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April/May/June 2018 Issue #69
THE OFFICIAL MAGAZINE OF TECHNICAL ANALYSIS
Gann Again… and A
Gain
S&P500: How It Repeats
Itself
Eruption of the
Invincible Speculator
In the Nick of Time
How to Participate in
Breakouts that
Happen 98% of the Time
Stock Market Topped
January 26th 2018 I was
One Day Out
Of Cycles, Targets
and Conrmation
Gann Knew What
Goes Up Must
Go Down
TRADERSWORLD
The Master Cycle
The Isolation Approach to
Elliott Wave Analysis
Using Geodetics in the Stock Market
as a Natal Astrological Technique
Take Your Trading and Investing
Future into Your Own Hands
Improving Moving Average Systems
with Andrews Pitchfork
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Editor-in-Chief
Larry Jacobs - Winner of the World Cup Trading
Championship for stocks in 2001. BS, MS in Business and
author of 6 trading books.
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Contents
April/May/June 2018 Issue #69
Gann Again… and A Gain
by Gordon Roberts 10
S&P500: How It Repeats Itself
by Daniele Prandelli 15
Eruption of the Invincible Speculator
by Joel Rensink 23
In the Nick of Time
by Rick Versteeg 33
ELLIOTT WAVE ANALYSIS - EXPANDING FLATS &
NASDAQ’s FORECAST for APRIL/MAY ‘18
by Peter Goodburn 39
How to Participate in Breakouts that
Happen 98% of the Time
by Rob Mitchell 45
STOCK MARKET TOPPED 26th JANUARY 2018,
I WAS ONE DAY OUT.
The “House wife astrologers” are at a lost to why
by David Burton 50
OF CYCLES, TARGETS AND CONFIRMATION
by George Krum 56
GANN KNEW –
WHAT GOES UP MUST GO DOWN .. APPARENTLY
by Jon Kirk 61
Technical Traders Newsletter Review
by Larry Jacobs 68
The Isolation Approach to
Elliott Wave Analysis
by Steve Griths 70
Using Geodetics in the Stock Market as a
Natal Astrological Technique
by Dr. Lorrie V. Bennett 76
Take Your Trading and Investing Future into Your Own
Hands
by Thomas Barmann 81
Improving Moving Average Systems with Andrews
Pitchfork
by Ron Jaenisch 86
An ECHO and a SHADOW
by Al McWhirr 89
How to Find the Highest Probability Trades
by Steve Wheeler 94
The EUR/USD: The Upside Should be Limited if a Multi-
Month High is Not Already Complete
by Jaime Johnson 99
Exploring A Planetary Connection In Bitcoin Trading
by Tim Bost 103
The (Other) Golden Rule
by Eric Hadik 108
Hawkeye Trading Software Review
by Larry Jacobs 113
The Master Cycle
by RajIan G. Thijm 118
The Science of Forecasting with Timing Solution 125
Brave New World 139
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Back in the third quarter of 2017, we shared a short Trader’s World article about “Mr. Gann’s
90-Year Cycle”. In that article, I argued that we were probably near a bull move for Soybeans.
Actually, there were several additional Gann-ish reasons to think the lows were in and a bull
move was likely. I had shared more of that work with a small forum of people interested in
“Market Vibrations”.
That forum is not very active as Internet forums go, but I usually hunt quality over quantity
for trading purposes. The fact is that “monster” trading opportunities don’t come around every
day! Still, I’d wager that we will discuss several terric opportunities as the years transpire. BIG
opportunities have happened for many decades and probably will happen again (and a-Gann and
a-gain).
While hunting those trading opportunities, we have to be both patient and alert. Our diligence
and discipline are often “deciding factors” for success. Even then, we can end up with losing
trades or even nice trades that don’t turn into monster trades. For that reason, risk management
and trading skills are also very important.
In past Trader’s World articles, I said that I would provide occasional updates. To fulll that
“prophecy”, I’ll show an updated chart for beans. But rst, the following chart duplicates one of
the monthly bean charts from the previous article. I present it to prevent you having to hunt
down the older article. It shows that we were building the August 2017 monthly bar.
Gann Again… and A Gain
By Gordon Roberts
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Next, I’ll provide a daily chart for the updated price action. I put a yellow box at the approximate
time of the previous article. The chart shows that we have had the expected bull move. Thus
far, price has risen over $1.00 per bushel or $5,000 per futures contract. That serves as a
published “prophecy” that became reality. It’s not really prophecy as much as it is the reward
for following Mr. Gann’s instructions.
There is still a lot of time left before all of the previous article’s thoughts will become incorrect
or correct. I’d love to be 100% correct with all of my long-term “prophecies” in the markets.
However, reality mandates that I may need to adjust my thoughts as price and time become a
record of past events. In other words, what happens in the future becomes reality that I have to
respect. Reality can invalidate some of my past “guesswork” and take me down totally dierent
analytical paths. That is part of Mr. Gann’s instructions that helps me prevent my “prophetic”
thoughts from turning into pathetic thoughts.
I hope to trade beans long and short and even long again in the coming several years. However,
I must reiterate that the market doesn’t care about my opinions or plans so I’ll have to let it
show me its real intentions as we go. While I’m still hoping for a considerably longer-term bull
move in the grand scheme of things, this bull move has already been sucient for a trader like
me to be pretty pleased.
A trader’s job is NOT to beat his chest about past conquests. The job is to continually position
their self to make future prots. With that in mind, another reason for this article is to show
the current bean situation in a dierent light. A larger view of the updated chart tells me that I
should probably be diligent and careful as I write this. For one of a few warning signs Mr. Gann
taught, we have a potential triple top formation here. That’s Gann 101 for “be careful” if you
are long. If we break upward here, that’s Gann 101 as a pretty bullish sign! We’re at a decision
point of sorts where trading risks can be managed. The following chart demonstrates that
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market formation.
I never really know what will happen. I’m no prophet. However, Mr. Gann’s techniques help me
“guess” when real prots are more likely and when to think about taking them o the table. He
even titled some of his published works “How to Make Prots…”. I’m not a very aggressive trader
for the most part so I’ll tend to avoid trading against the trend. In these articles, I’m arguing for
a longer-term bull so I hope the longer-term trend is up. However, if I were more aggressive, I
might even think about a short trade here.
Mr. Gann’s rules don’t allow me to hedge the long trade. His rules do allow me to use a stop and
reverse methodology if I get strong indications of a change in trend. His mechanical system/
rules might be more likely to trade short in this situation but that methodology pretty well stays
long or short at all times while I’m picking my moments to trade. I don’t generally go to the
eort to trade all the time. Still, Point 2 on the previous chart shows that a short trade would
have worked out well. So… each of us can use dierent Gann methodologies for dierent trading
styles.
CONCLUSION
I’ve shown an example of Mr. Gann’s teachings working as desired. It was documented in
advance in this magazine. IT CAN BE DONE! Now, we’ve reached a new Gann “decision point”.
These are situations that substantiate my opinion that you should take the time and do the
work Mr. Gann recommends. I’ll warn that it can take a lot of study just to gure out what he
recommends you to do!
Your goal would be to either prove or disprove Mr. Gann’s many teachings for yourself. There’s
no witchcraft involved. Mr. Gann’s work can seem mystical but it really isn’t. He requires you to
work for it. So... you probably should. Read his books at least a couple of times. You don’t need
much else but market data, time, and work.
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Of course, you can turn to many other books for further studies. Mr. Gann did that and I do
that. I chose to boil my years of study down into relatively simple Gann approaches in Market
Vibrations. If I were your advisor, I’d probably recommend that you do the same. Simple is often
best for most traders. However, simple things often have complex explanations borne of history
(think about your navel for example!).
If you are like me and want to explore the deeper explanations behind the markets, Brad Stewart
of the Institute of Cosmological Economics Institute provides access to resources that can help
forge your mind in the Gann furnace. I’m currently engrossed in the “Law of Vibration” series of
books and “Gann Science” which is a future publication. I have yet to fully test their teachings.
However, I know enough and am already intrigued enough that I’m going to do that test work for
myself. I get to keep what works and ush the rest. That is the Gann way to achieve potentially
life-changing Gann rewards!
I’ll also mention a recent example of a rewarding monster trade. January of 2018 had a short
setup from the “Law of Vibration” series and other Gann techniques. That setup was for shorting
the major U.S. stock indexes. For a trade, Mr. Stewart was long VIX futures call option contracts.
If you were watching the nancial news, there were funds that closed because of that VIX move.
We basically saw all-time-lows to all-time-highs in the course of a few weeks. Few traders, if any
before, have traded all-time-lows to all-time-highs in the futures markets (much less in a few
weeks with a further levered option position). It was luck in ways. But it was also very educated
“luck”.
I guess I’m telling you that the man isn’t just selling books! Even if you don’t buy a book, Brad
is generally happy to help you assess your preferences and discuss books and topics that may be
of interest specically to you. I’ve “used” him in that manner for recommendations. Maybe you
should as well. Your destiny is up to you and the paths you choose.
“I cannot remember the books I’ve read any more than the meals I have eaten;
even so, they have made me.”
Ralph Waldo Emerson
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HOW TO TURN SMALL ACCOUNTS INTO
BIG PROFITS LIKE W. D. GANN...
MARKET VIBRATIONS
W.D. GANN’S HOW TO MAKE
PROFITS IN MODERN MARKETS
BY GORDON ROBERTS
SACRED SCIENCE INSTITUTE Ө WWW.SACREDSCIENCE.COM
EMAIL: INSTITUTE@SACREDSCIENCE.COM Ө US TOLL FREE: 800-756-6141
INTERNATIONAL 951-659-8181 Ө SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!
FOR
A
DETAILED
WRITE
-
UP
, S
AMPLE
T
RADES
& A
UTHOR
I
NTRODUCTION
&S
AMPLE
T
EXT
SEE
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REPRODUCE GANN’S LEGENDARY RETURNS THROUGH LEVERAGED POSITION TRADING…
GANN’S SYSTEM CRACKED WIDE OPEN!
THE LAW OF VIBRATION
BY THE PATTERNS
EXPOSING THE UNDERLYING SECRETS
OF W.D. GANN & DR. BAUMRING
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THIS COURSE INCLUDES ONGOING
ANALYSIS OF OVER A DOZEN POPULAR
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WHAT THIS NEW COURSE IS ABOUT
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Markets have patterns created by the motion of their
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This course will teach readers to create tradable
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INTENT OF THIS COURSE
This course provide a trading strategy that allows for large
returns from low risk with an average risk:reward ratio
of 1:10, with returns of 500% per trade to some returns
exceeding 5000%. The strategy employs powerful, straight
forward analytical techniques explained in Gann’s How to
Make Profits in Commodities to identify high value trade
setups which can be employed using highly leveraged
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The analytical techniques and strategy do not require any
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The S&P500 Index saw a higher volatility in the
last days, something that is scaring the Bulls. Is the
uptrend pattern still alive?
The parabolic pattern of the S&P500 is in front of everyone, and usually, once the uptrend
is over, we see a break of this pattern, with higher volatility. To prove what I am saying, we
can look at the past, because a guy said: “the Market repeats itself”. The problem is to
understand how this sentence is correct.
LOOKING AT THE PAST
I can resume here the most important bullish trends that followed a parabolic pattern since the
80’s, and we discover also that pullbacks are often of the same magnitude:
S&P500 1982-1987
Here we see the parabolic pattern, ending up with a crash, the famous 1987 crash.
S&P500: How It Repeats Itself
By Daniele Prandelli
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There is something wonderful in this pattern: the biggest pullbacks in the period 1982-1987,
before the crash, were all inside a range of 28 points. The rectangles you see in the chart
have a height of 28 points, and we can appreciate three pullbacks, all around 28 points! I am
not saying that one has 10 points drop, and the next one 28, I am saying that all the three
pullbacks were, almost perfectly, of 28 points. The 1987 crash began after the S&P500
tried to remain inside this pattern. The breakout under this pattern was the beginning of
the real crash.
I am not jumping to conclusions yet, I am just describing what I see as facts.
S&P500 1988-1989
Another parabolic pattern, ending up with a sideways pattern and higher volatility.
Here we see again three pullbacks, everyone around 24 points; in the last phase, the uptrend
accelerates, and in October 1989 we see a pullback larger than 24 points; this is also the end of
the strong uptrend, and a new sideways pattern began ending in a Low in 1990, but no crashes.
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S&P500 1996-1998
Not really evident, but we see the uptrend accelerates over the time.
The pattern of the pullbacks is not that precise as before, but we can see similar pullbacks
around 83 points. In October 1997 we see a fast movement over the 83 points rectangle,
recovered right the day after. A stronger down movement began only in 1998, when the S&P500
moved over the green rectangle with the pullback; you can see the acceleration over it, and the
beginning of a severe drop. That was just a fast, little crash, because after 3 months the S&P500
had already recovered all the losses.
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S&P500 2003-2007
Very long uptrend, ending in the summer 2007 and the big crisis began.
In this period, we see an easy 100 points pullback pattern, which was very precise in 2004
and 2006. In 2005 the pullback was about 94 points. Even here, the rst alert came from a drop
over 100 points, in July 2007. We all know what happened then, a very strong drop began. But
the Market did not crash straight away, we see a new top in October 2007, and a downtrend with
swings until September 2008. In October 2008, we saw the crash.
WHAT HAVE WE SEEN?
We can denitely state that:
1) During parabolic patterns, the pullbacks have the same magnitude, and a movement
over that range can denitely suggest the end of the uptrend.
2) When the uptrend is over, it does not mean we have to expect a crash straight away. Only
in 1987 it happened, but in the other three situations we considered, it took time for the
downtrend to begin. In 1989 and 1998 we did not even see the beginning of a new downtrend,
because the Market accelerated down for the following months, but the main trend remained
always the uptrend.
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CAN WE USE THE SAME STUDY FOR THE ACTUAL MARKET?
Obviously, that’s the purpose of our studies! If we consider the last year, where the parabolic
pattern is evident, we see two similar pullbacks:
• March 2017 = 78 points
• August 2017 = 73 points
This is a short time compared to the studies we made before! But the pattern is clear, and we
saw the strongest down acceleration once the S&P500 moved under 2800 points, the area where
we could see the support in case the Market maintained the “75 points pullback pattern”:
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If we decide to study the uptrend since 2009, we discover two important pullbacks: in 2011
and in 2015-2016. These two drops looked like the end of the world, I remember that, but I
remember when, in 2016, I said any pullback was a great buy opportunity (here the document I
sent to our Subscribers on February 11, 2016, the day of the Low). These two pullbacks have a
similar magnitude:
• 2011 = 296 points
• 2015-2016 = 325 points
Almost the same, considering these are the two largest drops of a period long 9 years.
CONCLUSIONS
In trading, statements are very dangerous when we try to forecast the future. It is always better
we speak in terms of statistics. If you agree with me, we can state that:
• The parabolic pattern of the 2017 has been probably broken after the breakout and down
acceleration under 2800 points.
• If we see the drop to continue from the top of January 2018, we should pay attention to a
possible support in area 2545-2576 points to maintain the uptrend that lasts since 2009.
• We should not rush in opening mid-term SHORT positions, because Markets usually developed
a sideways movement or new intermediate tops before a strong downtrend.
in the situations where the downtrend began immediately, that movement did not last long; we
can expect the same from the actual drop.
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• In my opinion, the down push began the
movement in a too strong way for a new real
downtrend. If we do see a crash, I believe it
is again a new buy opportunity, we just need
to wait for the best supports, without trying to
anticipate the Market. If a bear Market is about
to begin, it will not begin with a crash after
three days the S&P500 did the highest High.
This are all suppositions looking at the past…
But you know, in trading, everything can
always happen!
Good Trading!
Daniele Prandelli
Feel free to contact me at institute@
sacredscience.com or see my webpage about
my courses:
http://www.sacredscience.com/Prandelli/
Prandelli-Polarity-Factor-System.htm
and my annual forecasts of the Stock & Grain
markets:
http://www.sacredscience.com/Prandelli/PFS-
Forecast-Bulletin.htm
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mechanical indicators, which are always based on what the market did in the past and not the present. This style of
“Form-Reading,” as Gann called it, allows one to make decisions in real time, as the opportunities develop on the chart.
The course provides a clear set of rules for reading these market patterns to determine entry, exit, risk
management, and trade management as determined by the recognition of a set of fundamental market patterns identified
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eruption
1. an issuing forth suddenly and violently; outburst; outbreak.
--- Dictionary.com ---
No one I've ever met in the trading world was an immediate and permanent success.
Maybe they did have a few “lucky” trades at the beginning. But, a lucky trade doesn't a career
make. Ask anyone. Losses start visiting and then decide to take one of your rooms.
But, after you gure what trading is all about, then the market is in trouble. You ERUPT as an
unconquerable, unyielding trader.
I'm going tell you how we all can be “invincible” speculators.
By only trading when we have THE EDGE.
It isn't that hard.
One of the most common questions sent to me is, “Joel, if you had to start all over from scratch,
today; with a modest amount of money – what would you do?”
That's a fair question. Especially since the world of trading has changed radically from the days
(the 70's) when you could still nd a commodity house with working ticker tape
machines. Now we have at least a hundred additional markets to speculate with futures and
options, some even doing it on their phones. Even crypto-currencies.
I've adapted to the new products available, and have been successful trading them because
I follow the same principles that got me here in the rst place. You can too. If you're just
starting out, or had a few dicult years of experience, you're not alone. In trading there is no
success without copious amounts of pain....
Losses in trading are inevitable. But, prots can be just as inevitable if you act on the guiding
principles of speculation.
Fortunately, the guiding principles of protable speculation are very
short:
Eruption of the Invincible Speculator
By Joel Rensink
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1. A proven trading methodology with a denable edge. Proven by you.
2. The personal will to execute it precisely, over and over until you reach your end goal.
Like many of my peers, I started out trading futures with a very small amount of money. I
researched trading and methodologies for 3 years before even thinking of placing a trade.
Fortunately for me, the information I found most useful was Gann material. He was all about
the idea of big trends and how to get aboard them with the least amount of risk.
That's the big take-away you should grab on to. Keep aware of trade-risk and the trends will do
the rest.
I traded single contracts of wheat, corn, oats, sugar, pork bellies, hogs, soymeal and soyoil. I'd
wait until there was a well-dened range for a breakout. I'd either get stopped out of my entry
for a small loss or trail my protable trade with a stop under the previous week's low. Simple
stu.
Works just as well today as it did 40 years ago.
The other day, I heard a great denition of a professional trader:
Someone who's made more than 10,000 trades and still has money in his
trading account.
Pretty accurate.
Few traders survive long enough to take 10 thousand trades.... Or even 200.
One of the main reasons most people fail is that they're trading too frequently with too little of
an edge. Or no edge – and they've been fooling themselves into thinking that they've got one.
Every time something is written about trading, you see the adage, “Trade with the trend. The
Trend is Your Friend.” Most everyone believes it, but if everyone acted like it really meant
something, a whole lot more people would be making money from their trading accounts.
Maybe it has to do with the problem of not fully understanding the risks of the enterprise.
I had a personal episode that I've never been able to forget which rammed this point home for
me.
One beautiful spring morning in 1980, hiking with a buddy after a cold rain – I slipped o an icy
boulder and fell 25 feet into the rapids on Upper Esopus Creek, south of Phoenicia, NY. People
familiar with that area know that there's an area where the “creek” drops 1000 feet in one mile
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of length. That was the area where I fell in.
The freezing water was 36°, swamping my coat and dragging me under with the churning
turbulence whirling me around and around. I was facing certain death unless I got to the bank.
I was swept downstream more than a half-mile before I found an eddy pool with a broken tree
branch for me to lunge onto.
Even in the relative calm of the eddy pool, the river's current was so strong I barely dog-paddled
it to the bank. And then, dripping wet – a four-and-a-half mile hike to the car with hypothermia
setting in.
The things you survive when you're young....
On reection, later that day -- I realized how similar the raging current of the river was to a
massive trend. Massive trends are relentless. If you're in one, just about anywhere you enter is
likely to be a good entry. With a reasonable stoploss order, of course.
My trading became even more focused after that incident. I realized that massive trends in
the market are a true force of nature (human nature) and are to be respected. Appreciated.
Agreed with; never fought against.
From then on, I didn't want to trade anything but crazy-strong trends. If you only trade when
the market you're in is absolutely going somewhere, not taking any prisoners; how hard could it
be to be protable?
I digress:
When I rst started trading in grains and the softs, my main trading pattern was breakouts of
narrow ranges. Gann talked about the importance of “within” moves (narrow ranges), and in his
commodity courses he described how to “square” ranges to be able to nd markets that were
destined to breakout. When I found a low risk entry from one of these ranges, my game was on.
Yes, I was fortunate that I read the right material and took advantage of favorable trends which
existed when I started trading. Still, to prot from the moves, I actually had to have money in
my account and put on the trades and exit accordingly.
I didn't have much extra money. I was a self-employed teenager, with a decent math
background and a burning desire to succeed at trading. With a burning desire and $500,
correctly deployed, anything is possible!
I made some prots, and plenty of losses too. Small ones.
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Below is my original trading “secret weapon”.
At that time, opening a commodity trading account was pretty simple. If you brought in a
checkbook, told the manager your intentions when you came in -- you could put on a trade or
10 and ll out the paperwork at the end of trading. Not anymore. I've seen some account forms
running to 30 pages these days.
But today, there are so many more opportunities in the markets that more than make up for the
complications that come with them.
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We have Forex trading, instant quotes and tight bid/ask spreads on thousands of products, free
data, back-testing capabilities available to anyone that only NASA had access to when I started.
Incredible options opportunities, inexpensive stock trading, and futures trading commissions for
a buck or two round-turn.
When I started trading, it cost $65 per round turn. You'd get $10 rebate a round-turn only if you
traded more than one contract at a time. Even so, I was able to make money because of serious
trends.
You want to talk about a serious trend today, about the S&P for the last year? Because of easy
access to the e-mini, anybody with a couple thousand to put into an account can participate in
this low-risk bull move. Will last forever?
Of course not. But that's why you need a low risk, statistically-proven method to trade it. They
exist. Just do a little research.
I already mentioned that my initial trading revolved around breakouts of well-dened ranges.
But what to do when the markets didn't form nice patterns?
Fortunately, I sat on my winnings and waited until one undeniable trend after another – showed
up. I continued with more trading research. I got data from the CBOT from their beginning of
trading (mid -1800's) and studied more cycles and validated Gann's research to the degree I
could.
And entered more trades when they showed up. Suered through the losses like everyone else.
My research was rewarded. I got an early copy of Tradestation because I'd purchased System
Writer earlier. With more data and with many nights of coding I proved to myself that volatility
breakouts were denitely predictive of future movement, just like narrow range breakouts were
on daily charts.
The big thing I worried about (and still do) is the concept of curve-tting. At the time anyone
with access to backtesting software was coming up with the “perfect system” with tests showing
tons of prots and very few losses. Never mind that they didn't work in the real world. People
still fool themselves with systems like that.
In the early '90's I decided to expand my education by becoming a pit trader. Usually it's the
oor trader who goes “upstairs” after learning his craft – not the reverse.
Trading in the pits showed me opportunities that I'd heard about but wasn't sure existed. Like,
being able to trade “ahead of size” – big traders bidding or oering tons of contracts at-the-
market and your opportunity to “trade ahead” of them for a low risk trade. And, if the market
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was in a signicant trend at the time, the chance to get a virtual “free ride” by holding some of
those contracts until the trend showed signs of ending could provide a huge windfall. Every
once in a while you might be able to gain $5 -10K for every contract you risked maybe $25 for.
Not that frequent, but just enough times that even slow-learners got the concept of low risk/
high rewards beaten into their skulls.
I loved the camaraderie of the oor. And the intellectual storehouse of thousands of man- years
of experience trading the markets. I'll miss it forever.
In 1992 my trading world changed permanently.
I realized that for my trading to be a scalable business – I needed to know what my edge was –
on every trade I took. As precisely as possible. It was a tall order then, and remains one today.
You'll understand the why of it in a minute....
Ask yourself, how large was the edge of each of the last 10 trades you took?
The prevailing “wisdom” is to never risk more than 1% or 2% of your capital on a trade. Which
still may be too much for the majority of “traders” who basically throw darts when they put on a
trade. If you actually have been making money from your trading, you need to gure this out.
I know you've probably read plenty about money management. And, I'm not going to go into it
beyond this key point:
If you have a 10% edge on certain trades, and only 1% edge on others – are you doing yourself
any favors treating them as if they're all the same?
If you are, you're throwing dumpsters of money away.
The only way you can know what kind of edge you have is to use statistical approximation. The
key to accurate edge assessment is having robust rulesets for your trades.
Knowing you have an edge. Not hoping you have one.
There is no need to fail as a trader.
----------------
Simple methods may not be perfect, but they can be durable if they are based on the reality of
the markets.
In January of 1993, I had a welcome windfall. I decided to use it by starting a small proof-of-
concept mechanical trading system (called 20-20), trading just 3 markets. 1000+ trades later
it's still going. Proof enough for me that something extremely simple can work for decades.
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the greatest prots in the back-test period, but because they were unique and non-correlated
– so they could get trades at dierent times and make increased compounding possible.
Ultimately, that didn't seem to make much of a dierence, but the fact that they've continued
seriously protable 'til now speaks volumes. (Feel free to test 20-20 for yourself).
It turned out to be a good investment in time and money. This simple method, using just 5
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minutes of eort a week – is a constant reminder to me of how potent simple systems can be.
You can add more non-correlated markets as your account increases.
The great thing about a system like 20-20 is – it gives you a simple, uncomplicated denition of
TREND. If I nd a low-risk trade i.e., an “inside-day” breakout or a “ledge” trade, I only execute
it if 20-20 has already entered in the same direction. If not, I pass. Another benet is you can
use the trailing stop to exit your “adds”.
This ensures I'm always placing additional trades in the correct environment.
A trending environment. Like shooting a rapids.
--------------
My nal recommendations: Get or keep some sort of job to keep the lights on and your car
insurance paid. Trade with a longer term methodology with a proven, signicant edge in a
small, diverse grouping in the physical commodities. They tend to enjoy robust trends because
of seasonal factors and steady demand from a growing population world-wide.
Know the edge of the methods you trade. Let the Kelly Criterion help you with money
management decisions. (Read Fortune's Formula by William Poundstone)
Take personal responsibility for your trades. Learn to live through the inevitable drawdowns.
You'll be able to if you've done “worse-case” scenarios in your testing before entering your
trading operations. (Every “real” trader I know has dozens of drawdown stories. It's getting to
new equity highs more than 3 times that really thins the crowd.)
A robust edge, unfailingly applied through the booms and busts – is the secret weapon of the
Invincible Speculator.
Joel Rensink
--------------
Joel Rensink has been a professional futures, oor and forex trader for more than 35
years. In addition to active trading, he is a consultant for serious traders, trading rms and
hedge funds seeking robust trading and money management models. In 2008 he created the
Sure-Breakout Method for the forex markets.
For any comments or questions on the article or the markets, e-mail him at: leonardo@
inniteyield.com.
www.inniteyield.com
(612) 825-4776
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+ 24.5 pts + 43 pts + 26 pts + 49 pts + 27 pts + 42 pts
predictions
Want to know more? Check our website:
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How does DeLorean work?
DeLorean will make life and especially trading
more simple. For every trading day of the next
month, the trend has been predicted already,
as well as when (date/time) to enter and exit
the trade.
No need for an entry or exit strategy nor to
No need for an entry or exit strategy nor to
figure out the trend or to decide what to do.
Just execute the BUY or SELL on time.
Using Interactive Brokers, trades for all of the
predicted month can be entered for automatic
execution.
Easy does it.
Profit every month.
It’s about ‘time’ to try.
DeLorean
time waves SPX
AquilaeSignal.com
May 2017
June
July
August
September
October
November
November
December
January 2018
February
March
Total
80%
87%
89%
78%
40%
64%
77%
77%
70%
75%
75%
80%
hitratio points
+
43
+
29
+
47
+
37
-
9
+
24.5
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+
43
+
26
+
49
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64
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42
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395.5
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One year ago, on March 19th of 2017, the
story of DeLorean had a beginning, after many
years of research. Using time waves predictions
had been made for the rst time to forecast
the opening of future trading days- for ALL
trading days at once- from March 20th until the
beginning of May with regard to DAX and SPX.
The trend for a trading day Could be UP, DOWN
or neutral (=not available). Obviously to take
advantage of this prediction traders had to
buy or sell the day before. This has been
documented and sent to a selective group of traders.
Beginning of April 2017 we contacted Tradersworld to to sent research and wrote the rst article
for Tradersworld.
Beginning of May it seemed that the outcome was very signicant with a hit ratio of around 75-
80%, healthy prots and no drawdown on a monthly basis. Still, it could have been only a good
period. Now, after one year of predictions, it is clear that our time waves and cycles, which are
fractal in nature do work quite well. Below the results for DeLorean predicting the opening trend
of the next day one month ahead:
How does DeLorean work?
DeLorean will make life and especially trading
more simple. We signal you the trend of the
next day, you can enter the trade before it
happens tomorrow. Just enter the BUY or
SELL at the indicated time and date. No need
for an entry or exit strategy nor to gure out
the trend or any pondering on what to do.
Even better, enter all trades at once for the
whole month.
In the Nick of Time
by Rick Versteeg
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Exciting new research
Every time we come across very interesting,
expected and sometimes unexpected
uctuations in the indices we predict and
research, we grab our magnifying glass to look
for explanations.
Consequently we will need to research our
fractal time waves, cycles and time patterns
to determine if history can shed light upon up and down trends in the markets, especially when
it comes as a surprise. In order to gain more knowledge we therefore search our database to
develop and show better information in our indicators.
Quite surprisingly this approach has led to new discoveries that improved our predictions
considerably. A bit unexpected, because at launch of DeLorean it was already good, but mining
the treasure of information below the surface has proven to be very worthwhile. By matching
events with patterns and correlating price uctuations statistically, we could clearly see its
signicance.
This led to earlier mentioned innovations like “Rebound”, new MAPS indicator (ASPtrig), which
resulted in a more detailed 24/7 leading indicator of price trends. The latter indicator opened the
way for other applications far beyond predicting the opening trend of the next day. It answered
the question what delta or exposure the traders portfolio should have according to our MAPS
indicator. Using Options and/or futures traders can easily adapt their exposure.
A very interesting variable for example is volatility. Increasing volatility just recently lead to the
question how it could be explained. What time waves and patterns do cause volatility? What
could cause meltdowns and accelerations up or down in prices? Thus new discoveries have been
made. Firstly “triggers” that set markets on re in the nick of time and secondly when does a
trigger cycle spark an up trend or down trend? Another discovery has been how to improve the
MAPS indicator to show periods of rising and declining markets even better.
Triggers-panic cycle
Trigger time cycles, consisting of very specic time waves, have been identied which are the
proverbial spark for acceleration. Strong waves cause a meltdown or meteoric rise, smaller ones
an acceleration. These time waves have a very specic nature causing more or less a panic sell
or buy, whereas a price decline can be twice as fast. The strongest trigger cycle will be called
Panic Wave from now on. his panic cycle needs to trigger, when it is at its maximum strength,
a negative or positive time wave to get started. The more negative or positive the triggered time
wave is, the stronger normally the markets, up or down. See where the * has been positioned.
The markets madhouse of February the 5th as well as short term cycles that we were already
Conclusion: when panic cycles pop up,
negative patterns are triggered and MAPS
indicator good below zero, volatility and
declining markets are very likely. Not
necessarily a panic develops, but if there is a
panic, the panic cycle is present. Traders and
investors should be very cautious.
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monitoring before, made us discover the Panic Wave that can cause a panic, smaller or larger.
Searching our database we discovered it to happen again on March 3rd and 23rd, which was
coming up in the near future. Consequently we warned our customers and interested traders/
investors of the upcoming event. First mentioning it to our best customers, then giving a
warning in our Newsletter DeLorean.
Next we began to search our historic price and time database for more of the same triggers.
Where to start? Well, that was simple. Just looking at major events and price declines in the past
would do.
So we checked the US presidential election of 7th November 2016. Bullseye! Maybe it should be
labeled as “bearseye”...
We checked Brexit referendum on 21st of June 2016. Bullseye! The next event of course would
be 9/11/2001... Spot on!
Now the question was why did it cause a strong down trend? Then the next step comes in,
checking if the trigger cycle connected to a very negative cycle. If it connected, consequently
markets declined. In addition and logically the MAPS indicator shows for all those periods a
decline as well.
There are many more examples of lesser
degree supporting the trigger cycle at work. A
new child of the fractal time waves was born
(discovered), reinforcing the higher degree
pattern.
Herewith we have a strong indication of
volatility. Very interesting to have a clue at
what date a strong trend can develop, which
was always the problem using Elliott Wave.
Eventually the trend would come what we were
waiting for, but in the meantime, before it came
around, traders did experience many false
What markets work best using TIME
WAVES?
Time Waves show how and when human
beings become positive or negative, hopeful
or fearful, the latter being mass psychology
events where people make decisions to buy
or sell, resulting in smaller or larger chain
reactions.
All decisions of traders accumulated become
positive or negative trends, which will very
nicely reect in Indices.
It works best on stock indices Now we have
available signals for SPX, DAX (AEX and
Eurostoxx) and HSI. Also we study EURDLR
and NIKKEI.
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moves. Not so using our time cycles!
MAPS indicators
Our MAPS indicators which have been developed in November last year show the road to travel
in the future regarding the indices. Nicely in line with price movements of the stock indices,
they show within precision of one or two days how to adjust long or short positions. A top in
the future MAPS indicator predicts a rising trend, a bottom in the indicator a decline. When the
indicator is declining and even more so if declining below zero, markets become dangerous.
Consequently if so writing puts should be avoided because of risk.
In our newsletters we have reported a couple of upcoming events by looking at the indicator.
See the link below to go to the newsletters. You can subscribe to get some extra information for
free. http://www.aquilaesignal.com/category/back-to-the-future/
The newsletter of February 7th said:
Most probably the stock markets have only completed the 1st price wave down, the recovery
was just a retrace. Again a wave down can be expected to 2450 in the SPX and 12000 in the
DAX.
Meltdown in the markets- DeLorean, warning hectic markets 15, 23-24 Feb, 2-3 March
As you can look up in your charts of SPX we did experience a steep decline the 15th, while 23rd/
24th were hectic and 2-3 March was also very weak in the stock indices.
In this newsletter we published the chart below of the DAX together with the indicators which
showed clearly that the period until the 24th of January with the indicator above zero and
topping, witnessed a strong market (marked as POSITIVE) while the weak period showed
declining markets (NEGATIVE).
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Tops in the indicator at the bottom of the chart coincided with rising markets, negative indicator
foretold the fast decline beginning of February including the meltdown because of a trigger spot
on.
A picture tells more then a thousand words. Below we show another published example of SPX
with indicator (at bottom of chart) that forecasted the markets:
Arrows signal down or up trend. We expected a sharp downturn as soon as the indicator started
to decline on March 23rd. Thereafter on the 27th and 28th it recovered again in the nick of time.
The green bar on the 28th at 16:00 was around the high of the day.
Last but not least, we will travel to the future:
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In the chart above for April 18th to May 1st we have indicated down and up trends. The * shows
a trigger where Markets could experience an acceleration. The top in the indicator on monday
26th indicates strong markets.
Again, not always an indicator below zero predicts a sharp decline, but almost every decline or
panic shows a relative strong decline in the indicator, most of the time accompanied by a trigger
cycle..
wwww.aquilaesignal.com, mail: info@aquilaesignal.com
Subscribe to our Newsletter DeLorean for extra information.
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There are 13 wave patterns that are generally accepted as dening the body of R.N. Elliott’s
discoveries. These fall into two groups, ‘impulse’ (trend) and ‘corrective’ (counter-trend) and
within the counter-trend series, there are three main archetypal patterns, the zig zag, the at
and the triangle.
Each of these have what we term as derivatives, in other words, there are slight geometric
deviations to the archetypes – for example, a three wave zig zag pattern can mutate into a
double or a triple zig zag without losing its overall character and concept – the at can mutate
into an expanding or running at whilst a triangle can develop into ascending/descending/
expanding type variations.
Importance of the Expanding Flat
The most common of these three corrections is the zig zag and its derivatives and the reason
for this is because they are also the rst price-swing components of the other two, the ats and
triangles, so you’re going to see these everywhere. In terms of frequency, the next pattern in
the list is the expanding at pattern, the derivative of the ‘at’ or horizontal at. Mastering your
skill-base to identify these can yield amazing results for your portfolio – an idealised example of
the expanding at can be seen here, extracted from our tutorial WaveSearch programme – see
g #1.
ELLIOTT WAVE ANALYSIS - EXPANDING
FLATS & NASDAQ’s FORECAST for
APRIL/MAY ‘18
by Peter Goodburn
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It is composed of three main price-swings, and for this purpose, is labelled in minuette degree,
[a]-[b]-[c] subdividing into a 3-3-5 sequence, i.e. three waves for wave [a], three for [b] and
ve for [c]. Note how wave [a] establishes the initial ‘price-extremity’ but waves [b] and [c]
exceed this slightly. There are subtle nuances in these patterns that can help identify them
during development, setting them apart from something else.
Pattern Dimension
One important aspect WaveTrack has developed over the last 25+ years is the concept of
dimension within Elliott’s patterns. This is a much overlooked quality of Elliott Wave analysis
which is mostly misused in today’s new order. Whereas geometric structure is qualitative,
dimension measurements represent the quantitative contribution to the whole. In this way,
applying strict guidelines of dimension that govern each pattern, including the expanding at,
human subjectivity that so often distorts and misinterprets patterns, suddenly reveals an
objective appraisal of the price movement under development.
In this tutorial example, the expanding at is viewed as a corrective pause within the larger/
aggregate uptrend. It can be inverted for a downtrend. It begins with an archetypal three wave
zig zag decline labelled minuette wave [a] – this establishes the initial ‘price-extremity’ of the
pattern. In all probability, if wave [a] has not retraced the preceding ve wave impulse pattern
by at least a b. 38.2% retracement, then the analyst must ‘default’ their thinking towards the
expectancy of an expanding at. It may not always manifest, but probability favours it will.
Another aspect that helps in dening whether wave [a] is part of an expanding at is comparing
how fast and over what time period it declined relative to the preceding impulse pattern – also,
was the decline a 2nd or 4th wave within the larger/aggregate pattern? If it were a 4th wave, then
yes, its trajectory and short time lapse would increase the probability it was only part of a more
complex correction, i.e. an expanding at.
Now, we must create some dimensional overlays using Fibonacci-Price-Ratios (FPR’s). Extend
above wave [a] by three subliminal ratios, 14.58%, 23.6% and 38.2%. Any of these will become
upside targets for wave [b]. On extremely rare occasions, a b. 61.8% ratio can be used, but
these only recur in frequency about a few times in every 100, i.e. about 5-8% per cent of the
time.
When wave [b] develops higher, it must also unfold into either a zig zag, or double/triple - the
tutorial chart depicts an archetypal single zig zag, (a)-(b)-(c). Wave (a) must subdivide into a
smaller ve wave impulse pattern and it’s important that it doesn’t break into a higher-high. If
it did, it could be mistaken for a 5th wave within the prevailing uptrend. If it can end below the
preceding high, the origin of wave [a]’s decline, all the better (there are sometimes exceptions
to this guideline).
Extending wave (a) by either a b. 38.2% ratio or a b. 61.8% ratio and sometimes using an
equality ratio of 100% for waves (a) and (c) often creates a b-price-ratio convergence-matrix
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with either of the three other b-price-ratio measurements derived from extending wave [a]. If
so, this becomes the most probable price target for the upside completion of wave [b].
Real-Time Examples
A couple of examples show to good eect how a developing expanding at is predicted into the
future – see g #2 (these charts have been compressed in order to save space in this tutorial
article). This is Sterling/US$ (GBP/US$) in years 2004-05. It had completed wave (A)’s zig zag
decline from the Feb.’04 high of 1.9139 into the May ’04 low at 1.7482 which established the
‘price-extremity’ of the pattern. The following upswing as wave (B) unfolded into another zig
zag where importantly, minor wave a. ends below the previous peak. When wave c. nally broke
to higher-highs, it sucked-in new long-positioning but it was a trap! The eventual high for wave
(B) at 1.9550 ended at exactly the b. 23.6% extension area of wave (A). The two other ratios,
14.58% at 1.9393+/- and 38.2% at 1.9813+/- were not hot favourites because they didn’t form
a b-price-ratio convergence-matrix where minor wave a. extended by a b. 61.8% ratio came
closest to the high at 1.9621+/-.
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When this chart was updated in our EW-Navigator reports in January 2005, wave (C) had already
begun to decline into its required ve wave impulse pattern. Downside targets to 1.7112+/-
were derived by extending wave (A) by a b. 23.6% ratio, selected over-and-above the other
two because this was the b. 38.2% retracement support from the preceding impulse. The actual
low was 1.7049, 11-months later!
Another example take from our archives is the expanding at that unfolded in the small-cap
Russell 2000 during the market’s correction in years 2015/16 – see g #3. To the left is the
original forecast from July 8th 2015 when the index had just ended minute wave b at 1295.99.
Wave a had already traded lower into a zig zag, from 1213.55 to 1040.47 and this pattern was
repeated for the subsequent upswing to higher-highs for wave b. Extending wave a by a b.
38.2% ratio projected the peak for wave b to 1287.02+/-, accurate within a few points. Note
that minuette wave [a] of wave b’s upswing ended below the preceding peak – again important.
Extending wave [a] by a b. 61.8% ratio projected the exact peak for wave [c] at 1295.99!
For the projected low of minute wave c’s decline, two b-price-ratio extension measurements
were used – 14.58% and 23.6%. These closely approximated the b. 38.2% retracement level
of the preceding impulse pattern. The reality came 6-months later when wave c ended with a
price-spike down to 958.48 (see right). This was larger than the original projected lows, even
exceeding the b. 38.2% extension level and closer to a much rarer b. 61.8% ratio, but not
quite. But it again illustrates how wave b gave a false break-out signal at the top and how a
huge price decline such as this can be reasonably predicted into the future.
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Current Forecasts – Exp. Flat for Nasdaq 100?
Now, all this becomes relevant to the recent price developments of major U.S. stock indices.
During January’s steep declines, benchmark indices like the S&P 500 unfolded lower whilst
developing into ve wave impulse sequences. If so, then this indicates downward continuity once
a three wave corrective upswing has ended. But some indices like the outperforming Nasdaq
100 declined from January’s high into the mid-February lows unfolding into a three wave zig zag
pattern. So how can you have two major indices that are positively-correlated unfolding into two
diametrically opposite patterns, one that implies downward action, the other upward?
Well, there is a common denominator and it combines a zig zag development for indices like the
S&P 500 and the broader Value Line Index with yes, an expanding at for the Nasdaq 100.
The Value Line index was selected as a ‘proxy’ for the slight underperforming indices because it
declined from the January highs into a picture-perfect ve wave impulse pattern, from 6413.16
to 5699.27 – see g #4. Using proprietary b-price-ratios, note that wave (v) ve declined by
a b. 61.8% ratio of waves (i)-(iii) ending at the exact low. That gave unequivocal conrmation
that the decline did unfold into a ve wave pattern, not a three, and that a counter-trend rally
would then unfold. But that counter-trend rally must end below the January high. It can be very
deep, but basis the rules of the Elliott Wave Principle, it must end below 6413.16. If the Value
Line index is scheduled to complete a counter-trend rally ending below the January high before
resuming the larger zig zag decline afterwards, then in all probability, the outperforming Nasdaq
100’s advance to higher-highs will also be capped, and that’s where the expanding at comes in.
Both the Value Line and the Nasdaq 100 are pushing higher from the mid-February lows into
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three wave zig zags but whereas the Value Line should not, must not break to higher-highs,
this is a perquisite for the Nasdaq 100 because its January decline unfolded into a three wave
zig zag, not a ve wave impulse sequence – see g #5. The Nasdaq 100’s expanding at is
labelled in minuette degree, [a]-[b]-[c], the same as our tutorial chart shown earlier. Wave [a]
declined to 6164.43 as a zig zag and this is being replicated by wave [b]’s subsequent advance.
Note that wave (a) of this zig zag ended below the preceding January peak that began the
pattern. Extending wave [a] by a b. 38.2% ratio projects a terminal high for wave [b] towards
7381.64+/-. It looks like it will be a tight squeeze to t a ve wave subdivision into wave (c)’s
advance from 6645.03 but it’s certainly possible. The rarer b. 61.8% extension ratio comes
in at 7612.32+/- but this seems unlikely to be tested relative to upside targets for other major
indices, including the Value Line.
Conclusion
Once wave [b] ends the Nasdaq 100’s advance, it opens the door to another sizable sell-o
for wave [c] within this developing expanding at pattern. Downside targets are towards the
5977.63+/- area, derived by extending wave [a] by a b. 23.6% ratio. This was selected over-
and-above the other two b-price-ratios because this closely converges with the b. 38.2%
retracement support of the preceding uptrend.
Market commentators are split between the hedonistic-bullish, and the perma-bears, but on this
occasion, it looks like those treading the middle-ground have a more realistic chance of trading
successfully in the months ahead.
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 - $39.00 pm. Details at www.wavetrack.com
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In my years of training traders I have learned that one of the biggest things traders often do
not fully grasp and benet from is how markets expand in range and where they are in that
process.
This article will cover just that; how markets expand and how to best position yourself for that
range expansion. This applies whether you are scalping or going for the bigger trend or counter-
trend trading. Or, whether you are making money management decisions to manage existing
positions or entering new positions.
As I write this article, the crude oil market has had 14 consecutive days of greater than 100
ticks of range. The Emini S&P has an average daily range of over 40 handles. There is a lot of
opportunity in these markets and this is your most basic metric; what do traders think is normal
right now? This is something you should know as a serious trader. How far can the market go
and traders still think it is normal? Or where is the point traders are no longer willing to commit
to an ongoing range expansion and will take the market back into a trading range. These
bigger scale questions open the door for understanding where you are, for knowing how much
opportunity likely remains, and how to position yourself for the best advantage.
Beyond the above basic metric, you can also predict range expansions based on smaller intervals
than just the day. For example, what is the likelihood the market will go out to a new high or
low at a given point during the day? One way of doing this would be to parse the market out
by 30 minute periods of the day and measure how often it breaks. For example. how likely is
it that the market will go out to a new high or low after the rst hour of the trading day, say in
Crude Oil?
Answer: 98%
Or, the rst hour and a half?
Answer: 93%
Or the rst 2 hours?
Answer: 84%
The next question would be, how much range remains for you to take advantage of?
For the intervals mentioned above, that would be 50%, 44% and 28% respectively. A lot could
be said about this, and this general kind of concept is something I have used and worked with
for decades to be successful trading. It is something I call “Market Mapping” and has been a key
component in my success over the years. Market mapping can take many other forms, and this
one is basic, yet powerful.
How to Participate in Breakouts that
Happen 98% of the Time
By World Cup Champion Trader Rob Mitchell
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Knowing what the market is likely to do is very comforting, and is a real game changer for the
way a trader thinks about what he is doing. It is a major component that separates the losers
from the winners in the trading game and is a general concept we teach in the Oil Trading Room
daily.
The next question is how do you position yourself to manage risk within the above framework?
To do this, we use the Smart Patterns Trading System from IndicatorSmart.com. Why? Because
this system utilizes technology that predicts range expansion via cycle analysis, price action and
order ow analysis. Both cycle expansion and order ow tend to lead price movement with a
generally high percentage of edge.
When all these factors are lined up together, you can position yourself to be on the right side and
with good probabilities for success. The rest is trade management. It’s that simple.
Below I have posted a generic table for your benet that summarizes the above probabilities. I
call it the “Probability to Extend” table. This is based on general data over long periods of time.
In our trading room, we can use more specic data, and the table below works quite well. The
rst thing we do is break down the day by period. The rst 30 minutes we call “A” period, then
the next is “B” and so on. This way you can read the table and know the general probability to
break:
Let’s do an example: Imagine AB period has ended. You now know it is 98% to break out
of range. Then you can take the number in the Range remains column and multiply it by the
existing range and it tells me how far the trade might go. This is not a guarantee and it doesn’t
tell you when it will do it, but it tells you how much is generally expected. So, if the AB range
was 40 ticks, I am expecting to go to 80. That’s pretty simple. Of course this is only part of the
picture. Now I want you to gure out how to take action.
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For this, the most basic method we teach is cycle expansion that we call the T2 pattern. For this
example we will look at a pattern coming in C period that follows the AB interval. What do we
know here?
Answer: 98% to break
When this is happening and price is going lower and the Smart Momentum is going higher
over the same interval, then we have a T2 pattern and the market is expected to go lower at
approximately the 84% probability level. I call this a push. The T2 is “pushing” price lower due
to cycle expansion. Next we have the 98% probability breakout “pulling” price to the breakout.
This gives us a push and a pull. The background color change triggers us into the trade, and the
market moves 20 ticks lower.
This pattern occurs over and over again and various forms and at various times throughout the
days and week.
Let’s look at another example: In the chart below, C period was “inside” B period. At this
juncture based on the above table we know we are 93% to break. We got the T2 on the Smart
Momentum tool, then the background color change and then we went 30 ticks lower.
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These show the Basic T2 pattern. We teach other patterns as well that you could have also
traded in the above charts to take advantage of these moves and associated probabilities;
possibly getting in even earlier.
You can also learn to include Order Flow analysis to help or add to your probabilities. When
I use the word “add” I am referring to stacking concurrent or sequential probabilities in your
favor. For example, in the above chart, notice the Trapped Trader Oscillator above the Smart
Momentum. Notice the dot just before the T2 trigger on the Trapped Trader Oscillator (TTO).
We call the position of this dot a “TTO Pump”. This increases the probability of success of the
trade because it is telling us traders are likely too long here and you therefore may be selling at
a discount based on the order ow. When we add these probabilities they tend to increase our
chances for success.
In our trading room we use a technique / formula called Bayes Theorem to compute the chances
for success where these probabilities are “adding” or“stacking”. When they do we can often nd
trade opportunities that are well above our current baseline 75% follow through rate based on
our background color changes alone. Sometimes increasing it to upwards of 97-99%. These are
“must take” trade situations and we teach these methods in the trading room daily.
Past performance is not necessarily indicative of future results. In this article we have discussed
basic setups that line things in your favor by cycle analysis, order ow analysis, and price action
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along with larger scale range expansion
probabilities. Ultimately, there is more to
trading than setups. Set-ups are a starting
point- a way of lining the chances for success
in your favor. From there you perfect your
management of trades and this is the true
beginning of your journey towards becoming
a master trader and achieving personal
development that makes it possible for you to
receive that abundance.
If you would like to learn and benet more,
join us in the OilTradingRoom.com
Rob is President of Axiom Research & Trading
Inc. specializing in futures markets and the
mother company to OilTradingRoom.com
and IndicatorSmart.com. Rob has been a
Commodity Trading Advisor and/or Registered
Investment Advisor and has been called
the largest Emini S&P trader in the world
at various times. Rob has also won the
prestigious Robbins World Cup Emini Trading
Championship, He has developed numerous
successful commercial trading systems over
more than two decades. He is a trading
educator, coach and mentor, helping others to
achieve their dreams as traders.
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Many astrologers around the world claim to have found Gann’s secret, they haven’t. Gann
wasn’t doing house wife astrology, it doesn’t work, they never made a public prediction, except
after the event. None of them predicted a top, they have all gone quiet. If you follow these
astrologers you will lose you house. Some are still looking for MH370 plane after 4 years. The
closest you will get to it is Hindu astrology, but there’s an added twist that needs to be applied
to unlock the “KEY” to what Gann was doing. The Hindus also left out “key’. Remember no one is
going to give away the secret to life.
Gann said that he would never real or sell his secrets and this is why his works are coded.
Below is a post on my Inigo Jones weather forecasting page on 13th January 2018 forecast a
top between 23rd and 25th January, it came on the 26th January, one day out. Notice I posted it
at 7:20 am (720 is twice a circle). There’s no one in the world that made a public forecast, in
fact they have been shorting it for years. Gann said you have to nd the right starting point. My
main work is on commodities like Gann traded and studied. You can go to my Inigo Jones long
term weather forecaster page (https://www.facebook.com/inigo360/) for the post, but a copy is
below.
Inigo Jones - Long Term Weather Forecaster
13 January at 07:20 ·
I showed in previous posts how the declination chart works
(the four seasons). This is another vibration chart for New York for the winter months. It is
extremely cold weather. February looks like one of the worst months in history. The Venus/Sun
make a 90 degree angle to Uranus which is cold currents and lowers temperatures. Very chilly
and gusty weather. Neptune in the angle at the bottom is very wet.This also could bring ooding
in lower parts of America. Expect many weather disasters, this could lead to a top in the stock
market and then a crash. Maybe the top between the 23rd and 25th of January with a closing
of the stock exchange around 14th/15th February due to weather and a crash between 9th and
20th March. I haven›t done a lot of cycle work on this, but watch the market does turn down
on the 3 day swing chart. More important is if the D.J.I.A goes below the low of the previous
month. I don›t own stocks as just part of the same monetary scam, so doesn›t bother me what
happens. I did sell all my real-estate in 2007 before that top and was in cash at the bottom of
the GFC.
In previous articles I have written that low sunspots cause a recessions and depressions. This is
still down to 2020/2022 so being in cash and having no debt is the key. Below is the chart that
was on my face book with the stock market top.
STOCK MARKET TOPPED 26th JANUARY 2018,
I WAS ONE DAY OUT.
The “House wife astrologers” are at a lost to why.
by David Burton
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They’re many astrology cycles I run, but the last one I looked at was the Hindu Sun ingress chart on the 14th
January 2018. Mars was 54 degrees from the suns ingress (5 + 4 = 9, the number for Mars), it was also 36
degrees from Saturn, another 9 number. The Sun was in the second house of money and Uranus was in the
5th house of speculation, so it’s a bad quarter for markets and weather, especially with Neptune on the cusp of
the 4th house of weather and real estate. Mars is going to hit all those planets from the rst and second house
from 8th March to 3rd May.
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New York Stock Exchange chart 17th May 1792.
One of my methods I use is sidereal astrology, not housewife astrology. There wasn’t one housewife astrologer
doing Gann that called the top publicly. Its because they don’t know what Gann was doing. Gann went to India
so he understood Hindu astrology. I have applied methods of my own to the Hindus methods to come up with
what Gann was doing.
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Leading up to the top on 26th January 2018 we had transiting Saturn 144 degrees (1 + 4 + 4 = 9) to natal
Mercury. We had transiting Uranus conjunct natal moon. We had transiting Mars at 216 degrees (144 + 72 =
216) opposite natal Sun, Transiting Mars 144 degrees natal Moon (a good trigger) and transiting Mars at the
same time 144 degrees transiting Uranus. Transiting Sun and Venus squared natal Venus.
The Averaging of Planets.
I have written a number of articles in this magazine on Gann’s “Averaging of planets”, so go back and revisit
those articles.
The low on the S&P 500 was on 6th March 2009 and at 666.79 , the average of the planets using astronomy
of Mars out was 288.5 and the top in the S&P was 2872 , 2880 is 20 x 144. At the top on the 26th January the
planets averaged 225.8 which equalled the days up of 2259.
On the square of 9 chart, 2259 days is opposite 1335 days (bible number) and
666.79 x 2 = 1333.58. The days line up with 2865 and is 45 degrees to the number 665.
My W.D.Gann software (stage one) is very close to being nished at www.wdganntrader.com This will be the
only pure Gann, that’s no indicators, because if you are doing pure Gann you don’t need them. Its been 36
years in the making, being 36 years of study.
David has been using and studying the methods of W.D.Gann since 1983. Also studying
weather cycles and sunspot cycles of Inigo Jones for the last 20 years. Currently getting
developed a W.D.Gann trader program that’s pure Gann, which should have stage one ready
by end of February 2018. It has taken 36 years of study to understand how this program
should be developed. It won’t be expensive like all the others. Watch my face books for update.
W.D.Gann trader https://www.facebook.com/WDGann360/
Inigo Jones long-term weather forecaster https://www.facebook.com/inigo360/
Commodity hedging company https://www.facebook.com/hedge360/
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In TradersWorld #68 we talked about the importance of being able to dene future price and
time targets, and discussed some of the tools at our disposal, namely channels/envelopes and
angles. This time we would like to discuss another popular tool: cycles.
The ability to detect and extract cycles from data series comes in many shapes and forms,
and the academic and trading literature is rife with examples. We have been using our own
methodology since 2011 and we’ve made it available through the OddsTrader app.
We recently concluded a new test in real time, where we predicted the price targets and cycle
turns for the next 6 months for a portfolio of 25 stocks picked by Goldman Sachs. The original
study can be found here and here. The results were published in January. And while the focus
in publishing the results was on our ability to accurately predict the price targets, it’s worth
mentioning that 99% of the cycle turns proved to be accurate as well.
This time we oer a new test: predicting the cycle turns for the G10 currencies for the Second
quarter. While users of our indicators can see the exact cycle dates, here we’ll limit the number
of forecasts to three per pair, and we will narrow the accuracy to early, mid or late month level.
So here we go (analysis performed on March 10th, 2018):
EURUSD: upside target 1.29, support at 1.14, Second quarter Cycle turns: mid-April, early May
and early June.
GBPUSD: upside target 1.46, support at 1.3, Second quarter Cycle turns: mid-April, early May
and early June.
USDJPY: upside target 116.5, support at 101, Second quarter Cycle turns: early April, early May
and early June.
USDNOK: upside target 8.5, support at 7.35, Second quarter Cycle turns: mid-April, mid-May
and mid- June. The USDSEK shares similar characteristics.
USDCHF: upside target 1.01, support at 0.89, Second quarter Cycle turns: late April, mid-May
and early June.
AUDUSD: upside target 0.85, support at 0.71, Second quarter Cycle turns: early-April, mid-May
and late June. The NZDUSD shares similar characteristics.
USDCAD: upside target 1.33, support at 1.19, Second quarter Cycle turns: late April, mid-May
and early June.
As impressive as our past forecasting results have been, we want to point out that there is a
very important distinction between forecasting and trading, and we will rarely trade a price
target or cycle turn without conrmation. Hurst said the same thing some 50 years ago. He
personally advocated the use of a “valid trend line”. The traditional way of doing this is to look
OF CYCLES, TARGETS AND
CONFIRMATION
by George Krum
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for at least two peaks or troughs and connect them with a straight line. We however prefer a
quicker and less subjective approach, i.e. using an indicator we call CIT Pivot Line, or by using
CIT Angles. Since we discussed Angles in TradersWorld #68, the focus here will be on the CIT
Pivot Line and its use as a conrmation tool.
It should be pointed out that we use the term Pivot Line not in the traditional sense of the term,
but as a line that is used to show the beginning and end of periods when long/short action is
advised. It is designed to work on all instruments, and in any time frame. Here’s an example
from our indicator collection for TradingView:
(Figure 1)
The above is a weekly view of the EURUSD pair from late ’16. The up and down arrows show
where the Pivot Line changed trend and color, while the shaded areas show where the algorithm
detected periods of buying exhaustion.
We’ve designed a similar tool for our new NinjaTrader add-on. As you can see from the chart
below (Figure 2), the Pivot Line indicator works seamlessly with channels, and is invaluable at
pinpointing reversal and support/resistance levels.
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(Figure 2)
We’ll conclude with one nal but very important point. When a strong trend is underway, it is
best to trade only in the direction of the trend. While in theory chasing every trend and counter-
trend swing should lead to what Hurst called “prot optimization”, doing so in practice may do
more harm than good, especially for new and inexperienced traders eager to compound prots
rapidly. This can be illustrated easily with our Swing Time indicator (bottom of chart, Figure 3).
On the gold chart below (Figure 3), you’ll notice that the swing duration and prots dier
for upswings and downswings dependent on whether the instrument being examined is in
an uptrend or downtrend. For the period July – December ’16 gold was in a downtrend, and
down swing duration and gains outperformed counter-trend swing duration and gains. The
opposite happened afterwards, when gold started an uptrend, and bullish swings and prots
outperformed counter-trend swing duration and prots. In other words, you can expect to
make more money trading with the trend, while chasing every downswing (after accounting for
slippage and commissions) may lead to frequent whipsaws and the accumulation of small losses.
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(Figure 3)
In summary, the tools and indicators described above can help traders accurately forecast
future price and time targets and cycle turning points. They can alert them in real time to swing
and trend turning and exhaustion points, and mark support/resistance and stop/loss levels
automatically. Intuitive and easy to interpret, they can be used as a stand-alone tool or with any
of your favorite indicators, to make your transactions more protable.
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Dear Admirers of W.D.Gann:
Do you know how W.D. Gann repeatedly made money trading in the markets?
By using his Mechanical Method over and over again.
This consistently kept money
in the bank to research other esoteric methods he added to this system over time. This
Mechanical Method is what we are going to teach you. Within the newsletter you will also
learn many of Gann’s updated timing techniques
Nearly 100 years ago, W.D. Gann began his Supply and Demand Letter service.
We are relaunching the newsletter service with an updated, proven system built to help
you earn a living through trading, while escaping many of the mistakes that drain your
account.
Our author, Jon Kirk, is one of the few people with full access to the source of W.D.
Gann’s legacy- housed here in the Lambert Gann vaults. Jon is a full time trader who is
willing to share his lifetime of knowledge and speed up and enhance your trading career.
Enjoy the article!
www.wdgann.com
Yours very truly,
Cody Jones
at W.D.Gann Inc.
SUBSCRIBE to the W.D. GANN
SUPPLY & DEMAND LETTER
}
{
W.D. Ga n n In c Pr e s e n t s
Box o, Pomeroy, Wa
March 2018
Readers of TradersWorld
Halliker Inc.
at W.D.Gann Inc.
smaLL sUPPLy
LarGe DemanD:
rIsIn PG rIces
scIentIFIc aDVIce
on
stocKs, cotton, GraIn
smaLL sUPPLy
LarGe DemanD:
rIsIn PG rIces
anaLytIcaL rePorts
on
marKet conDItIons
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There are no shortcuts to trading, and particularly when it comes to GANN, you have to do the
work; that work is rewarded in many ways, Prots, obviously, but more substantially a greater
understanding.
Given most people want to talk about prot I guess that’s what we must do. So let’s analyse the
last move on the S & P and see if Gann or you would have made a greenback or 2 !
Here is how the week at our last workshop in Krabi, unfolded, by the way it was no coincidence
we selected that date. I’ll give you the Geometric solution to an Astronomic problem, probably
more than I should, but that’s how we roll, and show how the Gann Mechanical rules may have
paid for lunch!
This and much more was what we taught in the workshop, including solid stop and prot taking
strategies. In fairness to the attendees I won’t expand on that in this forum.
So here is how it unfolded.
Do you think Gann may have been watching the end of January? There were a number of
markers there for a change in trend, even if you did not think it would be as large as it turned
out. It is well worth noting that GANN traded consistently when in a campaign, that is he took
prot from both sides of the market.
Firstly, we were approaching his February Seasonal date, there were a number of Astro cycles
came in right at the high, including using the Jupiter Saturn Conjunction which he was famous
for talking about. These markers gave us 26/29 January dates as a date to watch years in
advance.
GANN KNEW –
WHAT GOES UP MUST GO DOWN ..
APPARENTLY.
by Jon Kirk
April 1, 2018
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Monthly counts +/-
30 months from lower top in July 2015
75 Months from the 2011 low
81 Months (SQ 9) from the 2011 top
90 months from 2010 low
180 Months from 2002 Lower top
Telling us to watch this time frame – now we drill down, I don’t have a lot of space so I’ll jump
to the daily chart but GANN was also watching the weekly. (75 weeks from July 2016 tops).
There were a series of tops in 2016
The 2016 Double tops were +/- 365 BARS back.
Jan 2017 top was 365 DAYS back
You can go search for the others
Additionally, for those who ‘wanna’ throw some basic astro in the melt Saturn (a GANN favorite)
was:
30 degrees from the Nov 2015 top and
60 degrees from the Feb 2015 top
90 degrees from the Nov 2012 low. It was time to pay attention
29 Jan 2016 was a lower top trading into a DB on Feb 10 the nal low before the market started
up
The 31st January was a Lunar eclipse.
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February 5 was a seasonal date (1/8 of a year and ½ way through winter) which often gives
turns 2014 low was 3 Feb. and I mentioned 10 Feb 2016, take a look for any more.
Do you think this area would be one to watch?? There is more
but this is enough for this medium.
The mystique of Gann is probably one of the most complex controversial discussions around any
trading methodology, and whether you subscribe to the theorem he used Astro, Numerology or
some other dark art, there is no doubt in my mind, that the Mechanical System was the basis
for his trading success. Note I said trading not forecasting. Forecast or no forecast he used these
rules to trade what he saw.
In basic terms, the lunar eclipse pretty well called the top, but it took to the seasonal date to
break down. You don’t need to be a rocket scientist to track this stu, but track it you must if
you want to trade anything like GANN.
Here are the shorting opportunities as per Ganns’ RULE 1. A, B, C and D represent the entry and
basic pyramid opportunities based on his Trend Line Indicator.
Note the volume on the chart below at the low.
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The market found support at 2529 a 75% retracement of the range from August 2017 when it
commenced its acceleration higher
So why might a market in freefall stop dead at 2529 ?
2531 is 480 degrees (2 x 240) down from the current high on the SQ 9. And my Trusty 1 x 1 45°
lines also acted as support on the day as they did in the May and August
And we were right on Seasonal time +/- a day.
But the world is ending right – or does this market have some form
The ranges down from the 2007 / 2011 and 2015 tops are equaled by this run! You can go
check.
Does the market have a history of this sort of move. Appears to? does not guarantee it will stop
but a breather is certainly on the cards.
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How about the ‘Angle of the Dangle’?
Intersecting 1 x 1 angles, our subscribers are well versed in their use. The charts below were
created in real time for a February edition of the S & D letter so please note the last bar is drawn
in as the data set has not downloaded when I created the chart.
You can see the intersection of the 1 x 1 angles caught the market. But it’s too simple this is not
what GANN wanted us to see … or is it?
The diculty is knowing what to track and how to build your case, then which rules to use to
trade it.
Clearly, we are now talking about trading, not forecasting, building cases for support once you
are short.
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This stu is simple enough right? What else might we look at – perhaps a simple resistance
card… Are we there yet?
Previous support was at the October and November lows.
The low price actually breached these levels, this is what Gann coined as ‘lost motion’ that is the
train was going so fast it could not stop right at the station.
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So how did we trade it, reverse position and go long?
I’ve run out of space here, so click the link and download the rest of the article !!
If you are interested take a look at our Workshop or Weekly Supply & Demand letter tabs,
you never know what you might learn.
May the GoFR be with you.
CLICK HERE TO RECEIVE THE ARTICLE AND SOLUTION VIA EMAIL
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Technical Traders Newsletter is a forecasting service which presents weekly video forecasts.
It gives subscribers very clear and accurate market forecasts which are based on technical
analysis, Elliott Wave Theory, crowd psychology and their own proprietary cycle analysis is very
helpful to a trader.
It also includes a daily pre-market analysis video with price predictions and trading opportunities
for the:
• US Indexes
• Sectors
• Gold
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• Bitcoin
You can learn to trade with their educational analysis.
Their proprietary indicators uses methodology revolving
around crowd psychology combined with fundamental and expert technical analysis giving you
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Here is an video example of their daily video market predictions for March 20-27th for stocks,
gold, oil etc. https://www.youtube.com/watch?time_continue=17&v=Hq2Nz4UR6dE
Their trading philosophy is that you don’t have to be smart to make money in the stock market
but just think dierently. All markets present opportunities to make money. You can always take
what the market gives you and make money.
In their trades they cut losses and protect prots. They feel that to make money is knowing how
not to lose money. You will have trades that lose money, but if you know how to cut your losses,
you can have several losses and still be protable with only one winner. You can be right less
than one third of the time and still make money.
They invest by targeting indexes, stocks, sectors and commodities that have the characteristics
of leaders and with strong earnings, be in a leading sector and has institutional support. They
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unfold in the markets and they are ready to trade those lows and highs when the time is right.
This is a philosophy that can change your life.
I had a month free trial for the review and I did see how they proted from a trade giving them
a 9.1% prot from a bounce in natural gas. I really liked the videos and found the service to be
highly educational.
For more information or to subscribe please go to www.thetechnicaltraders.com
Technical Traders Newsletter Review
Review by Larry Jacobs
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The aim of this article has not been to criticize Elliot Wave theory as traditionally taught, as
there are many sources available now that are very good and can give good results. This Article
is a description of my own personal journey of Elliott Wave analysis and the way I found to use
parts of the Elliott Wave theory, in isolation, to uncover potential trade setups.
I started following the markets in 1987, that is over 30 years ago now! In the early days I was
looking for an analysis approach that would project where markets would be at some point in
the future, and the Elliott Wave Theory seemed to t this bill. Therefore, I started to look into
this, following it in more detail.
Over time, I began to become disappointed and frustrated that so often the markets did not
unfold as anticipated, and how standard Elliott Wave teachings used alternative counts and
ever more complex corrective patterns to try and make the patterns t in when markets did
not unfold as anticipated. I found this very frustrating, but I did like some of the things that the
Elliott Wave theory promised, so I did not give up.
As I worked with it I realised that much of the time Markets appeared to be random, with no
discernible pattern. This observation seemed to be backed up with a number of books being
written at the time on how markets were random. But how could the Markets be random if we
had Technical Analysis, which used patterns (not just Elliott Wave) with the aim of projecting
future Market movement?
It then struck me, what if both theories were correct? Where Markets were both random and
predictable, but the Markets went through phases where part of the time they were random and
part of the time they were predictable. In other words, they went through cycles.
With this in mind, I then came back to look at Elliott Wave theory again, and in particular the
parts of the theory that were the simplest and easiest patterns to nd. The easiest of all was
the simple ABC correct. To my joy, the most common place this was found was in the Wave
(2) correction. Why was this important? After a Wave (2) correction the Market then very
often made a Wave (3) swing, and the Wave (3) swing is usually the strongest and longest in
a completed 5 Wave sequence. If you could nd the end of the Wave (2) swing to then try and
enter a trade as this Wave (2) swing was ending to trade the Wave (3), this would represent a
trade setup that had a large potential prot for the smallest initial risk. In other words, when the
trade went as anticipated the prot would be much larger than the losses, conversely, when the
The Isolation Approach to
Elliott Wave Analysis
by Steve Griths
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markets did not go as anticipated the losses were kept small. As a Trader, this is all you should
be after, a trade setup that has the potential for a large prot, but not just large in Dollars, but
large in relation to the inevitable losses. This is where Position Sizing then came in as a way to
keep the losses small and the prots large (this is a topic for another article).
So far so good, I now understood why the Elliott Wave Theory, as traditionally taught, seemed
to break down so often, because Markets go through cycles swapping between randomness and
predictability. The question then became how to make use of this?
For this I had to look at multi-time frame analysis. Where, I started to look at the higher time
frame charts and see when markets entered support or resistance zones on these higher time
frame charts. When this started to happen, the assumption was made that markets were
starting to leave their random phase and enter a more predictable phase.
With the market becoming more predictable on the higher time frame, we could then start to
look for trade setups on the lower time frame. In other words, we were only starting to look for
Elliott Wave Patterns “in isolation”, once the larger degree position started to become clear. The
Isolation Approach to Elliott Wave Analysis was then born!
A recent example of this is on the EURCAD Chart, where we rst look at the higher time frame to
see when the Market started to make meaningful support at one of our MTPredictor DP Support
zones:
As you can see in the Chart above, on the 4hr Chart the market was starting to rally (nd
support) o the DP support zone, which was taken from the last swing low.
So now we could assume that this market was starting to come out of its random phase and as
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such enter a more predictable phase. Now was the time to start to look for possible trade setups
on the shorter time frame (1hr) Chart. Using the Elliott Wave theory “in isolation”, were we used
the rally o the higher time frame support zone as our starting point.
As I outlined earlier, the best Elliott Wave trade setup would be as the Wave (2) correction was
ending to look for the start of a strong Wave (3) Swing:
In the Chart below, you can see how the EURCAD made an initial rally o the low (which
unfolded at higher time frame support), in Elliott Wave terms this would be considered a Wave
(1):
This was then followed by a correction, but not just any correction, one that sub-divided into
a minor ABC pattern. In Elliott Wave terms this is a potential Wave (2). We then use Fibonacci
clusters to determine a potential support zone for the end of the minor Wave C swing.
If the market then made a low at this point and reversed, then the resulting rally was likely to
be a Wave (3), and as outlined earlier, because a Wave (3) is normally the strongest and longest
swing in a completed 5 wave sequence, this represented the potential for a large protable
swing in the Market.
Let’s see how this looks on the Chart:
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In the chart above, the Analysis projected that if the EURCAD rallied into the Typical Wave 3 WPT
(Fibonacci price cluster for a Wave 3), then this would represent a potential prot of just over 6
times the initial risk required to take the trade.
Remember, professional traders are not looking to project or forecast the future, they are just
looking for potential trade setups, that over time, produce prots that are larger than the losses.
Let’s now move forward in time and see what unfolded:
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As you can see, the EURCAD rallied strongly to initially reach the projected Typical Wave (3) WPT
prot zone. In fact, the EURCAD exceeded this level, which was anticipated by the MTPTrend
Indicator breaking above its strength band. Trade Management would then swap to using the
ATRStop to follow the market.
The end result was a potential Prot of just over 8 times the initial risk required to take the
trade.
Where is the market anticipated (or projected) to go from here? A professional Trader does not
care, and this is the whole point, in that after the market has been in a clear pattern, then it is
likely to return into the random part of the cycle. As a professional Trader, the market has given
a good protable trade. So, it does not matter what happens next. Professional Trading is all
about what goes into and then leaves the Bank account, i.e. Prots and losses, not projecting
future Market moves.
Please remember that not all trades work out as well as this example, there will always be
losses. The aim, over time, is to have prots that (on average) are larger than the losses. This is
why MTPredictor uses Position Sizing to keep the losses small, but not just small in Dollar terms,
small in relation to the potential Prots.
The isolation Approach to Elliott Wave Analysis has been able to capture a lovely trade setup,
but only as part of a snap shot when the market was in a clear and predictable part of its cycle.
Before this, and probably after this, the market will then return to become more random.
The isolation Approach to Elliot Wave Analysis then become a tool where you can start to look
for trade setups but only in isolation, after the individual Market has shown (by its own actions)
that it is making meaningful support or resistance on the higher time frame.
A similar approach can be used when working with other Elliott Wave patterns, for example the
end of a Wave (5) swing.
A Wave (5) is the end of the current swing. This would be considered a trend termination
pattern, so more care must be taken. In particular, the Trader must look for other reasons why
the current swing may be coming to an end. This is where we again look to the higher time
frame chart for potential areas of support or resistance. The Wave (5) pattern is again applied
in isolation, but the important point is, that the Wave 5 swing appears to be coming to an end in
the same area as higher time frame support or resistance.
Here is a recent example on a 15-min Chart of the Nasdaq March 2018 Future (NQ):
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We can see that a Wave (5) swing started to nd support, both at the minimum Wave 5 WPT
(Fibonacci price cluster) as well as the DP support zone from the higher time frame (1hr) Chart.
The Prot target for this type of setup is the DP taken from the prior Wave (4) Swing.
The NQ rallied up into the Prot target for a potential Prot of approximately 2.9 times the initial
risk (ignoring slippage and commission). Again, Position Sizing was used to keep the initial risk
small in relation to the potential prot.
Although this setup is higher risk than the previous one (o the end of a Wave 2) it uses the
same basic idea of applying the Elliot Wave patterns in isolation. The aim is not to try and t this
pattern in with any pattern coming before it, nor to use it to predict any pattern moving forward,
beyond the initial Prot target.
Although, the end of a Wave (5) setup has the potential to catch the very end of a trend, my
personal favourite setup is the previous one, mainly because it has the added conrmation of
looking for a correction after a major turn has already unfolded at higher time frame support
or resistance. Also, because the Wave (3) tends to be the longest and strongest swing in a
completed 5 Wave sequence, as such this setup usually has the largest potential prot in relation
to the initial risk. This setup is one of the automatic setups that is found in the MTPredictor
software program.
Steve Griths is the developer of the MTPredictor software program (www.MTPredictor.com) that
uses as it basis Steve’s Isolation Approach to Elliott Wave. MTPredictor was launched in 2001,
and Steve rst started following the Markets in 1987. During that time Steve has presented
many training seminars, written many articles and even presented on CNBC Europe.
Steve Griths
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In the world today, there are techniques which are not as commonly used nor as fully
understood as others, that can help enlighten the trader to possible events which would allow
either a perfect trade or at the least, a leg up on the market itself.
In applying Jensen’s Astro-cycles map we nd that the US has Midheavens that span the later
degrees of Scorpio to the end of Capricorn with Ascendants that correlate to early Aquarius to
Taurus. What few do is to determine where the events that happen in the heavens occur on
Earth. This is a writeup on Facebook that hopefully brings the possibilities to light.
In this article we will try to answer the why of Facebook’s recent public relations mess in
releasing data to Cambridge Analytics. In March of 2018, Facebook (FB) came under world
criticism for sharing data on over 50 million users, their friends and family without direct consent
of those whose data they shared. The world is in an uproar and the stock has fallen from a high
of 186.10 on March 12 to a low of 161.95 on March 20, 2018. The correlates to a fall of almost
13% in 7 trading days. Why this sudden hit? To understand that, we must travel back in time
to the start of Facebook.
To best evaluate the underlying cause of events, we needed to nd the actual birth date for
Facebook. Publicly it is given as 2/4/2004 as when it went online as noted in Wikipedia. The
time is set for noon on the public date and little jumps out as what could really drive this stock’s
value.
Using Geodetics in the Stock Market as a
Natal Astrological Technique
By Dr. Lorrie V. Bennett
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Eventually Facebook was relocated to Palo Alto, California, and the locality chart for the area
shows two features:
1 This locality shift puts Neptune on the Ascendant which gives an impressionability, sensitivity,
a sympathetic, compassionate or innate understanding of other people. Facebook, by building
on relationships, tries to show this element of the chart.
2 Jupiter/Node gives good relationships and connections, an agreeable or pleasant contact but
when poorly energized disharmonious or anti-social conduct in associations can occur.
But what about other events that could have been considered its birth? Additional study of the
history of Facebook shows a surprising back story that helps to build a better natal chart.
In late October of 2003, Mark Zuckerberg was a sophomore at Harvard. He got dumped by a
girlfriend and got drunk. That night he decided to write some code for a website that would be
known as FACEMASH.
He states he wrote the code in one night and then got the data used for the website by hacking
into Harvard’s database. By working thru articles in the Harvard Crimson student paper an initial
date of 11/3 is reached due to notices of privacy violations and copyright violations that were
sent to Mark about the website.
A note that FACEMASH (Facebook’s predecessor) was opened on 10/28/2003 is eventually found.
Giving a day to write code and a day to organize the date of 10/26/2003 as the point where the
code writing began, which would represent a possible date for the birth of FACEMASH/Facebook.
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Here is the chart for Oct 26 at 12PM set as a locality chart for Palo Alto, California.
Note that a key feature of the February 4, 2004 chart is present, as Neptune is still located on
the ascendant of this locality chart for Palo Alto, Ca. But further investigation shows that this
chart matches the events that created Facebook and its overall history as a Social Media/Friends
and Family connector and its current publicity issues.
Neptune in Aquarius gives a person with hopes and wishes noble aims but also insincerity,
fraud, a person who is easily inuenced by other people, easy yielding to temptation. This
correlates with Facebooks history, as it is noted that Mark Z hacked Harvard’s network for
pictures and data for students to create FACEMASH. As subsequent lawsuit suggested, issues
as to where the actual creative idea came from were resolved by giving IPO shares to two
individuals.
Venus is on the Midheaven of the October 2003 chart when relocated to Palo Alto, and it is
also in opposition to the Node. This aspect would be present in a Harvard locale chart as well,
and its inuence creates a disharmonious love-union (girlfriend dumped him). This aspect also
gives a lack of adaptability, little endeavor to oblige other people, a disagreeable nature, fraud.
By placing Venus on the midheaven, when the energy between the node and Venus is balanced,
there is a sense of beauty and art to the chart, but when stressed, the presence of vanity and
conceit, self-admiration, and jealousy are strong features of this chart. Some would suggest
that this is a clear picture of Facebook (FB).
Also, within this chart are hidden aspects and relationships that go beyond the scope of this
article, but key elements of those aspects are:
1. An abuse or betrayal of condence, falsehood, deceit, tendency to lay oneself open to
exploitation by other people, thus serving as a willing tool for other people’s selsh purposes.
2. Accessory to malicious actions.
3. Illusion, disharmony, a disagreeable nature.
Facebook’s whole gimmick is one of a friends/family connection which is strong as its Venus/
Node opposition is on the Midheaven, giving “an aectionate nature, an obliging and cordial
manner, a harmonious relationship to other persons, a love aair. And it was good, but with
NEPTUNE mixed into the aspect in a Mundo square of Ascendant to Midheaven, the deceit, fraud
and other nefarious activities of NEPTUNE color the Venus with illusion and disharmony.
What triggered this round of events?
In the middle March of 2018, news broke that Facebook was sharing data with companies
working with American presidential campaigns (Trump and Obama), which has not been received
kindly. The rst mention of the story was on Nov 19, 2016, and its tie to a Facebook quiz that
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was utilized by a data mining company.
Looking for the celestial trigger for this release brings up the Jupiter yearly retrograde motion
on March 9, 2018. The retrograde motion was at 19-23 Scorpio, which directly inuenced the
NEPTUNE/VENUS/NODE natal points. Given the breaking news and resulting price collapse, it
appears that the retrograde Jupiter has revealed the worst of Facebook’s nature. Interestingly,
the initial report of the Facebook/Cambridge Analytics tie was when Saturn was at 16
Sagittarius, a point related to Facebooks retrograde natal Saturn.
What lies ahead?
Jupiter will end its retrograde action 7/11/18 at 13 & 10 Scorpio and nish its 3rd pass over 20
Scorpio on the 9/19/18 time frame. Then it will hit an event with Saturn on 1/19/2019 at 13 Cap
or opposite the Natal Saturn position. This will likely be the worst event for FACEBOOK.
If I were trading FB, at this point I would look for points to go short into the July 11 time
frame. Expect a slight move back up, and then another period down into Jan of 2019, at least.
Given that Saturn is the discipliner, and as it is retrograde, I expect that legislation seeking
to take control of social media as a public utility could occur. Mark Z is not going to be able
to talk himself out of this situation as it goes to the very essence of FACEBOOK in its origin
and function. There are changes coming, the question is, will it resolve these weaknesses in
Facebook’s chart.
Another interesting point is that when the diculties began for Facebook, many other TECHS
began having issues, i.e. those located in Silicon Valley or those corporations that share the Palo
Alto ascendant of 11 Aquarius. Amazon is based in Seattle and that is why they are avoiding
much of this conict in the social media world.
These observations are a small sampling of the deeper principles of astrology that Gann and the
great ancient astrologers used. In my forthcoming course, The Law of Vibration by the Planets,
I will introduce a new, advanced system of astrological market interpretation based upon Gann’s
most secretive and hidden astrological principles decoded from his most mysterious work, The
Tunnel Thru the Air.
For more information about my work and my 4-volume series on Gann’s Law of Vibration, and
my future work on Geodetics and other astrological science, please see:
http://www.sacredscience.com/BENNETT/Law-of-Vibration-Series-Introduction.htm
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By reading this publication, you are doing the right thing; you care about your money.
If you don’t care about your money, nobody else will!
Most people leave it up to a fund manager to operate their nancial future. For those, who do so,
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By Mark Twain: The dictionary is the only place where success comes prior to work.
Translating this into the nancial world: Positive results are a matter of knowledge and
preparation.
Thus; not a single action, but a combination of the right actions will make a dierence.
Fund managers, by the sheer size of their operation, cannot easily trade in and out of position:
You can, and this is the way for you to beat the fund manager’s performance. To do so,
everything shall start with a high probability trading system; however, there is more needed. Let
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The dierence between trading and investing is only the perspective of how long you expect
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Prepare yourself and learn how to:
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IRA).
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• Know what to do before you put your money in the market and apply multiple trading
strategies based on a thorough market analysis.
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However, we were just talking about the skill set; but there is more to it, let us categorize this in
an overview:
Now the key questions: Where are you today and where do you want to be?
Check if you do the following:
Predicting the future price happening of an asset with a high probability?
• Choose the suitable trading strategy to apply?
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• Repairing your trade when needed?
Let me help you further and create a checklist for trading success; however, we want to do the
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• A questionnaire for trading success that will help you to get a straight forward feedback
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• Our non-published book: “Your Integrated Trading and Investing System”, only oered to a
selected group of people, explaining how successful traders follow a system, where multiple
components are working in their favor.
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Who is this for?
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To gain this special knowledge, we ask you for an investment of $197 (your real-person-
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• “Your Integrated Trading and Investing System” our non-public eBook, explaining the crucial
steps to trading success.
If you decide to implement what we shared with you on your own: We will not ask questions, we
will leave you with a feedback report and our guide to “Your Integrated Trading and Investing
System”.
If you decide to sign up for one of our mentorships or NLT Alerts, you will get a credit of the
$197 towards your tuition- or NLT Alert payment.
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Both ways, you risk little and we give you a sound value back for building you up to be the
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After you made your real-person-deposit, we will send you a questionnaire, which also contains
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The more detailed you can answer our questions, the better we can help you in putting together
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In Traders world publication last year, “A Winning System” was included, by this author. The
system was a 50/100 week moving average crossover system. A track record was shown that
documented the systems 100% record of winning trades for the last eighty years.
Since I learned Andrews and Babson techniques, from Dr. Alan Hall Andrews at his kitchen
table and use them in my own trading, I decided to experiment with the idea of combining the
Pitchfork with the crossover moving average system. This article will show some of the results of
this experiment.
The moving average crossover system enters the long position in the S&P when the fty week
moving average crosses above the one hundred week moving average and exits when the fty
week crosses below the one hundred week moving average.
Andrews taught that price makes it to the median line eighty percent of the time and to buy
after a decline and sell after a rally. To make the median line work in conjunction with this
system buy signals are only achieved if the MA system is already long and price comes down to
a Median Line.
After a very long run, price going past the median line for the rst time or the median line far
parallel may be used for a sell signal.
Improving Moving Average Systems
with Andrews Pitchfork
By Ron Jaenisch
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In the above chart an entry signal was achieved with the moving average and after a decline the
Andrews Buy signal kicked in. This was when the moving average system was still long.
Over time the S&P went up and the moving average system stayed long. After price went to the
Pitchfork far parallel an Andrews sell signal was achieved.
As seen
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As seen in the above chart, the market went sideways and down for about a year. The crossover
system was still long and an Andrews Buy signal was achieved after the market went down to
the median line.
The MA system had an exit signal a few months later and once again took prots. Shortly before
the election another enter long signal was achieved. At this time both the Andrews tech and the
MA system were both calling for higher prices. After the election price went further to the upside,
until nally price made it to the median line where a sell signal was achieved, thereby locking in
the Trump tax code rally prots.
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ECHO- a close parallel or repetition of an idea, feeling, style, or event
SHADOW- to travel behind, to follow.
You are going to sit down, open your charts and make something happen. Or, you may just
want to sit down, open your charts and see what has happened. Or, you nally, with emotion
and reservation, enter your trade, see it go south and wonder just what just happened.
It has been a few issues since I last contributed an article to TradersWorld magazine. No, I
didn’t get lazy, I just didn’t have new and fresh material to share, and I certainly did not want
to bore readers with redundant material. It was time to contribute so I decided to write about
our new EminiScalp Auto Strategy, the EminiScalp Shadow. Actually, the Shadow is not really
new, it is based on our EminiScalp Stalker strategy. The purpose of the Shadow is to follow ,
or shadow, the Stalker set ups as they occur during the trading day, and decide if there is a
possibility that maybe the particular Stalker entry may encounter some resistance resulting in a
stop. In essence, the Shadow was spying on the Stalker. The Shadow would assess the Stalker
set up conditions just prior to an entry and if the Shadow thought that the entry may not be
protable, then there would be no entry. The Shadow would patiently wait, and take an entry if
it determined that the conditions may be favorable.
Our Stalker strategy is great, but I am constantly looking to improve. The EminiScalp goal is
to never get stopped, or actually, to have some prot, no matter how small, on every trade. Of
course we have not reached our goal yet, but I do believe we are close.
Successful trading, in my opinion, is based on a number of factors. The method or strategy, as
well as the management are denitely key factors. But also is the personality makeup of the
trader. Entering a trade is dicult for many as well as staying with the trade. Not knowing
where to exit a trade can be a problem as well. Taking less prots on more trades could possibly
be more protable that attempting to take larger prots on less trades. I am a scalper only
because, and I am being honest, I am impatient. Like many traders, I want to get in and get
out. Attempting to do this manually is draining. That is why I have created our auto strategies.
If conditions permit, we have the possibility of substantial prots on a particular trade, but our
objective is to be protable on as many trades as possible, even if the prot is small. Small
prots can add up. In any case, trading is still dicult for many.
Even though the objective of an auto trade strategy is to assist traders with entries and exits,
many still nd trading dicult. You may ask yourself, what is your real objective for wanting to
An ECHO and a SHADOW
by Al McWhirr
www.EminiScalp.com
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trade. Are you really interested in learning the technical and other aspects of the business or is
it the potential prots that trading oers. Hey, nothing wrong with wanting to earn money. If it
is the latter, read on.
Previously, I talked about our Shadow strategy and what it does. Now, let’s talk about the Echo.
A while ago Je Roth from Perfectna contacted me with an interesting platform called Echo-
Trading.
Below is what the ECHO is about:
Echo-Trading is a new technology that connects everyday investors with some of the best and
most protable traders in futures. With the click of a button investors are able to copy or “echo”
the trades of Echo Leaders with a veried track record of success. In partnership with CQG and
using APS (average pricing) technology, Echo-Trading is able to match the ll prices of followers
with the ll prices of the Echo Leader. Leaders can trade options, limits, automated systems, or
discretionary strategies. There are virtually no limitations with Echo-Trading.
For Leaders, Echo-Trading is a way to create a following, and collect subscription revenue
without having to do any work to market themselves other than trading successfully. As a
Leader simply trades their own account, and is not oering advice, there is no need for licensing.
Leaders are free to focus 100% on trading.
For Followers, Echo-Trading provides the opportunity to echo the performance of the best talent
in the industry without the high cost of entry of managed futures or hedge funds. There is no
need to learn how to trade a new asset class, or spend hours reading charts, they can simply
lean on the experience and eort of traders who have done the work for them. Echo-Trading
is without a doubt, the simplest way to trade futures, and oers the average investor the best
chance at protability.
Very interesting to say the least, and possibly a viable solution for many traders. Let’s see how
the ECHO and the SHADOW can perhaps work together.
Below are screen shots taken on 3-15-18 of the YM, NQ and CL ., The shots were taken
approximately at the same time and show the trade entry areas of our EminiScalp Shadow,
represented by the aqua colored arrow. The arrow appears upon entry. Although our discussion
is based on one contract, multiple contracts with a viable trade management, could possibly tell
a dierent story.
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Chart A
Above, chart A, is our YM chart. Here we had a nice 24411 long entry. The Shadow strategy
along with our management allowed 9 ticks, or $45 of prot. Our long entry at 24442 was a
bit more generous. Although the price moved about 30 ticks before the pullback, in actuality,
the prot would have been less with our trailing strategy. Let’s say we captured 20 ticks before
our management took us out. That would be $100.00. The short at 24481 would only net about
4 ticks or $20.00. Like I mentioned, lock in some prot if possible. Anyway, those 3 entries
showed $165.00.
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Chart B
The above NQ chart, chart B, shows potential Shadow entries throughout the morning on 3-5-
18.There were 6 entries, 4 short and 2 long, that the Shadow found, and all would have shown
some prot. A conservative estimate of prot would be at least $115.00. Again, this is based
on the trailing management. As I mentioned, small prots add up. Although the price may run
30 ticks from an entry, the goal of a trailing management is to lock in a prot if the price moves
against you. Then, wait for another entry. Doing this manually is tedious and tiring to say the
least. That is why an auto strategy is the way to go. Hypothetically though, there was much
more potential prot from these 6 entries.
Chart C
The CL chart above, chart C, shows potential Shadow entries during the same time frame.
Entering the rst CL long at 61.77, the price moved 8 ticks or so to 61.85. Not knowing where
the price may go, you could manually exit, for a possible 6 or 7 tick prot. Or, if the strategy
had a tight trailing stop, you may get 4 or 5 ticks prot when the price pulled back. The second
long at 61.74 looks as though it had a nice run until the price reached 61.92 or so before the
pullback. A conservative trailing management would have probably taken you out at around
61.85 or so. If you were sitting in front of your computer, and you see the price moving in your
direction, you may just want to exit manually just to be certain you have captured some prot.
In any case, conservatively you probably could have netted possibly 9 ticks from these entries.
With one contract, that would be $90.00.
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The hypothetical gain from the YM, NQ and CL
from the time frame shown, could have been
$370.00, trading 1 contract. Assuming your
account size allows you to trade all 3, then that
is not a bad gain for the morning. Now, you
may ask, are all trades successful? Of course
not. There will be stops but with a strategy
that searches for optimum entries and a logical
trade management program, the odds could
certainly be in your favor.
So, how does all of this coincide with the
Echo-Trading? If you are not able to do
this by yourself, for whatever reason, then
echoing may be the way to go. Again, this
is hypothetical and in no way for certain,
but let’s say that your cost for a month of
Echoing participation is $100. Let us be real
conservative and say that you only gain $50
per day as a follower. That would be $250
per week or $1000 per month. Would it be
logical to pay $100 for a possible $1000 gain?
I certainly believe so. But, to get the real facts
with no guessing or hypothetical’s, ask your
broker if they oer Echo-Trading by Perfectna.
Thanks for taking you time to read my article.
TradersWorld Magazine
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Introduction
Let me start by introducing myself. I am a full time trader, trainer and software developer 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 protable 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 protably consists of market observation over a period of time so that the
trader can build condence in knowing what usually happens in the market, and how to prot
from the recurring market behaviors that repeat 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 knowledge of probabilities of market behavior so as to take
consistent prots out of specic trading instruments. The following are observations of market
behavior that will help to put the probabilities in your favor.
Combining the Use of Signals on Correlated Markets
To put the probabilities in your favor, you must have an objective method or system for your
trading. Patterns repeat themselves over and over in all markets, so knowing these patterns can
help to put the probabilities in your favor. The more you can automate your trading signals, the
more objective you will be in your trade selection and less emotional trading will occur. You
need to determine a set of technical conditions for which you would take a long or short position
in any market. You can use technical indicators that are widely available, or you can develop
your own indicators. Once you have chosen the indicators you want to use, test them for
validity in your trading. As in any testing, the more data the more reliable the results will be.
Below is an example of a chart where we have developed a system to determine price bar
How to Find the Highest
Probability Trades
By Steve Wheeler
Founder and CEO of NaviTrader, Inc (www.navitrader.com)
Professional Trader and System Designer/Developer
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direction and have coded them green on an up bar and red on a down bar. This will provide
the technical indicators that need to match up for a long or short position. You can see the
automated sell signals which are the Magenta arrows. You can use simple rules such as a buy
above the signal bar and exiting either on a trailing stop or a prot target. Whatever system
you use, be sure to test it on a sucient sample size to test for a positive expectancy. The chart
below used a volume chart for the NASDAQ 100 Futures with automated signals.
Making money in the market is a matter of being on the right side of the market. Specic to
the futures markets, there are both up and down moves each day that provide many trading
opportunities. One approach to the markets is to look for evidence of major support and
resistance levels based on chart history. Many people ask me which time frame that I look at
for my trading, and by best answer is that I look at all of them. A good analogy would be that
if you were going to buy or short a stock, you would most likely start by looking at a weekly or
daily chart. Why would you approach the futures markets any dierently? To put the odds in
your favor, you must nd things that occur over and over and trade with this information.
Below you will see an example of a Renko based chart of the Dow Futures chart. This chart has
buy and sell signals. The buy signals are the Green arrows pointing up and the sell signals are
represented by magenta arrows pointing down.
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The above chart and the system displayed by the chart is an example of a signal that will enable
you to objectively test a signal on any chart time frame or data series that you would like to
test. Other examples would be using indicators such as moving averages for buy and sell signals
One simple to use method of testing is to use a trade simulator to assist you. You can download
market replay data and test based on historical data taking trades based on your entry and exit
criteria. You will be able to test various stop and prot target levels over a series of trades. I
would suggest that you test during the time periods in which you plan to trade. An example
would be to test the S & P futures from 9:45 AM Eastern time through 11:00 AM Eastern time if
that is the part of the day that you intend to trade. You could test using the minute based charts
along with volume charts by requiring that the signals on both the minute based chart and the
volume based charts are both in agreement on direction.
How To Develop a System with a Positive Expectancy using The Highest Probability
Setups
Through trade experience and testing our charts for over 10 years, along with testing under real
time conditions, I have observed that the highest probability trades consist of using a system to
determine points where two or more correlated markets such as the Dow, S &P and the Nasdaq
futures are moving in the same direction as in the example below.
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The top chart is the E-mini and the bottom chart is the Nasdaq 100 futures. The magenta arrow
on both charts represents a sell signal on both markets at the same time.
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 I should trade in the futures markets, and how many shares should I should buy or
short in the stock market
We know that trading is all about how to react to your successes as well as trades that don’t 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
A Risk Management calculation example for the e-mini would be as follows:
1. Entry price = 1438.25
2. Initial Stop level = 1436.25 = 8 ticks on the S & P E-mini
3. 8 ticks x tick value of $12.50 = $100 $100 x 1 contract = $100 risk on this trade.
4. Account Size = $10,000
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 benet from the great opportunities
that exist each day in the market.
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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 and will allow you to trade in simulation mode as well
as to execute trades in your live futures account. 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 condence and an overall methodology
that ts your personality.
Developing a Belief in Your Approach and Overcoming Fear:
Most traders will develop fear as they trade due to a history of losses. Like any fear, the way to
overcome it is to understand and face the fear. An advantage of having a trading platform that
provides for simulation is that you will be able to trade in simulation mode, as in our example
above, to build a plan with a positive expectancy and thereby develop greater condence in your
approach to trading. As you trade in simulation mode, develop a set of notes that will act as
the beginning of your trading plan. Trade in simulation mode until you have mastered the use
of the trading platform you have chosen. As you trade in simulation mode, practice developing
the discipline needed to execute your trading plan. Through repetition, you will begin to develop
more condence as your trading plan is executed and you nd success with your plan.
Please let us know if you need any help in developing your trading approach. Send an e-mail to
support@navitrader.com with any questions and visit our website at www.navitrader.com
If you have any questions on the material in this publication, please send an e-mail to support@
navitrader.com www.navitrader.com 800-987-6269 Steve Wheeler
ALL CHARTS SHOWN ARE FOR EDUCATIONAL PURPOSES ONLY AND NOT A RECOMMENDATION TO BUY OR SELL ANY FUTURES
CONTRACT.
RISK WARNINGS: Trading futures and foreign exchange on margin carries a high level of risk, and may not be suitable for all
investors. Before deciding to trade, you should carefully consider your monetary objectives, level of experience, and risk tolerance.
The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate
with capital that you cannot aord to lose. You should be aware of all the risks associated with trading and seek advice from an
independent advisor if you have any doubts. Trading involves high risk and you can lose a lot of money. Trading stocks, options,
ETFs, futures and foreign exchange (FOREX) carries a high level of risk, and may not be suitable for all investors. *HYPOTHETICAL
PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION
IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT,
THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS
SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. Past returns are not indicative of future results. NaviTrader,
Inc. and NaviTrader.com provide programs and services that are for educational purposes and not intended to be a recommendation
to buy or sell any futures, foreign exchange, stocks, ETFs and/or options market trades. Navitrader, Inc., navitrader.com assumes
no responsibility for errors, inaccuracies or omissions in any of these materials. Past performance does not guarantee or imply any
future success.
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The EUR/USD has been in a raging Bull trend from the January 2017 low. While it has been
sideways to down o the February high, is the February high a signicant high that should last
several months or should the February high be exceeded before a strong Bear trend begins? If
the Bull trend should continue, how high should it go before a multi-month high is complete?
In this article, we will answer these questions and my reasoning and analysis behind the
answers. We are going to look at pattern and momentum/oscillator position to determine the
trend direction and Fibonacci ratio resistance to determine a reversal price range. While the
bottom oscillator used in these charts is a propriety oscillator to the Dynamic Trader software,
any oscillator can be used in which the bearish and bullish reversals of the oscillator (or highs
and lows of the oscillator) correlate relatively well with the swing highs and lows of the markets.
The top oscillator is a Slow Stochastic. This article was written mid-March 2018.
Basic Elliott Wave and the 61.8% Retracement Resistance Level
Chart 1 is a EUR/USD weekly chart that shows the strong Bull Trend o the January 2017
low. Regardless if you are an Elliott Wave lover or hater, it looks like a ve-wave rally o the
2017 low is unfolding, if not already complete. Once a Wave 5 high is complete, a multi-month
The EUR/USD: The Upside Should be
Limited if a Multi-Month High is Not
Already Complete
By Jaime Johnson
NoBSFXTrading.com
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corrective decline should begin. The chart shows the typical minimum time and price targets
for a corrective low if the February high is a Wave 5 high. Ideally, a corrective decline o the
February high should reach at least the 50% retracement of the January 2017 – February 2018
rally around 1.1448. Ideally, the decline should not be complete prior to mid-July 2018, the
38.2% time retracement of the January 2017 – February 2018 rally.
The February potential Wave 5 high is slightly below strong resistance, the 61.8% retracement
of the May 2014 – January 2017 decline. However, with the weekly oscillator Bull (with the DT
oscillator still in the oversold zone), the net trend should be sideways to up for a few, if not
several weeks warning the February high may not be the Wave 5 high. On the other hand, a
weekly oscillator Bear Reversal (when the fast line of the oscillator crosses below the slow line)
above the oversold zone without the February high exceeded would further signal a Wave 5 high
should be complete.
EUR/USD Daily Data
Chart 2 is daily EUR/USD data from the November 7, 2017 low. The November 7, 2017 low is
the probable Wave 4 of the ve-wave rally o the January 2017 low and the February high is
the potential Wave 5 high. The November 7 to February 16 rally looks like it unfolded in another
solid ve-wave pattern as a Wave 5 typically should. The February high is a labeled as the Wave
5 of 5 high.
Again, the February high is in the ideal position to be the completion of a ve-wave rally o the
January 2017 low, but what would support or void this assumption? Obviously, a rally above
the February high would void the completion of the ve-wave rally. A decline below the March
1 swing low would further signal the Wave 5 high should be complete and very likely would be
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followed by a decline lasting a few, if not several months. Since this article was written in mid-
March, one of these price levels have probably already been exceeded or taken out.
An Alternate Wave Count
Chart 3 is another daily chart that shows an alternate wave count if the February high is not the
Wave 5 high. This is the probable wave count if the February high is exceeded. The January high
should be a Wave 3 of 5 and the March 1 low should be an irregular Wave 4 of 5 low.
If the wave count in Chart 3 is correct, the typical Wave 5 of 5 price target is 1.2642-1.2775,
the 127% - 162% external retracement resistance zone of the January 25 – March 1 decline.
This resistance zone is slightly above the 61.8% retracement shown in the weekly chart. If the
February high is not a multi-month high, very likely the immediate upside should be limited
to this resistance zone before a multi-month high is complete. At the very least, it is the next
resistance zone to pay attention to for a potential reversal.
Enough Elliott Wave Mumbo Jumbo! What is the EUR/USD Outlook?
With a probable overload of information just given, I will simply state that the probable direction
of the EUR/USD over the next several months is down, Bear! If the February high is not already
a high lasting a few, if not several months, very likely the immediate upside should be limited
to around 1.2775 before a multi-month high is complete. If the February high is a multi-month
high, a decline ideally to at least around 1.1448 should follow and ideally it should not be
complete prior to mid-July and is bound to last much longer!
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So, What Side of the Market Should You Be On?
While there are many global ramications caused by the long-term trend directions of the EUR/
USD and its inverse Dollar, you may not have much interest in this if you are a shorter term
trader of the EUR/USD or Dollar. So, please keep in mind, during a multi- month Bear trend,
there should be multi-day to multi-week corrective rallies to the Bear trend which can also be
taken advantage of in the lower degree time frames. So regardless the direction or time frame
you choose to trade, always use objective trade entry strategies, always use stop-losses, trade
more than one unit and have exit strategies for each unit, use stop-loss adjustment strategies,
use a money management plan and most importantly, be disciplined enough to stick to these
trade strategies.
For education on practical trade strategies for every timeframe to take advantage of the potential
multi-month decline in the EUR/USD and for corrective rallies during this decline, check out my
NoBSFX Trading course (info below).
More Information as the Market Unfolds
With the EUR/USD, as well as any other market, more information is revealed on whether the
longer term outlook is correct or not as the market unfolds. For continued analysis of the EUR/
USD as well as many more top Forex markets as they unfold and for further education on the
analysis used in this article, check out the NoBSFX Daily Reports, NoBSFX Net Trend Video
Reports and the NoBSFX Trade Alerts (info below).
Jaime Johnson is a full-time trader and the author of the NoBSFX Trading Workshop, the
NoBSFX Daily Reports, the NoBSFX Net Trend Video Reports and the new NoBSFX Trade Alerts
and Monthly Minor Currency Video Reports. For complete information and to download his free
e-book, go to www.nobsfx.com or send him an email at jaime@nobsfxtrading.com.
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As bitcoin prices uctuate wildly, creating lots of attention in the mainstream media, it’s
important for savvy traders to assess the opportunities and challenges that this volatile market
provides. Empirical analysis of the trading history of bitcoin evaluated per the U.S. dollar (BTC-
USD) reveals that about a dozen strongly-dened cycles can be detected in the trading action for
the cryptocurrency. These cycles range from 8.7 days to 228 days.
The trading action in bitcoin moves fast, and it’s not unusual to see daily price swings that are
equivalent to yearly changes in major market indices like the S&P 500. While the “year for a
day” analogy may stretch the credulity of some seasoned traders who are used to multiple
time frame analysis, it’s nevertheless appropriate in the fast-paced world of cryptocurrency
speculation.
It’s interesting to note that the cycles of shorter duration can be especially signicant in eective
analysis of this extremely volatile market. They can, in fact, provide some useful guidelines for
short-term speculators seeking ways of capitalizing on the radical price swings which are so
often expressed in the trading action for bitcoin.
At the other extreme, however, eorts to understand the longer-term cycle dynamics of bitcoin
trading are much more tenuous. With less than ten years of trading history as a frame of
reference, conclusions drawn from observations of longer-duration cycles in bitcoin price action
are necessarily much more tentative, and thus oer little certainty as forecasting tools. While
they may meet the minimum requirements for statistical signicance, they ultimately seem to
bring a negligible advantage to intermediate-term position players in the cryptocurrency.
As trading in bitcoin continues to progress during the coming years, however, we will be able to
add more empirical data to our research, and will thus be able to rene our understanding of
the underlying cyclic nature of the volatility in this cryptocurrency. In the meantime, however,
what should we be taking into consideration as we look for useful models and guidelines in
cryptocurrency trading?
The answer to that question may lie in the unique connections between cycle analysis and the
remarkable perspectives provided by the astro-trading advantage.
We should note that when we apply our knowledge of planetary cycles to the markets, we
are employing a paradigm which is widely accepted and adhered to in diverse cultures and
geographic regions around the world. That’s true in spite of its more skeptical reception by some
tradition-bound Western traders and market pundits, who either denigrate nancial astrology as
Exploring A Planetary
Connection In Bitcoin Trading
by Tim Bost
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an intrinsically fraudulent analytical model, or who instead look for ways to co-opt astrological
methodologies in the markets without fully exploring the empirical correlations that make
modern nancial astrology so valuable.
Even so, we have found that the best approach to eective astro-trading is to integrate
astrological analysis with technical analysis, with an understanding of key market fundamentals,
and with time-tested tools for identifying market cycles and trend waves. We don’t use planetary
indicators in a vacuum, and we certainly don’t try to trade solely on the basis of traditional
astrological symbolism.
Within that framework, it’s typically best to begin our analysis with cycle tools and technical
indicators, and then see what kind of astrological factors provide conrmation for our
conclusions.
[Figure 1: The 11.21-Day Trading Cycle in Bitcoin]
In the case of bitcoin, one of the most signicant trading cycles seems to be 11.21 days. While
this cycle in and of itself may not provide strong enough trading signals to be used in isolation as
a sole timing indicator, its correlations with price swings in the cryptocurrency are nevertheless
apparent enough to warrant our attention.
A reference to the classic “day for a year” timing analogy brings to mind the work of Carlos
Garcia-Mata and Felix Shaner, who published “Solar and Economic Relationships: A Preliminary
Report” in the November 1934 issue of the Quarterly Journal of Economics. They documented an
11.20-year rhythmic cycle in manufacturing productivity in the United States from 1875 through
1930, and postulated that it had a correlation with sunspot cycles. According to later research
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by Edward R. Dewey of the Foundation for the Study of Cycles, that 11.20-year business cycle
continued to follow ideal behavior through 1953.
But the 11.21-day cycle in bitcoin prices is more than just a microcosmic reection of sunspot
cycles. It is also connected to the orbital period of Venus.
Venus takes 224.65 days to complete one passage around the Sun. When we look at the
twentieth harmonic of that orbital period, 11.2325 days, we get a close approximation of the
11.21-day cycle evident in bitcoin trading. In fact, the dierence between these two intervals is
only equivalent to about 32 minutes of clock time – not a bad degree of accuracy for an orbital
process that takes nearly seven and a half months to complete!
This correlation suggests that it can be helpful for us to take Venus cycles and relationships into
consideration when we look at trading opportunities in bitcoin, but with the full acknowledgment
that Venus is not the sole determining factor in bitcoin price uctuations.
[Figure 2: Trading Bitcoin with Venus Planetary Price Lines]
We can gain additional useful insights when we project twentieth-harmonic planetary price lines
for the progressive positions of geocentric Venus onto a daily chart for the BTC-USD trading
action. While these planetary price lines obviously do not account for every price uctuation in
the cryptocurrency, they do conform with a sucient number of trading channels and signicant
points of support or resistance to give us a useful sense of the underlying trends and potential
turning points in this market.
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[Figure 3: Mars and Venus at the December 2017 Bitcoin Trading Top]
In December 2017 bitcoin hit its highest price so far versus the U.S. dollar. That peak in
speculative enthusiasm coincided with a Venus/Mars semi-square, an apparent 45° angle
between the two planets as seen from an earth-centered perspective.
While such Venus/Mars alignments are certainly not particularly rare planetary phenomena, this
specic event gives us a clue about a potentially useful dynamic that we may want to explore in
our eorts to illuminate bitcoin trading cycles – the angular and harmonic relationships of Venus
and Mars.
Even though the remarkable 2017 trading high in bitcoin coincided with an eighth-harmonic
Venus/Mars relationship, we can add twentieth-harmonic planetary price lines for geocentric
Mars to our trading chart to be consistent with the Venus cycle correspondence to the 11.21-day
trading cycle we have already observed.
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[Figure 4: Trading Bitcoin with Venus and Mars Planetary Price Lines]
While the addition of the Mars price lines complicates our trading chart somewhat, it also
provides us with additional insights. In many cases in which bitcoin fails to conform precisely to
Venus price action, it adheres to Mars instead.
Although the interactions of Venus and Mars are hardly sucient to give us reliable trading
signals for bitcoin by themselves, they do point the way toward other planetary alignments
which may be protably explored in our quest for mastery of bitcoin trading cycles. Based
on preliminary studies, it seems quite likely that the harmonics of Saturn and some of the
transneptunian factors will ultimately prove to be signicant. But in every case, we would be
wise to include Venus dynamics in our explorations.
In the ancient astrological tradition, Venus was associated with value, renement, quality, and
the beauty of loving and harmonious cooperation. Those are all the sort of attributes that the
most idealistic bitcoin advocates envision as the ultimate manifestation of this ground-breaking
cryptocurrency.
Whether or not bitcoin’s social and economic role lives up to these lofty ideals remains to be
seen. But for active and adventurous traders who are concerned about spotting particularly
protable bitcoin opportunities, it can be especially rewarding to pay attention to the role of
Venus in bitcoin trading cycles.
Tim Bost is editor and publisher of Financial Cycles Weekly newsletter at https://nancialcyclesweekly.
com and is the author of Mercury, Money and The Markets and Gann Secrets Revealed. He is also
the editor of the new anthology Bitcoin Astrology, and shares his insights on bitcoin at http://
astrocryptoconnection.com.
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Gold Standard
In trading, and in many forms of analytic endeavor, one of the most important principles is that
of synergy. It is not enough that one discipline or cycle or indicator triggers a corresponding
signal. Standing on its own, that lone indicator can be quickly overshadowed by other conicting
ones.
Instead, it is when a diverse combination of disciplines align - all reaching the same conclusion
but coming from dierent perspectives - that a more credible & reliable signal is triggered.
[NOTE: It is important to make sure that these multiple disciplines have a reasonable level
of non-correlation. Otherwise, it is just three or four similar indicators reaching the same
conclusion - as they would be expected to do.]
Aristotle observed: ‘The whole is greater than the sum of its parts’.
That simple statement sums up the principle of synergy - describing the combined eect of
multiple collaborative factors or components and their holistic impact. In very simplistic terms,
2 + 2 + 2 is greater than 6 - when each of those ‘2s’ is working in concert with the others. In
manufacturing, the assembly line and corresponding division of labor illustrates this principle
masterfully.
When a trader isolates one cycle or one technical indicator and attempts to utilize it in a vacuum,
it is far less reliable and/or eective than when used in tandem with multiple corroborating
cycles or indicators.
The collaborative eect of those reinforcing factors strengthens the reliability of the overall
structure (or analysis). That is the same principle observed by King Solomon when he stated ‘A
cord of three strands is not easily broken’.
Foreshadowing Fractals
There is another form of synergy that might not always be recognized as such. That is the
‘synergy’ of reinforcing events on a smaller or larger scale and/or on a preceding basis. In
the latter case, I am referring to archetypes* that serve as a preceding example of what could
occur during an ensuing cycle or wave setup (*a ‘type’ or forerunner of something that is still to
come).
In the former case, I am referring to fractals - where the whole mimics the pattern of its parts,
often on multiple levels. Conversely, the smallest observable increment (parts) of that item or
cycle mimics and/or presages the pattern of the developing composition (whole). Before moving
forward, let me dene this:
The (Other) Golden Rule
by Eric S. Hadik
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A fractal is a gure, shape, wave or cycle in which each lesser part has the same statistical
character as the whole. Conversely, the whole is a larger representation or reection of each
lesser part - as in a stalk & head of broccoli. Elliott Wave Theory is built on this principle in
which similar patterns recur at progressively smaller and/or larger scales. So, too, is much of
cycle theory.
That example (a head of broccoli) provides a good illustration of this principle in which the
pattern of the overall head (single stem, breaking into multiple stems & topped with orets) is
mimicked by each of the main stems (single stem, breaking into multiple stems & topped with
orets) & ultimately repeated in each small bite-sized piece (single stem, breaking into multiple
stems & topped with orets).
If you gave someone a small piece of broccoli and instructed them to draw an entire head or
plant of broccoli - using only that piece as the model, they could easily do it. (In contrast, if you
gave someone a bite-sized piece of orange or banana and instructed them to use that piece as a
model for drawing the entire plant, it would be inaccurate.)
Wave Analysis in Markets
That fractal principle is at the core of Elliott Wave Theory. In that approach, the larger macro-
economic ‘waves’ (up and down movement) break down into interim waves, which break down
into intermediate waves that break down into minor waves that even break down into minute &
minuette waves - all of which follow the same general pattern.
One of the market applications of this principle involves the outlook - and the conrming action
- of Gold in 2017 (and for 2018). After bottoming in late-2015, Gold traced out a larger-degree
advance followed by a proportional decline in 2016. This was perceived to be a ‘1 - 2’ or ‘A - B’
wave structure that would subsequently yield a larger and more complex ‘3’ or ‘C’ wave advance
in 2018.
[WARNING: I am NOT an Elliott Wave purist. I am more interested in the characteristics of
specic waves and how that dovetails with other technical analysis on which I rely. In that
context, 1 & A waves have similar characteristics, as do 2 & B waves. 3 & C waves are similarly
related and usually represent the more dynamic and more complex wave that often accounts for
the majority of a move in a given trend. That is why I will often refer to both possibilities, since
they are often interchangeable… up to a point.]
Golden Touch
The outlook for 2017, published 13 months ago in the Jan. 2017 INSIIDE Track, was to see a
similar pattern on one lesser degree (a strong rally followed by a sizeable decline) - perpetuating
the bottoming phase in Gold while setting the stage for 2018. In a fractal-like manner, that
would represent the lesser degree ‘1 - 2’ waves of a developing 3 or C wave rally.
More specically, Gold was projected to see a ~4-month advance to begin 2017 (similar to,
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but on one lesser degree than, the 6+-month
advance of 1Q/2Q 2016). That was projected
to lead to a ~2-month drop into mid-2017 -
when another higher low was projected (see
Diagram 1, reprinted from Jan. ‘17 INSIIDE
Track).
Gold fullled that outlook and was projected
to undergo a similar sequence - this time on
another lesser degree - in 3Q & 4Q 2017. It
adhered to that wave structure, setting a
subsequent, higher low in early-Dec. 2017 -
when both Gold & the XAU triggered convincing
4 - 6 week buy signals and projected surges
into late-Jan. 2018. That has just reached
fruition and set the stage for 1 - 2 months of
consolidation.
In each case during 2016 - 2017, the
preceding rally/correction combination
provided important clues to the ensuing rally/
correction combination while corroborating the
outlook for 2018 (see Diagram 2).
(Inverted) Golden Arches
At the same time, these waves lined up with
key cycles - creating the decisive lows seen in
Dec. 2015, Dec. 2016 & Dec. 2017. Combined
with the preceding low in late-2014, they
project a subsequent high in Nov./Dec. 2018.
That is illustrated in Diagrams 3 & 4.
Not only did the Dec. 2017 low perfectly fulll
this 12-month/360-degree low-low-low-low
Cycle Progression, it also fullled a fractal-like
sequence from an over-arching 24-month low-
low-low-low Cycle Progression (see Diagram
5). And that brings Gold full circle - back to
the topic of synergy.
Multiple cycles, wave projections, extreme
downside targets (in Dec. 2017) & decisive
technical indicators came together and
Diagram 1
‘1--2, 1--2’: Potential Gold Wave Structure
July ‘16
Dec ‘16
Mar. ‘17
Mid- ‘17
01/05/17
insiidetracktrading.com
Diagram 2
2018 Potential Gold Wave Structure
01/31/18
July ‘16
Dec ‘16
Apr. ‘17
Mid- ‘17
insiidetracktrading.com
Diagram 3
.
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triggered a convincing buy signal in early-Dec.
2017. The 1 - 2 month aspect of that buy
signal was fullled when Gold surged right to
its previous high in late-Jan. 2018.
However, there are additional (larger-degree)
aspects to that buy signal that remain in force
and have not yet been fullled. They are
reinforcing the perceived wave structure in
Gold.
Those are just a few of the reasons why a
sharp advance was expected in early-Dec.
- late-Jan. - providing more vital clues as to
what to expect in March - Dec. 2018.
For more information:
INSIIDE Track Trading // www.insiidetrack.
com // www.40YearCycle.com //
www.17YearCycle.com
630-637-0967 -- vc 630-585-5701 -- fx
Publisher of:
Weekly Re-Lay advisory service (w/intra-
week Alerts)
INSIIDE Track monthly newsletter, Special
Reports & Intra-month Updates
Eric Hadik’s Tech Tip Reference Library
Eric Hadik’s V.I.P. Trading Guide
40-Year Cycle Reports & Publications
Diagram 4
12-Month Cycle in Gold
Dec. ‘14
Dec. ‘15
Dec. ‘18?
Dec ‘16
Dec. ‘17
insiidetracktrading.com
Hadik’s Cycle
Progression
Diagram 5
24-Month Cycle in Gold
Dec. ‘11
Dec. ‘13
Dec. ‘19?
Dec ‘15
Dec. ‘17
insiidetracktrading.com
Hadik’s Cycle
Progression
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Join countless others who since 1996 have made trading their business using the Hawkeye Trading
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Volume shows where the professionals are buying and selling: Professional traders
acknowledge Volume as a leading indicator. We use Volume to conrm the strength
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Aliate Disclosure - This ad contains aliate links which are a means for this magazine to earn money.
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Hawkeye Trading Software Review
By Larry Jacobs
Hawkeye trading software is based on volume, price action and trading activity. The software
uses algorithms that are revolutionary to most traders. Unlike other indictors like moving
averages, MACD, stochastics and other popular technical indicators their software tools their
software tools are based on Volume, and Volume is widely recognized as a leading indicator.
Their tools are designed to work with the current day’s volatility. What is dierent is that these
tools are based on volume spread analysis, standard deviation of price and pattern recognition.
So they have a suite of indicators that are created to enable traders to benet from today’s
markets. These tools are available in TradeStation, NinjaTrader, MetaTrader 4 and TradingView.
In using the indictors I found that they were some of the best I have ever used. I used them
with the TradeStation platform. Here are the various tools that are available in the software. This
is a basic description of the tools, but you need to go to their website for a better description.
Volume Indicator – Gives you the ability to see professional buying and selling in the market
Trend+ Stops – You get a true sense of the market trend rather than opinions from the
nancial media.
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Heatmap – This takes the three variable inputs from the Hawkeye Trend and shows you visually
when all three trends have locked into place. This gives you a clear view of the overall market
sentiment and qualies risk.
Roadkill - This looks at multiple time frames simultaneously, and provides entry signals
when the trend and volume from multiple time frames are aligned for the best low risk, high
probability entries.
Fatman - Makes hundreds of calculations every second to present a visual picture of strength
or weakness of each currency. This indicator shows you what each currency is doing against the
rest of the major currencies and shows low risk opportunities.
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Fatboy - This is a powerful indicator that instantly reveals which markets are overbought or
oversold, and displays timely market correlation.
‘
Kiss - Designed specically for trading stock indices and equities, the Kiss reveals who is
controlling the price - either buyers or sellers.
Levels ATR - This is a powerful series of levels based on ATR (average true range). This tool
shows predened denitive exit locations and allows for predened stop loss management. Thus
it helps traders identify clear exit strategies.
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Grabba - This is a simple mechanical exit management system that you can use to manage
exits based on your own risk and reward prole.
Adds - This algorithm tells you visually when and where to add additional contracts.
Gear Box - This tells you which speed to trade the market with every day. It works for futures,
stock indices, stocks, commodites and Forex. It uses a complex algorithm to caclulate the
optimal tick speed of the market for the day ahead.
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Gear Changer - Once you have the optimal tick speeds from GearBox, GearChanger lets you
know which one to use anytime during the trading day
Hawkeye Zones - If you have been trading any time you know how frustrating it can be to enter
a trade only to nd out you bought into the high of the day or sold into the low. This adds supply
and demand zones along with extremely accurate predictive support and resistance zones to
your charts.
For more information about the Hawkeye Indicators go to:
http://www.hawkeyetraders.com
You can also get a free ebook - Click Here
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By late 2007, I discovered a cycle that was in the market on a day by day basis, faded after a
while, only to-reappear again, like clockwork it predicted shorter term and longer term swing
highs and lows, within 1 trading day. Over the years, I noticed that this same cycle and its
multiples would again appear with amazing day to day precision, sometimes lasting for weeks
and even months, only to disappear again for some time. After some time, I realized that
the Market cycle I found was intimately connected to the Human Physiology, Vedic & Biblical
Numerology and the Laws of Nature. I decided then to call it the Master Cycle, which is a unique
cycle, that when “active” predicts exact future Highs and Lows, within 1 trading day.
A Master Cycle (MC) is an actual historic cycle with a proprietary numerology, that repeats exact
swing Highs and Lows and day by day and is o at most 1 day. The Master Cycle has to have at
least 3-5 recent “hits”, ie it has to have predicted 3-5 recent Highs and Lows, to become “active
and dominant”.
The MC is a Time Series Cycle, ie it predicts future swing Highs and Lows. It doesn’t always
project the magnitude of the Price Highs and Lows, ie the cycle in the past would suggest a
10% rally or decline, but it doesn’t always have the same % rally or decline in the present time.
The Master Cycle can and does fade or invert at anytime, so take it fwiw, as it is certainly
not the Holy Grail, it will not catch every Major swing High or Low and it will have misses that
last for weeks or longer, but don’t discard it or give up on it like I did for years, because when it
is active it tends to be very precise for weeks and months.
Of course we should not expect an exact repetition, but it should give you a general idea, as the
Master Series of Cycles can be amazingly precise. For this reason only, it has worth its price in
gold.
The Master Cycle is calculated in Calendar Days or Trading Days as the MC shifts from one to the
other. The Master Cycle expands and contracts like the Universe, so at times some adjusting,
curve tting and ne tuning is needed to get the Master Cycle aligned with current market
conditions. It will then reward us by predicting the next swing high and Low with amazing
precision.
10 Master Cycle forecasts between April 2008 and January 2010
The Master Cycle, aka the “Series of Cycles” predictions have been well documented on
my public blog, http://timeandcycles.blogspot.com/ as well in my T&C daily and weekly email for
members and private blog at http://timeandcyclesdailyemail.blogspot.com
Below are 10 Master Cycle forecasts from April 2008 to January 2010:
1. 4/1/08: The MC called for “the 7/16/07H and sharp decline to 8/16/07L”
mentioned in this link: http://timeandcycles.blogspot.com/2008/04/series-of-cycles.html
The Master Cycle
By Raj Ian G. Thijm
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2. 4/23/08: “The Series of Cycles called for 3/28/08 Lows (Friday), 4/7 High, 4/10
High, 4/15-16 Lows, 4/18 High and is now looking for the next swing Low on
4/23-24 Lows. The Markets actually had a 3/31 (#1 on chart, click on chart to
enlarge) Low at Open, 4/7 High (#2), 4/10 High (#3), 4/15 Lows (#4) and from
the 4/18 actual High (#5) is down 30 SP’s sofar.”
http://timeandcycles.blogspot.com/2008/04/swing-cycles-update-and-record.html
3. 5/14/08: The MC predicted the 5/19/08 Major High and sharp decline after:
“High due early next week… I have a Rare conuence of 5 proprietary Cycles, in the
Cycles section of my T&C daily email service, all making the SAME prediction for a Big move in
the coming weeks and months, which to me is very exciting information, as they give additional
conrmation, which gives me a High condence and some potentially very protable trades in
the coming weeks and months.”
http://timeandcycles.blogspot.com/2008/05/high-due-early-next-week.html
4. 9/2/08, 9/8/08: The MC called the 9/2/08 Major High and sharp decline after:
“9/2/08: The Series recently predicted a 7/28/08L, 7/31H, 8/8L, 8/15H, 8/19L,
8/22H, 8/26L +/-1…We actually had a 7/28L, 7/31H, 8/8L, 8/15H, 8/20L, 8/22H, 8/26L
The Series of Cycles are now looking for a 9/2 Major High”
“We should have a 9/2 Major High and 3 Hard down Days into a 9/4 Lows @
Close”That is exactly what we got (click on chart to enlarge), the actual Intraday Low
arrived 2 trading hours later on 9/5 @ 11.25 am intraday Lows, close enough”
http://timeandcycles.blogspot.com/2008/09/series-of-cycles-9208-major-high.html
http://timeandcycles.blogspot.com/2008/09/review-series-of-cycles.html
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5. 3/4/09: The MC predicts 2 Major Lows for 2009, March and Mid June 09:
“There are 2 Major lows that my Master Cycle, a Vedic based Cycle suggests to
watch for 2009, one is due in March 09, the next one is due Mid June 09.”
The most likely Scenario is that we complete wave 3 from 2/9 Highs into 3/5+/-1
Major Lows and June 09 will be the nal wave 5 Low of the year.
Today is 39 TD from the last 1/6 swing High. I have found many times in the last year
that large moves end at 39 TD from a previous Major High or Low”
http://timeandcycles.blogspot.com/2009/03/major-lows-for-2009.html
6. 6/17/09: The MC was looking for a Straight Up rally from the March 09 Lows
into early May 09 Highs, which we actually got. It was then looking for a Mid June
Lows” http://timeandcycles.blogspot.com/2009/06/msster-cycle-prediction.html
7. 8/26/09: The MC performance: “The Master Cycle (MC) performance since the
3/6/09 lows is shown as the green swing lines on the SPX chart. All the swing
High and Low dates are in the archives of the T&C Daily Email for subs and
some of them are also on this blog”
http://timeandcycles.blogspot.com/2009/08/master-cycle-mc-performance.html
8. 9/24/09: Detailed Cycles this past week were:
Forecast: 9/18H, 9/21L, 9/23H, 9/24L Actual: 9/17H, 9/21L, 9/23H, 9/24L
http://timeandcycles.blogspot.com/2009/09/cycles-update.html
9. 10/22/09: The MC predicts a rally through end of the year: “I have mentioned a
couple of months ago, that the Master cycle suggests, we will see a continued
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rally into end of the year 2009, with some normal pullbacks along the way. That
seems like an impossible feat, but so far it has been doing just that, with the recent
October 21st High of the year”
http://timeandcycles.blogspot.com/2009/10/from-now-through-end-of-october-2009.html
10. 1/10/10: The MC recently predicted a 1/8-11/10 Major High.
http://timeandcycles.blogspot.com/2010/01/january-8-11-2010-high.html
The MC predictions in 2008:
1. 12/26/07 High
2. 1/9/08L
3. 2/21/08 High
4. 4/14/08 Major Low
5. 6/05/08 High
6. 6/23/08 Low
7. 9/2/08 Major High
8. 9/23/08L
9. 11/04/08 Major High
10. 12/17/08L
The MC accurately predicted 5 Major Highs and Lows in 2008, even though 2008 was a
dicult year to predict due to the historic Panic. The MC was o here and there
(red = right, blue = wrong) in 2008, but it managed to make 290 SP’s between June 08
and November 08, when I rst started to closely track the MC. It predicted the
12/26/07H, 4/14/08L, 6/5/08H, 9/2/08 Major High, and the 11/4/08 High.
The MC predictions in 2009:
1. 3/6/09 Major Low
2. 5/8/09 High
3. Mid June Low
4. Rally into end of Year 2009 and into 1/8-11/2010 Major High
The MC was followed very closely in 2009 (red=right, blue =wrong) , as it predicted a
3/6/09 Major Low of the year (LOY) and a strong rally into 5/8/09 High, with a
secondary Low around Mid June 2009 Low. The actual Low was a few weeks later on
7/8/09. The MC then predicted a rally into end of the Year Highs, which is what
happened (see chart). The MC will not always be that accurate as 2009 was.
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It is good to remember a couple of points:
1. The MC can be correct and exact sometimes predicting exact swing Highs and
lows for many days, weeks and months at a time. In this time you might tend to
“fall in Love” with this cycle and be impressed with its accuracy, but Caveat
Emptor.
2. At other times, the MC can and will be at out wrong. For some unknown
reason, the MC fades, inverts or becomes dormant. This could last for days,
weeks and even months. It is best to use it only when it is “active”. I dene a
cycle to be active when it gets 3-5 “Hits”, ie when it gets 3-5 Highs and Lows correct.
When it is inactive, you simply don’t use it. I use my other Time & Cycle work to
tell me what is happening. It is best to be patient and wait until it becomes active
again and then trade on it as it tends to be very precise, as can be seen in the many
examples above.
3. The MC does not always follow the predicted Price magnitude, ie the actual
Price rally/decline could be a whole lot bigger/smaller than the forecasted Price
rally/decline as shown on the forecasted chart.
4. The Master Cycle was a gift from God, so for the pure Joy and exhilaration one
gets from giving, I felt the need to share it with others. Also the MC gets the
recognition it deserves.
The Master Cycle (MC) became active and dominant in late 2017 and into March 2018.
The MC became active and dominant with at least 3-5 direct recent “hits”, ie it predicted at least
3-5 previous Highs and Lows.
Currently the MC has 12 hits (green Lines):
1. 11/15/17L-1,
2. 12/15/17L-1,
3. 12/29/17L,
4. 1/26/18HH
5. crash into 2/5/18L+1.
6. 2/6/18H+1.
7. 2/9 major Low.
8. 2/16H
9. 2/21L+1.
10. 2/27H
11. 3/2L.
12. 3/9-12H (3/13H)
13. 3/20L +3
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From the 3/13H it declined beyond the predicted MC 3/20L+/-1, so it had to be adjusted by a
few days. It now suggests:
13. 3/23L
14. 3/28 swing High
15. Another 4/2 High
What’s next: The MC is looking for an 4/2 swing High, followed by an even sharper
decline into April major Lows.
Editor: Raj Ian G. Thijm, Bsc, MBA
President Raj Time and Cycles, Inc.
Join our free forecasts and Updates at:
http://timeandcycles.blogspot.com/
https://twitter.com/TimeandCycles
Email: timeandcycles@gmail.com
Disclaimer
The contents of this article are for general information and educational
purposes only and should not be construed as an investment advice or
strategy. Past performance is no guarantee of future results. Trading in
Stocks, Options and Futures involve risks. Trade at your own risk.
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Timing Solution
Forecasts the Markets Instantly!
Timing Solution generates
projection lines based on fixed
cycles, astronomical cycles
and other types of models.
The software considers models
that deal with natural cycles,
cycles that are based on celes-
tial bodies’ movement.
The program analyzes tens of
thousands of different plan-
etary lines.
The Universal Language of
Events module allows you to
create more advanced models
analyzing everything that
occurs in time and researching
the effects of these phenom-
ena on the stock market.
You can ask the program to reveal the most powerful cycles for your nancial instrument.
Special algorithm that reveals the freshest/newly appeared/strongest cycles.
The program analyses all turning points, provides their statistical analysis and
displays the most probable support/resistance levels.
Charting Tools, Fibonacci levels, Pitchforks, Gann Angles and many other
traditional charting tools are available.
Risk FREE demo Trial
Start Today!
www.timingsolution.com/TS/Demo1a/
Stocks, Futures and options trading contains substantial risk and is not for every investor.
Only risk capital should be used for trading and only those with sucent risk capital
should consider trading. Aliate Disclosure - this ad contains links which are a means
for this magazine to earn money.
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You have probably went or listened to an online seminars on trading and technical analysis. It
was probably held by a software producer that sells packages for traders and investors. You
probably anticipated a lot but ended up being confused. The presenter probably said something
like this - trading is easy, just buy when the price is low and sell when the price is high. But
then probably somebody asked, how do you know if it’s a high or low? And with this the speaker
probably got to be somewhat uncomfortable with that question. He more than likely then
switched to the subject of the beauty of moving averages and other smart indicators of technical
analysis, Fibonacci levels, trendlines etc.
It is true that some of these techniques give you useful hints regarding the future price
movement, but still the confusion is there: how I nd out what the future movement will be?
Thousands of hints provided by technical analysis cannot substitute the answer to the real
question: when will the next high or low of the market occur?
Timing Solution software is designed and constructed to answer this question. It does not invent
any new technical analysis indicators that many software designers have done already. What it
does do is modeling of the stock market behavior based on state-of-the-art math methods.
The program has a set of ready solutions that allows you to generate projection lines based on
xed cycles, astronomical cycles and other types of models. All you have to do is download the
price history, click on the appropriate button and then in a couple of minutes get a projection
line that can be prolonged into the future.
The Science of Forecasting
with Timing Solution
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This is all you have to do. It’s easy for you but not that simple for the program. While running
your chosen solution, the program conducts several thousands of operations that include very
sophisticated math. Projection line is the main product of the software. It analyzes the past price
history and makes a future projection based on the current knowledge of the past.
The software considers models that deal with natural cycles, cycles that are based on celestial
bodies’ movement. It follows the tradition that ancient knowledge about the Sun and the Moon
cycles is the basis for all calendars. The program allows you to work with all astronomical cycles,
and I can say that they are the most reliable models based on the cycles.
As an example look at this annual seasonal cycle that was calculated for the Dow Jones industrial
Index. The calculation is done for the Dow Jones industrial historical data starting from the year
1885. The diagram shows classical Christmas rally and September drop:
Another example of the cycle is Moon phases. We can say the Dow is high around the New Moon
and low several days before the Full Moon as a rule:
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We can also calculate in a similar way any known astronomical cycle and compare it to our data.
See this long-term Jupiter cycle which is very close to the Jugler business cycle:
Here is another example. This is a pure astrological view of the stock market provided by four
Bradley barometer projection lines suggested for the Dow:
The above-mentioned models are only a small part of what is available in the Timing Solution
software. You can calculate projection lines based practically on Astro phenomena. Projection
lines can be based on midpoints or transiting houses, or planetary positions in houses, or
planetary dignities, or waxing/waning aspects between the planets, or planetary speed.
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All this Timing Solution software can do. You can perform more detail astrological analysis
using standard astrological techniques. The program displays stock market data together
with planetary positions in the Zodiac taking into consideration terms, faces, duads, the Moon
ingresses to Zodiacal degrees and many other phenomena.
The upcoming events module performs statistical analysis for hundreds of astrological
phenomena to show how they may aect the stock market in the future.
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The easy expert module analyzes thousands of events and displays summary eects of all
analyzed phenomena in the way shown below. Up and down arrows represent up and down
events:
This is the planetary lines module:
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Planetary lines optimizer module analyzes thousands of planetary lines and nds the best t to
your price chart. Look at this example:
The program analyzes tens of thousands of dierent planetary lines. In this example it has
found only a dozen of planetary lines that t the price chart. To do this huge computational job
manually is practically impossible.
The Universal Language of Events module allows you to create more advanced models analyzing
everything that occurs in time and researching the eects of these phenomena on the stock
market. Here are some examples.
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You may calculate the retrograde indicator that shows planets that are retrograde at any given
moment. The higher the diagram the more planets are retrograde at that moment:
Or you may create another “astro indicator” like this one that shows how the transiting Sun
conjuncts the midpoints between transiting planets. The higher the diagram, the more midpoints
are hit by the transiting Sun:
The software also does more complicated things and does it very fast. It takes just a couple
seconds to generate a projection line based on non-standard waveforms.
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Any phenomenon can be calculated and estimated in regards to its eect on the stock market.
And you can easily do it with Timing Solution. For example, somebody says that the conjunction
of the Sun and Saturn aects Dow Jones Index in some specic way. Instead of debates - should
you believe it or not, - you can check this information in a moment by running the Eciency Test
module for this aspect. Here it is:
The idea that the stock market is ruled by underlying cycles is the most exciting idea of nancial
analysis. Let us look at other than astronomy based cycles - math cycles. These are cycles with
some xed period - 55 days, or 34 bars (for intraday price history), like in this example:
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You can ask the program to reveal the most powerful cycles for your nancial instrument. They
will be shown as a periodogram; look at the peaks in this diagram:
Then you just drag these cycles to the screen where the price chart is, to obtain the projection
line based on these cycles:
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Timing Solution software allows you to conduct classical cyclical analysis of your set of data.
Also, there is Q-Spectrum module there that combines cyclical and walk forward analysis.
The “Achilles’ heel” of all cyclic models applied for the stock market is the fact that the cycles do
not live forever. Cycles appear and disappear. Not literally, of course. Fixed cycles exist always;
their manifestation in the stock market does not. Some cycles are seen there for a while, and
then they lose their energy and give a room for other cycles. This fact makes a huge dierence
between the cycles that physicists study and the cycles that work on the stock market. To handle
these cycles, we have developed a special algorithm (multiframe spectrum) that reveals the
freshest/newly appeared/strongest cycles. To visualize a full life history of the stock market
cycles, wavelet analysis module has been developed. Look at this colored diagram; red stripes
here represent the periods when some cycle is strong:
If you prefer to work with cycles manually, the Easy Cycle module is for you. You simply draw
these cycles dragging the mouse from one characteristic point of the price chart to another. You
can combine these cycles superposing cycles with dierent periods:
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Turning Point Analyzer module allows the forecast of support/resistance levels; it is based on the
statistical research results.
Here the program analyses all turning points, provides their statistical analysis and displays the
most probable support/resistance levels. The red stripes in the right corner correspond to the
most probable support levels. This module is very popular among Timing Solution users.
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Charting Tools. Fibonacci levels, Pitchforks, Gann Angles and many other traditional charting
tools are available. And there are some more charting tools.
Planetary Time Charting Tool. This is another kind of charting tools; we calculate the distance
between these vertical lines using angle separation between two planets (Sun-Mars 15 degrees
separation in this example):
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Fourier String Charting Tool. This module performs the Fourier analysis for your price chart and
calculates the projection line (that as usually can be prolonged into the future) while you are
moving the mouse cursor from one point of the chart to another:
Market and Volume Prole is also available.
We are aware that the projection lines produced by this program are not perfect. There is
nothing surprising in it as the task of predicting the stock market’s behavior is one of the most
complicated ones. The good news is that every year reveals some new knowledge that improves
our models and their forecasting ability. At least, it gives us a hope as we have created a system
that ideally follows our knowledge regarding the markets.
The Demo version is available.
http://www.timingsolution.com/TS/Demo1a/
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the combination of these 3 factors. 1) Its concise.
Typically, under 18 to 25 pages covering many
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3) He tells you how he does it. He will show you
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“Brave New World” was written by Adolus Huxley in 1932, following the global market crash and
unfolding depression, which prompted him to publish his concerns about a dystopian future.
He asserted that stability was the primal and ultimate need of civilization. His other major
concerns were over population, consciousness control, totalitarianism, drugs and promiscuity.
Do you think we are revisiting these concerns as a society now?
In his nal novel, Island, published in 1962, after exploring spirituality, Huxley imagines a world
where humans are motivated by the pursuit of higher consciousness and service to humanity.
Should our current Brave New World be feared or embraced?
Should it now be followed by an exclamation point or a question mark?
I think in its current form, it should be followed by a hash tag #.
For the record, it is important to state at the outset that this market assessment was composed
on Sunday, January 28th, immediately following the all time market closing high on Friday
January 26th. I then presented this to my colleagues in the TSAA on Friday, February 2nd. The
last time I published my assessment of the market in Traders World was in two dierent articles
published in late 2007 and Spring of 2008.
Also for the record, my perspective developed from a background in cultural anthropology,
political economy, consciousness studies, and over thirty years as a student of the markets.
In this article, I would like to oer some socio-economic perspective…and also take a look at two
“Brave New World”
Market analysis
by Jim Forte, CMT
January 28th, 2018
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dierent market scenarios going forward.
It is important to appreciate that many historical cyclical patterns appear to have become
subordinate to globally synchronized Central Bank Policies and irresponsible sovereign scal
behavior worldwide.
The excesses of the last economic cycle have somehow been magically absorbed and dismissed.
Most of this was done on the backs of those who tried to live within their means, while bankers
and those complicit in creating and participating in the debacle were bailed out or forgiven. But
(hey), who cares as long as we can somehow reignite the growth engine again. The next time
the system fails, bail-INS are more likely to be the order of the day rather than the previously
orchestrated bail-Outs.
While no one cannot predict with high probability what the market holds in store for us over the
next few years, I am going to present some cycle evidence, wave charts and point and gure
charts which can be used to argue for either a bearish or bullish scenario….However, I will then
share with you which scenario I believe is most likely and why.
Methodologies
Elliott Wave and Cycle Inuences
Fibonacci Year Counts
Wycko
Macro Political Socio-Economic Inuences
EWT measures the compliment of cycles and mass human psychology. The Wycko method
measures the workings of supply and demand in the stock market. Together they provide a
working apparatus for selecting and evaluating market data.
It has been generally observed over the decades that:
"Bull markets foster homogeneity, generosity, tolerance, openness, liberalness and
understanding".
"Bear markets foster intolerance, inconsiderateness, close mindedness, retrenchment,
conservatism, having concerns about scarcity and safety, and having a lack of generosity".
It seems fairly evident which breeding ground appears to have been the predominant mass
consciousness manifesting in the environment over the last number of years?
How one can explain this paradox of bear market psychology amidst a raging bull market, is
challenging at best. One possible way to do this is to argue that we are facing a very large bear
market ahead and the social environment from the 2016 lows is a preliminary taste of things to
come over the longer term.
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I do think it is likely populism; colloquial cultural retrenchments and anarchy are likely to further
develop around the world. The reasons are many, but chief among them are the unintended
vagaries of globalism, rapid technological change; and the rapid erosion of traditional social
norms, population displacement and with it, cultural clashes.
Interestingly, I would suspect, that even among the rather mature, sophisticated and erudite
readers of Traders World, we could descend rather rapidly into a spitting match over some of
these issues.
It is important to understand that a non-ecological growth paradigm is unsustainable, especially
at this point in history. Also, that excessive bling and super wealth is not the path to human
fulllment, i.e. unless you can put it to work uplifting the broader body-politic.
To put this all in a broader perspective, I would like to share with you where I think we are in the
bigger picture in the context of my methods. For those of you disenchanted with the application
of Elliott Wave, I would remind you that there is typically more than one interpretation of its
progression, although there is commonly a predominant view. I will share with you what I think
is the predominant view, but I will also share with you an alternate consideration of the market’s
current progression. I do not think that the bull move from the 1932 bottom is over yet.
Here is an idealized Elliott Wave pattern. It is an unfolding fractal which progresses in ve legs
or waves, with #1, #3 and #5 advancing and #2 and #4 correcting the previous leg. If #2 is
sharper and quicker, then #4 will likely be broader and take longer. If #2 is of the “atter” form,
then #4 will likely be of the “sharper” form. Once the ve leg progression in the direction of the
larger trend is complete, then a correction of larger magnitude is expected. This progression
is considered to operate from the smallest degrees, occurring intraday to ever larger degrees
occurring over years and decades. Without getting too “out there”, the very universe is believed
to “breath” in this manner.
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The next chart is borrowed from Robert Precther’s Elliott Wave International. If you are
interested in this method, EWI oers the most comprehensive body of work available. It oers
both advisory and educational services. This chart shows (using the best data available) the
progression of the U.S. stock market from 1779 (about the time of its inception) through 1989.
Notice that in the mid 1800’s, what might be considered a broader atter correction occurred
over two decades and the 1929-1932 correction took the form of a shorter sharper correction.
Most believe that “correction” to have ended at the price bottom of 1932 while others believe it
ended later in either 1942 or 1949 completing a more triangular pattern. Regardless of when
it actually ended, if (and that is a big if) we are in the nal throws of the progression from the
1930’s depression bottom, the magnitude of what we may be facing is exceedingly profound and
has larger implications for our nation and the world.
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In 1987 on the weekend before the crash, I calculated the crash low to the exact point. In 1998,
I developed a model that indicated the entire western nancial system would collapse in 2008.
The next two charts illustrate other bearish and bullish calls made over the last decade using
these methods. The bearish calls turned out to be quite accurate, especially the late 2007 super
bearish call. The analysis of this late 2007 call was published in Traders World. The next two
bearish calls made in late 2011 and late 2012 missed the boat completely. A bull market has
continued to run from the late 2008/early 2009 low into the present time period.
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My bearish expectation on how the market would unfold after the 2008 crash was completely
upended by globally coordinated central bank intervention and irresponsible sovereign decit
spending. I submit as evidence, four charts that I was working with. I was using a ten year
chart from the 1932-1942 period as an analog to the ten year market period from 2002 to
2012. Take notice please of the similarity of the structure from the two periods.
Now in the last two of these four charts, notice the similarity of the 1937-1938 corrective period
to the 2008-2009 corrective period. Notice that after two counter trend rallies to Fibonacci 62%
resistance, the market failed in 1939 moving down to the 1942 low. Then notice in the 2007-
2011 chart, that after the 2nd attempt to reach the 62% retracement area in late 2010, the
market broke up instead of down. The day that the analog broke down was the day the Ben
Bernanke announced QE2!!
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The next three charts I present are point and gure charts. The rst two were produced at least
a year ago. Point and gure charts are a key component of the Wycko method popularized in
the early part of the 20th century. Take notice that the maximum count projection taken from
the 2008 to 2009 trading range is 27000. The 2nd chart takes the count across the 2015 and
early 2016 lows, projects to a maximum of 26,500. The third P&F chart shows a more expanded
view of 2015-2016 trading range. The most recent three phases of this chart’s trading range
produce a maximum projection of 26,400. The average of the three of these is 26,633. The
actual high on Friday, January 26th was 26,616!
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The bearish scenario that I have
entertained since the election of Donald Trump is that the behavior of the market would resemble
what happened after the election of Herbert Hoover, i.e. the market would enjoy a very bullish
response to policies favorable to business and the asset rich, but it would lead to excesses that
would result in ultimate failure. In 1929, the ramications were catastrophic. Let us hope and
presume that history would not repeat itself in a similar way.
My colleague Garrett Jones, in observing long market cycles, has pointed out that the market
has down cycles about every 40 years and very bad down cycles about every 80 years. Well, it
has been 85 years since the 1932 bottom and the extra ve years may have been facilitated by
unprecedented nancial engineering in the modern era.
I do ascertain however, that the world's economies appear to be enjoying global synchronous
growth with all the necessary support and cooperation being faithfully provided by the world's
central banks. Financial engineering has gone further than most ever imagined it could. I would
add that the elimination of many regulations (which some would argue were hard won protections
of the public interest); plus new and continued decit spending would surely provide a boost to
the economy. Some of this is a matter of reallocating resources in intelligent ways and some not
so much.
I am not necessarily against trickle-down economics as I am against making its considerations
unconditional. If the country is going to bestow tax benets to those with means, then they
should be conditioned upon the production of new wealth that has a genuine “multiplier eect”.
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The great capitalist Warren Buett is generally supportive of this view. In their current form,
the Trump tax cuts and spending initiatives are likely to add signicantly to the decit, (but hey)
with so many sovereigns doing the same thing while facilitating “beggar thy neighbor” currency
policies, what’s a nation in competition with other nations to do? A nal point in this regard, is
that we have a need for national infrastructure repair and build out. This form of government
spending, perhaps more than any other, can produce longer term multiplier benets.
NOW, the bullish scenario I am entertaining, appears to be supported by national and global
demographics. I refer here to baby boomers staying engaged in the economy longer than in the
past. In addition, younger generations are creating and engaging in the new digital economy.
It is creating wealth and eciencies, in ways and in forms never before realized. This scenario
places its faith in the further unfolding of the digital revolution, as companies nd new ways
to be more productive with fewer human beings. Let’s face it, some things would be better
operated (like trains) if better complimented with computers and AI.
On the other hand, if over time, the means of production (to coin a phrase) does become ever
more privatized and concentrated, resulting in the need for fewer human beings to produce the
wealth, then some form of guaranteed basic income will be required to avoid massive social
unrest. That is unless we are headed for some kind of dystopian “Hunger Games” scenario. I
am referring here to the books and movies of the same name. It would also be constructive
to provide a basic foundation to those with creative talents who may be growing up in poorer
circumstances. The idea here is to provide a hand up to those that can contribute to future
betterment.
I have long believed that the year 2021 would bring a very important cyclical juncture in the
market, but whether it will be a harbinger of a major top or bottom, I cannot yet say with high
probability. I argued at a presentation in late 2007, when forecasting the 2008 nancial crash,
that broad based eco-systems were unlike what existed in the 1930’s, and could not withstand
another round of exploitation and development, in the quest for more old paradigm growth.
However, there was a caveat, i.e. unless this growth came from new technologies that could
foster new growth and eciencies without further taxing the natural environment. I believe a
case could now be made that the digital revolution (which is incorporating robotic automation
and AI) as well as environmentally friendly energy technologies, may be fullling this bill.
New technologies are also being employed in the service of understanding and defending the
environment.
There are however many industries, sovereigns, and political economic policies that remain
unsustainable in a maturing global environment. Health care, agribusiness and the food
economy are chief among them, as well as a variety of other human behaviors that still threaten
our eco-systems. These new technologies I speak of may indeed buy us more time, but more
dramatic changes will be needed to sustain the environment upon which we depend.
Even if the market is to unfold to higher highs in the years leading into 2021, I believe an
intervening and substantial correction is likely close at hand. It cannot be foretold from
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where the linchpin will come, and we can only speculate. The attached point and gure charts
produced long ago point to targets which are upon us.
One possible development that could lead to a signicant upside surprise, would be the collapse
of the Iranian regime which could lead to a somewhat similar reaction as occurred after the
fall of the Berlin Wall and the Soviet Union. If this were to occur, it may well come after an
intervening correction and then help to fuel a bull run into the 2021 time period.
Now please refer again to the last P&F chart I showed. The last two phases of this last
P&F trading range project (if realized) to somewhere between 30,200 and 32,700. It is my
contention that after a correction down into the approximate area of the 2016 trading range and
about a year in time, the market will nd its footing and make its nal run from the 1932 low
into a nal 89 year Fibonacci grand cycle high in the 2021 time period.
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The next three charts show the “Average Decade” pattern for the Dow, the Four Year Election
cycle for the Dow and a chart taken from a year old chart borrowed from the McClellan Market
Report. The MMR shows a projection for the Dow based on a chart of the crude oil market, set
forward ten years. The three charts taken together I believe are hard to ignore.
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Unless we are in a dicult to imagine growth paradigm leading well into the 21st century, the
next six charts show what I believe to be the most likely two scenarios leading into and ending
early in the next decade. The rst scenario is very bearish, while the second is bearish in
intermediate degree with the corrective period lasting about a year. This would be followed by
a nal bull run into the 2021 time period, ending a long supercycle from the 1932 depression
low.
The rst chart shows my wave count from the 2008/2009 low. If it is an analog to the Herbert
Hoover bull run, its termination is imminent. I believe it is pretty much in agreement with
the next two charts shown from Elliott Wave International. Again, their service is the most
comprehensive available for this methodology.
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The next chart shows my interpretation of the “wave structure” from the 1932 low to now. The
Fibonacci year counts are compelling. The next two charts show what I believe to be a sound
analog comparison. The rst of these two charts, shows the sharp decline in 2008 (similar in
basic structure to the 1987 decline) and then how the bull run from the Spring 2009 low has
unfolded into the current period high. I believe a sharp and substantial correction is imminent
and will likely nd support over the course of 2018 in the area of the 2016 trading range. The
nal chart shows what I believe to be a 13 year (1987-2000) analog of the current market
from the 2009 low. Our current analog position in the market is labeled on the chart as such
occurring in 1998. Back then, the market corrected into the 1998 low and then rallied for about
two years into the year 2000. I believe this pattern will be repeated completing a 13 years
bull run from the 2008/09 low and completing the much larger Fibonacci 89 year bull market
from the 1932 depression era low into the 2021 period. The intervening nancial engineering
of the modern era and globally coordinated decit spending of the world’s sovereign states
synchronistically bought the necessary added time to allow the digital revolution to take hold
and carry us into an 89 year Fibonacci nale.
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Lastly, in the context of the accompanying charts and technical discussion, please pay close
attention to national and global developments, including developments among the world’s
central banks as they occur, to help you realize which of the major scenarios is in play, (or not).
Be a visionary
A visionary transforms a moment in history… Through Art, Statesmanship, Invention,
Communication, Discovery, Industry and Daring.
A Visionary does not just watch the cresting wave of current events, but anticipates and rides it.
The world we face brings us to a dicult future or a quality of life revolution. Our choice lies in
the power of human imagination. We created out way into our present circumstances… The way
out too must be created. What we are looking for now is not just salvation, but awakening… A
quality of life revolution.
Marilyn Ferguson 1984
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needs to nd 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 t 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 Your Trading Method $3.99
Finding your trading method is the main problem you need to solve if you
want to become a successful trader. You may be asking yourself, can I nd
my own trading method that will reect my own personality toward trading?
For example, do you have the patience to sit in front of a computer and trade
all day? Do you prefer to swing trade from 3-5 days or do you like to hold
positions for weeks and even months? Every trader is dierent. You need to
nd your own trading method.
Finding out your trading method is extremely important to produce a protable benchmark
that can be replicated in your live account. Perhaps the best way to nd 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,
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which explains what they have done to nd their own trading method.
If you have a trading method that gives you a predictable prot, 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 nd your trading method that you feel
comfortable with, you must have the following:
An overall plan to:
1) Set your rule set and plan and then stick with it in all of your trading.
2) To give you a trading plan for every day.
The trade plan then should:
1) Have an exact entry price
2) Have a stop price
3) Have a way to add positions
4) Tell you where to take prots
5) Have a way to protect your prots
By reviewing all the methods given in this book by the expert traders, it will give, you the
preliminary steps that you need to nd your footing in nding 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 nally come up and nd
the answers to nd their trading method to make consistent prot. Finding your trading
method could be then much easier when you read this book and incorporate the techniques
that best t 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 nd your own trading method to be successful in the markets then
buy and read this book.
Learn the Secrets of Successful Trading $3.99
Learn specic trading strategies to improve your trading, learn trading
ideas and tactics to be more protable, better optimize your trading
system, nd the fatal aws in your trading, understand and use Elliott
Wave to strengthen your trading, position using correct sizing to trade more
protable, understand Mercury cycles in trading the S&P, get consistently
protable trade setups, reduce risk and increase prots using volume,
detect and trade the hidden market cycles, short term trading by taking
the money and running, develop your mind for trading, overcoming Fear in
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Trading, trade with the smart money following volume, understand and use the Ultimate
Oscillator, use high power trading with geometry, get better entries, understand the three
legs to trading, use technical analysis with NinjaTrader 7, use a breakout system with cycles
for greater returns with less risk, use TurnSignal for better entries and exits, trade with
an edge, use options protably, learn to trade online, map supply and demand on charts,
quantify and execute portfolio rotation for auto trading.
Written by Many Expert Traders
The book was written by a large group of 35 expert traders, with high qualications, most
of who trade professionally and/or oer 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 nding a protable trading edge in the market. You can
use ideas and techniques of this group of experts to leverage your ability to nd an edge to
successfully trade. Using a group of experts in this manner to insure your trading success is
unprecedented.
You’ll never nd 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
Trade the Markets with and Edge $3.99
This is an important book discussing the use of dierent strategies methods
about trading.
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
don’t 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 don’t have an edge.
All of the writers in this book are very experienced and knowledgeable of dierent 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
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them a trading edge over other traders. If you want to be successful at trading, you too must
have your edge. One needs to nd 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 t 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.
Guide to Successful Online Trading - Secrets from the Pros
$3.99
This is one of the nest trading books you’ll ever see about trading. The
reason is that it comes from a group of expert pro traders with multiple
years of experience.
Trading as you know is extremely dicult. It is estimated that 90% of
traders lose money in the markets. To help you overcome this statistic, the
pro traders in this book give you their ideas on trading with some of the best trading methods
ever developed through their long time experience. By reading about these trading methods
and implementing them in the markets you will then have a chance to then join the ranks of
the 10% of the successful traders.
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 prots in the markets.
This book gives you:
1) Audio/Visual Links to presentations from pro traders
2) The best strategies that the professional traders are using now
3) The broad perspective you need in today’s dicult markets
4) The Exact tools that you need to make protable trading decisions
5) The nest trading education
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CRAIG TRADING: Craig Haugaard made 300.9% in his World
Cup Trading Championships® Account in 2014 - Want to
Know How? $3.99
This book contains an interview that I made with Craig Haugaard, third-place
nisher in the 2014 World Cup Championship of Futures Trading® with a
300.9% net prot. I asked him many questions on exactly how he did it.
In the rest of the book I explain to you how to use the indicators that Craig
used to make his 300.9% return.
Here are the indicators that he used:
• 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 Haugaard’s 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.
Mastering Your Trading: Learn from Expert Trading Advisors
“Mastering Your Trading” is the perfect source for learning
various methods of trading the market from expert advisers.
$3.99
This book focuses on various methods of trading developed by many top
trading advisors. There are 17 well written articles and it is packed by insight
that can benet the beginning to the expert trader. This is a must read. The
trading methods and strategies presented in this book can help to succeed
in today’s volatile market environment. From preparing your psychology to the demands of
timing the market and managing the risk, this book tells it all.
The book provides you the tools that are necessary for making the right trades and when to
get in and out of the market. The book covers:
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• Price and Volume the only True Indicators
• Uncovering Market Secrets
• How to handle capital exposure
• Secrets of Safe Protable Day Trading
• Using Social Media Sentiment Cycles
• How to Dramatically Improve Your Trading Psychology
• How to Handle Trading Losses
• Using a Market Scanner to Save Time
• How to Stop Guessing
• How to Get the Right Trading Computer
• Simple and Practical Trading Tips
• And much more…
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.
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Trading with Success $4.99
This book contains an interview in Chapter 1 with Rob Mitchell, who
nished in 2nd place in the 2014 World Cup Championship® of CME
E-mini Trading with a 57% net prot.
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 Rob’s trades.
You will be able to automatically mirror Rob’s 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.
Takumaru Forex Trading $4.99
This book contains an interview in Chapter 1 with Takumaru Sakakibara,
who nished in 2nd place in the 2014 World Cup Championship of Forex
Trading® with a 122.6% net prot. “Takumaru’s largest drawdown
(cumulative peak-to-valley percentage decline in month-end net equity
during the life of the account) was -21.5% from 6-30-15 to 10-31-15.”
“Please remember that past performance is not necessarily indicative
of future results.”
“Please remember that Forex trading involves substantial risk of loss,
and past performance is not necessarily indicative of future results.”
In the rest of the book I will explain to you some of the trading ideas Takumaru said he used
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in the championship. You can then actually see and understand how his ideas work.
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 rst-place nisher in the 2014 WORLD CUP
Championship of Futures Trading® with a 366% net prot. 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) William’s %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 Cook’s trades.
