 38 Machinery $ 72.43 $ 1.19 1.6% Potential $ 0.42 0.6% higher @ $ 72.95 0.7% up down Diff. Down 0.1
CL 47 Household Products $ 71.98 $ 0.63 0.9% $ 0.22 0.3% higher @ $ 71.98 0.0% up up -
BIIB 16 Biotechnology Yes $ 267.25 $ 3.91 1.5% Potential $ 1.37 0.5% higher @ $ 268.01 0.3% HF down down HF Down Strong Down 0.1 Yes
TEVA 26 Pharmaceuticals $ 50.92 $ 1.15 2.3% Potential $ 0.41 0.8% higher @ $ 51.00 0.2% down down Power Tower Strong Down 0.1
C 9 Banks $ 44.47 $ 0.63 1.4% $ 0.22 0.5% higher @ $ 44.73 0.6% down up Strong Down Strong Down 0.1
COF 10 Consumer Finance $ 69.95 $ 1.05 1.5% Potential $ 0.37 0.5% higher @ $ 67.70 -3.2% down up Strong Down Strong Down -
MET 9 Insurance $ 43.42 $ 0.66 1.5% $ 0.23 0.5% higher @ $ 43.46 0.1% down down Strong Down Strong Down -
BABA 3 Internet Software & Services $ 79.80 $ 0.98 1.2% Potential $ 0.34 0.4% higher @ $ 80.11 0.4% up up 0.1
QIHU 30 Internet Software & Services Yes $ 70.43 $ 1.16 1.7% Potential $ 0.41 0.6% lower @ $ 67.75 -3.8% up down Trend Trend Diff. Down 0.2 Yes
ADSK (40) Software $ 59.03 $ 0.88 1.6% Potential $ 0.31 0.5% lower @ $ 56.00 -5.1% down up Strong Down Strong Down 0.1
Symbols highlighted in: red and green preferred stocks with less expectancy for an intraday
gap. Yellow symbols might show an intraday gap, based on spotty volumes.
P/E-ration (not important for this trade).
Sector: helping you to not select multiple stocks from one industry sector.
NASDAQ stock, highlighting preferred assets.
Last: yesterdays closing price.
Expected 20-minute price move, when the opening NLT Box is surpassed.
20-Min. Option Potential: Highlighted are stocks with a price move above the minimum price
threshold, while we prefer red and green highlighted stocks for option trades.
Expected Opening Price Move: This is important to set your initial target and stop for the Speed
Trade.
Expected Opening Return: Calculation of your return on cash for the Speed Trade at the
expected target.
Gap Announcer: highlighting symbols with what we call a strong opening gap and you learn how
to handle those in a separate teaching.
Potential Opening Price: Indication of the stock being expected to open higher or lower
compared to the closing price, with an estimated opening price. By calculating this price point
about 1-hour prior to market opening, you can expect some variance.
Opening Price Move (%): Indication of the percentage-move: last price to opening price.
Yesterdays Momentum and Trend, telling you on a daily chart basis how the prices progressed.
NLT Reference indicator shows where and which strongest daily signal was reported by the end
of the prior day.
NLT Purple Zone highlights stocks with an ambiguous price development and expected higher
volatility.
NLT Volatility is a measure of price fluctuation per time unit, indicating a pre-stage of
institutional activity.
Pre-Market volume tells you how many stocks were exchanged by the time we took the pre-
market measure.
We teach you the meaning of above variables and how to integrate them into your trading.
With such alert on hand, you can daily operate with clear cut mechanical rules, trading the
markets in you favor, by utilizing high predictability of continued happenings.
Find your potential chart setup, only when a new NLT Box is drawn at the opening candle of
the observed stock. On a box-width > opening price move, take the candle off the considered
symbol list.
When the second candle breaks the box, it indicates a buy- or sell opportunity and you can find
your entry multiple ways:
Conservative: Set a buy-stop-order, 2-cents above the NLT Box Line; a sell stop, 2-cents below
the box line. Another alternative is a market order, given the fact that we are operating with
penny-wide bid/ask spreads.
Progressive: Enter with a limit order on a potential pull back price level, which is giving you a
favorable entry price, but you are risking that the trade might run away from you.
Order type: Prepare a bracket order, using the expected opening price move as target and stop;
then adjust your stop after your order is filled, setting it 2-cents below the opposite box line
On an intraday gap, try to catch it by using the Conservative rule above:
Time Based Exit: If the target is not reached by 9:46 a.m. EST, close your position.
Odds Evaluation: When a very big first candle is drawn, never risk more than the expected price
move. When our stop price level violates this rule, do not take the trade. The idea of the trade is
Chart Summary:
The stock was on the list of highlighted symbols on the NLT Pre-Market Movers Alert and opened
higher.
The first candle drew a NLT Box, meeting the pre-conditions for the trade.
The second candle highlighted the breakout and gave the buying opportunity, with a buy stop
order at the NLT Box Line or a market order below.
The expected price move from the NLT Box-Line was18-cents (blue line).
The initial stop was 18-cents wide, however was adjusted to 15-cents by the Box Line.
The setup fulfilled the minimum conditions that we do not accept a risk higher than the reward.
The time based exit was triggered prior to a target being reached.
Had you stayed for further 2-minutes in the trade, you would have harvested at the original
target.
We also operate with clear cut rules for Futures- and FOREX trading. You experience in our
mentorships how we work one-on-one with you, focusing on your personal wants and needs,
developing a business plan for you: Financial plan and action plan.
Good trading,
QUARTERLY MAGAZINE SUBSCRIPTION
Thomas Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
Disclaimer astro-trading as well as modern technical
analysis explaining indicators in eSignal,
This publication is designed to provide accurate and
NinjaTraders, MetaStock & Market Analyst.
authoritative information in regards to the subject
matter covered. It is sold with the understanding that COMPLETE BACK ISSUES OF TRADERS
the publisher is not engaged in rendering legal, financial WORLD Magazine (ISSUES 1-63)
advice, accounting, or other professional service. If legal You also get our complete archive of 60 back
issues from 1986 to present. This, contains
advice or other expert assistance is required, the services
articles, product reviews, hundreds of chart
of a competent professional person should be sought.
examples, how-to-trade articles and much
Following the rules of the SEC (Security Exchange
Commission), we advise all readers that it should not be format, which you can read online anytime.
assumed that present or future performance of applying In every issue, you get the information
you need to trade the markets better with
NeverLossTrading (a division of Nobel Living, LLC) would be
charting, astro, cycles, oscillator tools.
profitable or equal the performance of our examples. The Works for stocks, bonds, futures, options.
reader should recognize that the risk of trading securities,
stocks, options, futures can be substantial. Customers 60-Day Money Back Guarantee
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worked out trading concepts we use on a daily basis and www.TradersWorld.com
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and clients.
The news has always had a trying effect on the financial markets. Stock markets,
commodity markets, stock markets, futures and forex markets all can be attributed by how
the news is projected within certain world events. News and information that deal with the
economy, finance and politics tend to be leading indicators on how global markets may react,
in most cases. Corruption in governments, financial and political policies, Federal Reserve
statements and economic policies have impacted or somehow subjected a certain role on
how the markets distribute certain outcomes, because of how information and the news are
portrayed to the public invariably.
When global uncertainty is are on the horizon, stocks tend to be more negative and begin
to falter downward or drop. When good information or news is brought about, for example a
companys earnings beat expectations or analysts predicate the economy with a good bill of
health the stock market tends to make drastic progress and raise higher. Federal Reserve
policies have enormous effects on the global markets. When the Fed increase or decreases
the interest rates, the market reacts and the reaction may be good, subtle or bad. This is
all relative to the trader and the position he/she has on their trading techniques. In trading
(depending on the side that you may be on); there is a massive inclination that either you will
profit or you will lose money. Your stop losses minimize your losses and assist you to maximize
your gains. The Feds policies have an effect on the financial markets and the position one may
take, because when the news and information if forthcoming; enlists how the global markets
will move entirely.
Information is important when coming to the global markets, when new information is
presented the markets have a field day, no one quite knows which direction the financial
markets will tend to lean toward but news presented on certain information can sway market
directions instantly and probably decisively in some occassions, either up or down, sideway
movements, directly or indirectly, this can all be approached because of the how the markets
decipher information and relevant news sources, along with price action and other indicating
variables.
All news and information may not be credible and rumors can play a major role on how the
markets take in the information and news that is relayed upon. Rumors of false information
can mislead investors and traders, which then can leads to false returns for the investor,
speculator or trader. Traders, analysts, speculators and Investors seek information and news
sources to anticipate the trend of the markets they are dealing with. Information and news
for the day approaches, then the speculators, traders and investors along with analysts can
take an educated and systematic approach on their trades to get the best and highest returns.
The news perceived to them has a huge effect because they want to foresee if they are in the
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The United Aircraft Corporation was an American aircraft manufacturer formed in 1934 at the break-up of
United Aircraft and Transport Corporation. In 1975, the company became the United Technologies Corpo-
ration. Our historical data begins tracking this equity from January 1972 it incorporates the major low
traded in Dec,73 at 0.64 which also defined the end of major declines for benchmark indices such as the
Dow Jones Industrial Average (570.00 Dec.74).
The Dec.73 low synchronises with cycle wave 4 in all major U.S. indices. The following medium-term up-
trend is labelled cycle wave 5 so far this remains incomplete. Original upside targets to 240.18 have now
been raised to 392.81-410.74+/-. An attempt to this area is consistent with our prolonged cycle degree up-
trend for major indices.
Cycle wave 5 must ultimately unfold into a five wave expanding-impulse pattern, in primary degree. Prima-
ry wave 5 began this final advance from the financial-crisis low of 37.40 with ultimate targets to 392.81-
410.74+/-, it is considered an attempt will still take several more years, ending into the end of this decade,
perhaps extending into the first few years of the next.
Shorter-term, we consider the Feb.16 low at 83.39 as ending a counter-trend phase of declines that began
from the all-time-high of 124.45, traded exactly one-year earlier, in Feb.15. Even though there remains
an outside risk of a break below 83.39 to 73.56+/-, this would only occur if major indices break below the
equivalent Feb.16 lows and even if it does, it would not change the implications of continuing the medium-
term uptrend unless the Oct.11 low is breached below 66.87.
Peter Goodburn is the senior Elliott Wave analyst at WaveTrack International and is the author of the
monthly institutional Elliott Wave-Navigator report and the bi-weekly private client Elliott Wave-Compass
report. Details at www.wavetrack.com
When using the Andrews techniques, Professor Alan Andrews suggested that one should make
well over one hundred percent per year. When he demonstrated the techniques, he was known
for easily performing at that level in a three month period, trading leveraged futures.
Technical Analysis takes study and historical testing, to find what actually works. Many part time
traders have careers that take up considerable time. Is there a technique that one can verify
Lets start with a technique that has shown positive results in the S&P Index. One that has
resulted in a substantial gains over the last 80 plus years. The test showed a net result of 2000
S&P points by going long only and 2057 by taking longs and shorts.
The results are from using the fifty week and one hundred week moving average cross over.
Now its time for you, the reader to come up with ways to improve upon this and test it out.
Returns here are generally not much better than breakeven. It does not appear there is
a strong directional edge following a 1% drop from 50-day high. Now lets look at times the
1% drop followed a 50-day low.
Results here come in between the two extremes better than coming off a 50-day high,
but not as compelling as following a 50-day low. Overall, there appears to be a slight bullish
edge in these situations.
So we see here that market position matters. The 50-day low results were by far the best.
But lets also make sure that the strong drop was a factor in creating the edge as well. To do
this, I created a study looks at times SPY closed down from a 50-day low, but it did not suffer
a 1% drop on the day.
As you can see, these days have generated strong gains over the years. They have been
profitable 60% of the time. Gross gains have more than doubled gross losses. The average
Fed Day netted a profit of about 0.32%. And total profits reached over $58k. Lets keep
these numbers in mind as we look and see how the market has done since 1993 on all days
excluding Fed Days.
There are not a whole lot of instances, but the returns are very powerful. The average
instance posted a gain of over 1% the next day. That is substantially better than either a Fed
Day or a 1% drop strategy would have produced on their own.
Groups of indicators or ensembles of systems will almost always outperform a system based
on a single indicator or concept. At InvestiQuant, our Swing Edges guides also utilize a 3rd
concept called Momentum. Momentum looks at the persistency of a move. I am often asked
which group of systems I favor - our Acceleration, Momentum, or Seasonality systems. The
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There are many parts to the W.D.Gann method; one is squaring TIME and PRICE. He talks
about squaring the high, low and range. This is basically converting the PRICE to TIME. If the high
is 90 then you would add 90 days, which is close to 90 degrees of the circle, as 90 x 4 = 360, but
theres 365.25 days to 360 degrees based on the earth going around the sun. But what if hes talking
about Mercury squaring the high or Venus or any other planet? Dont get me wrong I havent seen
this in his writings or charts, this is my idea, and he may have done it he may have not, not sure. Wait
I could make it up, like so many others and say I found his secret. If it was Mercury it would be 22
days to equal 90 degrees, if Venus it would be every 56 days. If we take the high of May soybeans
on 15th January 1948 of 436.75 we could start counting 436.75 days to that date or 436.75 degrees
of Mercury, Mercury rules grains. Gann had a non-disclosure document, which he had people sign on
the Average of Planets. You would have seen a number he wrote about that the planets (the letters
everyone has) but I have discovered he had a number he did write about, but hes never written
how to use them, I guess that was passed on verbally or in code as all secrets were and are today
especially in India where Gann visited. He wrote about Mean of 5 -. M.O.F Mars out. This could
mean a number of things, average from Jupiter to Pluto, which is 5 planets from Mars or dont use
Mars at all then use all the combinations of 5 planets, which would give more than 125 combinations.
This is the sort of things I study eight hours a day, six days a week, because I only look for trades
that set up every six weeks and last for six weeks or so, therefore have plenty of time for research.
When people have money, no debt, no needs, its not that interesting to them any more, as Gann says
money is only a means to an end, it wasnt his goal, money is a product of knowledge this is why,
Gann, me and other people seek the knowledge as its way more interesting than money. If you dont
even spend $120,000 a year and you live say another 30 years its only $3.6 million, not much at all.
You always only trade with funds that never affect you life style or living. Also when not trading keep
your money in the bank, dont leave funds with a broker, many have gone broke over the last few
years and more to come.
He also wrote about C.E Calculation of eight and Circle of eight, these are two different
systems. If we convert the high in soybeans to the C.E we end up with 14 degrees Sagittarius or 254
degrees of a circle. This is covered in this article of the secret soybean scale. There are many things
you can start studying here, Jupiter rules Sagittarius so look for all aspects to 14 degrees. So using
sidereal astrology, not the housewife astrology, you would look to study when Jupiter hits 1/8ths and
1/3rds. To that degree. So you just add 45 to get the 8ths to 254, which is 299,344,29,74,119,164
and 209 degrees of a circle. For example it hits 164 degrees or 14 degrees Virgo on 18th October
2016, its easy to do just look up manually in your ephemeris and see if that works or not from 1948 to
present, if it doesnt you move on to something different.
The 3rds is 14 and 134 degrees, Jupiter was at 14 degree Aries on 23rd July 2011. 134 degrees
got hit on 18th September 2015.
Now Mercury rules Gemini opposite sign to Sagittarius, Mercury hits 14 degrees Sagittarius on
these dates: -
Or do you take Mercury/Jupiter conjunctions and oppositions and do the averages only on that
day. I have done this below and done the average of 6 planets and left out Mercury/Jupiter. The
average of 6 was one that he had written on his ephemeris from Lambert-Gann.
1954
There are a number of documents that is in public domain; one is the price scale in degrees to
price and time in relationship to The Average of Planets.
There are: -
After a while I worked out his scale of converting price to degrees. This scale is lows and highs
swings from 1932 to 1950.
436.75 x 8 = 3494, divide 3494 by 360 = 9.7056 (subtract the whole number 9) and multiply the
remainder by 360 (.7056 x 360 = 254).
254 = 14 degrees Sagittarius.
May Soybeans started trading again after the war in October 1947. The most important Time
Periods up to date (24th January 1955) he says are: -
15th February 1920, 28th December 1932, 27th July 1939, 15th January 1948, 14th February 1948
and 9th February 1949. Next most important are: 16th October 1950, 8th February 1951, 13th February
1953, 20th August 1953,
27th April 1954 and 27th July 1954. You look at the TIME PERIODS and see how many weeks
are up or down on the Weekly Chart Table (refer to Ganns table).
He didnt have the Average of Planets in this part, so I will add one of the Average of Planets
so you can study it, in this I will use the average of 6.
He may have been using different averages to the example I gave above; you will have to test
the others, not for me to give away secrets, its not being true to Gann, he believed in you doing the
work.
You can write things down like he did above, but never really know how or what he was doing
as you keep the Keys in your head, this is clearly what he was doing. All his work sheets were for
himself, they werent a manual for the public, and this is why no one has cracked the code to the
Holly Grail. You could spent a decade just on this above with commodity prices and averaging the
different planets and you still might not find how he was using them. He was in the above scale using
He has all the Time periods from 1920 to 1954 in his article.
I wont list them all but there is another full page like this to November 1954.
What it means 104 High equals 2 years, because the is 52 weeks in a year time two equals 104.
th
1.1/8 years equals 60 weeks (60 weeks minus 52 weeks). If you were to go to say high in February
2016 from 1920 would be 4992 weeks. So in February we divide the price by 2,3,4,6 and 8 we get: -
2496, 1664, 1248, 832 and 624. If May soybeans are below or above these numbers it will be
in a strong or weak position. To get another price you just keep adding 52 to 405, which is 457,509
,561,613,665,717,769,821,873,925, 977 etc. if say market is at 821 it would be up 416 cents from
405 which would be in the 8 year column. Therefore it would be in the 96-year column and the 8-year
column. So you do all highs and lows up to today in conjunction with his square of 52 overlay to
determine the position of a commodity of stock.
You have to make up the tables, hand draw charts of each commodity you wish to analyse. You
have to also do all the other highs and lows in this article written in 1955 and study the position of
May Soybeans. There would be very few people who have the time or want to do this Gann system
correctly; especially people teaching Gann, you just dont have time to teach. This is why I have done
one workshop in the last seven years, I never did workshop for money. I only write to show you the
amount of work Gann did which no one else is doing to his level, and its a level again way above
what Im writing.
Gann quoted Before you make a trade, analyse the position on the daily, weekly and monthly
high and low charts.
https://www.facebook.com/113109448709650/videos/vb.113109448709650/899677126719541/
?type=2&theater
How many Gann experts are in the world again? Wouldnt be close to what he was doing as
you can see from the above video. Why do you think Gann never wrote books on financial astrology,
horse racing and lottery? Its simple its to valuable to him, and people just copy stuff and package it
up and resell it. He knew this, he didnt trust people until they proved they were worthy, this also a
Masonic philosophy. From what I have seen people doing financial astrology they just print out all the
aspects of planets and say these are the aspects of planets, any ape (Gann said humans come from
apes) could do that.
If you want to keep a secret, you must also hide it from yourself.
George Orwell, 1984
Now you can see that people giving away secrets ($60 DVDs) they dont have secrets. Gann
himself said They arent for sale. You are looking for two things in my articles, you study what I write
(some have mistakes so a fool copying them will show them as a fool), and then you look for what Im
not writing in articles for the Key secrets. See knowledge screens out the weak people as Gann said
(knowledge is power). They will not last teaching Gann, as they have very little knowledge especially
when the markets collapse as people wont have money to waste on useless information. Yet many
people in the world have his secrets, how does that happen? It cant can it? To be pure Gann person,
you dont do Elliot Wave, indictors or mix other things he never did. It just shows you they have never
studied pure Gann; it shows you need support from other things, as you havent worked Gann out,
thats all. You also, if you had a secret you would never sell it as Gann said. If its in public domain, its
not a secret, Gann knew this as well. I have never found and secrets in Housewife astrology books. If
fact I have thrown them in the rubbish bin as George Bayer suggested.
I will show you how bad astrology is here and doesnt work. The two greatest golfers of all time
are Jack Nicholas and Tiger Woods, Jack has Sun square Saturn, Tiger Woods has Sun square
Pluto, Greg Norman who won over 90 tournaments and world number one for 10 years has Sun
square Saturn. Richie McCaw has Sun square Saturn, the greatest All Black captain ever with a two
world cups, world record test played of 148. I have Sun square Mars. I have won two NZ senior golf
tournaments and played for NZ. All these people are Capricorns, me as well, except Greg Norman
who is Aquarian, but ruled by Saturn. One astrology told me that a disaster was going to happen
when my transiting Saturn squares my moon, this person still looking for the MH 370 plane, I double
my money being short grains as predicted in the Hindu Tea Calculator article. Astrology is just
rubbish. Lets look at the D.J.I.A we have had seven Uranus square Pluto (bad aspects) from June
2012 to March 2015, D.J.I.A hit record highs in May 2015. But if you go to a housewife astrologer they
say bad aspects are bad, it just proves what they say is rubbish, I have had plenty of bad aspects,
and made money. They have no idea. Anyway no one cares if a straw man has bad or good aspects.
Shows you how little they know about normal astrology and they are trying to emulate Gann
doing financial astrology, what a joke. Gann wasnt doing that kind of cycle work. Every Astrologer in
the world has been talking about Blood Moons what happened? nothing as per usual in the markets.
I guarantee you will go broke following normal astrology, just as CHART WELL did. I have never been
to an astrologer to fine out what Gann was doing, thats the dumbest thing you can do. You would
notice, Bayer, Gann and Livermore made more money than people today without a computer or
software, doesnt that tell you something? Theres no one in the world teaching pure and true Gann
Astronomy, Astrology, Geometry the way Gann was using it.
David Burton has been using the Gann methods since 1983 for predicting weather, markets
and more recently for horse racing for his own personal use. He doesnt teach as it takes up to much
time and the time he wants to continue to research into deep secrets of Gann. He writes only to keep
Ganns name a live in a pure form.
W.D.Gann from what I found on the internet (looks like relievable source) used Trade
Marked name OROLO for some reason in his adds. These adds written in 1909 clearly
states the he didnt believe in astrology and was basically rubbish, until he found the Law of
Vibration as applied to the Wireless Telegraphy (see his booklist that suggest he use more
astronomy of the ancients than anything else and this is what the wireless is based off). Its
most likely because the earth has more than 10 different motions and astrologers work on
one motion. These ideas are in some of the book on his reading list below. He said he made
his greatest discovery on August 8th 1908 so these ads would seem to be true. Some how
Gann use sound waves, radio waves as part of his market forecasts and hes says hes the
only man alive using these method by using knowledge of the ancients on the markets, wait
we must have about 100 Gann experts who all think they are way better than Gann today.
Of course they are, yep sure, they have worked out his Horse racing system, his lottery
system and his Stocks and Commodity system all under 12 months, way smarter the Gann
dont you think? Then why are they selling books, seminars and all his secrets of $49, funny
dont you think? He clearly didnt get his knowledge from the Masons, as he wasnt a Mason
until 1923 as everyone claimed and only a completed the third degree (people claim hes 33
degree, he wasnt , I have had his papers from the New York Lodge 1992). Gann was clearly
on a same level like Einstein, Tesla and others, wait! I forgot and the same as House Wife
astrologers. If you think you will trade markets using astrology, you will lose all your capital
fore sure, we have seen many astrologers forecasts, and if you did 100% opposite you would
make a fortune. Most astrologers are as poor as church mouses to boot.
Ganns interview in 1909 also supports he had discovered the Law of Vibration.
One of the most astonishing calculations made by Mr. Gann was during last summer [1909] when he
predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the
end of the month of September. At twelve oclock, Chicago time, on September 30th (the last day) the
option was selling below $1.08, and it looked as though his prediction would not be fulfilled. Mr. Gann said,
If it does not touch $1.20 by the close of the market it will prove that there is something wrong with my
whole method of calculation. I do not care what the price is now, it must go there. It is common history that
September Wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of
trading, closing at that figure.
The birth chart of W.D.Gann could have been made by Luke Broughton, Gann would have been 21
years old chart. There is a chart with the exact time published by Robert Zoller. Broughton predicted his
own death in the newspaper a month in advance, theres not one House Wife astrologer in the world that
can do that. Gann wasnt doing what I call House Wife astrology. The great Hindu astrologers call them
three book astrologers, read three books and they are astrologers.
Broughton had over 300 hundred very rare astrology books; maybe he lent some to Gann. Or Gann
bought some after his death.
Heres his ad:
You would also notice that the above address of 120 x room No.1206 = 144,720 the square of 12 and
two circles of 360, hes telling you something there. Only three adds had the room number, 3 x 120 = 360.
144,720 adds up to 18, which what hes charging a monthly subscription of $18. (18 X 12 = 216)
144 + 72 = 216.
Below I sent an email to India on 28th November 2015, I found some thing on the Law of vibration on
weather not in any books. They had the worst floods in 100 years, with 490 mls in a day, on 1st December
2015. 400 hundred died. Of course I didnt tell him how I did it, or sell it. Gann said My secrets arent for
sale, his secrets went to the grave, except his coding in his books like TTTTA which I have decoded.
Your predictions were spot on !!! See this web site. It is the number one private meteorological
web site in Indiahttp://www.skymetweather.com/
How did you make it? Kindly explain astrologically.
Sincerely,
Sachin
Most of you would have one of the last articles Gann wrote which was a nine-page article called Cash
and May Soybean futures dated 24th January 1955. All his dates seemed to be coded, firstly you would
notice that was the date that Robert Gordon made his first trade in TTTTA on 24th January 1927, which is 28
years or 4 x 7 years. This date also points to date in 1940, remember the book is called TTTTA or looking
back from 1940, what dated in 1940 is related to 24th January 1955? This a very simple one, good one to
ask those Gann experts dont you think? He is using coded dates, which point to astrological timing; bible
chronology and this is why its so hard to decode his stuff for 99.9% of the Gann students.
Most people wouldnt even have bought or read these books that claim to be Gann experts let alone
studied them. You couldnt study his book list in under 20 years. Gann was in a class of his own. Gann also
would have had Sepharials private Key books which you will having trouble getting them today:
London bullion Exchange (private subscription only)
Key to market operations
Key to successful market operations
Key to market trading
Key to successful trading
Secret progression
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Market movements, and the trading opportunities that accompany them, are always a by-
product of the dynamic interactions of contrasting forces.
We can observe these critical contrasts in many ways: Buyers vs. Sellers. Bulls vs. Bears. Supply
vs. Demand. Optimism vs. Pessimism. Hope vs. Fear. Expansion vs. Contraction.
But no matter what terminology we choose or which specific factors we track, we typically spot
the highest-probability trading opportunities when the contrasts are the strongest, at the points
of the most extreme dynamics, at the peaks and troughs of cyclical waves.
When we consider that essential contrasting duality as we look for trading opportunities, we can
do a much better job of developing and refining profitable strategies that offer us consistent
advantages. When we can define both support and resistance, for example, or when we can
track two moving averages and watch for signals generated by their cross-overs, we can trade
with much higher confidence.
The same basic principle applies to the use of planetary dynamics in market timing and analysis.
Oddly enough, however, many would-be astro-traders overlook this important concept, and their
trading returns suffer as a result.
This oversight is sometimes due to the sheer excitement that novice traders experience when
they first realize that planetary cycles actually provide a genuine advantage in the markets.
After all, once we observe some kind of correlation between an event in the solar system and
changes in market trend, its natural to feel a burst of enthusiasm! Our feelings become even
more positive if we can observe that correlation being repeated a time or two in fact, it usually
doesnt take much reinforcement for us to start convincing ourselves that we have stumbled
upon the Holy Grail of trading. We begin to nurture an unconscious bias in favor of our newly-
discovered astro-trading timing signal, and start searching for fresh opportunities to time our
trades accordingly.
Thats often a big mistake, especially when we believe that we have found a simple one-on-
one correlation between planetary actions and price behaviors in the markets. We run the risk
of succumbing to magical thinking, believing that if we just wait for that particularly potent
planetary phenomenon to repeat itself, and then use that occasion to jump into the market, we
will be guaranteed success.
For example, we may observe planetary correlations with the markets just enough to conclude
that there is a direct correspondence between the movement of Jupiter through the degrees of
the tropical zodiac and the price cycles in the equities markets. That was certainly true in the
early decades of the 20th century, and its a correlation that still has some merit today. On that
basis, we may conclude that trading tops in the stock market are likely to coincide with Jupiters
passage over 15 degrees of Gemini.
But even if that conclusion proves correct when Jupiter next hits that point in the zodiac, its
actually of little practical use to us as active astro-traders. Thats because Jupiter takes 11.875
years to complete a full circuit of the zodiac, so this correspondence will only offer us trading
opportunities every 12 years, no matter how reliable the correlation of Jupiters position in the
zodiac to stock market trends may actually be.
Its far more useful to look at planetary cycles that reoccur more frequently if we are going
to use them as a basis for taking positions in the markets. The key distinction here is one of
relative speed. Planets that complete their orbits through the zodiac more rapidly will provide us
with more frequent cyclic repetitions than those with slower orbits.
As a convenient reference, here is a listing of fast and slow planets. Note that weve included
some minor orbital factors in our list, but our purpose here is not to engage in a discussion
of what is or is not a planet in terms of strict astronomical definitions, but rather to provide
a characterization of relative speeds of zodiacal orbits. With that in mind, weve followed the
astrological tradition of listing the Sun and Moon as planets as well, based on their apparent
motion as seen from our perspective here on Earth.
FAST PLANETS
Moon
Sun
Mercury
Venus
Mars
Asteroids
Simply looking at the correspondences between price fluctuations and the cycles of a fast-
moving planet can often give us helpful information. For example, there is a fairly strong
correlation between the Suns passage over 8 degrees of Capricorn and trading lows in Gold.
As Figure 1 illustrates, this particular zodiacal phenomenon doesnt always coincide with the
exact bottom in the Gold market. Our back-testing shows that this solar alignment marks trend
reversals in Gold about 75% of the time, with those reversals evenly divided between trend
changes up and trend changes down. Considering those odds, we can certainly conclude that it is
useful in identifying potential entry points for profitable positions in the yellow metal.
[figure 1]
While it is certainly more useful to have a planetary trading signal that comes once a year
instead of one with a 12-year cycle, using this recurring position of the Sun can open the door
to even greater benefits. We can also use this planetary factor as a springboard for further
explorations of the relationship between solar dynamics and price trends in Gold.
By employing the kind of correlations between zodiacal positions and market prices that W.
D. Gann used in some of his work, we can generate planetary price lines which illustrate the
progression of price and time coordinates based on the passage of the Sun through the entire
360 degrees of the zodiac. In Figure 2 we have added those planetary price lines for the Sun to
our trading chart for Gold, projecting them in the sixth harmonic.
[figure 2]
The heavier diagonal lines moving through the chart indicate the first-harmonic positions of the
Sun which are direct correspondences in price to the Suns sequential positions in the zodiac.
The intervening diagonal lines divide these first-harmonic planetary dynamics into 60 spans,
giving us a sixth-harmonic projection.
Note that while these sixth-harmonic solar price lines do not define all the trading actions for
Gold, they do help us see some instances in which Gold has traded specifically within solar
channels as it has made significant price movements. Whenever the yellow metal has been
trading in a solar channel, and then breaks out of that planetary trading range, it is often a
powerful indicator of important price action just ahead. This is especially true if other technical
indicators provide a confirmation for a trend reversal.
As astro-traders we are offered a clear advantage through the use of planetary price line
dynamics like the one we have illustrated here for Gold. But those planetary dynamics become
even more effective as tools for forecasting and trading when we look at the impact of pairs of
When we use more than one planet in considering the cyclic phenomena that can correlate with
price and time in the markets, we have an opportunity to connect with the kind of essential
duality that typically offers us a genuine advantage in our trading. Thats where the distinctions
between fast and slow planets becomes important.
In looking for planetary pairs to use in identifying potential trading opportunities, the most
practical rule of thumb is to combine one faster-moving planet with one slower-moving one.
Since weve already observed the clear role that cycles of the Sun play in defining price
movements in Gold, we can use it as the fast planet in our charting for the precious metal.
For our slower-moving planet in this case, we have chosen the Transneptunian factor that was
designated as Kronos by the 20th-century German astrologer Alfred Witte. Kronos is much slower
than the Sun it has an orbital period through the zodiac of 521.834 years, giving it an annual
mean motion of 042.
[figure 3]
When we add sixth-harmonic projections of Kronos to our chart with the sixth-harmonic
planetary price lines for the Sun, we get the result shown in Figure 3. Because of its slower
movement, the planetary price lines for Kronos are more evenly horizontal than the Suns sixth-
A third rally is forecast for the first half of June 2016, with important intermediate cycles
pinpointing when & where the next peak is most likely.
That analysis had been detailed in INSIIDE Track throughout 2015 and was emphasized when
Gold & Silver triggered 3--6 month buy signals in mid-Dec. 2015. Those signals reach (initial)
fruition in June 2016.
While the actual price action is very important, more noteworthy is what a move like this often
portends
Action like that is often a harbinger of instability & uncertainty in financial markets and/or a
waning faith in fiat currency (of which the Dollar is NOT the worst). It is also often an omen of
geopolitical upheaval. There are several cycles that are projecting all of the above - in the near
future
A slightly offset 8-Year Cycle took hold in 2000 (and was linked to secondary turning points in
1992 & 1984) and ushered in the bursting of the dot.com bubble. The Nasdaq 100 led the way
lower, plummeting in 2000. That same Index led the bottoming formation of the next meltdown
- the 2007/2008 collapse - setting its low in Nov. 2008 - ~8 years from its greatest collapse.
The collapses of 2000 & 2008 focus attention on 2016 8 years later. However, since I view this
as an approximate 8.6 Year Cycle - about half of an uncanny 17-Year Cycle - that focus extends
into 2017 8+ years from the Aug.--Nov. 2008 meltdowns & 17 years from the 2000 peak &
collapse.
A brief recap of that cycle and its corresponding events is included in the accompanying table.
[See 40-Year Cycle: Date of Aggression Report for related analysis, poised to dramatically impact
stocks, gold & the Dollar.]
Late-1960 - 8 years later - timed the terror reign of the Sunday Bomber on the NYC Subway. 8
years (and a few months) later
8 years later (one 40-Year Cycle ago), an ideological shift took hold in March 1977 - with the
Hanafi Siege in Washington DC. 12 Muslim gunmen seized three buildings - taking 149 hostages
and killing a journalist. 8 years later, another shift took place
In each case, Americans were singled out and executed - making clear the intent. 8 years later,
another shift, bringing the siege back stateside
1993 witnessed the (truck) bomb attack on the World Trade Center, ushering in an 8-year period
of truck (and boat) bombs - aimed at American targets, embassies (Africa) & a US Naval vessel
(Yemen).
As America would later discover, attackers used this 8-year period to train for a second, more
2001 shifted the delivery means for attacks, from trucks & boats to airplanes - beginning with 4
airplane-based bombs/missiles aimed at American buildings & landmarks on 9/11 and related
airline-based attacks thwarted in the ensuing months & years. The shoe-bomb attack was one
of those that would have brought a jetliner down over the Atlantic Ocean. 8 years later
2009 timed another significant shift by attackers and another ideological shift. That is when
the all-out attack against Americas infrastructure took hold. Whereas a plane, truck or boat
bomb can only impact lives in a concentrated region, 2009 ushered in attempts to take down
large entities (corporations, government offices, utilities, etc.) with cyber-attacks that would
spread the damage far & wide.
That also ushered in a period of attacking American soft targets - like Boston & San Bernadino
- and attacking the power grid (Metcalf sniper attack). As discussed in 40-Year Cycle - Date
of Aggression, April 2016--April 2017 is a dangerous period in which those soft-target attacks
should continue/escalate. And that would lead into
2017 - the next phase of the 8-Year Cycle of Attacks and the time when, cyclically, these attacks
are likely to escalate and transition again.
2017 is also a complete 40-Year Cycle from the Hanafi Siege - one of the original Muslim-based
attacks against Americas government & citizens targeted at Americas capital.
As increasing evidence of Chinese, Russian & Iranian cyber-attacks emerge, the potential for the
next 8-Year Cycle is sobering.
2017 is also a precise 60-Year Cycle - the cycle of life (& Ganns Grand Cycle) - from the
satellite events of 1957. That is when the USSR shocked the US and the world by launching
Sputnik, the first Earth satellite, after which the US launched its Vanguard rocket - the precursor
to our satellite program.
30 years later (midpoint of 60-Year Cycle) - in 1987 - the Iridium constellation was conceived.
If that seems far-fetched, keep in mind that 2007 is when China demonstrated their capabilities
to the world (the result of Executive-authorized transfer of Americas highly technical military
applications to China in 1993--1997) - when they plucked one of their own weather satellites out
of orbit with a missile. Since then, the world knows what China can do if backed into a corner.
There is a consistent 10-year cycle related to satellite technology that recurs in 2017 along
One of the intriguing aspects of this cycle is its larger-degree multiples - both an 80-Year Cycle
AND an 800-Year Cycle all pinpointing 2016/2017 for watershed events in the rise and fall of
the British Empire(s).
On a more contemporary basis, a good place to begin this cyclic discussion is 1960 - when
Britain was eclipsed by France & Germany as the economic powerhouses within Europe. It was
one of the most salient validations that the sun was indeed setting on the British Empire. In a
couple decades, the UK had gone from global power to (only) European power to third place (or
lower) in Europe.
This turning point came on the heels of the 1957 Treaty of Rome and the establishment of the
European Economic Community out with the old, in with the new.
In 1960, the UK (and others) launched the competing EFTA (European Free Trade Association)
but subsequently (in 1961) attempted to join the EEC, a bid that was ultimately rejected due
to the objection of Charles de Gaulle pounding another nail in the coffin of the once mighty
empire.
This seismic shift - in Britains economic standing & influence - set the stage for the ensuing
50+ years of economic & currency crisis, repeatedly pushing the Pound Sterling to the brink of
disaster.
8 years later, in Sept. 1976, the UK experienced another humiliating economic crisis - ultimately
being forced to go to the International Monetary Fund - hat in hand - for a bailout of their
currency. That immediately followed June 1976 - when the Pound reached a record low after
suffering a sharp drop in value in perfect sync with the Jamaica Accord in 1976.
8 years later, in Sept. 1984, the UK was experiencing record high unemployment during the
Economic & currency malaise returned 8 years later - in Sept. 1992 (many of these 8-Year
Cycle events occurred during the month of September) - when George Soros broke the Bank
of England on Black Wednesday forcing them out of the Exchange Rate Mechanism in Europe
while pummeling the value of Britains currency.
3 of the latest 4 phases (1968, 1976 & 1992) - of the 8-Year Cycle - involved Sterling-bashing.
8 years later, in Sept. 2000, it was an inflationary debacle - on the heels of the Pound declining
for 8 years (to its lowest low in 13+ years) - with Britain possessing the highest gas prices in
the developed world. That triggered fuel protests & blockades, resulting in ~90% of petrol
stations running dry. It also prompted the instituting of food rationing as a result. The
plummeting Pound created chaos as the 8-Year Cycle continued to wreak havoc!
8 years later, in Sept. 2008, the UK joined the rest of the world in a global economic meltdown
as the Pound was again pummeled, dropping about 35% in 14 months and to its lowest low
since 1985.
1960, 1968, 1976, 1984, 1992, 2000, 2008 an uncanny, 8-Year Cycle at work!
Could another UK financial crisis be about to emerge - in/around Sept. 2016? Could the Sterling
be in for another pummeling??
The actual price lows in the Pound have also come on a very consistent 8-Year Cycle, slightly
offset from these debacles. It has seen multi-year lows set in 1985, 1993, 2001 & 2009. So, it
is reasonable to conclude that another multi-year low could ultimately take hold in 2017.
So, she set out to build a Second British Empire - with India & Asia as primary components.
But that only worked for so long
After 80 years of development, that Empire was dealt its own serious blow - beginning with the
Indian Rebellion of 1857.
In the ensuing ~80 years, Britain suffered two massive depressions - with the first one (1873-
-1896) culminating at the 40-Year Cycle midpoint (1856--1896--1936) and the second one
unfolding throughout the 1930s.
The 1930s were also a time of great transition between the UK and Asia - another critical
component of the Second British Empire ...
Leading up to 1936/1937, Britain was redefining her relationship with both China & Japan - a
delicate balancing act. All that led to naught as the Second Sino-Japanese War broke out and
ultimately dealt a 3rd & final (knockout) blow against Britains global empire. The 80-Year Cycle
was recurring with great precision.
2016/2017 is 240 years, 160 years AND 80 years (higher-degree 8-Year Cycles) from the British
Empires being dealt severe & ultimately fatal blows.
2016/2017 is also an exact 800-Year Cycle (larger-degree 8-Year & 80-Year Cycle) from the
French invasion of England - under Prince Louis (later to be Louis VIII) - during the First Barons
War in 1216--1217.
The invasion - and the War - were a direct result of Englands King John refusing to abide by the
Magna Carta of 1215 (ultimately influencing the US Constitution in 1787).
Could 2016/2017 perpetuate this 8-Year AND 40- / 80-Year & 800-Year Cycle in the U.K.?
Locust plagues - in Aug. 2015--Jan. 2016 (from S. Russia to S. America) - have been
exacerbated by El Nino-related drought AND flooding in South America and that is just the
beginning. While grain markets are poised for a culminating surge in late-May and into the first
half of June, another advance could soon follow.
See 40-Year Cycle: Food Crisis Reports & Traders World #62 for more details.
While these diverse cycles might appear unrelated on the surface, they are all part & parcel of
a MAJOR cyclical shift expected for 2016--2021 - impacting markets, currencies, commodities,
nations and empires not to mention geophysical & solar instability. Already, key markets
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Trading makes so much sense and seems so do-able when looking at it from a distance.
After getting comfortable with the theory and assumptions, the student of trading can see
the rules that govern success in trading. Intellectually its really not that hard to grasp.
Everybody knows that trading is about managing Probability. Everybody knows that no one
trade is important. Everybody knows that success is found in a statistically large enough
sample size where you trust the edge you have developed in your methodology over time to
extract capital from the markets. No reason to get fluxed over a couple of trades that dont go
your way. At a distance, it is easy to understand. Everybody knows this. All traders know
this in theory until they are put to the test and discover they dont know how to apply their
knowledge in practice.
Then, in another part of your brain, a circuit is tripped, without your ever knowing it, and
all your knowledge becomes mush. This is where the two worlds of trading collide. You know
the drill. And youve experienced the gap between Logic and Emotion. Youve been there a
thousand times, day in and day out. You know this stuff at a distance. Then when you
actually trade, with capital at risk (not at a distance, but viscerally in the here and now) you
discover again and again that you dont know what you thought you knew. Not really. All
that understanding just flies out the door. If only you could force the markets to conform
to your beautiful mind.
Hordes of traders stay for years at this threshold until they burn out, only to be replaced
by scores of new dreamers starting afresh having no idea what they are getting into. All are
mesmerized by the possibility of success that trading offers and are sure they can learn how
to extract capital from the markets consistently.
As they mature, they stay stuck in almost there, running from one teacher to another
and buying stuff and more stuff to help them get the edge. They earnestly believe that the
answer (the Holy Grail) is out there. Then, all their troubles will be over! But no matter how
seductive the promises of trading may be, success remains right around the corner. Each
day, each week, each month, and each year they pick up the broken pieces and try again
the next day. This is how performance-challenged traders fritter their time and capital away.
This is the experience of trading for the vast amount of people who are striving to become
successful traders.
Applied Mindfulness.
Mindfulness is like a telescope that, when handled properly and focused correctly, can
allow you to discover new possibilities where, before, nothing could be perceived. You find
that you did have the raw talent all along, but you did not know where or how to look to find it.
Even discovering the empowering aspects of the hidden gold mine within you is not enough.
The talents have to be honed into usable skills.
Nearly everyone has the hidden talents, but few awaken the talents and develop them into
skills that are available when exposed to the trading environment where Uncertainty and
Probability are the norm to acclimate to. This is a much larger task than to stay stuck in the
fallacy of Almost There and the feeling of Certainty in your beliefs. But the difference is
competency as measured by equity growth.
In professional sports, such as golf, nearly all elite athletes have psychologists working with
them to achieve the mind that produces peak performance. All golfers on the PGA tour can
drive and put. But only a few become the elite money players. At this level of competition,
psychology of performance is what separates the leader from the pack.
It is no different in trading except that trading is probably a tougher mental game to
master than golf. Good enough is not good enough to get to the top. Being stuck in Almost
There is not going to help you become an elite trader. Almost There traders are the
pack trying to get better without understanding what they need to get better at. The jump
between the pack and the elite is found in the mind that the trader brings into the moment of
performance.
Getting from Almost There performances to elite performances requires change that is
scary to the brain of the pack trader. Why not stay in the Comfort Zone its, well, comfortable
there. But when you watch an elite trader consistently extracting capital out of the markets,
dont you wish you were there? You could be if you are willing to challenge the organization
of the Self that keeps you in the pack and re-order the mind that you bring to trading. Thats
the difference maker.
The lateral trading range that has developed over the last year or so is a big reason why
investors are feeling so glum. Even though the SPX isnt far from its all-time high, to many
participants it feels almost like a bear market. If it feels like the doldrums to you, thats
because the market has made no net progress since this time last year. In fact, the SPX is
even a little below the year-ago high as the following graph testifies.
It has been observed that nothing spoils investors appetite for equities faster than a
sideways trend. Trading ranges can actually exert a devastating influence on mass psychology
sometimes even more so than even a market crash. Thats because humans are hardwired
for progress and trading ranges represent the opposite of progress, namely stagnation. Most
investors, if theyre honest, would rather experience a market crash than several months (or
years) of sideways equity prices. Thats because at least a crash brings excitement and the
sense of movement. Even if that movement is to the downside, anything is better than going
nowhere for a prolonged period (or so they reason).
Introduction
Let me start by introducing myself. I am a full time trader and trainer in the futures
markets. I run a real time trading room two hours each trading day. I have traded for over
20 years, and concentrate primarily on the currency (FOREX), crude oil, gold, and stock index
futures markets, such as the S & P E-mini. In a previous career, I was a practicing C.P.A . in
the state of Florida.
I have developed a full suite of charts and indicators known as the Trendicators and
a market analyzer known as the TradeFinder, as well as a number of automated trading
systems and automated buy, sell, and trade management systems.
What follows are the fundamental elements you need to be consistently profitable in the
futures markets. I have also included information below that is crucial to your overall success
and in managing your risk.
Preparation for trading profitably consists of market observation over a period of time so
that the trader can build confidence in knowing what usually happens in the market, and how
to profit from the recurring market behavior that repeats itself every day. To take advantage
of cycles in the markets, observe the typical move that a market moves after it moves up or
down out of a range contraction pattern.
The real objective is to build a knowledge of probabilities of market behavior so as to
take consistent profits out of specific trading instruments. The following are observations of
market behavior that will help to put the probabilities in your favor.
____________________
Probability of winning trade times Average Winning trade in dollars minus the probability
of a losing trade times the Average Losing trade.
When you have a positive value from this calculation, it means that you have a positive
expectancy based on your data. In other words, you have a system that has put the probabilities
in your favor of being profitable.
Probabilities favor the continuation of a trend, therefore you want to trade or invest in the
direction of the major trend. For purposes of intra-day trading or even investing, a daily
chart is a very good place to start to analyze the major trend. To put the odds even further
in your favor, I recommend that you analyze whatever you want to trade to find out the
consistency of the trend. This can be done by measuring the trend in various time frames all
the way from short term trends such as a five minute chart all the way to daily, weekly and
monthly charts.
Risk Management
A primary downfall of beginning traders lies in not knowing how to manage risk. The use
of protective stop losses (known as stops); is one important tool in trading futures. An even
more important tool is known as position sizing. Position sizing answers the question of how
many contracts you should trade in the futures market as well as how many shares you should
buy or short in the stock market.
We know that trading is all about how to react to your successes as well as how to react when
trades dont go your way. No discussion of trading would be complete without a discussion of
risk management. For futures trading, risk management is established with a combination of
the use of stop orders combined with position sizing. You need to pair a proven strategy
along with risk management. Risk management is accomplished, in general, by never taking
a big loss on any one trade. I suggest that you start by making sure that on any one trade,
you do not risk any more than one percent of your trading account. You will need to calculate
before you enter a trade whether you would be risking more than one percent of your trading
account.
To calculate position-size, you need to know some basic information such as the following:
Account Size
Risk Percentage that you are assuming
Tick value of contract you are trading
Number of ticks of your initial stop loss order
In this example, you would be able to trade 1 contract $10,000 x 1% = $100 maximum
risk
Like any profession, you need to be prepared to take on the markets in a structured and
methodical manner. If you study the above principles, you will better understand overall
market behavior and you will be equipped to begin to consistently benefit from the great
opportunities that exist each day in the markets.
Platform:
As you develop your trading skills, I suggest that you use a professional trading platform
that will allow you to trade directly from the charts. Be sure that the trading platform allows
you to trade in simulation mode as well as execute trades in your live futures account. In my
opinion, it only makes sense to utilize the very best that technology has to offer in todays
world. Using a professional trading platform will improve your odds of success and help to
eliminate trading errors. As with any skill, the more that you practice, the better you get at
it. It is important to develop your skills regarding the proper use of your trading platform
while in simulation mode so as to minimize trading errors after you are trading your actual
trading account.
Trading in simulation mode will help you to develop your confidence and an overall
methodology that fits your personality.
No, no, no, its not what you think, so lets get back to your trading screen.
It is a fact that many traders have a difficult time earning consistent profits trading. From
what I have read as well as what I have observed when I attend various webinars, it seems
as though many traders believe that the cause of their lack of success is due to the method or
methods they are using. To be honest, I do attend some of the webinars. Is it because I am
looking for a method? Absolutely not. My EminiScalp methods are just fine and there is no
reason to even attempt to use something else. I am just curious as to what is being offered
by others and I am more curious as to why, with the variety of methods that are available,
why the lack of trading success is still prevalent. This has been an ongoing issue for years
and unless something changes, it will continue. I have written about our EminiScalp methods
in previous articles. This article will offer my personal insight on trader account size and the
relation to trader confidence.
Many traders believe that their lack of success is due to the terrible method they are using.
When I visit a vendors website and read the testimonials on just how great the method is, I
have to wonder what is going on. Why is it that some traders seem to be doing very well with
a method while others are struggling. Are the testimonials false? In most cases, I would like
to believe they are true, although there may be those that are questionable.
No matter how many testimonials and great reviews a vendor receives, there seems to be
as many unhappy and frustrated traders who cant make heads nor tails from the particular
method, not to mention a profit. So, what gives? How is it that some can prosper but many
fail. Does it have to do with discipline? Or is it focus. How about determination. Ahh, could it
beemotions. Is it a combination of all of what was just mentioned, or is it something else?
One vendor says only $1000 is needed in the account to trade their method, and another
vendor says $2500 may be required for their method. I have seen some vendors who insist
that a trader have an account of at least $10,000 in order to trade their method
Experience has taught me that trading confidence can be attributed to account size. Traders
are more apt to take risks if their trading account has a substantial balance. The confidence
begins to erode as the trading account dwindles.
I believe that the rule of thumb is never to risk more than 2% of your trading account on
any one trade. Of course, this is not a hard and fast rule, but it is one that seems to be the
industry standard. For many traders, 2% is not a huge amount (taking in consideration the
average size of a trading account), but unfortunately, it can also be unrealistic. I am not sure
if many traders adhere to that rule, or if they are even aware of it. This 2% rule can work out
just great, or it can mean the temporary or permanent end to a trading endeavor.
In this article, I plan to discuss my pattern trading process and pattern trading tools. I trade
Harmonic/Geometric chart pattern setups like ABCs, Gartley/Butterfly with market context
both in automated and discretionary process using TradeStation platform. I trade Emini futures
intraday and trade Stocks/Options using End-Of-Day (EOD), weekly charts from swing trading
(Short to Medium term) perspective. I will discuss few of my trading tools and trade setups and
my psychological and emotional preparation for trading process.
Trading Plan
Here is my Intraday Futures trading plan. I have a similar plan for End-Of-Day equities/options
plans and I'll write about them in my future articles.
All the ideas and tools I use are well designed and tested in real time and end-of-ay analysis in
auto/discretionary trading styles for the past 20+ years of my full-time trading.
1. Trading decisions are made using "Trading tools" only, whereas "Support tools" are used to
validate/support the "Trade Tools." An example of "Trade Tools" are pattern recognition tools like
Auto ABC, Auto Gartley, Head & Shoulders etc. and an example of "Support tools" are part of
market context tools like moving averages, pivots, fib. bands and gaps etc.
2.Trade in the same direction of Market Internals direction. Current pattern or setup trade
direction must be same using Combined Market Internals indicator.
3. Trade pattern based and computed entry, stops, targets only, and never guess or overthink
non-computed price levels.
4. Current Volatility (VLTY) must be within the tradable condition.
6. Entry, Exit and Targets must fit my Trading Plan and risk profile.
7. Never trade micro chart patterns and never scalp counter-trend based chart patterns. Check
for the confluence of target levels or zones with other key support/resistance levels.
8. Must adhere to strict discipline for my entry and exit rules and money management rules.
9. If any point during the trade, if my trade decision is violated or becomes wrong, exit the trade
regardless of Profit or Loss.
10. Scale-In and Scale-Out must be planned before the trade started. Never add to a losing
trade.
1. Auto Chart Pattern detection tools (like ABCs, Gartley, Butterfly, Double Bottoms/Tops, H&S
etc.)
2. Support tools like Market Structure, Pivots (Floor, Globex, Fib. Zone), MAs and Fib. Bands.
Auto ABC pattern is the simplest but most unique and universal pattern in trading. ABC
chart patterns also embedded in many other chart patterns like Gartley, Butterfly, Head and
Shoulders, Double Top/Bottoms, Head and Shoulders, Elliott Waves, Dragons etc. The ABC
patterns forecast key market turning points and profit targets for traders. ABC patterns
pinpoint important pivot levels with high and low prices and identify key trading zones.
The key process in identifying an ABC is correctly finding the A, B, and C swing points in a
chart without any delays. Once A, B, and C pivots are identified, an Auto-levels algorithm
generates the Entry, Stop and Target levels. The C pivot in ABC patterns are determined by
the Fibonacci retracement of (38.2 to 61.8 percent) of AB swing. The projection from C level
is measured using fib-ratios of AB and BC swings. A Radar Screen component finds ABCs for
multiple instruments and multiple time-frames.
When price starts to trade above 'EL' level in ABC Bullish pattern, it signals pattern completion
and a trade entry signal. A long trade is entered above EL level and a Stop is placed below 'C'.
Targets are computed using the length of 'AB' (from C) using Fib. ratios. These projections are
automatically plotted to show 'ABC' pattern entry, stop and targets. Bearish ABCs will have
similar trade setups in reverse.
Fib. Bands
Traders believe the Pivot levels acts as key support and resistance levels during market trends. I
use Pivot levels as part of "Support Tools" to determine the validity and strength of the pattern
but never trade Pivot levels by themselves. Analysis based Pivot levels are very crucial and I use
Floor, Globex, and Fib. Zone Pivots for my trading. A confluence of pivots increases the chance
of potential support/resistance compared to a single pivot level. Pivots are very efficient for both
day and swing trading. Pivot trading is quite profitable using these support/resistance levels in
the direction of the trend along with good money management techniques.
Market Internals use market breadth indicators and work as leading indicators. The key aspect
is to find a group of market breadth indicators and combine them to form a single Combined
Market Internals (CMI) Indicator and follow its direction. Combine Market Internals Indicator
shows a Combined Market Trend of Internals of $ADV, $DECL, $TICK, $TRIN, $ESINX, XLF, SPY
in real-time. CMI shows the underlying trend in a histogram. CMI Ribbon shows the detail of
internal trends.
I look for CMI direction in 3m and 5m charts to assist my pattern trade for entry. Any bullish
pattern setup must match the CMI direction (in GREEN) at the entry point and vice-versa for
bearish setups. CMI also assists me in finding divergences.
Most traders know the axiom -- Trend is your Friend. Traders who capture market trends
are most successful than traders who trade counter-trend methods. Counter-trend is also a
successful method but it is much harder and unforgiving when a mistake is made compared
to Trend based methods. Super-Bars is a methodology to detect the underlying trend based
on multiple trend techniques to build a composite trend and project the super-trend on the
pricebars.
Superbars provide trend information at a quick glance using color scheme. Superbars can be
plotted in all markets and in all time-frames. Super-bars are color coded and decipher the
underlying trend in the simple color scheme. Red:Bear, Green: Bull, LightRed: pre-Bearish,
LightGreen: pre-Bullish. Superbars is NOT a buy/sell indicator as it is part of "Support Tools". It
is used along with other pattern setups, technical indicators to spot trends and trend changes.
One of the most significant indicators for my trading analysis (part of Support Tools) is Market
Volatility (VLTY) Zones Indicator. Market Volatility (VLTY) provides a way to gauge the current
instrument volatility in its time-frame. It is plotted in a sub-graph for my trading instrument
(primarily Intraday). When VLTY range is above 25 and below 50, it is suggesting balanced and
calmer VLTY range trade. If VLTY is trading above 50 to 100, it may be signaling higher volatile
period and considered risky zone and I usually avoid taking new trades. VLTY above 100 is
considered to be extremely risky and signaling extreme volatile conditions to persist and I'll exit
all the trades from the markets and wait for it to return to normal condition (below 50). VLTY
below 25 signals choppy conditions and sideways/whipsaw trading.
Confluence zones from multiple pattern or trade setups act as key areas for price-action.
Trading solely with these price levels may not be the best choice for any trader, but using these
confluence zones with pattern setups may result in profitable trades. Here I present a trade how
I anticipate these confluence price zones and trade ABC chart pattern with market context.
Following chart shows an ABC Bullish pattern in @ES 1220 tick chart with a C retracement of
58%. ABC Bullish trades are made when price trades above Entry Level (EL) level. Notice also
price closed above mid-Fib. band and 200 SMA. Now monitoring the market context elements,
the price is trading above Mid Fib. Band and VLTY are comfortably less than 50 (normal).
BarTime is showing about 60-90 seconds for ES 1220 Tick (my trade chart). CMI is also green
signaling potential ABC bullish setup.
Trade Info.
A long entry was taken at 1383 with an initial stop set 1381. Targets are computed from 'C'
using AB Length and Fibonacci numbers. I look for projected targets confluence with other pivot
levels, MAs or any other support or resistance levels. About 30mins after trade entry, ABC long
trade from 1383 level reached its first Target: 1386.5. I exited half of my position at 1386.5 (3.5
pts profit) and then I waited for my next target 1389 and raised stop from 1381 to 1385. Price
went up to 1387.5 (79%AB) to complete target zone.
The following example shows how to trade patterns with trend confirmation. This example also
uses Auto ABC, SuperBars with Fib. Bands to identify a trade. The central idea behind the trade is
to wait for trend confirmation in the pattern trades.
This example chart shows an ABC Bullish pattern setup with entry level (EL) above 1376.5 with a
stop at 1375. The ABC is well set but the underlying trend (using SuperBars indicator) is showing
a bearish trend (RED). Superbars is signaling the continuation of bearish trend and price may
retrace further. CMI also was signaling a continuation of market internals bearish trend.
After about 90 minutes later, ES completed a Double bottom pattern (ABC with C at 94%
retracement). Superbars signaled a potential trend change (with GREEN bars) and completion
of double bottom and ABC Bullish Trade setup. CMI started to market internals were turning
to green. A Long trade using ABC /Double Bottom pattern is entered at 1374.5 with a Stop at
1372.5 (below C) . Targets were placed at 1374.5 (+2), 1376.5 (+4) and 1378 (+5.5). Stop was
set at -2 points at 1372.5.
Within 90 minutes of time, all my targets were hit as I trailed the stops. Patience and discipline
Making money investing and trading is a difficult business. Much is written about it and it is
made out to be simple accessible and even glamorous. The truth is that 94% of people who
open a trading account are out of business within nine months. They have either lost the entire
contents of their account or decided to give up. This means that 6% of traders, which include
all the professionals, are taking money from the 94% who are losing it or put another way one
person in twenty succeeds! The professionals have many secrets that they dont want the
public to know about and I am about to reveal one of them. Most private individuals do not take
the time to educate themselves so that they can be successful. However, once an individual
has mastered markets they are firmly on the path to untold wealth.
You may well have heard of the phrase Sell in May and Go Away referring to the stock
market and specifically the UK FTSE 100 index or the American Dow Jones Industrial Averages
or the S&P 500. This is a very broad statement that introduces us to the concept of seasonality
in markets. By the way, as our market chart below shows, this is not really true. Just as the
natural world has four seasons ranging from spring through summer, autumn to winter during
the course of which we experience cold weather, warmer times, as well as wet and windy times,
markets show similar tendencies. However these tendencies are somewhat veiled in as much
as they do not fall into four quarters. However markets do exhibit up moves, down moves and
sideways moves which can be likened to times of the market year.
Take a look at the chart below.
The data from our system shows that since 1983, Crude Oil has closed lower on the 10th
December than it was trading on 17th October on 71.9% of occasions. This represents 23
occasions. This does not mean that the market went straight down. It merely shows that the
close was lower on the December date than the market was trading on the October date. In
some years the market may have traded in the opposite direction creating a drawdown for
some period of the duration. Hence money management is essential. However this information
is useful to us and does give us a potential edge. So what can we do to enhance this system?
At the Market Timing Report we are able to find high probability turning points using our
Profit Finding Oracle System. This gives seasonal trading a massive boost. We do this is
different time frames from super macro down to weekly and daily cycles. Using these latter two
types we can get confirmation of whether seasonality is likely to work this year.
Take a look at the following chart. There are several points to note. Firstly, this chart is
showing a medium term cycles histogram set underneath it. Looking at the bottom left you will
note that where the histograms spike, as shown by the vertical blue lines, the market usually
reverses direction. Returning to our seasonal set up above, we would be looking for a change
for the week of 17th October 2016. There is already a histogram spike coming into play at
that time point this year. Remember these histograms are derived from a completely separate
methodology. So this is already providing a degree of confirmation for the seasonal move. If the
oil market is heading up into the October time window then a reversal can be expected. As the
time approaches we would check our indicators and money management setups to see if the
trade can be entered safely and with good risk reward. If on the other hand the crude oil market
is selling off into that point then an up move is possible as an inversion may be taking place.
This would be counter to seasonality so a more risky set up. Future potential turning points are
making themselves evident to the bottom right of the chart.
Chart Patterns is a Wall chart poster displays 30 Chart Patterns (color) for active market
traders and investors with illustrated Entries, Stops and Targets on a 24" x 36" (2 ft. x 3
ft.), glossy 100 lb. paper. Chart patterns are organized for bullish and bearish color mapped
columns. Each Chart pattern is marked with trade direction (Long, Short), Stop and Target
Levels and features trade types (reversal or continuous), trade conditions and trade rules. The
chart patterns are auto-detected and generated in TradeStation software for accurate depiction
and precision. This poster is digitally printed with glossy finish and features a water-resistant
coating. It is rolled and shipped in a rigid kraft mailing tube. For more information or to order
please go to: http://www.surinotes.com/tcp/poster.cfm?VCODE=220
1. ABC Bullish
2. ABC Bearish
3. AB=CD Bullish
4. AB=CD Bearish
5. Ascending Triangle
6. Butterfly Bullish
7. Butterfly Bearish
8. Cup & Handle
9.Descending Triangle
10. Diamond Top
11. Diamond Bottom
12. Double Bottom
13. Double Tops
14. Flags & Pennants
15. Gartley Bullish
16. Gartley Bearish
17. Head & Shoulders
18. Inverse Head & Shoulders
19. MegaPhone (Broadening)
20. Parabolic Arc
21. Rectangle Channel
22. Rising Wedge
23. Falling Wedge
24. Symmetric Triangle
25 V-Top
26. V-Bottom
27. 3-Drives Bullish
28. 3-Drives Bearish
29. 5-Wave Bullish
30. 5-Wave Bearish
Suri Duddella, is a 20+ year full-time Patterns based Algorithmic Trader. He trades Futures/
Equities/Options markets using his mathematical and algorithmic models. He is also the
author of Trade Chart Patterns Like The Pros book and many other markets related articles.
His website and blog for Automated Patterns/Research and Tools is: http://www.suriNotes.
com and his email: suriNotes@gmail.com
The first module is really about trend analysis. If you read the study materials first and watch
Are you in a trend and when did it start and the videos to reinforce the lessons and look
when did it change. He talks about the rules closely at the examples, take the quizzes,
and the data around that. He talks about Dow grade them yourself, review the areas you
Theory. He touches on a few indicators that can have trouble with and email Dean with any
help with that analysis. questions you should learn a lot about trading
profitability.
In module two he jumps into a simple approach I recommend the course. If you are interested
to Elliott Wave Theory. He talks about wave in taking the couse or if you have any question
counts and impulsive vs corrective waves and please email dean@followmetrades.com
how to use Dow and Elliott together.
What sets these traders apart from other traders? Many think that beating the markets has
something to do with discovering and using some secret formula. The traders in this book
have the right attitude and many employ a combination of fundamental analysis, technical
analysis principles and formulas in their best trading strategies.
Trading is one of the best ways to make a lot of money in the world if one does it right. One
needs to find successful trading strategies and implement them in their own trading method.
The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading.
I wish to express my appreciation to all the writers in this book who made the book possible.
They have spent many hours of their time and hard work in writing their section of the book
and the putting together their video presentation for the online expo.
Finding out your trading method is extremely important to produce a profitable benchmark
that can be replicated in your live account. Perhaps the best way to find a successful
trading method is to listen to many expert traders to understand what they have done
to be successful. The best way to do that is to listen to the Traders World Online Expos
presentations. This book duplicates what these experts have said in their presentations,
WWW.TRADERSWORLD.COM July/August/September 2016 153
which explains what they have done to find their own trading method.
If you have a trading method that gives you a predictable profit, then that type of objectivity
contributes to your trading edge. The problem with most traders is that being inconsistent
will never allow them to have an edge. After you find your trading method that you feel
comfortable with, you must have the following:
By reviewing all the methods given in this book by the expert traders, it will give, you the
preliminary steps that you need to find your footing in finding your own trading method.
Reading this book and by seeing the actual recorded presentations on the Traders World
Online Expo site can act as a reference tool for selecting your method of trading, investment
strategies and tactics.
It took many of these expert traders in this book 15 30 years to finally come up and find
the answers to find their trading method to make consistent profit. Finding your trading
method could be then much easier when you read this book and incorporate the techniques
that best fit your personality and style from these traders. This book will enable you to that
fastest way to do that.
So if you want help to find your own trading method to be successful in the markets then
buy and read this book.
The book was written by a large group of 35 expert traders, with high qualifications, most
of who trade professionally and/or offer trading services and expensive courses to their
clients. Some of them charge thousands of dollars per day for personal trading! These
expert traders give generally 45-minute presentations covering the same topics given in
this book at the Traders World Online Expo #12. By combining their talents in this book,
they introduce a new dimension to finding a profitable trading edge in the market. You can
use ideas and techniques of this group of experts to leverage your ability to find an edge to
successfully trade. Using a group of experts in this manner to insure your trading success is
unprecedented.
Youll never find a book like this anywhere! This unique trading book will help you uncover
the underlying reasons for your lack of consistency in trading and will help you overcome
poor habits that cost you money in trading. It will help you to expose the myths of the
market one by one teaching you the right way to trade and to understand the realities of
risk and to be comfortable with trading with market. The book is priceless!
Parallels to the Traders World Online Expo 12
It was written by over 30 expert traders. The book was designed to help you
develop your own trading edge in the markets to put you above others who
dont have an edge and just trade by the seat of their pants. 90% of traders
actually lose in the markets and the main reason is simply that they dont have an edge.
All of the writers in this book are very experienced and knowledgeable of different ways. Each
of them has their own expertise in trading the markets. What sets these traders apart from
other traders? Many think that beating the markets has something to do with discovering and
using some secret formula.
The traders in this book have the right attitude and many employ a combination of fundamental
analysis, technical analysis principles and formulas in their best trading strategies. This gives
The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading style. I wish to express my appreciation to all the writers in this book who made
the book possible. They have spent many hours of their time and hard work in writing their
section of the book and the putting together their video presentation for the online expo.
This is one of the finest trading books youll ever see about trading. The
reason is that it comes from a group of expert pro traders with multiple
years of experience.
The traders in this book have through experience the right attitude and employ a combination
of technical analysis principles and strategies to be successful. You can develop these also.
Trading is one of the best ways to make money. Apply the trading methods in this book and
treat it as a business. The purpose of this book is to help you be successful in trading.
From this book you will get all the strategies, Indicators and trading methods that you need
to make big profits in the markets.
Seasonality
MACD
Stochastics
Moving Averages
Trailing Stops
Fibonacci Retracements & Extensions
All of the charts in this book are produced using my favorite charting software Market-Analyst.
I have also arranged for you to get a FREE trial so that you might have the chance to actually
work with these indicators with a real charting platform.
You will also be able to view the video presentations that I personally created so you can
see how these indicators can be setup and followed with clear and concise step-by-step
instructions. After you understand how these indicators work, I would then recommend that
you go to WorldCupAdvisor.com and consider following Craig Haugaards real-time trades.
This one-of-a-kind book teaches you how to identify the direction of the markets and trade
the markets by using popular trading indicators. This is done by concise instructions backed
by learning videos, hands on practice with real trading software and by following real-time
trades of a master trader.
This book is an enhanced Edition which means that the articles are backed with audio visual
presentation links. Most of the presentations are in HD quality and are put together by the
writers of the articles in the book and really help the learning process.
Successful trading is based on knowledge and having the right psychology to trade the markets.
This book will lift your trading to a much higher level and will save you an enormous amount
to time.
Rob Mitchell is the president of Axiom Research & Trading, Inc. and has
been a trading system developer for over 20 years and has developed a
number of commercially successful trading systems. He has at various
times been the largest eMini S&P trader in the world. Rob has also acted
as a Commodity Trading Adviser, has traded for hedge funds and has won
the Robbins World Cup eMini trading championship in the past. Rob is
a trading teacher and mentor and is the founder and head trader of Oil
Trading Room which is devoted to providing advanced educational resources to traders at all
levels.
In the rest of the book I will explain to you some of the trading ideas of Rob that he uses in
both his Oil Trading Room and in his World Cup Advisor Account. You can then actually see and
understand how some of his ideas work.
I am not going to tell you exactly how Rob used the ideas to make his return of 57% on a
$10,000 investment. That information is not public and belongs only to Rob.
I will tell you some of the trading ideas he uses and help you understand how these ideas work.
I would then recommend that you go to World Cup Advisor and consider following Robs trades.
You will be able to automatically mirror Robs trades in your own brokerage account with World
Cup Leader-Follower AutoTrade service. You will also be able to see what his trades look like
on your own charts and better understand why he made the trades.
In the rest of the book I will explain to you some of the trading ideas Takumaru said he used
I am not going to tell you exactly how Takumaru used the ideas to make his return of 122.6%
on a $10,000 investment. That information is not public and belongs only to Takumaru.
I will tell you which indicators he used and help you understand how these indicators work.
Michael Trading: Learn about some of the trading tools he used $4.99
Michael Cook, was the first-place finisher in the 2014 WORLD CUP
Championship of Futures Trading with a 366% net profit. In this
book there is a detailed interview with Michael with questions and
answers of exactly what he used to win the championship. In this
book I will explain to you the indicators that he said he used in the
interview. You can then actually see and understand how they work.
Here are some the indicators and methods that he said he used: 1)
Moving Averages 2) Seasonality 3) Cycles 4) Seasonality 5) Price
Patterns 6) Williams %R 7) Long with Stops 8) Commitment of
Traders Report You will also be able to download a video presentation
that I personally created so you can see how these indicators can be
setup and followed in a step-by-step manner. After you understand
how these indicators work, I would then recommend that you go to WorldCupAdvisor.com and
consider following Michael Cooks trades.
By Bennett A. McDowell
One of the biggest complaints from Elliott wave traders is that many
of them feel it is too subjective making it unreliable.
When you use Elliott wave analysis correctly it is not overly
complex nor is it cumbersome, if you employ the techniques covered
in this book. Elliott wave analysis does become reliable when you
understand it because you know how to identify wave counts with the
highest probability. The author has designed this book to simplify the
process and make it easy for anyone to learn how to use the Elliott
wave count. If done according to this book it is possible to remove the
subjectivity many have experienced in the past.
It is the wave three that professional traders generate the most
of their profits with. With this book youll also see how to place a
numerical probability percentage on Elliott wave counts using the McDowell probability matrix
separating stronger wave counts from weaker ones. Plus, in this book youll also learn how to
apply what is known as the classical approach to Elliott wave analysis in conjunction with more
modern approaches that yield higher probability wave counts.
The methods youll learn in this book dont require any specialized software other than a
high-quality charting platform and the market data feed which you probably already are using.
Relying on Elliott wave can give you the roadmap of the markets on all markets and all
time frames. Elliott Wave has rewarded the author time and time again with profits analyzing
and trading the markets.
The concepts in this book are easy to learn and structured so that they can be applied to
any market you want to trade. Dont be concerned if youre completely new to Elliott wave
trading because this book is written with the assumption the reader is starting it at the
beginning and knows very little about the markets. Read this book and practice the principles
until they become second nature to you so you become proficient in the use of these Elliott
wave methods and then go on to develop a good solid track record by practice trading using
simulated paper trading while you learn.
You will find that this book will help you to take the guesswork out of your trading strategy,
help you to analyze mass psychological signals in the market, identify market wave counts
with higher then normal probabilities, anticpate and prepare for the future price action in the
markets and really sharpen your trading skills for both short-term and long-term success in
the markets.
If youre serious about trading with the Elliott wave theory I highly recommend this book.
For more information go here.