Day Trading.

Using Compression and Expansion Cycles for Profit.

By Gregory Mannarino

Copyright 2016 by Gregory Mannarino.

No part of this publication may be reproduced or redistributed.

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Ever since the publication of my frankly revolutionary Evolution System for technical trading, I
have had thousands of people write to me about the development a “Day Trading” system.

My Evolution System is set up to take advantage of longer term trends meaning days to weeks,
therefore it is not the best tool for finding and exploiting very short term changes in the price
action of an equity.

What I have done now is come up with an incredibly simple and accurate way to exploit day to
day price action. The beauty of my day trading system is its simplicity. In fact, it is so simple that
within minutes of looking at it you will be an expert at knowing precisely when a change in price
action will occur. Being able to easily recognize exactly when a change in the price action will
occur makes it simple to enter and exit positions at the most profitable times- and that is the
KEY to being a successful day trader.

My day trading system was designed on the TradingView platform (its FREE)! And can be found
at www.tradingview.com anywhere in the world.

So let’s get to it!

The concept of my day trading system is based upon the premise that the price action of an
equity can be broken down into 2 cycles, Compression and Expansion, and it is these two cycles
which we are going to use for short term entry and exit points.
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To maximize our day to day/short term gains we need to find equities which tend to have large
fluctuations in its price action (high volatility). SLV is a good example of a highly volatile equity,
USO is another. For the purposes of set up and demonstration I have chosen SLV.

Let’s have a look at the chart below.

Using my Compression and Expansion cycles method, look at how many profitable trades you
could have made!
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The chart below is the standard TradingView without my added modifications.

Now let’s build our chart together and go over how we are going to choose our entry and exit
points using Compression and Expansion cycles.

1. Go to Tradingview.com open the page and put in symbol SLV (you could use any
symbol but this is the symbol I chose because of volatility).
2. Go to the bottom of the page and be sure the timeline is 1 year/daily.

3. Top of the chart find INDICATORS.

4. Add the Hull Moving Average (HMA).

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5. Once you add the HMA click on the SETTINGS symbol

6. Change the settings to

7. After you finish setting up the HMA as above I want you to add Bollinger Bands in the
same manner. Click INDICATORS, find Bollinger Bands, and change the settings to:
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Your chart should now look similar to this:

Let me break down exactly how we will use the Compression and Expansion cycles to profit.
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Below are segments of the chart above demonstrating both a Compression cycle and an
Expansion cycle.

Compression cycles are entry/exit points, the Expansion cycle combined with the HMA lets us
see the direction of the price action.

In the Compression cycle we are simply looking for an entry point, we have no idea which
direction the price will move (and we actually do not care! We are simply seeking to profit
from the next price action direction). Now we wait for the Expansion cycle to tell us price
action direction.
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Let us look at the example below.

Notice how as the price action moves from the Compression cycle into the Expansion cycle it is
moving up along with the Expansion cycle.

Now once we determine direction of the price action by watching the Expansion cycle begin to
open up with the price, we enter a position. So simple! So profitable.

We exit our position(s) as the Expansion cycle ends and a new Compression cycle begins.

THIS COULD NOT POSSIBLY BE EASIER!

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Let’s look at our entire chart again and see how many opportunities there would have been
for profitable short term trades.

Do you like my Compression/Expansion cycle day trading system? Is this the simplest and
potentially most profitable day trading system you have ever seen?

Can you see the power of this?

Let me know how you personally do with it!

Contact me via my website, TradersChoice.net

Thanks, Gregory Mannarino.