Issue 64

THE OFFICI OFFICIA A L MAGAZINE MAGA ZINE OF TECHN TECHNICAL ICAL A NALYSIS NALYSIS

TRADERSWORLD Oct/Nov/Dec 2016

Multiple Unit and Time Time Frame Forex Strategies How to Trade the Market with Extreme Precision Using Boomerang Day Trader Finding the Perfect Trade Setup Simple Tips Tips to Dramatically Dramaticall y Improve Your Your Trading Discipline Multiple Time Frame Trade Strategies Simple Tips to How Dominate Cycles Can Pinpoint Market Turns Learn to Trade it is Never Never Too Late Mastering Your Emotions to Create A Trading Mind Secrets to Making Money Every Day

Mastering Your Emotions to Create A Trading Mind Secrets to Making Money Every Day

Frame Forex Strategies WWW.TRADERSWORLD.COM

October/November/December October/November/Decem ber 2016

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Advertisers

Editor-in-Chief

Oct/Nov/Dec Oct/Nov/Dec 2016 Issue #64

author of 6 trading books.

Larry Jacobs - Winner of the World Cup rading Championship for stocks in 2001. BS, MS in Business and

W. Grayrock Dr., Springfield, MO Oce - 2508 W. World Cup Trading Championships 03

Contact Information -

65810

800-288-4266,

[email protected] World Cup Advisor 04 World Cup Advisor 05 The Gold and Oil Guy 07 Mikula Forecasting Service 08 Sacred Science 09 The OddsTraderApps 14 Sacred Science 17 Trading on Target 18 Sacred Science 24 Sacred Science 25 Dan Zanger’s Chart Pattern 26 Sacred Science 34 Sacred Science 49 NeverLossTrading 83

Copyright 2015 Halliker’s, Inc. All rights reserved. Information in this publication must not be reproduced in any form without written permission from the publisher. raders World™ (ISSN 1045-7690) is published 2 to 3 times a year by Halliker’s, Inc., 2508 W. Grayrock Dr., Springfield, MO 65810. Te subscription to raders World is $19.95 per year normally it it $34.95. Tat gives you access to next issues plus all the past issues in flip page format. When you subscribe it automatically renews through PayPal. You can terminate the automatic renewal of your subscription directly in your PayPal account. o do so long into your PalPay account. In the overview, select the option “show all transactions”. Select the Halliker’s, Inc. raders World transaction and click on “Details”. Click on the link “Show recurring payments”. o cancel automatic renewals, select the option “Cancel” and confirm the cancellation of the subscription in the subsequent dialog. PayPal PayPal will then confirm that your cancellation was successful. Created in the U.S.A. is prepared from information believed to be reliable but not guaranteed us without further verification and does not purport to be complete. Futures and options trading are speculative and involves risk of loss. Opinions expressed are subject to revision without further notification. We are not offering to buy or sell securities or commodities discussed. Halliker’s Inc., one or more of its officers, and/or authors may have a position in the securities or commodities discussed herein. Any article that shows hypothetical or stimulated performance results have certain inherent limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not already been executed, the results may have under - or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designated with the benefits of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Te names of products and services presented in this magazine are used only in editorial fashion and to the benefit of the trademark owner with no intention of infringing on trademark rights. Products and services in the raders World Catalog are subject to availability and prices are subject to change without notice. Although Halliker’s, Inc. is interested in presenting you with advertisements for quality products and services, Halliker’s, Inc. cannot spend the time to do the due diligence it takes to ensure that only reliable services and products are advertised with us. Also Halliker’s, Inc. dba radersworld may be an affilate with some of our writers and advertisers.

U.S. Government Required Disclaimer - Commodity Futures rading Commissions Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Do not trade with money you cannot afford to lose. Tis is neither a solicitation nor an offer to Buy/Sell futures, options or ANY sort of chartable instrument. No representation representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. Te past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEE N EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMP ENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LAC K OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BE NEFIT OF HINDSIGHT. NO REPRESENTATION REPRESENTATION IS BEI NG MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Use of any of this information is entirely at your own risk, for which Halliker’s, Inc. dba raders World its affiliates, employees or owners will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, performance, completeness, or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment entertainment and general educational purposes. We are not registered trading advisors.

WWW.TRADERSWORLD.COM


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Advertisers

Editor-in-Chief

Oct/Nov/Dec Oct/Nov/Dec 2016 Issue #64

author of 6 trading books.

Larry Jacobs - Winner of the World Cup rading Championship for stocks in 2001. BS, MS in Business and

W. Grayrock Dr., Springfield, MO Oce - 2508 W. World Cup Trading Championships 03

Contact Information -

65810

800-288-4266,

[email protected] World Cup Advisor 04 World Cup Advisor 05 The Gold and Oil Guy 07 Mikula Forecasting Service 08 Sacred Science 09 The OddsTraderApps 14 Sacred Science 17 Trading on Target 18 Sacred Science 24 Sacred Science 25 Dan Zanger’s Chart Pattern 26 Sacred Science 34 Sacred Science 49 NeverLossTrading 83

Copyright 2015 Halliker’s, Inc. All rights reserved. Information in this publication must not be reproduced in any form without written permission from the publisher. raders World™ (ISSN 1045-7690) is published 2 to 3 times a year by Halliker’s, Inc., 2508 W. Grayrock Dr., Springfield, MO 65810. Te subscription to raders World is $19.95 per year normally it it $34.95. Tat gives you access to next issues plus all the past issues in flip page format. When you subscribe it automatically renews through PayPal. You can terminate the automatic renewal of your subscription directly in your PayPal account. o do so long into your PalPay account. In the overview, select the option “show all transactions”. Select the Halliker’s, Inc. raders World transaction and click on “Details”. Click on the link “Show recurring payments”. o cancel automatic renewals, select the option “Cancel” and confirm the cancellation of the subscription in the subsequent dialog. PayPal PayPal will then confirm that your cancellation was successful. Created in the U.S.A. is prepared from information believed to be reliable but not guaranteed us without further verification and does not purport to be complete. Futures and options trading are speculative and involves risk of loss. Opinions expressed are subject to revision without further notification. We are not offering to buy or sell securities or commodities discussed. Halliker’s Inc., one or more of its officers, and/or authors may have a position in the securities or commodities discussed herein. Any article that shows hypothetical or stimulated performance results have certain inherent limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not already been executed, the results may have under - or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designated with the benefits of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Te names of products and services presented in this magazine are used only in editorial fashion and to the benefit of the trademark owner with no intention of infringing on trademark rights. Products and services in the raders World Catalog are subject to availability and prices are subject to change without notice. Although Halliker’s, Inc. is interested in presenting you with advertisements for quality products and services, Halliker’s, Inc. cannot spend the time to do the due diligence it takes to ensure that only reliable services and products are advertised with us. Also Halliker’s, Inc. dba radersworld may be an affilate with some of our writers and advertisers.

U.S. Government Required Disclaimer - Commodity Futures rading Commissions Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Do not trade with money you cannot afford to lose. Tis is neither a solicitation nor an offer to Buy/Sell futures, options or ANY sort of chartable instrument. No representation representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. Te past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEE N EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMP ENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LAC K OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BE NEFIT OF HINDSIGHT. NO REPRESENTATION REPRESENTATION IS BEI NG MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Use of any of this information is entirely at your own risk, for which Halliker’s, Inc. dba raders World its affiliates, employees or owners will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, performance, completeness, or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment entertainment and general educational purposes. We are not registered trading advisors.



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October/November/December 2016

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Contents Oct/Nov/Dec 2016 Issue #64

Finding Protable Momentum Trades with a “MRM” Scan by John Winston 10

Planetary Harmonics and the Law of Vibration in Astro-Trading by Tim Bost 97 HIGH PROFIT, HIGH PROBABILITY PATTERN: THE UNKNOWN TIME by David W. Franklin 107

Decision Fatigue by Craig Haugaard 15

The Next Wall Street Class Action Suit Starts Here by Steve Selengut 115

Succeed Without Self Sabotage by Adrienne Toghraie 19

Crisis Cycles Clashing 4Q 2016 Ushers in

Critical Phase by Eric S. Hadik 120 How to Trade a Small Account by Larry Gaines 27 Silver Wheaton Corp - Elliott Wave Case Study & Forecasts by Peter Goodburn 35 Conceiving, Believing and Achieving Realistic

Three Top Forex Markets that Should Continue

their Strong Bear Trends to New Lows by Jaime Johnson 128 Execution is Key in Trading by Samuel Bassey 133

Trading Goals by Roger Felton 39 The Basics of Relative Strength by Clif Droke 44 How To Be Successful At Trading Introduction by Steve Wheeler 50

The Importance of Timing by Andrew Pancholi 136 W.D. Gann and the PATH System by Patrick Hughes 139 Higher Probability Commodity Trading 146

THE PRESIDENTIAL CYCLE by Jacob Singer 54 Amazon Books 147

Using Andrews Divergence to nd Reversal Points by Ron Jenisch 60 Some Secrets of THE TUNNEL THRU THE AIR or LOOKING BACK FROM 1940 by David Burton 66 Unleashing the Power of Hidden Divergence While Limiting Risk on Entry by Gail Mercer 79 Trading Hype Cycles of the Financial Markets by Thomas Barmann 84 Invisible Walls: Turning Your Fears into Personal Power by Rande Howell 93



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H A OW TO TURN S MALL CCOUNTS INTO BIG P ... ROFITS LIKE W. D. G ANN

MARKET VIBRATIONS W.D. GANN’S H M OW TO AKE ROFITS IN MODERN MARKETS P

BY GORDON ROBERTS REPRODUCE GANN’S LEGENDARY RETURNS THROUGH LEVERAGED POSITION TRADING…

WHAT YOU WILL LEARN

INTENT OF THIS COURSE

The intent of this course is to provide a trading strategy that allows for large returns from low risk investments . Trades have an average risk:reward ratio of 1:10, with a minimum return of 500% per trade to maximum 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 options strategies to generate large but safe returns.

Low risk, high reward trades averaging 1:10 risk:reward ratio! Trade setups with minimum 500% return & average 1000% return! BIG trade setups return 2000% – 5000% when they hit! Uses simple Gann-based analytical tools, easy to learn & apply! Strategy works with small trading accounts to make big gains! Uses classical Gann risk management and account management to produce the BIG returns like those Gann is famous for … A simple technique for beginners … a new strategy for seasoned traders! Online Forum for Q&A, and also for ongoing trade analysis and identification!



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’

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The analytical techniques and strategy taught in this course do not require any prior Gann knowledge or any past trading experience. They can be easily understood and applied by any trader, new or seasoned, to great effect with very little time or difficulty. The strategy is based upon “leveraged position trading so requires little time or effort to manage. Minimum capital requirements are very low, so someone with an account as small as a few $1000 463 Pages - Online Student Trading Forum can effectively implement this strategy . 

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FOR A D ETAILED WRITE -U P ,

S AMPLE T RADES & AUTHOR I NTRODUCTION &S AMPLE T E XT SEE : WWW.SACREDSCIENCE.COM/ROBERTS/MARKET _VIBRATIONS.HTM

STATEMENT OF INTENT

HOW TO TRADE LIKE W. D. GANN

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An Exploration of the Mechanical Trading Lesson on U. S. Steel

BY TIMOTHY WALKER 2 VOLUMES - TEXT & CHARTS SUEDE HARDCOVERS - ONLY $595.00 GANN S MECHANICAL METHOD TRADING SYSTEM APPLIED TO THE MODERN S&P500 IN 2014 PRODUCED 570% ON A $5000 EMINI POSITION IN ONLY 3 MONTHS! ’

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This course presents a detailed analysis of the entire sequence of 322 trades from 1915-1931 presented in WD Gann s US Steel trading course. The specifics of these trades and of Gann s Mechanical Method provide profound insights into the mind of one of the greatest traders of history. With detailed charts accompanying the analysis, the reader will discover great insights in reading market action and learn to understand the specific rules and triggers that Gann used to manage an account through every phase of market activity. This course shows how Gann could turn a $3000 account into over $6 million in 15 years . But it also shows extraordinary returns in shorter trading periods. For instance, from his initial investment of $3000 in February 1915 until October 21 of the same year, Gann produced a 1,337% return increasing the account to $40,123. GANN’S FAMOUS SWING TRADING SYSTEM!

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Finding Protable Momentum Trades with a “MRM” Scan By John Winston I have been asked many times what I look for in picking stocks and how I'm able to identify good trigger points. As much as I would like to be able to say there is a simple pattern that I'm looking for, it is really more about understanding sector rotation, momentum and price channels. I call this the Momentum Reversal Method (MRM) and I believe this is one of the strongest entry trigger points any trader can learn to nd potentially protable trades.

I

believe that anyone can learn to identify and pick solid winners with these three components and lots of training. Ideally, I use the sector analysis to determine if the unique sector of the market is trending higher or lower overall. There are times when certain sectors are in a bullish/neutral state; possibly trending higher overall, but more recently trending downward. The opposite would be true for a bearish/neutral state.

These states of trend can also produce exceptional

opportunities.

Once I have determined the state of the sectors and their overall trend, then I will select one to three sectors that I believe opportunities may be found. For example, a recent scan last week showed me the following sectors were all strongly positive over various time frames and related an average trending score as shown. A higher relative trending score does not mean any stocks within that sector will immediately push higher or trend upward forever.

This is just a preliminary scan of sectors that will,

potentially, allow us to nd opportunities. Ideally, I like to see a Relative Trending Score greater than 4.0 as this relates to moderate volatility and trend capitulation. This is a starting point for us to continue locating new trading triggers – nothing more.



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Next, I would typically review the key sectors that show opportunities.

For example,

Technology and Industrial Goods are showing decent Relative Trending Scores. When I review these sectors, there are typically three measures I'm quickly scanning for, Volatility, Volume and Recent Price Rotation. With this type of scan, I'm attempting to identify relatively low volatility (as related to my risk factors), moderate average volume (above 400k on average) and relatively narrow recent price rotation (typically within a 10% range). The reason for this is simple, I'm looking for triggers that are fairly strongly liquid with moderately mild volatility and fairly narrow price rotation that may be a precursor to further trending. Quickly reviewing my list of symbols in the Technology sector, I see the following symbols meet my criteria for selection.

Remember, this scan is relatively simple, allow me to review why SHOR made my list. SHOR's recent volatility is well below +2%. SHOR's longer term volatility is below +14%. Average Volume is 441k. This symbol appears to be a strongly liquid US based technology rm with bullish short and long term trend/volatility that is in line with my expectations. Price is somewhat irrelevant in the searching process, we are looking for opportunities and will weed out the symbols that don't meet our equity requirements later. So, now that we have a few bullish triggers in the sector we believe will continue to trend, or at least has the potential to trend further, we need to identify the MRM setups. Without going into complete detail, and giving away my secrets, let's just take a look at a few of these charts and I'll let you see if you can spot any opportunities for gains.



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The simple concept behind the MRM trading system is to wait for the sectors and symbols to show you the trend, then simply wait for a low risk setup to jump into the trade. In most cases, I'm able to generate 6%~20% ROI within a few days or weeks on each trade. For example, AXTI has jumped 42% since its trigger near July 15th – 42% in about 7 weeks. Again, I'm not going to fully disclose the MRM system and the rules that I use to trade, but I will show you how easy it is to try to do this on your own. Remember, there are hundreds of WWW.TRADERSWORLD.COM


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opportunities each month and it is just a matter of nding them. Sector analysis allows us to

TradersWorld Magazine

hone into groups of stocks that are showing

Premium Subscription

some trending capacity.

From there, it is a

matter of nding the ones that best suit our needs for trading triggers. The MRM system

Get everything we have for only $19.95 per year Save 50% over our regular subscription of $39.95

is my way of nding low risk triggers I have found that work. I simply wait for the MRM setups and compare my risk factors before deciding to execute the trade. I make all of my MRM trade triggers available to my clients so they don't have to spend hours doing the analysis like I do. There are opportunities every month and providing only the best triggers to my clients is the best way I can service their needs. I

QUARTERLY MAGAZINE SUBSCRIPTION

don't have to try to teach them or continue to

Read articles explaining classical trading

try to review various symbols with my clients, I simply issue a trade alert to them when I nd the best MRM triggers.

If you like the

techniques, such as W.D. Gann, Elliott Wave, astro-trading as well as modern technical analysis explaining indicators in eSignal, NinjaTraders, MetaStock & Market Analyst.

concepts I'm teaching you, then please take a moment to visit my web site and learn more.

COMPLETE BACK ISSUES OF TRADERS WORLD Magazine (ISSUES 1-64) You also get our complete archive of 60 back

John Winston

issues from 1986 to present. This, contains

Chief Investment Strategist

articles, product reviews, hundreds of chart

www.ActiveTradingPartners.com

examples, how-to-trade articles and much format, which you can read online anytime. In every issue, you get the information you need to trade the markets better with charting, astro, cycles, oscillator tools. Works for stocks, bonds, futures, options.

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1-800-288-4266 www.TradersWorld.com www.TradersWorldOnlineExpo.com



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www.OddsTraderApps.com



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Decision Fatigue By Craig Haugaard If you ever nd yourself in prison and coming up for parole make sure that the parole hearing comes as early in the day as possible. In an interesting study conducted in 2011 in the Israeli prison system researchers found that the best indicator of which prisoners were paroled wasn’t if they were Arab Israeli or Jewish Israeli but rather what time of the day their parole hearing was conducted. In a fascinating study they found found that prisoners prisoners who had an early morning parole hearing were paroled roughly 70% of the time while the poor slobs who had a late afternoon parole hearing were paroled less than 10% of the time. This study, study, which lasted a year and looked at over 1,100 parole hearings, was notable in that even when the crimes were identical in nature the time of day that the parole hearing was held seemed to play a large factor in whether or not they received received parole. The obvious question question is, “Why this discrepancy?” or even more appropriate, “Why are you writing about Israeli parole boards in a trading article?”

The answer to both of those questions is that there seems to be a

strong correlation between the number of decisions a person makes and the quality of those decisions. Researchers tell us that the average adult makes in excess of 35,000 decisions per day. Those decisions run a large gamut in importance and may cover everything from what to eat for breakfast to whether whether or not to short the soybean soybean market. The parole study, study, which was conducted by Jonathan Levav of Standford and Shai Danziger of Ben-Gurion University, illustrated that the process of making decision after decision wore the decision maker down. As you go through the day making decisions each one takes a toll in mental fatigue. While it is not as noticeable as physical fatigue the accumulated fatigue from mental decisions eventually causes your brain brain to look for short cuts. Research once again shows us that these short cuts generally take one of two paths. Firstly, Firstly, the decider may become become reckless and act impulsively rather than clearly think out all of the repercussions of the action. For the trader trader this may come in the form of a trade that comes as a result of a “gut feeling” rather than a well thought out trading system. I suspect that I am not the only trader who has has entered into a trade in a reckless manner and I also suspect that I am not the only one that has been beat like a rented mule as a result of that ill-informed decision. The other mental default is to avoid making a decision. This is what we saw in the Israeli parole board study. study. As the parole board members members became more mentally mentally fatigued they went with the “safe” option of keeping the status quo and refusing parole to the prisoners whose cases were up for review. review. While in the short term it may feel good good to do nothing and let the status quo run ultimately it may lead to larger problems. In the world of farmers and cash commodities that I live in this may explain why a farmer would build another bin rather than have a well thought out marketing plan. It allows him to delay making a decision. The same can certainly be said of traders who have a position on and freeze up when it is clearly going against them. While this passive, do nothing, strategy may ease your mental mental strain on the WWW.TRADERSWORLD.COM


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front end on the back end it can result in disastrous results. If we accept the fact that mental fatigue is real and can have a negative impact on our decision making processes what steps can we take to counter the impact and insure that our trades are based on on a sound decision making process? One thing that we can do is to learn from the Israeli parole board study and make sure that we are making our biggest decisions early in the day. day. A second strategy for those of us who reside in the world of futures trading is to stop staring at the computer computer screen all day long. I have certainly had those those days when I felt that if I just stared at the screen hard enough I could make the market go the direction I wanted it to head. Of course, that is foolish and as I now know, know, counterproductive. Research would seem to tell us that we will make better decisions and be better traders if we take a break once in a while. Walk away away from the screen and go outside for a walk. Of course there is a chance the market could make a large move against you while you are communing with nature but there is a far larger chance that if you don’t take the hike you will build up mental fatigue to the point where you make a trading decision that would make even a two year old in the midst of a temper tantrum seem rational. While the cumulative eect of decisions leads to mental fatigue it is a given that not all decisions are equal in their complexity. complexity. In fact I would argue that the decisions decisions that traders make can be at an elevated elevated level of complexity. complexity. In the world of grain grain trading for example we



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have to weigh in production data, weather data at points throughout the Corn Belt as well as grain producing regions around the world. We evaluate export demand, domestic demand, the strength or weakness of the dollar, whether or not China is going to have a recession. The list seems endless and with a plethora of potentially conicting data points the decision making process can be daunting. I started my trading career as a trader who traded the fundamentals. What I found was that if I had a pre-conceived idea of what the market should do I could always nd some fundamentals that would agree with what I wanted to see happen. While wrapping oneself in the security blanket of fundamentals that agree with you can feel great I also found that it can lead to horrible trading decisions. It has been my experience, and research seems to validate it, that when I make trading decisions in a manner that are process driven rather than the result of mental deliberation my success rate goes through the roof. While I believe that the futures market is a giant tug of war between the bullish and bearish fundamentals I no longer try and evaluate each piece of fundamental news to try and determine which side holds the greatest weight and will win the day. Rather, I rely on a set of technical tools to tell me which side is winning that fundamental tug of war and place my orders accordingly. For me in the grain market this consists of me waiting until the ten day moving average, the stochastics and the MACD all give me the same signal as illustrated on the preceding chart. Amelia Earhart once noted that, “The most dicult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life; and the procedure, the process is its own reward.” Of course, her decision to act was also a decision that resulted in her death so perhaps she is not the best person to take decision making advice from. I would like to think that had she started with the process as the foundation and not as its own reward she may have lived to tell the st ory of her great adventure. I am certain that a trader that focuses on the process will prosper nancially and that, as Amelia Earhart would say is its own reward.



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Trading on Target Free Newsletter

Adri enne Toghraie, Trader’s Success Coach

Visit TradingOnTarget.com to receive a free newsletter on Discipline for Traders Adrienne Toghraie, Trader’s Success Coach, writes articles that are dedicated to those of you who have mere minutes a day to absorb helpful ideas and creative solutions to nagging problems about discipline in trading.

Visit TradingOnTarget.com to receive a free newsletter on Discipline for Traders.



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Succeed Without Self Sabotage By Adrienne Toghraie, Trader’s Success Coach www.TradingOnTarget.com

Are You Limiting Your Prots Because of Poverty Consciousness? Poverty Conscious Traders are those individuals who limit the amount of prots that ow into their lives because of a particular type of negative thinking. This negative thinking occurs when a trader’s attitudes are fogged with thoughts and feelings of lack and limitation. This “limited thinking” becomes a self-fullling prophecy that can lead to limitation and loss in the real world.

Tidal Wave Over the Economy Just as a family can be negatively aected by one trader, negative thinking in the trading community can aect the entire world. When the trading community is in a state of worry, trading becomes erratic.

Traders either hold back from trading at their normal levels of

activity, or buy and sell wildly, thus creating a negative impact on the world economy. There is less money in circulation, thereby limiting the activity in the markets, which in turn makes traders even more restrictive in their activity. The poverty consciousness in traders that results from activity in the marketplace is a temporary but self-limiting reaction. However, beyond the normal reaction to external forces and circumstances in a trader’s life, he can have many forms of poverty-conscious thinking. This thinking can start at any point and time in life, although the roots of it are most common in childhood. For instance, if a baby cannot get his basic needs met, the longing for fulllment of those needs can last a lifetime. Even if a trader has the appearance of auence, his choice of behavior can sabotage his full potential.

Here are some specic kinds of poverty conscious thinking, how they might aect you as a trader, and solutions to these mental impediments: 1. The Unworthy and Undeserving These traders nd it dicult to reward themselves, no matter how much money they have. They live as though they are poor because they feel that they still are poor. In some cases, they are afraid to nd joy in their success for fear it will cause it to end.



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Eect Traders in this category put a cap on their potential earnings by failing to reward themselves when they succeed. The unconscious mind needs to be rewarded for successful behaviors and attitudes in order to be motivated to repeat them. Solution Set realistic goals to accomplish and attach a small reward. through and enjoy this reward.

It is important to follow

2. Self-imposed Notions of Lack and Limitation These traders buy into the notion that there is not enough to go around. This usually s tarts in childhood when the environment cannot support the child emotionally and/or materially. As adults, these individuals become pack rats because they feel that someday their garbage will be useful. Many people who grew up during the Great Depression, or have parents that experienced this era, display this behavior. Eect Traders in this category are often very disorganized. This disorganization results from a deep conict within. Their conscious minds tell them that they have a goal to reach and they must get into action. But, their unconscious minds, controlled by fears of poverty, tell them that their goals are unreachable and hopeless. As a result, they never have enough time to complete anything, and they nd a way to create lack and limitation in their trading. In the event they do create abundance, they are very uncomfortable with it. Solution Make your garbage useful now by giving away all of the items that you have not used in the past two years. List the things you want to accomplish and a time frame in which you can complete the tasks. Put them in order of importance and either delegate the rest to someone or give up the tasks that are least important. 3. Doomsday is on its Way! These people live in the shadow of impending disaster: “You never know when you’re going to lose it all so plan as if disaster is on its way.” Unfortunately, for many, this fear is based on the reality of past, traumatic losses in their lives. As a result, they expect these losses to recur and feel a perverse sense of fulllment and vindication when they do. Eect These traders are perpetual bears. They often miss the obvious upward movements because they are so focused on an impending downward trend. Traders in this category will take prots too soon if they overcome the fear of entering a trade in the rst place.



20

Solution Expand your present level of risk by 10%. When it feels comfortable to trade at this new level of risk, expand it again by another 10% until it becomes comfortable at that level, and so on. You can deal with “Doomsday” when it arrives, but act as if you are anticipating more auence with each new day and notice the dierence in your life. 4. The Taker: I Deserve it, You Don’t These people always look at every situation by thinking, “What’s in it for me?” This position comes from a great insecurity and a sense of lack. These traders often resent the fact that they have to work hard and do not necessarily see the value in other peoples’ contributions. At the heart of their world view is the notion that there is not enough to go around. Life for them is a struggle for survival. The root cause of this syndrome is often a childhood in which the child’s basic emotional and physical needs were either unmet or attended to with indierence. As a result, they are willing to toss the scraps of overow to their family, friends and society. They expect family and business associates to put out equal eort, but they do not believe in equal rewards. Eect Traders in this category fail to see that success is greatly inuenced by the willing cooperation of people around them. Their insensitivity to the feelings of others and their eagerness to point the nger when things go wrong creates stress and bad feelings all around. The negative environment created by these behaviors ultimately aects trading performance. Solution If you live by the motto, “ You only have what you give,” you will nd that your life will prosper as your generosity increases. This strategy invokes the power of the “ten-fold principle” which multiplies abundance through prosperity. The people around you will then want to help you become more successful instead of begrudging you each success and looking for ways to sabotage you. As a result, trading will become less stressful and, as a r esult, more protable. 5. Hitting the Poverty Tolerance Level We all have a level at which we begin to feel insecure nancially. For some traders, insecurity is reached when they lose their job, with no prospects and no money in the bank. Then there are traders who are nancially secure, but have a temporary losing streak and feel deprived from being able to enjoy frivolous spending. Eect When poverty consciousness kicks in, opportunity checks out, because you are entering a victim state of mind. When you see only problems, you will not nd solutions and performance will suer until you take control.



21

Solution List a group of actions which would take you toward the success that you want and start with the easiest rst. This puts you back in control and will pull you out of a victimized state of mind. 6. The Guilt Ridden These individuals feel they should not have what other people do not have either. Regardless of their eorts and their successes, they feel guilty in reaping the rewards. A childhood in which praise is absent and criticism is abundant is often the reason for this viewpoint. Eect These traders sabotage their eorts to become successful so they do not have to face the problems of feeling guilty about having too much. Solution Work with the idea of putting yourself in a position of abundance to help many people and share the joy of your successes. At the same time, examine the relationships in your life for friends and family members who are critical and unsupportive. These relationships feed your low self-esteem and need to be either corrected or eliminated if you are going to feel worthy of success. 7. The Success Comfort Zone Everyone has a comfort zone of success. If a trader grew up in a poverty, he may feel uncomfortable in an expanded comfort zone of success. Some traders sabotage success just to stay in their comfort zone. Eect The best case is that your level of success stays the same or your growth is very slow. The worst case is that you create major losses whenever you are feeling anxious about being too successful and outside of your comfort zone. Solution In order to have a quick transformation to higher success you must transform your limited beliefs. Dwell on beliefs that would bring you enormous success, e.g., “By the creative actions I demonstrate, I deserve to enjoy auence and abundance.” Visualizations of yourself in a new life of abundance can help your unconscious mind accept comfort at each new level of success. Conclusion Poverty consciousness can aect any trader and the results can range from a dampening of prots to large losses. Most traders come by this sense of loss as a result of external WWW.TRADERSWORLD.COM


22

and temporary forces. For those traders who have an underlying sense of optimism about the future, they move through this phase and go on to recoup their losses.

However,

those traders whose psychological pumps are primed for neediness and privation can nd

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themselves permanently stuck in poverty consciousness. Pulling out of this psychological state is often dicult because the rst step out is to acknowledge the existence of these feelings of neediness and low self-esteem.

These

feelings, buried deeply in the unconscious mind, must be accepted for what they are and how they aect personal success of the


trader. Once this is accomplished, the trader


can begin to take positive action which can transform the outward reality and reshape the internal, motivating feelings.

techniques, such as W.D. Gann, Elliott Wave, astro-trading as well as modern technical analysis explaining indicators in eSignal, NinjaTraders, MetaStock & Market Analyst. COMPLETE BACK ISSUES OF TRADERS

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THE MOST ADVANCED WORK ON FINANCIAL ASTROLOGY!

SECRETS OF THE CHRONOCRATORS BY DR. ALE XANDER GOULDEN A DISTILLATION OF THE ASTROLOGICAL SYSTEMS OF THE ANCIENTS APPLIED TO MAREKT FORECASTING & TRADING

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How to Trade a Small Account Larry Gaines, Founder, CEO, Power Cycle Trading Introduction Hello traders, Welcome to this presentation on “How to Trade a Small Account”. My name is Larry Gaines and my trading career started in 1980 in Houston, Texas as foreign crude oil cargo trader. In 1990 I became the Executive Vice President for one of the largest oil trading companies in the world and ran their international trading desk for over 10 years. Today I run my own company, powercycletrading.com, were I oer comprehensive trading courses, coaching and trading services. I started out my career trading big accounts, of other people’s money (OPM), but when I went out on my own and started trading for myself and it was my own money the whole game really changed. Now trading for yourself can be one of the most rewarding jobs on the planet, if you are educated about what you are trading and if you stay focused on managing your trading risk. I tell my clients and members “there’s no perfect trader…there’s no perfect system… it’s a journey of learning and I am on that journey too…constantly learning each and every day…” And in my opinion the most important lesson in trading is that you should not be just focused on making money but should really be focused on managing your trading attitude and risk and then the prots will come… My real AHA trading moment came when I reset my trading mindset and started to incorporate a variety of well dened, low risk Option Strategies into my trading. To be a successful trader mindset, risk management and consistency is what wins out and this is what I’ll cover in this presentation. Here are some important actions you can take that will get you started on your trading journey to becoming a successful trader.

Actions & Attitudes of Successful Traders: Mistakes sabotage every area of our lives, and trading is no exception. The good news is that WWW.TRADERSWORLD.COM


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we learn from our mistakes. In fact, seeing mistakes as learning opportunities is the popular approach to viewing human error and with good reason since they provide learning lessons aplenty, albeit often excruciatingly painful ones both in the psyche and the bank account. In over 3 decades of trading, I have probably seen every trading mistake possible, and I’ve even made most of them. As in life, mistakes seem to recur until we own them and modify, at which time we overcome that particular error and move on to the next. The good news is that you can learn by observing and studying the behaviors and habits of successful traders who have already been in the trenches and learned from their mistakes. This practice can shave years o of a trader’s learning curve. It’s all about adopting the powerful actions and attitudes of successful traders. There is no perfect trader or perfect system but in order to become a consistently good trader you must constantly be observing not only the markets, but also other experienced traders to gain knowledge and wisdom. It’s a never ending journey, like most valuable pursuits, but it can be an extremely rewarding one, both personally and nancially. When you model top trader’s actions, you make more money. It’s that simple. They’ve gured it out from years of experience, and you learn from them how to make more money in much less time.

1. Consistently getting in or out of trades too soon…or too late The culprit behind this common error is trading from fear or greed instead of following a chosen strategy. In trading it’s not always about trading the right option, the best model, or the perfect entry; it’s way bigger than that. If your attitude is not right, and your trading related actions aren’t right, then even the best technicals can’t help generate protable trading results for the big or small trader it’s all the same. Studies show that 60% to 80% of trading success comes from a trader’s mental and emotional state. Great traders are always working to keep their emotions out of their trading. By developing a state of detachment when trading, you can neutralize those emotions that can otherwise control your trading actions.

2. Being a lone ranger Everyone knows that the nature of trading is to go it alone. Trading attracts the introverted analytical thinker who generally thrives on hours of uninterrupted time to completely focus on the next great trade or indicator. The focus time can be benecial, but the lack of accountability and team camaraderie is not. Being someone who has spent decades in the enthusiasm of a live trading room, complete with both shared cursing and celebrations, I can say that camaraderie is real, and it’s an asset. The value of camaraderie explains the proliferation of virtual trading rooms over the past few years, and my drive to have created one of the rst.



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3. No plan for success or goals Have you ever noticed how easy it is to jump into a trade that is outside of your trading plan? A plan encourages self-discipline and accountability. A good plan includes the following features. •

Capital allocated to trading

•

Dened risk reward

•

Time frame for holding trades

•

Working hours

•

Parameters around paper vs. real trading

•

Structured time for accounting and review

•

Tested model or system

Start with a plan and stick to it. Review it often and adapt it as you learn and improve.

4. Trading a model that doesn’t work Time and expense are usually the perpetrator with this costly saboteur. The perfect analogy is buying something that doesn’t work when you’ve gone shopping just so you haven’t wasted your time. The trader thinks about how long it took to learn the system, or the investment, often in the thousands, that was made to purchase the model. The solution is to buy a proven system from a demonstrated expert, and get the support to correctly learn and implement the model

swiftly.

5. Not thoroughly reviewing trades and accompanying charts Let’s face it; it’s much more enticing to trade than to review trades, but the reality is that successful trading comes from reviewing what you did that worked, and doing more of it. It’s that simple. Without consistent time dedicated for review, this can’t be done. Take time to review each trade; this is your money, and your business. Write the answers to the following questions in a log: What worked? What didn’t work? What were the indicators doing? What time of day was the trade made? Why was the trade placed? Why was the trade exited? Could a slight tweak have made the trade more protable?

6. Not accounting for trades Have you ever known a trader that likes to do accounting? Traders love the excitement of the trade, but hate the boredom of all the surrounding responsibilities, such as accounting, taxation and documentation. Boredom, avoidance of responsibility and denial are the backing behind this WWW.TRADERSWORLD.COM


29

common slipup. It’s a lot easier to think about that great winning trade you made than to look at hard after commission numbers. Numbers don’t lie, but they are a strong teacher for how to improve results because they allow you to see what’s working and do more of it. The solution is to schedule time for accounting. It’s so easy now with downloads from most brokers. With zero costs, you’ll then have the numbers to reveal the most potent answers you can get to improve your trading results.

7. Lack of goal setting As Peter Drucker said “What gets measured gets done”. This paradigm is a step above accounting and review. Goal setting is about taking the big picture view of your overall life and money. Take this a step further and think about what your life will be like upon achieving those results. Dene what you want to make from your trading business. Review it often. As Drucker said, measure your results, and then compare them to your goals. This motivating habit drives you to do the mundane, like to accounting. It drives you to show up to trade when you want to play golf instead on that perfectly beautiful day.

8. Trading with the emotions of fear and greed Trading emotions could be an entire book, and it often is; your beliefs about money go all the way back to your childhood. What was happening in your childhood home around money? Was there never enough? Were you taught to manage money? Was there predominantly fear or

greed? As woo woo as this sounds, taking a few minutes to think about this unseen force can quickly and easily help you spot those same patterns in your trading. The way successful traders overcome this powerful saboteur is by trading from a plan, which allows complete detachment. A simple exercise to discern whether emotions aect your trading is to paper trade for a few days. Notice if the results are dierent from real trading. Of course, live trading can provide slightly dierent results due to the actual ll; take this into consideration, account for it and try to see how dierently your trading results are when real money is not changing hands vs. when it is. This easy little application can reveal powerful insights about how your emotions may be hurting your prots. Another clue is to notice how you feel when you trade. Does your heart race when you place a trade? Are you unable to leave your charts beyond the time designated in your trading plan? These are signs of emotional trading. Some of the best traders in my virtual trading room have consistently exited the room promptly at 9:30 daily. They are done, based on their trading plan. It’s unemotional and detached. Fear causes traders to miss out on winning trades, or close trades before the optimum exit. Greed causes traders to stay in trades beyond their planned exit, or to take trades outside of WWW.TRADERSWORLD.COM


30

their plan. Emotions exhaust traders. First, recognize your money patterns and own them. Choose to not allow someone else’s past issues aect your trading results. Again, the crucial key is to detach emotionally from your trading. The best way to detach is to trade from a well thought out plan. As you read this article, which points made you squirm the most? The most uncomfortable points will be the rst area to focus on to improve your trading results. Discomfort signals denial or expansion. The great thing is that most of the points above are absolutely free. That’s a risk reward you don’t see often in the trading world. I’ll take it.

An Option strategy guide to get you started: General Option Guidelines: •

When Implied volatility is high it is better to sell options (Credit Spreads, Iron Condors)

•

When Implied Volatility is low it’s better to buy options (Delta 50 to 70) & Vertical Option Debit Spreads

•

When a market is in a consolidation phase or a volatility compression squeeze, look at this as

a sign that a low volatility environment is about to change into a high volatility environment. •

And change your trading style accordingly.

Go-to-Option Strategies ~ for dened, low risk trading: Long Calls or Puts ~ can be used for all day trading, swing trade set-ups and long term trend trades. Best when implied volatility is low, generally use a 60-70 delta for strike. A dened risk with unlimited prot upside.

AAPL Long $113 Call Strike ~ Delta 60 ~ Debit Cost $210/Option Ct. WWW.TRADERSWORLD.COM


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Vertical Debit Spreads ~ can be used for all Swing Trade Set-ups & long term trend trades. Best when implied volatility is low. Dened risk, low capital cost, low time decay but prot upside is capped.

AAPL Vertical Long Call Debit Spread $115/$120 ~ Cost $160/Option Ct.

Long Buttery ~ this spread is a neutral strategy that is a combination of a bull call debit spread and a bear call credit spread. It is a limited prot, limited risk options strategy. There are 3 striking prices involved in a buttery spread and it can be constructed using calls or puts. Used when you think the underlying stock will not rise or fall much by expiration. Trade results in a net debit. Short volatility & price pinning strategy.

AAPL Long Call Butterfy ~ Debit Cost $35/Option Ct. WWW.TRADERSWORLD.COM


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Credit Spreads ~ can be used for day trades, swing trade set-ups & long term trades. Best used when implied volatility is high. A dened risk, takes advantage of time decay & a sideways price action but prot upside is capped. Three variations; OTM (negative risk ratio), ATM (neutral risk ratio) & ITM (positive risk ratio). Short volatility & time decay strategy.

AAPL Vertical Bear Call Credit Spread ~ Credit Received $110/Option Ct.

CONCLUSION Trading a small account oers the single trader a big advantage, stealth. The single trader can easily execute trades that the big hedge funds and institutional traders just can’t without muddying the waters. This becomes a great trading advantage and an opportunity that can turn that small trading account into a large trading account. Once you have the right trading mindset and learn to use some well-dened, low risk Option Strategies your journey to successful trading will become a short one and well worth the time and eort you put in.

ABOUT THE PRESENTER Larry Gaines has become one of the leading coaches for successful traders and investors. He continues to develop and host, every month, new trading educational programs to help traders and investors generate greater income from their investment capital with less risk exposure. He founded PowerCycleTrading.com and the Power Cycle Virtual Trading Room following over 30 years of professional trading experience in the commodity and equity markets. During his tenure as head of an international trading company that often traded a billion dollars’ worth of commodities in a single day, he learned rst-hand the necessary elements of a successful trading system and the use of options. Using this in-depth knowledge and experience, Larry developed the Power Cycle Trading™ Model to allow for greater prots with a more disciplined, systematic degree of trading success. Click here to learn more! http://powercycletrading.com WWW.TRADERSWORLD.COM


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Silver Wheaton Corp - Elliott Wave Case Study & Forecasts By Peter Goodburn

Many of the silver miners formed simultaneous lows last January (2016) which have since triggered new intermediate & medium-term uptrends. For some, the January lows ended counter-trend zig zag/double zig zag patterns dating back to pre-nancial-crisis highs of Nov.’07/April 2008 i.e. Silver Standard Resources, Pan-American Silver Corp. whilst Silver Wheaton Corp. simply ended a smaller counter-trend phase of declines that began from the April ’11 highs. The big dierence was that Silver Wheaton Corp. did not break below its nancial-crisis low of 2.51 whilst the others did in order to complete their own corrective patterns. This means that Silver Wheaton Corp. is outperforming relative to its 2011 high. There is scant historical data for these equities which makes intermediate/medium-term forecasting dicult, in terms of precise wave counting but especially true for amplitude measurements. All we do know is that if medium-term Fibonacci-Price-ratios are used for Silver Standard Resources & Pan-American Silver Corp., measuring their initial advances from major lows of August ’98 and April ’01 respectively into those pre-nancial-crisis highs, adding



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these b. 100% ratios for an equality measurement from the Jan.’16 lows, then upside targets are towards 279.00+/- and 98.50+/-. That’s gains of 7,543% and 1,730%. For Silver Wheaton Corp. a similar b. 100% equality ratio is used measuring the post-nancial-crisis upswing then adding this to the Jan.’16 low of 10.04 to yield targets towards 190.40+/- reecting potential gains of 1,800% per cent. As historical data is even shorter for Silver Wheaton Corp., such targets could be erroneous. For the time being, we rely on the internal structure of January’s developing ve wave impulse advance to determine that a minimum upside target towards 71.00+/- is viable during the next couple of years.

Elliott Wave Case Study There is still doubt in many quarters of the commodity markets that industrial metals, like silver have begun new uptrends. It was earlier this year when commodity prices extended lower in January/February that mainstream analysts were marking prices heavily down alongside forecasts of incremental U.S. interest rate rises. Neither were realised. Even though some impressive gains have since taken place, sceptics continue to argue the bearish case that rallies are simply counter-trend – that major secular-bear downtrends are in progress. The purpose of examining price declines of Silver Wheaton Corp. during the year-2011/2016 period is an attempt to ‘proof’ this was just a counter-trend sequence within a prevailing



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uptrend. An important high formed in April ’11 at 47.60 – see g #1. As historical data is limited (begins July ’05), this high represented a new record high which for the purposes of examination, ended primary wave 3 although we can’t be certain. But what is very tangible is the way the subsequent declines have unfolded as primary wave 4 – into a precise Elliott Wave corrective pattern, a seven price-swing double zig zag labelled in intermediate degree, (A)-(B)-(C)-(X)(A)-(B)-(C). There are some interesting aspects of this pattern. For example, it began with a leadingexpanding-diagonal as wave (A), completing into the May ’12 low at 22.94. This is quite an unusual start for a multi-year decline, but perfectly acceptable. Wave (B) rallies followed, complying with one of R.N. Elliott’s guidelines where retracements head back towards ‘fourth wave preceding degree’, as it did ending at 41.30. Wave (C) declines then got underway, unfolding into a more common ve wave ‘expanding-impulse’ pattern dened where its 3 rd wave undergoes ‘price-expansion’, eventually ending at 17.75. This is an extension to ‘alternation’ as we know it – so this guideline adopts the concept that if wave (A) unfolds into a ‘diagonalimpulse’ then wave (C) has a tendency to unfold into a more simplistic ‘expanding-impulse’ (and vice-versa). Now it’s worth noting Fibonacci-Price-Ratio analysis because extending wave (A) by a b. 38.2% ratio projects the terminal low for wave (C) towards 17.36+/-. The actual low ended just a fraction higher at 17.75 – good enough to verify!

TIP: Why use a b. 38.2% ratio and not 61.8%? One of the b-price-ratio guidelines that we’ve documented is this – when wave (B) retraces wave (A) by a b. 50% ratio or more, then extend wave (A) by a b. 38.2% ratio to determine the terminal completion of wave (C). If on the other hand, wave (B) ends shorter than a b. 50%, use 61.8%. The next observation was something unusual. Intermediate wave (X) unfolded into a three wave triangle, not a conventional ve wave sequence. Each of these three price-swings subdivide into 3’s three’s, but the completion at 27.66 leaves behind only a three wave triangle. We’ve documented these in the past and have archived them for reference, but the fact that they can occur is enough to validate one trading guideline that we use daily – never await the completion of a ve price-swing triangle to take a trade – always attempt to initiate the trade at the end of the third sequence. Unless this is an expanding triangle, trading wave ‘c’s completion won’t stop you out as wave ‘e’ will normally complete within wave ‘c’s range. The secondary zig zag pattern began from 27.66 with wave (A) ending at 16.57 – nothing unusual about this except that it ended up being quite a bit shorter than wave (C). Now, to determine a terminal low for the secondary zig zag, the rst between 47.60-17.75 must be extended by two ratios – b. 38.2% and 61.8% projecting downside targets to either 12.18+/- or 9.65+/-. Then, cutting the secondary zig zag from 27.66 by a b. 61.8% ratio to both downside levels, an interim target for the secondary (A) wave is derived, to either 16.70+/- or 14.40+/-. When wave (A) ended at 16.57, close to the 16.70+/- level it originally heightened the probability of wave (C) eventually ending at 12.18+/-. When wave (C) did get underway, the internal structure of the pattern did not compete a ve wave subdivision into the 12.18+/- level, so this was the rst indication that it would WWW.TRADERSWORLD.COM


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eventually extend to the next ‘golden-section’ 0.618 number towards 9.65+/-. The actual low formed at 10.04 but justifying that golden-section ratio with a reversal-signature afterwards. It’s also a good idea to compare Silver Wheaton Corps. pattern with its peers – this often assists in determining a more exact, terminal low.

Short-term Forecast Primary wave 5’s advance from the Jan.’16 low has so far, had little in the way of correction. Other mining companies are either in the process of ending three or ve wave patterns from equivalent lows, but this is nothing similar to the progress of Silver Wheaton Corp. So far, its advance has unfolded as a 1-2-1-2-3 sequence, with a 4 th wave correction now in progress – see g #2. The August high at 31.35 ended minor wave iii. three of intermediate (3) that began from May’s low of 17.87. This can be ‘proofed’ where its rst wave, minute wave 1 to 22.18 is extended by a b. 161.8% ratio to project the terminal high of this entire impulse as minute wave 5 to 31.35. The following correction is labelled minor wave iv. four. So far, an intra-hourly ve wave impulse pattern is discernible within the interim sell-o to 24.75 which makes this minute wave a within an ongoing zig zag pattern. Using the same b-price-ratio guideline as before, extending wave a by b. 38.2% and 61.8% ratios projects a terminal low for wave c towards either 22.61+/- or 21.39+/- (log-scale please). As wave b retraced by more than a b. 50% ratio, the preferred downside target is at 22.61+/-. All that has to happen now is t o test these downside targets whilst subdividing into a ve wave impulse sequence. After that, the uptrend can resume. Peter Goodburn is the senior Elliott Wave analyst at WaveTrack International and is the author of the monthly institutional El l i o t t W a v e - N a v i g a t o r report and the bi-weekly private client El l i o t t W a v e - C o m p a s s report. Details at www.wavetrack.com End | Fin | Ende



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Conceiving, Believing and Achieving Realistic Trading Goals By Roger Felton

Like many traders, I love to discover new, innovative ways to trade that won’t zzle when market dynamics inevitably change. It’s no surprise then when traders tell me they want a “winning trading system” that will “keep working” for the long haul. I’m fairly well-known for sharing many of my techniques with any trader desiring help and having the passion to learn. But when we discuss trade setups and strategies, what does the term “keep working” mean? After all, two traders can take the same trade with the same ll yet one trader can lose while the other makes out like a treasure hunter with ESP. How can setting goals have any possible bearing on the outcome of any particular trade, or series of trades? Let’s explore this and more as we discuss setting realistic trading goals, their clear connection to trading success and what it takes to achieve them. When traders call on me because they need help, they often have no clear idea what that assistance should be. Most want a quick x to what’s probably been a long-term problem. Although understandable, it’s also an unrealistic expectation. Trading success is a process, not an event and achieving that desired success must always begin with a solid concept, or plan, that must be both believable and achievable by the trader.

Creating a list of lofty

trading goals without a plan to achieve them is just a pile of worthless wishes and nothing more. A good trading plan is a logical step by step map of objectives, or goals, and how they will realistically be achieved. It’s also one of the most overlooked and misunderstood parts of the trading puzzle. A plan doesn’t exist until it’s actually written down on paper (conceived) but it should never be carved in stone.

The plan must be realistic or it won’t be believable.

If it’s

not believable it won’t be achievable. It should be uid because, as your goal-conquering knowledge increases and your critical trading skills are honed, your trading prociency will naturally increase over time and you will naturally want to increase your trading goals. But again, a plan not written down is a plan to fail and it’s hard to make a living as a trading expert in what doesn’t work. One of the most important considerations of any trading plan is the acquisition of knowledge and the conversion of that knowledge into successful trading skills through experience and practice. Great skills beat a great system every time. Take a trader with excellent skills and give them a really strong, robust system and you have a trader who is virtually unstoppable. So, as you build your Trading Plan of Goal Achievement, it’s a good idea to give the acquisition of trading skill serious attention. It’s beyond the scope (and ability) of this article to teach trading skill to anyone. That takes time, hard work, self-mastery and plenty of WWW.TRADERSWORLD.COM


39

dedicated practice and practical experience. Trading skill can never be achieved by simply watching successful traders, either. You may gain some insight into the system they use, but their actual trading skills can’t be obtained by osmosis. However, I can give you some useful guidelines that can help traders avoid many of the pitfalls that can devastate any trader’s chance of ever enjoying consistent long-term success. Let me list the essential components of my personal trading plan in order of their importance to me when I began my trading career. Then we’ll discuss them individually so that each is clearly understood. In order of importance (to me) they are: •

To accumulate the appropriate and necessary knowledge to enable me to consistently make correct trading decisions on every trade.

•

To acquire the highest level of trading skill of which I am personally capable of achieving.

•

To master self-control so human emotions never inuence any trading decision I ever make.

•

To develop, purchase or otherwise obtain a system or methodology that ideally ts my personality, my trading style and my trading account.

•

Find a professional mentor.

Entire books have been written on each of these ve topics that I chose for my trading plan. Starting with the rst, “To accumulate the appropriate and necessary knowledge to enable me to consistently make correct trading decisions on every trade” sounds quite lofty. Does it mean that my goal is win every trade? Not at all. This means the accumulation of good, solid, valuable trading knowledge to enable me to evaluate what markets are most likely to do when a particular conuence of conditions (or setup) occurs. With discipline and practice, trading decisions must be correct even if a trade, or series of trades, fail. The only time a trader is ever “wrong” isn’t when a trade loses, it’s when they fail to do what should be done when it’s time to do it. As traders gain knowledge, I believe it’s worthwhile to obtain a good working knowledge of Technical Analysis. The proper use of TA can enable you to increase your trade accuracy by acting as a “lter”, of sorts. But traders must be aware that most Technical Analysis indicators are useless. Many of the remainder can have some benet but it is not enough to justify the added trading complexity that they create. The number of really useful, consistently valuable TA indicators can be counted on one hand. No trader in the world will know exactly what the market is going to do at every point in time. Most of the time traders can only guess and that’s certainly no way to win for the longhaul. But all markets repeat patterns of one form or another. So your plan must include the pursuit of knowledge and commitment to the hard work necessary to turn that knowledge into consistent prots. The second item has to do with trading skill. As with the mastery of any dicult task, skill is the result of the proper application of knowledge through intensive practice and extensive WWW.TRADERSWORLD.COM


40

experience.

As this implies, skill should increase naturally over time but this is greatly

dependent on the quality of the knowledge acquired as well how it is applied in real time trading. Knowledge and skill are inseparable qualities in trading, as well as mastery of most other complex and dicult tasks. Emotional self-control was placed at number three on my list but its importance cannot be over-emphasized. Trading is like chess in that it’s a totally mental exercise. There’s nothing physical about it. But there’s a world of dierence between learning how to master the market and learning how to master yourself. Both are vitally important but, for most traders, self-mastery is by far the most dicult. No trader can succeed without the ability to harness human emotions to the point where they cannot inuence trading decisions from entry to trade management to the eventual market exit. No trader can divorce themselves from their emotions short of a self-induced coma. But the negative impact emotions can create can be managed. Humans are by nature emotional creatures so self-mastery takes great discipline, focus, patience and, for most traders, a whole lot of work. A trading plan would be unmanageable and any meaningful success nearly impossible in the absence of strong emotional control. Once a trader has a professional level in-depth understanding of Price Action (I call it “predictable market behavior”), then the outcome of every trade taken essentially becomes irrelevant. That’s because the odds of trades being protable are so skewed in the trader’s favor, that there’s little emotional concern when a trade wins or when it loses. When a trader has mastered Price Action and can accurately predict market behavior, mental stress becomes practically non-existent and is replaced with rock-solid, unshakable condence. Stress and negative human emotions have virtually zero eect on a trader with this level of condence. To master markets you must rst master yourself. We come now to number four on the list…the actual trading system a trader will be using. This is the item that usually goes rst on most traders’ list. It is important. Choosing a trading system can be compared to choosing a spouse. Hasty decisions on important matters usually end badly. After all, your trading system isn’t just a tool; it’s your “trading partner”, your condant, if you will. Your nancial future may very well depend on your system’s ability to crunch a lot of vital data and present it to you instantaneously in a form that will enable you to make successful trading decisions. Of course, without Knowledge, without Skill and without Emotional Mastery, no trading system will ever produce the ROI traders hope for. Whatever system you choose, make sure it ts seamlessly with your personality (aggressive, conservative, etc.), your style (trend trader, position, long-term investor or scalper) and the size of your trading account. If your funds are small, your drawdowns must be also. And always remember the KISS rule, especially in trading.



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In my trading, my charts contain only what I need to win. Below is an example of how my charts look. The bars are highly modied Renkos that I created many years ago and, for me, they are vastly superior to any other bar type I have ever used. Others must be agreeing as I’m seeing more and more trading platform and system vendors creating similar versions of my Renkos over the last few years.

But it’s not the bars or

the lters that win, the trader does. Excellent charting is great, but it’s how you use them that counts.

I created

a unique system called SignalPro that does a great job of automating almost everything. It nds great trade entries and lters them for the best possible accuracy.

Notice that each of the

ltered entries in this screen cap all contained hundreds of dollars of prot potential and they appear with plenty of warning. But, when it comes to teaching traders, prot potential is pretty much a meaningless term unless, of course, the student has ESP. Any trader wishing to learn more about my charts and how I trade is invited to contact me anytime. Info is provided at the end of this article and there’s no charge whatsoever. Traders want to know the precise moment to enter a trade, the exact stop placement and precisely when to exit a trade “to the tick”. This software does all that and a whole lot more. A trader can even teach SignalPro to trade for them if they choose. But let’s save that for another day and another article. “The proof is in the pudding” as they say so, before concluding, I’d like to show you what my Trading Plan did for me. Well, it was my guide but I did all the grunt work, of course. But take a look at my Equity Curve for the rst half of September, 2016. My daily goal in my Trading Room is to make a four-gure prot trading just 2 contracts on 6 to 8 trades per morning. As you can see, I’m right on track for the month. But a couple of weeks of success do not a trader make. At least not a professional one. So I’ve included my Equity Curve for the past couple of years from the data that the team tracks and logs day by day. Be warned that, due to the large timescale involved, the drawdowns are dicult to see. But there were some, they just didn’t last long.

I’m a fairly good trader but I owe a lot



42

to the system I developed, the software my programmer coded and the work I invested in myself to get to this point. Now we come to item number ve, “Find a professional mentor”. When I began trading futures, the CME had just launched the S&P 500 E-mini.

As far as electronically traded

markets were concerned, that was it. In that arena, I was sort of a pioneer and there really were no mentors on a professional level in existence that I could nd. So, I became my own student and, eventually, my own mentor. Nowadays, there are quite a few pro level futures traders. And some may be available for mentoring other traders.

Personally, there are few things

I enjoy more than mentoring traders and I guess that’s why I make myself available for mentoring sessions 7 days a week. My students know they can schedule time with me for help any afternoon, evening or weekend and I never charge students a fee.

If you are a trader who’s serious about your career, the

best advice I can give you is “Find a Mentor!” It will save you thousands of dollars in needless trade losses and it can trim years o of your learning curve. With just these two amazing benets alone, isn’t it incredible that a mentor is usually the last thing most traders think they need. Each of the things covered in this discussion are important, some even crucial, to your success. If you can conceive the trader you want to be and you truly believe that trader is within you, then the only thing standing between the trader you are and the trader you can be is having the right plan. If you need help getting started, please let me know and we’ll get you on track quicker than you might think. For more information on Felton Trading or anything you have read in this article, please email [email protected] or visit our website www.FeltonTrading.com.



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The Basics of Relative Strength By Clif Droke “It’s all relative” is a common expression which is often used to dismiss something. Yet when it comes to the stock market, relativity can be an investor’s best friend. One of the most important skills a trader can learn is relative strength analysis. Knowing how to make an informed study of relative strength is a sure pathway to stock market prots. Traders and investors in precious metals mining shares could benet from this knowledge. Relative strength analysis is a quick and simple way to short circuit the analytical process. Wall Street pros can spend hundreds of thousands of dollars gathering all the information they can about a particular company before buying the stock. These investors pore over balance sheets, grill company executives for information and sometimes even obtain illegal insider information before placing a bet on the company’s future. By merely using the techniques described in this chapter, we’ve allowed Wall Street to do all the expensive due diligence work for us.

What is Relative Strength? Relative strength is a measure of how an individual stock is acting in relation to the overall broad market. If a stock is rising, for instance, it can exhibit poor relative strength. If the stock market has advanced 10% in a period of months while the individual stock in question has only gone up 5%, the stock is underperforming the broad market on a relative basis. Conversely, if the stock you’re looking at has been in a downward trend – or perhaps bottoming after a steep decline – and the market is falling even more than the stock, then the stock in question is exhibiting relative strength. Knowing which stocks are in a relative strength position versus the broad stock market can be a valuable tool for increasing your investment returns. There are actually two dierent ways of looking at relative strength (RS). We’ll be examining both forms of RS analysis in this chapter. In his book Secrets for Proting in Bull and Bear Markets, Stan Weinstein denes relative strength with the following formula: Price of XYZ ___________________ Price of Market Average He writes, “If stock XYZ is currently at 50 and the S&P composite average is at 310, then its relative strength is .16 (50/310).” By calculating this gure (or by using a stock charting program that does it for you), you will see a clear picture forming over time. The stock you’re following will either be exhibiting relative strength or weakness versus the broad market. This in turn will give you an opportunity to decide whether or not to buy or, in the event you own it, sell the stock. WWW.TRADERSWORLD.COM


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How to Recognize Relative Strength There are two important aspects to performing a simple relative strength study: accumulation and distribution. That is, we want to be able to identify when a stock is being bought or sold by deep-pocketed professional traders. Knowing this will give us a huge tactical edge over most retail traders. More importantly, this knowledge will allow us to follow in the footsteps of the Wall Street pros and make money as we track their presence within a particular stock. To detect accumulation, look for bullish divergences between the broad market (as measured by the Dow Jones Industrial Average, the S&P 500, or the NYSE Composite) and the stock you’re analyzing. “Bullish divergence can best be seen when a stock fails to be as severely aected by selling pressures as the broad market,” says Larry Williams in his book, The Secret of Selecting Stocks for Immediate and Substantial Gains. “Another way of putting this is that a stock exhibits accumulation when it does not match the market’s downward moves. Instead, the stock holds up better than the averages on market down moves and rallies stronger on market rally.” The above chart example is a good example of relative strength in a stock. In this case Boeing Co. (BA), a component of the Dow Jones Industrial Average, made a series of higher

lows and higher highs in the October-November period of 2012, even as the Dow was making lower highs and lower lows. This relative strength reected in BA presaged a major rally in the ensuing months. WWW.TRADERSWORLD.COM


45

Williams further points out that the greater the divergence between the market and your stock, the greater the likelihood that the stock will move impressively higher at some point in the near future. In Williams’ words, “Divergence of a few days will forecast moves of a few days duration. Divergence of a few weeks will forecast moves of a few weeks and divergences of a month or more will forecast extended, long-lasting moves.” It’s important to remember that comparisons of relative strength between the market (S&P 500) and an individual stock should be made at major turning points. For instance, when the S&P has declined for a period of several weeks or months and then reverses higher, at that point you should be looking for stocks that turned up well before the S&P. An example of this would be 3M Co. (MMM), a Dow 30 component which bottomed and turned up a few weeks before the major indices following the broad market plunge of late 2015/early 2016. Here you can see the extent to which MMM reected relative strength, beginning in late January 2016 and continuing into the summer. Relative strength patterns which manifest in individual stocks around market bottoms are usually a sign of informed (i.e. “smart money”) buying activity. And it usually pays to follow the smart money. When seeking stocks for potential short sales, watch for distribution (insider selling)

patterns, which is basically another way of saying relative weakness. Stocks that make lower highs while the S&P is making higher highs t the description of what we’re looking for. A good example of this is the pattern that was visible in the chart for Kinross Gold Corp. (KGC) in WWW.TRADERSWORLD.COM


46

December 2004. While the S&P 500 was was trending higher in late 2004, KGC was trending lower lower (below). This presaged the long decline in Kinross’s Kinross’s share price through the spring of 2005. Another example of negative relative strength can be seen in the following graph of International Business Machines Corp. (IBM).

The time frame was was between January and

August 2013, and during that time the S&P 500 (SPX) was making a series of higher highs and higher lows, which is the basic denition of a bullish trend. In contrast, however, however, IBM began tracing out a series of of conspicuously lower highs and lows between March and April. The recoil rally that followed in May was certain to fail, and traders who sold short would have proted nicely by simply adhering to the relative strength (or in this case, relative weakness) principle.



47

It will do us well to remember that the longer the divergence lasts between the stock st ock we’re watching and the Dow and/or SPX – whether bullish or bearish – the more likely the next tradable move move will be signicant.

For this reason relative strength studies are invaluable,

especially at major turning points. Clif Droke is a recognized authority on moving averages, internal momentum and Kress Cycles, three valuable tools as applied to the the equity market. He is the editor of the Momentum Momentum Strategies Report newsletter, newsletter, published three times times a week since 1997. He has also authored several books on trading and technical analysis, including his most recent one, Mastering Moving Averages. For more information visit www.clifdroke.com



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49

How To Be Successful At Trading Introduction

By Steve Wheeler Founder and CEO of NaviTrader.com (www.navitrader.com) Professional Trader and System Designer/Developer www.navitrader.com

Let me start by introducing myself. myself.

I am a full full time trader and trainer in the futures

markets. I run a real time trading trading room two two hours each each trading day day.. I have traded for over 20 years, and concentrate primarily on the currency (FOREX), crude oil, gold, and stock index futures markets, markets, such as the S & P

E-mini. In a previous career career, I was a practicing practicing C.P.A C.P.A .

in the state of Florida. I have developed developed a full suite of charts and indicators known as as the Trendicators™ Trendicators™ and a market analyzer known as the TradeFinder™, as well as a number of automated trading systems and and automated automated buy, buy, sell, and and trade trade management systems. What follows are the fundamental elements you need to be consistently protable in the futures markets. I have also included information below that is crucial to your overall overall success and in managing your risk. Preparation for trading trading protably consists of market observation over over a period of time so that the trader can build condence c ondence in knowing what usually happens in the market, and how to prot from the recurring market behavior that repeats itself every day. day. To take advantage of cycles in the markets, observe the typical move 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 prots out of specic trading instruments. instruments. The following are observations observations of market behavior that will help to put the probabilities in your favor. favor.

How To Be Successfu Successfull At Trading To put the probabilities in your favor, you must have an objective method or system for your trading. trading. results.

I talk to traders almost every day who tell me they are not having consistent

If you think about it logically, logically, you will have consistent results only when you start

doing things consistently. consistently. Patterns repeat themselves over and over in all markets, so knowing these patterns can help to put the probabilities in your favor. favor. The more you can automate your your trading signals, the more more objective you will be in your trade selection.

You need to determine a set of

technical conditions for which you would would take a long or short position in any market. 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 market analyzer where I have chosen a number of technical WWW.TRADERSWORLD.COM


50

indicators that need to match up for a long or short position. Tools such as this enable you to scan multiple markets to determine the best instrument to trade at any given time. You will be able to run the analyzer in a back or forward test to check for validity.

Below you will see an example of a 6 (Brick Size) Navi_Renko chart of the S & P Futures E-mini chart.

This chart has buy and sell signals.

The buy signals are the green arrows

pointing up and the sell signals are the magenta arrows pointing down, as noted on the chart. You can test these signals to determine the probability of success and the average winning trade vs. the average losing trade. Once you have that data you will be able to determine the mathematical probability of making money.

Making money in the market is a matter of being on the right side of the market. Specic 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 WWW.TRADERSWORLD.COM


51

resistance levels based on chart history. Many people ask me which time frame that I look at by 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 dierently? 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 6 (Brick Size) Navi_Renko chart of the S & P Futures E-mini chart.

This chart has buy and sell signals. The buy signals are the green arrows

pointing up and the sell signals are the magenta arrows pointing down as noted on the chart.

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 method of testing is to use a trade simulator such as the Market Replay function of the Ninjatrader® platform. 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 prot 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.

How To Develop a System with a Positive Expectancy To develop a plan that has a probability of success, you must test a sucient amount of data to get a statistically signicant sample of trades.

I suggest testing at least 75 trades

during the time period in which you plan to trade, taking the trades based on your plan and managing the open positions according to your plan.

This process will enable you to gather

data on your average winning trade, and your average losing trade in dollar terms. You will WWW.TRADERSWORLD.COM


52

also know the percentage of winners versus the percentage of losing trades. From that data, perform a calculation as follows: Probability of winning trade times Average Winning trade in dollars minus the probability of a losing trade times the Average Losing trade. Example: (

.7 x

200 )

-

(

.3 x

100 )

=

110

When we have a positive value from

this calculation this means that you have a positive expectancy based on your data. In other words, you have a system that has put the probabilities in your favor of being protable. Probabilities favor the continuation of a trend, therefore you want to trade or invest in the direction of the major trend. For purposes of intra day trading or even investing, a daily chart is a very good place to start to analyze the major trend.

To put the odds even

further in your favor, I recommend that you analyze whatever you want to trade to nd out the consistency of the trend. This can be done by measuring the trend in various time frames all the way from short term trends such as a ve minute chart all the way to daily or even weekly charts.

Trading Checklist The following is a basic checklist that you should apply to your trading: Select System to Trade and test for positive expectancy Do I have pending news that is likely to impact my trade? Am I trading during the start and stop times of my trading plan? Have I done my technical analysis to know where specic areas of support and resistance are in the market I am trading? Have I analyzed markets that correlate with the market I want to trade? Do I currently have a signal from my selected system to go long or short?

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 condence 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. way to overcome it, is to continue to do what you fear the most.

Like any fear, the

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 WWW.TRADERSWORLD.COM


53

develop greater condence 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 into a polished and protable trader.

When I Trade Specic Markets: FOREX and Forex Futures You will nd that the FOREX spot and FOREX futures markets are most active starting with the European open of 3 A.M. eastern time. The FOREX market usually will trend quite well for at least three hours. Stock Index Futures The U.S. stock index futures markets will generally be the most active and will trend the best between 9:30 A.M. Eastern and 4 P.M. Eastern time. Please let us know if you need any help in developing your approach to protable trading. Send an e-mail to [email protected] with any questions and visit our website at www. navitrader.com

Above charts use the Trendicator© Charts running in the NinjaTrader platform. If you have any questions on the material in this publication, please send an e-mail to [email protected]

www.navitrader.com

Contact Information: Steve Wheeler [email protected] www.navitrader.com

800 987 6269 Skype navitrader.steve



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THE PRESIDENTIAL CYCLE By Jacob Singer

. With the American Presidential election capturing everyone’s attention, especially when Donald Trump, the Republican candidate’s mouth spews o the cu accusations that are causing many who supported him initially, to reconsider their support. While the Democratic candidate, Hillary Clinton is accused of turning the State Department into an adjunct of the Clinton Foundation as she jetted around the world as Secretary of State, and is also accused of not telling the truth about her claims concerning her private email server, one wonders what the future for the American stock market will be should either candidate be elected. To nd out, we will look at what happened to the market prior in previous Presidential elections and then project what we think will happen to the market with the present Presidential election. With the election taking place in November, who knows what else will occur between now and election day that will tempt voters to change their opinion.



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The two charts in Figure 1 and Figure 2, are monthly charts of the S&P500 index with the Presidential cycle superimposed. The charts show how the index moved from the presidency of President Richard Nixon to that of President Barak Obama. Note how in the months before a new President takes oce the Index falls, in some cases a few months before the President takes oce, and in other cases only when the President takes oce. Why the dierence? I can only assume it is because investors come to market decisions as to whether there will be a change in the party represented by the newly elected President, based on the speeches made by the Presidential candidates, speeches that suggest what they would do within the nancial system of America, should they be elected. Of course, depending on who is eventually elected, either Democrat or Republican, the nancial plan will dier, as we have presently seen with the nancial plans of candidate Hillary Clinton and that of the candidate Donald Trump. Whether voters consider the nancial plan of the Chair of the Board of Governors of the Federal Reserve System, Janet Yellen, is something that will only occur once the new President comes to oce. In an attempt to predict the future, do notice in Figure 2 how the S&P500 Index fell before George W Bush, a Republican, took over from Bill Clinton a Democrat, and how the market fell months before Barack Obama, a Democrat that took over the Presidency from George W Bush. Is this telling us something? Will the index start falling as the Presidency of Barack Obama approaches nality, and then start to rise as the new President, either a Republican or Democrat candidate takes oce? Will the nancial market react dramatically to the Republican candidate Donald Trump’s nancial plan that will dier from the plan presently in place? Will the Democratic candidate Hillary Clinton continue with President Obama’s nancial plan, one of the reasons why the chart is not showing a correction before the November election? Is the chart possibly forecasting the result of the election – who the next President will be?



56

The answer is a very probable ‘YES’. Yes, there was an initial drop in the S&P500 index probably forecasting a possible change in the party behind the newly elected President, but the Index starting rising before either candidate was conrmed, hinting that the Democratic nominee will be elected President. No matter who the next President will be, looking at past Presidential cyclical performance, there will be a correction as the incoming President takes oce and applies their own economic policy to the country. This could be the result of the eect the Kondratie wave, will have on the world economy.

The chart in Figure 3 is a chart of the Kondratie wave showing the Presidential cycle. Nikolai Kondratiev was a Russian economist who was a proponent of the New Economic Policy that promoted small private free market enterprise in the Soviet Union. Published in 1925 in his book, The Major Economic Cycle, capitalistic economies were characterized by successions of expansion and decline. This contradicted the Marxist idea of the imminent collapse of capitalism. In July 1930 Kondratiev was arrested on Stalin’s orders and sentenced to 8 years in prison in Siberia. In September 1938 during Stalin’s Great Purge he was sentenced to a further 10 years, and then executed on the same day the sentence was issued. The Kondratiev wave is forecasting a minor correction sometime in 2016 or 2017 with a major correction sometime in 2019 - 2022. This suggests that whoever the next President of the United States will be, the economy will enter a correction during their term of oce. The reason for the correction is anybody’s guess. The correction in the market i n the United States from 2000 was the result of the technology bubble bursting, and the collapse from May 2007 to March 2009 during the Presidency of George W Bush, a Republican, as we all know today, was the result of the mortgage backed security crises, a meltdown that occurred when Ben Bernanke was Chairman of the Federal Reserve. The buck of the anticipated meltdown that the K-Wave is calling for, will now pass onto Janet Yellen, the present Chairman of the Federal Reserve. WWW.TRADERSWORLD.COM


57

Will the forecasted meltdown be the result of the economic policy of the President, Barak Obama, or will it be the result of the economic policies initiated by the newly elected President, either Donald Trump or Hillary Clinton? On August 15th, 2016, President Barak Obama announced that the American property market is in a ‘bubblicious’, another mortgage bubble bursting. With the rise in the price of property over the past years, the credit score of approved borrowers have been trending down even as their debt levels have grown. Today. Fannie Mae and Freddie Mac have been demanding lower credit standards in pursuit of the same “aordable housing” goal, just as they did under President Bill Clinton with the mortgage backed security crash occurring during the Presidency of his successor, President George Bush. Some borrowers today need only put 3% down to get a Fannie Mae loan. With the Kondratiev wave calling for a fall in the economy, a lot of these loans will go bad, just as they did in the 2007 – 2009 mortgage meltdown. The chart in Figure 3 shows how strongly the S&P500 index rose during President Obama’s years of oce, even though the K-Wave called for the economic bottom to happen in 2012. A look at the chart shows that there was a correction in the index, a small correction, which did bottom in 2012, but the index soon recovered and continued to rise strongly. This recovery occurred during the period Ben Bernanke was Chairman of the Federal Reserve. He inherited the mortgage backed security meltdown in October 2007 from Alan Greenspan when he took over oce in January 2006. Will Janet Yellen inherit the meltdown from Ben Bernanke? To answer this question, one must look at the chart in Figure 4.

The chart in Figure 4 is a chart of a strategy developed by Roger Paget. When I lectured on Elliott Wave theory in South Africa in the 1980’s an old man with a long grey beard and straggly grey hair, approached me at the end of the lecture. He had scrolls of paper and he insisted that I look at what he had. His name was Roger Paget and after studying his charts, all drawn in pencil, charts that stretched across the table, I became convinced that he had WWW.TRADERSWORLD.COM


58

developed a convincing market cycle strategy. He believed that the indexes repeated their patterns every 16 years. The chart in Figure 4, a monthly chart of S&P500 Index, with vertical lines repeated every 4 years, illustrates this. Looking at the chart one can see that in 1984 and 2000, the

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index corrected (1 and 2). This suggests that in 2016 a correction should occur, as shown on the chart. Whether the correction will be a strong correction as forecast by the K-Wave in Figure 3, or whether it will be a mild one with a strong correction only happening in 2019 – 2020 as suggested by 3 and 4 on the chart of the Paget cycle will probably depend on the economic strategy of the newly elected


President.


There is no doubt that whoever is elected to become the President of the United States of America in 2017, whatever their


economic plan may be, they will be subject to the Presidential cycle shown above that is calling for a fall in the S&P500 Index as the

COMPLETE BACK ISSUES OF TRADERS

newly elected President replaces the nancial


advisors of President Obama.


Of course,

depending on who the President will be, will determine the strength of the fall in the index. Either way, caution is necessary.

WORLD Magazine (ISSUES 1-64) You also get our complete archive of 60 back

examples, how-to-trade articles and much format, which you can read online anytime. In every issue, you get the information you need to trade the markets better with

Jacob Singer is the author of three books, BRAKENSTROOM and The VASE with the MANY COLOURED MARBLES. Both books are stories about people he knew and stories he heard

charting, astro, cycles, oscillator tools. Works for stocks, bonds, futures, options.


growing up in the town of Potchefstroom, South Africa. He has also written a book,

CLICK TO SUBSCRIBE

The SENSIBLE APPROACH to FINANCIAL FREEDOM, a book on the budget strategy he followed all his life.




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Using Andrews Divergence to nd Reversal Points By Ron Jaenisch Times were very dierent a hundred years ago. If one had the inclination and the intelligence, it was possible to attend and graduate from the Massachusetts Institute of Technology and Harvard University at the same time. This is what Alan Hall Andrews did. He received his education in what was “high tech” back then, aeronautical engineering. His father, who ran an investment business, was more interested in Alan being involved in something that made money, and lots of it. He charged his son with making over one million dollars in his rst year while working in his fathers’ investment rm. It took Alan three years to accomplish the goal. He achieved it by using techniques his father taught him to trade cotton with. Later he learned additional techniques from George Marachel and Roger Babson. After many successful years in the investment business, he decided upon a less hectic life and moved to Miami. There he became a college professor at the University of Miami. As an Engineering Professor at the University of Miami, he taught some of the brightest students. When the stock market was in the news he would digress from his normal lectures and discuss how geometry is used in trading. His students were fascinated to learn from his real world experiences.

In one of his classes he was discussing the trading technique he

learned from Roger Ward Babson, the founder of the world famous Babson Business College. A student in the class suggested that the median line could be used in conjunction with the Babson techniques. After drawing hundreds of median lines by hand on paper charts, Professor Andrews came to the conclusion that prices make it to the median line about 80% of the time, and it is a useful tool for understanding what the trend is. Furthermore there were parallel lines that could be drawn along with the median line, which c reate a price channel. He made the median line techniques part of the trading course he taught through the Foundation For Economic Stabilization. This is when the author of this article became a member of FFES and spent considerable time with Professor Andrews, learning the techniques his father taught him along with the Babson and Median Line methods. Dr. Andrews was easily able to market his trading course because once a year he gave the 5K into 50K demonstration. Every Monday course members received the course newsletter in their mail box with a script to read to their broker. This typically turned 5K into 50K over a period of a few months trading futures. The explanation of what lines and rules that were used for each trade were detailed in the weekly course letter. Often charts accompanied it. The idea was for the students to learn by doing. The Professor knew that he could keep his students interest in learning the techniques by helping having them see the success. Often a technique that was discussed was the use of what is now referred to as the Andrews Pitchfork.



60

Getting Started with Pitchforks When examining a recent chart, three probable pivot points are selected and one possible pivot point is selected. Two median lines, each with their respective parallel lines are drawn. By drawing the lines the trader is able to quickly answer the questions: 1) what was the prior trend? (As noted by the red median line from the probable pivot points), 2) in the probable trend, did price make it to the median line? And 3) what is the possible next trend? (Using two probable pivots and one possible pivot.) As you can see each median line in chart #1 they are accompanied by two parallel lines, which help the trader see the channel of the trend. The three lines together are often referred to as the Andrews Pitchfork. Dr. Andrews referred to them as the ML (median line) and MLH (median line parallel lines).

Selecting the Pivot Points The initial step in using the ML and MLH lines is selecting the four pivots for drawing the lines. The pivot points are swing points which are highs and lows and are referred to as probable pivots and one possible pivot. Chart #1 shows the median line drawn from the high in August. The rst point selected is labeled point A. The next swing points are labeled points B and C. Points B and C dene the width of the Andrews Pitchfork channel. The median line is calculated by drawing a line from point A through the midpoint of a line between points B and C. This line midpoint is also the 50% of value point between pivots B and C. Knowing this gives traders the ability to draw median lines with software that only has trend lines and Fibonacci WWW.TRADERSWORLD.COM


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points in their choice of studies. The drawing the possible median line using point D, was suggested by my friend Dr. Alan Andrews. It answers the question: If prices reversed at the last possible pivot point, what will the new trend be? This can be seen in Chart #1. In Chart #2 the next set of four pivot points is used to draw the next set of lines.

Finding Support, Resistance and Reversal points As you can see in Chart #2, prices charged up and weaved around the up sloping median line for months. After they made the highs they stayed inside the upper parallel line, of the next median line and parallel set, using one possible and two probable pivots, when prices tested the highs, you were able to go short. On the same day there was an ORE sell signal in the Nasdaq and a week and several days earlier there was a sell signal with the Andrews methods in the Dow. With specic exceptions, prices will typically stay inside the median line parallels lines. But as my friend Alan Andrews told me, there is a lot more to it than that. Andrews stressed placing buy and sell orders near where the pivots are, rather than waiting weeks or months, until they pass through the parallel lines. This is accomplished by nding “Ore” points, as posted hp://ireport.cnn.com/docs/DOC-1047298 and as seen in chart #3. It is also accomplished by nding specic types of Andrews Babson WWW.TRADERSWORLD.COM


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Reversal Points, or by nding Andrews divergence.

Andrews Divergence is determined by measuring the distance between a median line that was not made and where a small pivot occurred. In order to determine divergence, there are typically two or more pivots used to determine it. The theory behind it is very straight forward. As prices go in the direction of the trend they are going towards the median line. Upon each attempt to make it to the median line a pivot is made. If these pivots are clearly diverging, in terms of distance, from the median line, then a reversal is taking place. This divergence is very easy to measure, when using Andrews’s market geometry. In the example, in the correction in the price of Google in chart #4 it can clearly be seen.



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After prices went down and made a pivot labeled “A” a line is drawn to determine the distance that prices missed the median line by. Prices thereafter, went up and tested the MLH (median line parallel) two times, prior to going down to point B and making another pivot. As you can imagine short term traders like these lines because of the ability to predict short term moves they provide. After prices were unable to make it to the median line the second time, the distance between the pivot and the median line is measured in line “B “. Note that even though prices were lower in price at the second point there is a signicant dierence in the length between lines A and B. This results in what is referred to as Andrews Divergence. When this divergence is taking place a reversal is in progress. Then it can be taken to the next level. By taking the distance of line B and placing it past the next median line, the astute trader can estimate the distance of the next move which in this case is up.



64

As can be seen in the google chart #5, as prices went up from $550 to well over $750 they made the median line and went beyond it, by the distance expected. Prices went past the median line the distance that was projected when they did not make it to the median line, near the $550 value. Dr. Andrews taught that when prices did not make it to the median line they make up for it on the next move in the opposite direction. In chart #5, line B was used to forecast the distance that price would go up past the median line. After price went up to make the pivot in the forecasted area near the point estimated by line B, they reversed. Then they went down to the area of the lower parallel, near $650 where support is was found, at this point prices reversed and made another low pivot, prior to heading much higher. Even though price patterns are repetitive, they do vary. Andrews Divergence points are one of the easy to use tools that are used to nd one of the various types of reversal points. Others that use relevant in dierent situations are found in the Advanced Andrews Course, which comes with over 25 videos and a manual. All are available at www.Andrewscourse.com . All readers of this article are invited to join the free yahoo discussion group by clicking upon the new? link on the website. The most complete compilation of the writings of Andrews, including the ORE technique is found in the 800+ page Expanded Andrews course, which includes over 25 additional videos.



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S S  T H E T U N N EL T H R U T H E A I R

 LOOKING BACK FROM 1940

B D B The level of knowledge Gann possessed is way above what anyone has discovered, he on a completely dierent level from any thing I have seen. What I’m about to explain, you will probably never have seen before in your life? I rst discovered that the cover to Tunnel was encoded about 20 years ago (see the image of the correct cover with 16 planes on it). Many people who claim to be Gann experts don’t even know the cover is concealing a code, in fact many don’t even know that Billy Jones changed the cover in the 70’s and have interpreted the wrong one. There is not one Gann expert in the world that can do what Gann himself has done. If you overlay the Tunnel cover with Gann’s square of 144 overlay, you will see there is a perfect line up. The front cover of T h e Tu n n e l T h r u t h e A i r o r L o o k i n g b a c k f r o m 1 9 4 0 (TTTTA) is coded with the square of 144. On page 144 is a poem which has 144 words, and each of the three sections on that page has 51, 44 and 49 words respectively. 144 + 51 + 44 + 49 = 288, or twice 144. The last section is on page 145 which has 53 words. In total there are 36 lines of



66

words, 36 x 4 equals 144. The total number of words is 197. 19 x 7 is 133. Page 133 has the name of the person who wrote the poem. 144 + 51 equals 195, and page 195 starts Chapter 16, the number of planes on the cover. When you place the square of 144 plastic overlay (12 squares to the inch) over the front cover, cover, it measures 144 squares wide and 90 squares high. The 8 planes of the 16 are the last square of 72, or the death square of 144. Only one plane is crashing in the tunnel, which is 48 squares up, and 96 squares across, which is twice 48. These are the green lines or third li nes. There are three poems on page 48; the middle one has 48 words. The total words in the three poems comes to 180. The other plane in the tunnel is at 60 and 120 lines or one sixth and one third of a circle. The tunnel, which is smaller on the t he left, runs to the right becoming the widest between the 2 x 1 Gann angle and the 3 x 1 Gann angle, and nishes perfectly between those two angles. The plane furthest to the right is on the 126 line, and page 126 is Chapter 12, which squared is 144. The smallest plane is 108 lines across and 36 lines up, right in the middle of the death square. 108 is 36 x 3. The two inside aps of the cover have 4 planes each, making a total of 16. These too have measurements on the square of 144. There’s more decoding in these pages if you wish to go there, but most won’t…



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If you have studied Gann’s article on the square of 144 he says that if you multiply 144 x 144 it equals 20,736 days. This is an important time period in TTTTA because when you subtract 19,400 days from 20,736, you end up with 1336 (1335 is a Bible number). Because the 144 overlay is used on the monthly chart, it is 4,383 days, but when you use Jupiter days, it’s 4331 days, the dierence of 52 days or 1/7 th of a year. Gann said he got all of his cycles from the Bible. This is true, and he coded this in TTTTA. You You would know this if you discovered dis covered the eclipse series in the Bible. He gave you a number of major starting or nishing points in TTTTA, one was the last date in the book of 30 th August, 1932. This was the end of the 5 th set of eclipse series. Now there are three sets of Jupiter cycles to two sets of eclipse cycles, which you will discover if you subtract it from 1932 date. When you do this it will give you a date of 1 February, February, 1897. You know that 144 x 3 = 432, also 1440 minutes in a day x 3 equals 4320, that subtracted from 4331 equals 11, which could be the meaning of the 11 th hour. The Eclipse period is 18 years and 10 days and there’s 70 eclipses to one set. There are 649 years to a complete a set not allowing for the sidereal movement of the equinoxes. You will also discover after study that Saturn and Uranus have a pattern that comes in for a period and then disappears. This requires some serious study to nd. When you count from eclipses, you come up with dates in the book as well. For example, if you take away 1940 from the 30 th August, 1932, you end up with the following dates. The rst one is the day the book was published, and you would also notice the days go backwards like the Chaldean order of the t he days of the week. Result 1: Monday, 9 May 1927 Result 2: Sunday, 15 January 1922 Result 3: Saturday, Saturday, 23 September 1916 Result 4: Friday, 2 June 1911 Result 5: Thursday, 8 February 1906 Result 6: Wednesday, 17 October 1900 Result 7: Tuesday, 25 June 1895 When you take the total lunar eclipse date in his book of 15 th June, 1927, and go back 16 total lunar eclipses (remember, 16 is the number of planes on the cover), you end up with 9th February, 1906, close to the date above. Gann had a chart on which he had drawn all the lunar eclipses, which you most likely haven’t seen. In fact, there are 270 Gann charts that were taken from the Gann collection back in the 1990s, which may never see the light of day again. These, at a guess, were for Gann’s personal study only, so housewife astrology would probably not be able to decode them.



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The square of 144 overlays over the cover (see attached, planes are number 1-8) shows you the extent Gann went to code things. The square of 144 overlay also shows the squaring of the circle, but this is really another article in itself. Follow the plane numbers and the inches between are 4.5, 3, 1.25, 2, 1.5, 2.75 and 2 which add up to 17, half the number of the missing chapter in the book which is Chapter 34. The overlay covers the cover 144 squares along the bottom and 90 squares up or 144 x 90. 144 x 90 = 12,960, minus zero you have 1296, the square of 36, which is the magic square of the Sun. All eight planes are in the “DEATH SQUARE” of 144. (144 x 8 = 1152, 144 x 16 = 2304 the Bible number). The two Gann angles measure the tunnel being from 72 to 48, a dierence of 24, the t he hours in a day. day. The 90 time line goes straight through the middle of the rst crashing plane. All the planes are between the 90 and 126 time lines, the dierence is 36, being one quarter of 144. The 126 is important, because it’s 2520 divided by 20. There is a plane at 108 degrees, and this is the start of the death square. 108 is 18 degrees Cancer, Cancer, while 144, the end, is i s 24 degrees Leo. The second “DEATH SQUARE” would start at 252 degrees or 12 degrees Sagittarius, and end at 288 or 18 degrees Capricorn. If you move the overlay to line up with where the tunnel t unnel is 12 squares wide (the 54 square line), you have the perfect square of 90 x 90, another Gann overlay. The inner circle of the square of 144 lines up ve planes when you include the book cover ap and one plane in the middle adds up to six, the number 7 plane is the only one ying out of the “TUNNEL”, and there’s more to that than meets the eye. If you place the overlay through plane number one, it’s on the 54 square (you should know the meaning of the number 54) to the edge of the cover and 81 square to the edge of the ap of, the cover, which is the square of 9. The stock market bottomed when Jupiter was at 24 degrees Leo in 1932. The so-called Gann experts were all writing about the other cover of the book, which Billy Jones designed. They are still using the square, circle and triangle, which is not a Gann symbol. The Sun changes signs 12 times in one year and Jupiter changes signs 12 times in 12 years. If you multiply 12 (Sun) by 144 (Jupiter) we get 1728. The Sun/Jupiter conjunctions happen once a year. The one before 1927 happened on the 25 th January, 1926, and Robert Gordon’s rst trade was one year later on the 24 th January, 1927. When you do the natal chart for 1926 you will see that when he wrote the book transiting Venus was conjunct the natal Moon and transiting Moon was conjunct natal Neptune. The day Marie Stanton disappeared, Venus was transiting the South Node. I was thinking Marie Stanton was an unusual surname, so maybe Stanton stands for stations of planets. There is a small town in Texas called Stanton which is 488 miles from Texarkana, Texarkana, where Robert Gordon was born, and there’s 487 miles from Lufkin, Texas, where Gann was born, to Stanton (487 x 3 = 1461 the Sothic cycle in years). There’s 1927 miles from Stanton, Texas Texas to Stanton, New WWW.TRADERSWORLD.COM


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York, the year TTTTA was written. The numbers 488 – 418 pages = 70, 487 – 144 = 343 (7x7x7). Pages 332, 333, 334 have “Tunnel thru the Air” nine times, 16 letters x 9 = 144. Marie was born a Libran, which is ruled by Venus. Her Venus was just past 144 degrees or 24 Leo, and Robert was born a Gemini, which is ruled by Mercury. He says Mercury is “price” in the book. I looked for the stations of Venus and it was on her birthday 6 th October, 1911 (her birthday in the book is 6 th October 1908, there’s is another one he was using as well). Use this chart and you will nd some interesting things to do with Marie, like its 7634 days to the 1932 eclipse (53 x 144 = 7632). Back to the chart I used because it is the rst opposition of Sun/Jupiter to the sign Leo, which is the rst sign of the zodiac in the Bible, and it doesn’t happen for another 12 years. The sign of Aquarius is the rst sign after winter and it was at 334 degrees of the circle. When Robert Gordon bought on the 24 th January, 1927, Jupiter was at 1 degree Pisces, and when he sold on 8th September, 1927, it was at 1 degree Aries (361 square of 19), and Jupiter had moved 30 degrees. The 9 th September, 1926 was the Hebrew New Year, so 1 year to the Cotton high. Anyone who has his scale for planets knows that he use 12 points per degree for Jupiter. 30 x 12 is 360 this is 30 degrees Aries, 720 is 30 degrees Taurus, 1080 is 30 degrees Gemini etc. He bought Cotton at 13.80 cents/lb., which times 12 is 165.5, Jupiter at 331; half is 165.5 or 50%. This is 15 degrees 30 minutes Virgo; Mars was 16 degrees Taurus (120 degrees) on the day he bought (Venus is like a smaller Jupiter) was at 18 degrees Aquarius when he sold it was at 18 degrees Virgo or 150 degrees. These charts are set up for New York, where Gann lived at the time of TTTTA. I haven’t ever talked about the number 1728 before… well there’s lots I never talk about. As Gann said it stays a secret only when you keep it yourself and don’t sell it. But I may drop in the odd gem now and again just to keep the housewife astrologers on their toes. I will get back to that number soon. First you must print out all the Jupiter/Saturn conjunctions, oppositions, parallels and contra-parallels. The same as the Sun/Jupiter. You have to print out all the charts from the great Mutation chart in 1842 to say 2100. Now Jupiter in magic squares is 4 and Saturn is 3 (3 x 4 = 12). The magic square of Jupiter has some powers, like all the numbers in each direction adds up to 34 (34 is the chapter that is missing in TTTTA). Benjamin Franklin had a magic square and circle of 16 (4 x 4), and he also was a Mason. If you had done any major studies, you would know that Jupiter is the only planet that makes a square in the sky based on astrological points. Jupiter is at Aphelion approximately 15 degrees Libra and Perihelion at 15 degrees Aries. Jupiter is exalted at 15 degrees Cancer and in its fall at 15 degrees Capricorn. These are all 90 degrees apart making a perfect square or cross.



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Robert Gordon was born on 9 th June, 1906, when Venus was at 15 degrees Cancer, and he made his greatest discovery when Pluto was at 15 degrees Cancer on 19 th June, 1927. He got together with Marie on 30 th August, 1932 (eclipse), when Mars had just passed 15 degrees Cancer, after she disappeared on 5th June, 1927. He wrote the book when Mars was at 13 degrees Cancer. He made his rst trade when moon was at 15 degrees Libra. He expects the stock market to close when Venus was at 15 degrees Libra in 1931. Each of these charts is important when you are looking up a certain year. You will recall in Gann’s stock market course he said that “the year 1936 will following close to the 40-year cycle of 1896”. He is saying here to look at the planetary alignments that are close to the current year in the 20-year cycle. That year was a Jupiter contra-parallel Saturn which was on 1st September, 1896. Parallels have the same eect as conjunctions and contra-parallels the same as oppositions.

You know the book was written on the 9 th May, 1927, but why? I haven’t shown you this before. On the 9 th May, 1911 there was a Jupiter contra-parallel Saturn. In that Natal chart, there is a Venus conjunct Pluto at 26 degrees, 22 minutes Gemini and the ascendant was 23 degrees, 48 minutes Sagittarius for New York. Venus was exactly at 26 degrees Gemini on 9 th May, 1927, 16 years later which is two Venus/Sun cycles of 8 years, as he gave you an idea about with the 16 planes on the cover. In his book, he forecast that the stock exchange would close on between the 3 rd and 5th of October, 1931. This was also 333 days from 30 th August, 1932, 333 being half the beast number of 666. They did talk about it closing, but it didn’t, and there was a good low before a big bounce. How did he do this? Well one of the charts is this 1911 chart, why because its 20 year to 1931. This is not the main reason but on that date Mars was transiting the south node of that natal chart. The natal chart of 1842 and the natal chart of 1911 have Mars nearly in the same place at 12 and 15 degrees Pisces. WWW.TRADERSWORLD.COM


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In the book Gann said he made his greatest discovery on the 19 th June, 1927, and the Sun was also at 26 degrees Gemini on this day. Gann was calling for a top on 8 th September, 1927 in Cotton at 24.40. This price equals 22 degrees Capricorn at 12 points per degree. At the low in 1932, Mars was at 19 degrees Taurus making another 120-degree angle from the high. One of the reasons was that the Jupiter/Saturn conjunction before 1927 was on 10 th September, 1921, 6 years or 72 months (half square of 144) from that date. Mars conjunct the Jupiter/ Saturn of 1921, Mercury/Venus conjunct at the same degree as the Sun on that date. There are 77 Natal charts you can make up from 1842 to 7th August 1940, which is the Jupiter/Saturn Conjunction at 14 degrees Taurus, which is close to the Mercury/Sun natal chart of 1911. On the 5th June, 1927, Marie Stanton disappeared, it has nothing to do with page numbers, that’s just nappy Gann. There are a number of things, but two relate to the charts I have been talking about. Mars was at 29 degrees Cancer when she disappeared. Mars was conjunct the natal moon of 1842 and conjunct the part of fortune opposite Uranus in the 1911 chart. It was an unexpected disappearance. In the book he was expecting a great depression and war. The stock market topped on 3 rd September, 1929, when transiting Saturn was on the ascendant chart of 1911. If you look at the Jupiter/Saturn parallel chart of 15 th July, 1917, you will also see Jupiter was in Gemini. There are 144 months from 1917 to 1929. The Great Depression had to do with transiting Uranus conjunct the Natal Pluto in the 1842 chart at 19 degrees Aries. This happened in April 1932 to January 1933. Pluto squared natal Pluto from August 1930 to June 1931. Saturn in Capricorn is bearish and in conjunction with the Jupiter/Saturn chart of 1842 in February 1930, there was a lower top in April 1930 before we went down to the low on July 9 th 1932. Transiting Neptune trine the 1842 conjunction from June 1932 to July 1933. I also have his Jupiter/Saturn table from 1800s which isn’t in the public domain.

Table of the next few Jupiter/Saturn Charts to be drawn : Gann said you could predict 100 years or 1000 years just as easy as 1 or 2 years in advance with small adjustments for the smaller cycles. This is what I’m pointing out here. If you buy Gann’s Ephemeris from 1941 to 1950 (get it from Lambert-Gann before they run out), you will see he’s marked all conjunctions etc. from Mars to Pluto, that’s a lot of natal charts he was doing for markets. If you look, he’s marked 9 th May 1948, exactly 21 years from TTTTA. No one marketing Gann material is doing this sort of work… save your money and don’t buy any Gann material except all the books on Gann’s reading list. You aren’t looking for anything to happen on the day of the chart, aspects don’t work like that, there’s 1000s of aspects each year, sometimes it does happen but in most cases nothing happens. The Jupiter/Saturn aspects only work 35% of the time, and you can’t trade with that like the housewife astrologers believe you can. The conjunctions of planets are explained in WWW.TRADERSWORLD.COM


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Sepharials book T r a n s i t s a n d P l a n e t a r y P e r i o d s . In the Ephemeris you will see dierent markings of the “Averages of Planets.” They seem random, but they aren’t. They come from some previous time period which could be 100 years or 1000 years before, or some aspect or eclipse. You will just have to do your own work, as there’s no one that can help with this. The book’s subtitle is “Looking Back from 1940”. Well, there are three Jupiter/Saturn conjunctions, 7th August, 1940, 19th October, 1940 and 15 th February, 1941. I mentioned the importance of 1728 earlier. There are 6906 days between the 1921 and 7 th August, 1940 conjunctions. 6906 divided by 4 is 1726.5 days. 1728 + 8271 is 9999. I have written about the eclipse of 30 th August, 1932 before, and from here to the day the book was written is 1940 days. 1940 days x 4 is 7760 days, 1728 x 4.5 is 7776 days again the dierence of 16 (planes). From the 9 th May, 1927 to 18th August, 1940 is 4850 days (1940 x 2.5). The yards in a mile is 1760, 1760 – 1728 is 32 (16 x 2). 1728 has other meanings, 576 x 3 (square of 24). The Precession of the Equinox is 25,920 years (1728 x 15). 25920 is also 144 x 180. 360 x 72 = 25920. The Bible number of 2300 years minus 1728 is 572 (just 4 o 576). 2300 – 1940 (I think the Bible number is 2304) is the circle or 360 degrees. Take 25920 – 23040 (2304 x 10) = 2880, twice 1440 which is minutes in a day. The major low on 2nd March, 1921 is 2300 days to 19th June, 1927, when Gann made his greatest discovery. Cotton topped on 8 th September, 1927 when Mercury was at 19.40 Virgo, in its own sign. Gann’s great time cycle is 56 years 7 months and 23 days or 20736 days (144 x 144). Guess what 12 x 1728 is 20736. Gann averaging of planets! Gann, I believe, was using energy the same way Nikola Tesla was, those same numbers 6, 3, 9 (triangle numbers) were important to him. Gann has marked averages of 9, 6 and 3 in his January 1949 Ephemeris. Tesla worked for Thomas Edison in New York when Gann was in New York. 369 + 963 = 1332 (666 x 2 ). 1335 (Bible number) + 5331 = 6666. He had a machine called the “Egg of Columbus” which is the name of one of George Bayer’s books (another coded work), who was also a Financial Astrologer. George Bayer was also a wealthy man. There is also more in his book G e o r g e W o l l st e n on page 165 he was staying in room 418, same number as pages in TTTTA. In Hebrew Gematria the number 418 is the total of the magical formula “Abracadabra.” Also, it looks like L. J. Jensen copied some works to what he was doing before he died in 1981. Jensen was two years old when Gann started trading, how could he have taught Gann, as some claim? You can’t just average the planets and run them through the commodity chart as support and resistance lines, he’s doing much more than that, that’s so simple you can do that in your head, its not a revelation. Gann averaged the planets way back in 1927 and before this date. I was going to ask a question, but no point, since none of the Gann experts every answered any of the other questions on averages, so I will just give you the question and the answer: WWW.TRADERSWORLD.COM


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Question: What trade date in the book did Gann average planets to geometries with the cover? Which planets? Answer: Robert Gordon’s rst trade was on 24 th January, 1927 and the average of Jupiter and Saturn was 288, twice the square of 144 (the overlay that ts on the cover). On page 288 is the largest typing of the letters in the book. The number of books in the bible is 66, 288 + 66 is 354 the moon cycle. The pages in the book, 418 – 354 is 64 the square of 8. His rst trade is on page 66. 288 minus 150 is the price of 13.8, on page 96 he bought Cotton for Marie Stanton, he said 17th March but I showed you in previous articles it was the 15 th March. 96 is two-thirds of 144. The average of eight geocentric planets (8 planes in death square) on Robert Gordon’s birthday is 144. The major low in Cotton in 1921 average 168 of Jupiter/Saturn, Mercury and Venus were at 168 degrees or 18 degrees Virgo at the top on 8 th September 1927. I have to give some very small clues as these people aren’t even close to know what he was doing, so lets run through some really simple stu. I’m not giving you the “KEYS” as people just copy my stu for their own seminars. Take the lunar eclipse of 25/7/1926, it’s 288 days to the 9th May, 1927 (average of 3 planets, Geo = 216, 72 x 3 =216, 72 x 4 =288) when Gann wrote TTTTA. 288 is twice 144, the square that ts over the book cover, which is also in previous articles. It looks like he changes the averages for dierent commodity and stock markets, and has dierent triggers for them, I’m still working on it. Maybe 5 years work just on that, I guess this is why he never sold his secrets. Important dates from 25th July 1926 are: •

Robert Gordon’s rst trade 24th January 1927 is 183 days or 180 degrees.

•

Marie Stanton rst trade 17th March 1927 at 13.90, Cotton never traded at 13.90 except on 15th March 1927. These are 233 days and 235 days. Add these together equals 468, plus the reverse equals 864 is 1332 double the beast at 666. Also 864 is 144 x 6 or 288 x 3.

•

The day Gann wrote the book is 288 days to 9 th May 1927

•

The day Marie Stanton disappeared was 5th June 1927 was 315 days, 315 degrees of 7/8th of circle or 3.00 am (the time she disappeared) or 4 th February on the square of nine.

•

Sell July Cotton 1st June 1927. 7 th June 1927 buys October and December Cotton, sells October and December Cotton 10 th June 1927 The 10 th June is 320 days, 40 x 8 or 9 th of a circle.

•

10th June 1927 he expects Cotton to top 5 th or 6th September which is 87 days away, minus 87 days to get the 15 th March the day I think Marie Stanton bought Cotton. Robert Gordon is 21 years old and 1 day, 21 is 3 x 7.

Why is the 10th June so important? Add 5 years to it and you get the exact low of Cotton WWW.TRADERSWORLD.COM


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in the depression on 9th June, 1932. There is something about the purchase date of Cotton on 25th June 1927, it’s the only buy and sell gure that ends in a 3 (16.83) why? This number will give you an important date in 1927 when you play around with it, the 16.83 contains a code date which is very important to unlocking one of the codes to the book. All the other trades end in zero except the buy dates of December Cotton on 25 th June and 6 th August at 17.15 and 17.35 which end in “5”. What else is he trying to tell us? Some homework. Ok, I will tell you 17 x 15 = 255, 17 x 35 = 595, 595 + 255 = 850. Add 850 days to 9 th June, 1906, Robert Gordon’s birthday, will give you 6th October 1908, Marie Stanton’s birthday. This is part of it, as the low in May Cotton was on 6th October 1908 @ 8.26, 3 x 8.26 = 24.78, the high was 24.50 which was also twice the 4th December low of 12.25. What Gann is really saying is to study all the Cotton prices from 1906 to 1932. Then you have to study all the astrological cycles as well, but not housewife astrology, which you can nd all over the world. There are most likely 14,400 of them on the planet, nothing special there. I have all the daily Cotton data going back to the 1890’s, which I brought from the N.Y.C.E in the 1990s. The exchange was destroyed on 9/11, so it is mostly likely hard to get the true data anymore. You need all the daily Cotton data on the contracts he’s talking about from 1906 (Robert Gordon born) to the end of 1932 to work out correctly what Gann was doing in TTTTA.

All Cotton trades in TTTTA: 24th January 1927 RG buys July Cotton @13.80, 49 (7 x 7) days after the low 1st February 1927 WK. buys July Cotton @13.70 17th March 1927 MS buys July Cotton @13.90 1st June 1927 sold all July Cotton 7th June 1927 RG, WK, MS buys October and December Cotton 10th June 1927 sells October Cotton @17.30 and December Cotton @17.50. Start “Robert Gordon’s Great Campaign in Cotton”, Chapter 16 (number of planes on cover) page 195. 90 days added to this date gave 8th September 1927, the end of the bull market. 25th June 1927 RG buys October Cotton @16.83, December @17.15 25th July 1927 RG sell Cotton 30th July 1927 shorts Cotton 5th August 1927 buys December Cotton 6th August buys December Cotton@ 17.35 9th August sells December Cotton and goes short. 13th August buys December Cotton 19th August buys December Cotton 22nd August buys December Cotton 27th August buys December Cotton 29th August buys December Cotton WWW.TRADERSWORLD.COM


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8th September sells December Cotton @ 24.40 and goes short @24.50, End of Bull Market. Predicts this in the book to the day and price. 9th September sells December Cotton 11th September sells December Cotton 13th September buys December Cotton 14th September sells short December Cotton 17th September sells December Cotton 21st September sells December Cotton 23rd September buys December Cotton 28th September sells December Cotton 29th September buys December Cotton 3rd October sells December Cotton short 6th October buys December Cotton. If you have Gann’s book How to Make Profts in Co m m o d i t i e s it was this date in 1908 that Cotton bottomed and Marie Stanton was born, 19

years later a Moon/Sun cycle. 8th October expects prices higher on crop report, no trades mentioned.

Square of Nine Date in TTTTA The low on 4 th December, 1926 was 12.25, which is the square of 35 (1225) on the 4 th February line on the square of nine. The numbers go clockwise and the reason for that is the ascendant is xed at the horizons as the signs of the zodiac rotate anti-clockwise towards ascendant, therefore after 24 hours from sunrise you always have numbers 1, 2, 11, 28, 53, 86, 176, 233 etc. You would notice 233 written in this article. You know Chapter 34 was replaced with number 39, well 34 is at the mid-heaven on the square of nine. The highest price RG sold was 24.50 well 2451 is a square to 1225 with dates of 5th May on the square of nine. 411 is opposite 233 and it was 410 days from 25 th July, 1926 to 8th September, 1927 major top in Cotton. It was 49 days from 4 th December, 1926 until RG bought Cotton on 24 th January, 1927, and I have told you in previous article than 1927 is 49 years after Gann was born in 1878, Gann dies 49 years after RG was born in 1906, in 1955. 49, the square of 7, lies on the same as line as 1225 where all the odd square numbers sit. RG buys at 13.80, 13 x 80 = 1040 the exact years of the Sun/Moon cycle in the bible. In the previous article I showed you that the square of nine was used in India as a tea calculator, which is used with the Moon, as Moon is the magic square of nine. The lunar eclipse Moon was at 278 degrees and Sun was at 98 degrees, 360 – 278 = 82 + 98 = 180 which 180 degrees from zero on the square of nine or 22nd September or sunset. You are aware that there is 1940 days between the date the book was written and 30 th August 1932, which was the last date in the book and an eclipse. Half of 1940 is 970, 970 is in exact line with RG buying the price of 1380 on the square of nine. 20,736 Gann’s great cycle WWW.TRADERSWORLD.COM


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is 288 x 72. 1940 + 288 = 2228, 2300 (Bible number) – 2228 = 72. On page 108 of TTTTA he says, “the great plane described by Ezekiel, the eagle with the wheel with in wheel, would one day be reality”. 108 is half of 216, and the word Ezekiel is also on page 72 and 180. 72 + 108 + 180 = 360, which is time. On the square of nine chart 216 degrees is between 202.5 and 225 degrees line up with 418, the number of pages in TTTTA. 216 is 6 degrees Scorpio.

Eclipses 1926 & 1927 I don’t want to do all the work for you, but clearly the book is broken into a few parts, before and after 9 th May, 1927, and before and after 10 th June 1927. Before and after 30 th August, 1932 and the dates looking back from 1940. are is six eclipses in 1926 and ve eclipses in 1927. The eclipse I’m presenting here is the last one before the low in Cotton on 4th December, 1926 which is 25 th July, 1926. The Moon conjuncts Mercury in this eclipse chart on 25th January, 1927, 15th March, 1927, 9th May, 1927 and 5th June, 1927. Have a look above to see the dates they trigger. Why did the great Cotton campaign start after his 21 st birthday on 9th June 1927? Because Mars and Venus on that day were conjunct the sun of this eclipse chart. This is the 96th eclipse after Robert Gordon was born, 96 is ¾ of 144 and there are 123 to the last eclipse in the book. You need to look at the other eclipses in 1926 & 1927 for some more clues. As you can see this book has more codes than anyone ever dreamed of, which what you would expect from such a brilliant man. I showed you in a previous article that TTTTA was using the averages of planets. Gann had everyone sign a non-disclosure agreement on these secrets, so only the people who had completed his $5000 course could have access to them. Now if you study his personal Ephemeris you would see that he averaged a number of planetary combinations, but he also left a number out, but this is for you to gure out... I have found that he was using dierent averages for dierent markets. But let’s start with TTTTA, Robert Gordon’s birthday using the average of “9” is 136. Marie Stanton is 153 (the shes in the Bible), add these two together you get 289 t he square of 17, double 17 is the chapter missing in TTTTA which is 34. When Robert Gordon bought Cotton on 24 th January, 1927, Saturn was at 5 degrees Sagittarius, which is 245 degrees, the average of 4 planets Geo was at 245 degrees. On 26 th July, 1926 (Eclipse date) Neptune was at 153 degrees. When you average Venus, Sun, Jupiter and Neptune Geo you get 216 (144 + 72) on the day Marie Stanton bought Cotton. Using the same planets, the low on the 4 th December, 1926 averages 243, put a point at 24.3 and you get close to the high. Now you can see that Gann probably wrote a booklet (it would have to be at a guess WWW.TRADERSWORLD.COM


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more than 20 pages, because I could do that and don’t know what he knows), on planetary


averages for his clients. God knows how much


he sold that for, but it would be clearly to only for the very wealthy clients and selected few. The averages aren’t what you see on software


programs, that’s nappy Gann. Unless you have worked out his lottery system, horse racing system, and stock and commodities, you aren’t a Gann expert. I’m still learning after 35 years. No one will ever be a Gann expert because they don’t know how he was using the numbers and cycles, they are guessing most of the time. Above is a very small part of what Gann knew, I’m just


scratching the surface.

Read articles explaining classical trading techniques, such as W.D. Gann, Elliott Wave, astro-trading as well as modern technical

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analysis explaining indicators in eSignal, NinjaTraders, MetaStock & Market Analyst.

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David Burton has been using the Gann


methods since 1983 for predicting weather,


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Unleashing the Power of Hidden Divergence While Limiting Risk on Entry By Gail Mercer

Hidden divergence is one of the most powerful types of divergence because typically there is an immediate acceleration in price. Since hidden divergence identies the move early, it is considered a leading indicator for future price action. Utilizing hidden divergence setups, traders can enter trades with an expectation of a quick move in their direction. Although hidden divergence is a very easy pattern to describe, for most traders, it is quite often the hardest to identify on the live edge of the market.

Identifying Hidden Divergence – Short Entry Identifying hidden divergence is easy to do provided that the trader is measuring highs and lows in both price and an oscillator. In this case, the oscillator is the Stochastic. With hidden divergence, price should be making lower highs but the oscillator will be making higher highs (or lower lows). For example, in the 15-minute USDJPY chart below, both Points A and B on the price chart show that price is making lower highs. However, Points A and B on the Stochastics is showing higher highs.



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Immediately after the hidden divergence appears price accelerates to the downside. This is what is expected after hidden divergence appears. A trader can enter a short trade, once the hidden divergence appears, and set his stop to just a few ticks o the high (or low if going long) for a very low risk entry point. Additionally, if trading binary options the trader could also enter one to two strike price away from where price is currently trading for a very low risk binary option trade.

Identifying Hidden Divergence – Long Entry In the example below, the E-mini S&P 500 is making higher lows but the Stochastics is making lower lows. Again, an excellent opportunity for a low risk entry. The stop would be just a tick or two below the low that is forming the hidden divergence or, if trading binary options, a long entry one to two strike prices from where price is currently trading.



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Benets of Trading Hidden Divergence The benet of trading hidden divergence is that it is a leading i ndicator and, when combined with the power of price bars, immediately identies where price should go. This provides the trader with an edge because the future price movement is identied. Of course, sometimes all patterns fail to perform. This is where the disciplined trader is able to re-analyze the price chart and “scratch” a trade with either a minimal loss or at breakeven. In other words, if price does not perform as anticipated, re-evaluate and, if warranted, exit the trade.

Which Markets Does Hidden Divergence Work On? Since hidden divergence relies on price action and the oscillator, it will work on all markets. It is a leading indicator that quickly identies where price should go. For example, on the Gold futures 15-minute chart below, price is making lower highs and yet the Stochastics is showing higher highs. A leading indication that price will accelerate to the downside.

As the chart below reveals, subsequently Gold dropped from a high of 1318.50 to 1306.90 or 116 ticks.



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By incorporating a powerful technique like hidden divergence, traders can easily identify: Where price should go in the future; Where to place their stop to lower their risk on entry; and Provides a benchmark for analyzing whether price is performing as anticipated. To learn more about using hidden divergence for entering trades or how to incorporate hidden divergence with trading binary options, simply visit our online training courses by clicking here.



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Algorithmic Trading;

Stocks, Options, Futures, FOREX

traditionally reserved for big banks and hedge funds, now available for you:

SOFTWARE Real-time charts with no annual fees. `

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Call: +1 866 455 4520



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Trading Hype Cycles of the Financial Markets By Thomas Barmann from NeverLossTrading

The market behavior of the nancial market participants is NOT distributed or explainable by a “normal” distribution or Bell curve. Thus, statistical methods and mathematical based indicators that consider a normal distribution have a high likelihood for not giving you the tools on hand for a high probability price prediction. Examples for widely used technical indicators that assume a normal distribution are: Bollinger Bands, MACD, Moving Averages…

Chart-1: Normal Distribution Curve



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The characteristics of a normal distribution curve are: •

It is symmetrical: Half the cases are to one side of the center; the other half is on the other side, where it is assumed that the percentage of data is distributed by the standard deviation.

•

The distribution is single peaked.

•

Most of the cases will fall in the center portion of the curve and as values of the variable become more extreme they become less frequent.

•

The Mean, median, and mode are the same.

•

Percentage of cases in any range of the curve can be calculated.

The nancial markets react more in what is explainable by a price development similar to a Gartner’s Hype Cycle.

In our research, we dierentiate a Demand Based Hype Cycle and a Supply Based Hype Cycle. Your important takeaway from this: Hype Cycles are repetitive and predictive and thus can build a very valuable tool for your trading. Hype Cycles are created in all asset classes: Stocks, Options, Futures, FOREX. Over time, we built multiple systems that help you as a private trader or investor to participate in the initiation phase of a Hype Cycle and exit your trades prior to the hype coming to an end.

Chart-2: Demand Based Hype Cycle by NeverLossTrading



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Characteristics of a Demand Based Hype Cycle: In the initiation phase, an asset comes in demand and as a result: prices rise. Other market participants recognize the demand and jump in, creating the hype; letting prices for the asset rise strongly in a short period of time. In the next phase, market controlling forces ood supply and create fear in the late investors, rebalancing their inventories, triggering a sello and dropping asset prices. When a certain price point is reached, additional demand then triggers the second phase of the

Hype Cycle and prices rise, breaking the prior high. Such cycles repeat themselves until they stop and produce either a haltering price pattern or a

Supply Based Hype Cycle.

Chart-3: Supply Based Hype Cycle by NeverLossTrading

Characteristics of a Supply Based Hype Cycle: In the initiation phase, an asset faces additional supply and as a result: prices fall. Other market participants recognize the sello and jump in, creating the hype; letting prices for the asset fall strongly in a short period of time. In the next phase, market controlling forces reduce the oered supply and create fear for the WWW.TRADERSWORLD.COM


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late investors, to rebalance their inventories, triggering a short covering demand and rising asset prices. At a certain price point in time, additional supply then triggers the second phase of the Hype Cycle and prices fall, breaking below the prior low. Such cycles repeat themselves until they stop and produce either a haltering price pattern or a

Demand Based Hype Cycle. The key question: What is the underlying structure that triggers this happening and how can you benet from knowing this? Institutional investors are responsible for 95% of all nancial market transactions. They are initiating and creating the hype cycles. For our trading, we use a model where our indicators and scanners express and nd the initiation of a hype at an early phase and we only trade, when other market participants conrm the new price direction by either driving rising prices up or falling prices down, using the following model:

Chart-4: Activity Based Trading Model by NeverLossTrading Thus, as a trader you operate at any point with clearly spelled out price thresholds for entering a trade: Buy > $100, Sell < $90. This way, you can prepare your trade entries in advance with Buy-Stop- or Sell-Stop-Orders, getting you only into a trade when the specic formulated conditions are reached. In addition, at entry, you as a trader should know how far potentially the price move reaches WWW.TRADERSWORLD.COM


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before an opposite facing price move is initiated. In our systems, we use a volatility based measure called SPU: Speed Unit, which denes bar by bar the minimum expected price move at trade entry.

Chart-5: SPU Measure (NeverLossTrading Specic Indicator)

Prepared with a dened entry and exit price, you now need to nd your stop price level on the chart to decide if the odds at trade setup are in your favor or not. Let us do such operation with the help of the NLT Top-Line Chart:

Chart-6: AAPL Daily NLT Top-Line Chart June 22 to August 12, 2016



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The chart shows you how our indicators help you to participate at each of the demand triggered hype phases, producing strong directional trades with high predictability, helping you to prevent getting stopped by increased supply letting the asset price drop. By us using a fractal based math, we help our traders to repetitively spot and follow supply- or demand based price patterns for all assets and time frames. We oer multiple systems that we always tailor to your specic wants and needs as a private investor. To help you learning to trade with our systems, we teach in individual sessions: one-on-one, at your best available days and times. All training sessions will be recorded, helping you to repeat the learned at your leisure; learning like a professional athlete, to take repetitive actions when favorable chart situations occur. Our systems work for day-traders, swing-traders, and long-term investors. Take a look at our ofering and if you see a t, please do not hesitate to schedule a live

demonstration: Call +1 866 455 4520 or [email protected]

Our introductory system is called TradeColors.com and if you decide to start entering the world of algorithmic trading with this system, you can always upgrade to a higher level trading system, getting the tuition you paid acknowledged at the upgrade. Here is a chart example and again, you will see how the price development on the chart follows a supply- or demand based hype pattern and how our system helps you to nd solid entries and exits:

Chart-7: GBP/USD on a 20-Minute TradeColors.com Chart, August 29, at 7 a.m. EST



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Now that you know what to look for, you surely spot the supply based hype cycle, which was initiated at 2 a.m. EST, with short covering at 4:40 a.m. and then the breakdown at the current candle. How to trade such situation? With TradeColors.com you get a potential trade initiation when a new set of two-of-the-same-

color-candles is formed and the following candle, in this case: a red-candle-sequence, takes out the low of the second candle. The Target of the trade is highlighted on the top of the chart and changes bar-by-bar: At the current bar: 10-pips or a maximum of an 18-pip price-move are projected. Let us now highlight on the chart, how many trade situations were initiated and the results that were achieved:

Chart-8: GBP/USD on a 20-Minute TradeColors.com Chart, August 29, at 7 a.m. EST



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You can see two trade setups of the Supply Based Hype, highlighted in orange. In both cases the candle that followed the trade-setup-phase took out the low of the second candle of the sequence, initiating two trading opportunities: both came to target. The stop of each trade was one-pip above the high of the second initiation-sequence-candle and thus, the stop was not triggered and the two setups resulted in winning trades. How do you nd such trade setups without going through many charts? There are two alternatives of how you can nd your favorable NeverLossTrading chart setups: Watch list or market scanners: NLT Top-Line oers both alternatives, where you can either scan the markets, specic industry segments or nd preferred assets with a potential trade setup in your watch list. TradeColors.com oers you for three time frames, we let you determine, to operate a watch list scanner. NLT Alerts: For all systems, we oer Excel base NLT Alerts, where we scan the markets for you and supply you with a report that tells you where prices move. The NLT Alerts are made for day traders, swing traders and long-term Investors. All NLT Alerts are subscription based and you receive them via email. During the rst phase of your mentorship, those alerts are delivered for free. Take a look at our ofering and if you see a t, please do not hesitate to schedule a live



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demonstration: Call +1 866 455 4520 or [email protected] Without a trading system that follows a hype based price pattern, you might see the following:

Chart-9: AAPL Daily Chart with MA-Crossing, June 22 to August 12, 2016

Following the rules of the MA-crossing, one trade potential was delivered (highlighted in orange) and in the aftermath, it shows that the price pattern followed a Demand Hype; however, if you go back to the AAPL-chart (chart-6), you see how our system anticipated the pattern and gave you three clear cut trading opportunities: a 300% higher productivity and at each trading opportunity, you knew where to take prot, while with the chart above it is doubtful if you were able to produce a win from the highlighted trade setup. We hope this gives you an idea of how hype based price patterns are repetitively produced by institutional market activity and how you can spot and follow those. By training one-on-one, our capacities are limited, please do not miss out and schedule your

personal live demonstration without obligation. Call +1 866 455 4520 or [email protected]

If you are not yet signed up to our free trading tips, webinars, and reports …click here. We are looking forward to hearing back from you. Good trading, Thomas Disclaimer, Terms and Conditions , Privacy | Customer Support WWW.TRADERSWORLD.COM


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Invisible Walls: Turning Your Fears into Personal Power T h e T r u t h i s i n t h e Ey e o f t h e B e h o l d e r - - P l a t o By Rande Howell

Blinded by the Beliefs You Bring to Trading With a subconscious set of mental lters formed from his or her beliefs and experiences, every trader interprets the same information dierently. How does this work in trading? You know it’s possible to trade at a higher level, but something keeps getting in the way that you cannot see. It’s frustrating. You see a small, elite set of traders succeed at trading day in and day out while you continue to struggle. It’s mystifying? On the surface, both the elite trader and you know their stu. So it’s not so easy to see what separates them from you. Both of you can “talk the talk”. They don’t work any harder than you (maybe even a good bit less). So, what gives? What you notice is that they do seem to be to be able to keep their act together in good times and bad. They don’t seem to crumble with fear, nor do they get over condent and do stupid things. Maybe they were born with more talent than you – you know that’s a cover-up though. What does separate you from traders at the next level? Is it that they are just better?

None

of that. The biggest hurdle that challenges the growth of a trader is not more knowledge – it is self-knowledge. What do you really believe about yourself when no one else is looking? Getting to know what makes you tick under pressure is what traders avoid until there is no choice. Yet, this is the dierence maker. Indeed, struggling traders steer clear of really getting to know themselves under pressure for as long as they can. They can “talk the talk” of trading, but never grab the bull by the horns and learn to “walk the walk”. Often, until they simply run out of capital or have squandered too much time. Meanwhile, the journey of the elite trader is characterized by turning toward the discomfort of facing down his or her self-limiting beliefs. Ultimately, a trader comes to a fork in the road. They have to learn to see (and change) what they do not want to see about themselves. This is like taking a fearless inventory. Do they want to continue the same old patterns of mediocrity? Or do they want to come to grips with what they have been avoiding?

Do they want to continue the ction they have been WWW.TRADERSWORLD.COM


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telling themselves about success being around the corner?

Or do they want to get to know

themselves and actually do something about their underlying fear-based beliefs that compromise performance and the truth they see in the numbers? It is these self-limiting beliefs and biases that have been holding them back. In particular, it is the unacknowledged fear-based beliefs that traders lter information through that torpedoes your quest for trading success. And by continuing to see through the eyes of fear, they have been blind to the path leading to the next level. What does this look like in trading? In fearbased perception, performance is rooted in self-limiting beliefs about adequacy and personal power. In impulse trading (chasing trades), it is about proving your worth by winning.

Turning Fear into an Asset Fear is the oldest of emotions. It is far easier to avoid dealing with a threat than it is to deal with it head on. Early humans learned this survival wisdom and learned to avoid dealing with threats head on. Fear was simply an adaptive response that was successful for survival. Fear was so successful a response to threats in the environment that it was bred into our genetic heritage as a trait. It is here that the seeds of poor performances in trading happened. Humans evolved with a prime directive to control their environment as a way of ensuring survival success. It was imperative to control outcomes. Anything unknown was considered a threat until proven otherwise. The unknown was threatening. It was avoided through fear or attacked through aggression. Even this response to threat was encoded into our emotional nature as the ght/ ight response. The problem with this solution was that it pitted two drives against one another – controlling environment and outcome vs. embracing the unknown – that manifested itself long after the biological threats to survival disappeared from caveman’s world. The emotional brain was still designed to be on the lookout for biological threats to its existence to attack or avoid when it encountered the unknown.

When applied to trading, these two drives collide in a spectacular

way. The emotional brain has a drive to control outcome in the short term, while trading presents a situation where the outcome is unknown and the trader has to learn how to embrace the uncertainty and vulnerability of the unknown. Something’s gotta give. Until the trader learns to re-train the brain into embracing the uncertainty and vulnerability of not knowing, a trader’s psychology is no match for the powerful survival drives that give rise to the mind that engages uncertainty. It is here that the trader has to start doing something completely unnatural to the self that evolution has organized – the trader has to turn toward the fear of the unknown represented in risking capital (life) while trading and change the response. The fear lets you know the old survival programming is activated – that’s the asset – now it is time re-train the brain to move from self-preservation



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in the short term to probability thinking for long term benet. This is the training that the elite traders have done, one way or the other, to create the mind and psychology to embrace the uncertainty and vulnerability of the unknown.

The Brain and Mind on Trading in the Blink of an Eye The vast majority of trading decisions are made in the blink of an eye – and totally – outside of working awareness. The brain already had a working model of the world that it projects “out there”. There it works behind the scenes keeping you safe on a path through the dangerous jungle of threats all around you. You would never know it is there until you begin to question why you keep doing the same things that short circuit your long term potential of winning for a short term survival response to the threat of risking capital. Most will never notice that you “see” through the eyes of survival in the moment even while you rationally “talk” about risk and reward while following your rules. Your conscious mind thinks that it is in control and that you have an “edge” because of your rules.

It all seems so

very tame until the rational mind is hijacked. Then real capital is put at risk, and all bets are o. Suddenly, the “talk” of risk and reward from a logical mind is simply snatched away and replaced by a mind that equates capital at risk with a biological risk to life in the moment. Your logical trading rules that give you an edge are gone. Your Sarasympathetic nervous system (SNS) has triggered and taken over your trading mind. You are in ght/ight. You are either trying to avoid short term loss of capital (life) or you are using aggression to attack the source of a threat from the unknown. When the smoke clears, you wonder what happened. You knew what to do, but you could not do it under the pressure of risking capital. You really could have lost that money if you had risked it. Or if the ght/ight hijacking occurred during trade management – and the trade was going against you – you may have aggressively thrown more money at a losing position in a ght to get back what was being taken from you. It happened so fast. In the heat of the moment, it seemed like the right thing to do. But now that the situation has passed and you have cooled down, you discover (yet again) your emotions have betrayed you. You did exactly opposite of what you should have done rationally. This is the collision between the interests of your emotional brain with its emphasis on short term survival (nanoseconds) and your logical mind that seeks an advantage in probable outcomes Think about this hijacking in the blink of an eye from the perspective of the emotional survival brain. You survived. Either by avoidance or aggression, the emotional brain’s response to the threat to survival keep your alive for another moment. That is exactly what it is supposed to do. The problem is that it cannot tell the dierence between a biological threat to the organism and your mere psychological discomfort when exposed to uncertainty. This is the gap that traders don’t know to bridge. They don’t see it to know they need to bridge it. And until they can learn to see out of something other than fear (trading not to lose,



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trading to win, trading to be right), they will be blind to the perceptual trap that keeps shooting them in the foot.

Calming an Old Brain and Creating a New Mind As long as the trader chooses to deny the fear, the self-limiting belief can never be excavated and brought into the light of awareness. Traders have to learn emotional regulation skills or the emotion stays so reactive that the mind is hijacked as an adaptive response to uncertainty and not knowing. It is in regulating the emotion that the trader can get to the door of the mind. It is here that that he or she gets to examine the beliefs and biases lurking behind the emotion. For the courageous trader this is where trading oers a unique opportunity. The health of your trading account is a direct measure of the beliefs you are projecting upon market information. If it is growing, the trader is demonstrating a set of beliefs that allow the trader to extract capital out of the markets. If it is stagnant or shrinking, your trading account is a direct measure of the self-limiting beliefs that drive your trading performances. Either way, your beliefs about your capacity to manage uncertainty are being revealed by your trading account if you are willing to listen to it. It is also here that you discover that the mind you brought to trading is not going to be the mind that brings success in trading. The mind you brought to trading was built to control its environment and outcome and to avoid uncertainty. And the mind that you need for trading is one discards the illusion of control over short term outcome and embraces the uncertainty of the unknown. Instead of trying to control environment and outcome, the trader teaches the brain/ mind to control the mind that he or she brings into the moment of performance. In regulating emotion, the trader has learned to turn o the life-or-death switch of the ght/ight response and build a mind comfortable with psychological discomfort. This is the key. When uncertainty no longer means biological threat, a new mind based on probability can be designed to deal with uncertainty. This is what the elite trader has learned to do. When biological fear is taken o line, the trader can act from psychological concern. Here, emotions are no longer hijacking the trading mind. The trading mind is focused on performance in the moment, which gives the trader an edge in probability. This is enough. This evolution does not happen by itself. The trader can be a partner in the design of a new mind built for trading. Or it can resist the needed change. But knowledge will never be enough. At the highest levels of performance, everybody has the knowledge. The elite trader has learned how to shift their understanding of uncertainty so that it no longer triggers the brain/ mind to ght/ight response. They have taught the brain to “believe” in probability. And that “belief” is grounded by growth in his or her trading account. It is not easy and it takes work. But it beats the alternative. Either way, your trading account



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Planetary Harmonics and the Law of Vibration in Astro-Trading By Tim Bost

Astro-traders enjoy a unique advantage that most other participants in the markets are completely unaware of. It’s the ability to coordinate an understanding of recurring planetary cycles as an inuencing factor in anticipating the movements of the markets. That ability not only reveals short-term trading opportunities that can be extremely rewarding; with a little extra exploration and reection, it also opens the door to a deeper, richer knowledge of what really makes the markets work. Those planetary cycles can be long or short in duration. In either case, however, with the ability to examine these cycles and to observe the correlations they have with periodic rhythms in the markets, as experienced astro-traders we can gain a perspective which often proves to be a real asset, both in our ability to analyze market dynamics more comprehensively and in our pursuit of more accurate and eective market timing. Markets are always multi-dimensional, and we can improve our forecasting accuracy and our recognition of trading opportunities if we expand our awareness and move past limited assumptions. Experienced astro-traders know that some of the most powerful insights into market dynamics and trading potential come from the interactions of pairs of planetary cycles. While a single planetary rhythm, like the phases of the Moon for example, can often help us

identify trading opportunities that we might otherwise miss, when we combine the cycles of two dierent planets to create an aggregated perspective, exciting things begin to happen. This combined perspective often reveals harmonic interactions and nuances that might otherwise escape our observation. Those insights can activate a livelier and more comprehensive understanding of what’s really going on in the markets, giving us even greater opportunities to prot from the cosmic rhythms that drive price and time. Because planetary cycles are immutable natural phenomena, they infallibly resonate with the core essence of the Law of Vibration. As astro-traders we can thus be condent that we have access to the kind of foundational energies which perpetually express themselves in div erse human endeavors, in economic activities, and in the kaleidoscopic harmonics of the markets.



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For most of us, however, the quest for real understanding of the Law of Vibration is a humbling experience. As we grapple with the intricacies of the markets and persist in our eorts to discern their underlying resonances, it’s easy to feel confused or overwhelmed. Even when we begin to comprehend some of the complexities of the harmonic interactions in the markets, we can often feel awestruck at the remarkable implications of the knowledge that is being revealed to us. That’s why observation of planetary cycles is so important. There is, of course, much more to the Law of Vibration then a simple acquaintanceship with astrology. Even so, planetary cycles are such pure and reliable expressions of the Law of Vibration that they can provide clear guideposts along the way, giving us an essential frame of reference as we strive to understand the immutable rhythms that underlie the movements of the markets.

The Power of Planetary Pairs While there are many ways to connect planetary energies with markets dynamics, a reference to integrated pairs of planetary cycles oers us a reliable starting point for expanding our awareness – not only of the essential nature of the Law of Vibration, but also of the more immediate and pragmatic opportunities that we can access in the markets through the astrotrading advantage. As an example, let’s examine the interactions of the cycles of Mercury and Neptune. As we do so, we’ll consider some of their symbolic and esoteric implications, and then look at empirical research which reveals specic possibilities for market analysis and eective trade timing. The symbolism of these two planets is of particular interest to us in the context of astro-trading. Mercury is associated with communications, with the transfer of value and ideas, and with commercial activity of any sort, including the ongoing auctions on trading oors and online points out, Mercury is also a exchanges. And, as the book M e r c u r y , M o n e y a n d t h e M a r k e t s

key planetary factor in short-term market cycles. Neptune, on the other hand, has a symbolic connection with grand ideas, confusing circumstances, and vaguely-dened concepts. At its extremes it can empower both creative imagination and outright duplicity, and is often associated with self-deception. Neptune is important to us as astro-traders because it can trigger speculative excesses, contributing to major price swings, manias, or market panics. When we look at the combined eect of Mercury and Neptune, then, we are considering the contrasts between rational “business as usual” communications about the ow of transactions in the markets on the one hand, and the urge to succumb to distorted thinking, unwarranted apprehension, or speculative fantasies on the other. In short, it’s the kind of mental and WWW.TRADERSWORLD.COM


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emotional battle that many traders confront almost every day, as they evaluate market trends and search for protable trading opportunities.

Numbers and the Law of Vibration Yet while those symbolic dimensions can elegantly connect us with the psychological nuances of the trading experience, the core resonances that Mercury and Neptune have with the Law of Vibration are more clearly experienced through numerology and mathematical relationships. After all, as W. D. Gann pointed out so directly in his work, the Law of Vibration is ultimately an expression of numerical harmonies and connections, and planetary dynamics are essentially just expressions of those numerical verities. In terms of their relative orbital positions in the solar system, Mercury is the rst planet from the Sun, while Neptune is the eighth. There is thus a strong eighth-harmonic reverberation between these two planets. Our experience in the markets over many years has shown the consistent dominance of eighth-harmonic energies in most trading situations, so this particular planetary

reverberation is especially appropriate for astro-trading. Mercury’s orbital period around the Sun is approximately 88 days, while Neptune has an orbital period of 60,182 days, or 164.8 years. Coincidentally, Neptune’s orbital period is 164 times the length of the orbital period for Mercury. It’s thus worth paying particular attention to the number 164 if we want to understand Mercury/ Neptune resonances. 164 is the product of 19 X 36 – with 19 being a prime number and 36 = 6 2. From the perspective of traditional numerology, 164 reduces to 11, which is considered (along with 22 and 33) a “Master Number” with special signicance. It represents a powerful blend of active and receptive energies, with a focus on uniting mundane human concerns with a more highlydeveloped spiritual or intuitional consciousness that transcends rational experience. In some respects, the nature of the number 11 is quite similar to the symbolic nature of Neptune, which mysteriously allows the realm of spirit to penetrate the realm of matter in a uniquely diuse and spell-binding way. As we look at Mercury/Neptune dynamics, then, we must be prepared for the force of Neptune to take on a dominant ltering role in the relationship, since the essence of the connection – as characterized by the potent number 164 (and its reduction to the Master Number 11) – carries strong Neptunian connotations by itself. On top of that, the Neptunian energy of the Master Number 11 and its eighth-harmonic projections are embodied in Mercury’s individual orbital period of 88 (8 X 11) days. And, of course, the numerical components of this entire set of correspondences are extraordinary in their own right.



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The number 19 is noteworthy in several ways. As we’ve already observed, 19 is a prime number, which the Pythagorean tradition would refer to as an incomposite number, based on an analysis with the classic Sieve of Eratosthenes, which had its origins around 230 B.C. In numerology 19 is often considered to be a potent number of transition, since its emphasis on 9 signals times of completion and conclusion, while its reduction to 1 is a sign of new beginnings. But 19 is also signicant because it is the integer closest to 18.97367 – the square root of 360. Since 360 represents the full unity of the circle, providing us with a consistent context for astrological studies as well as for explorations of harmonic structures, this square-rootof-360 connection is extremely important. It represents an esoteric “squaring of the circle” that connects Mercury/Neptune interactions with some of the most powerful forces operating in the markets today. We should keep in mind, however, the fact that 19 is just one of the two major factors that is brought to our awareness through the Mercury/Neptune connection of 164. The other is 36, which is 62, or 6 X 6. And according to the Pythagorean tradition, 6 is the only “perfect number” between 1 and 10, and aside from 28, is the only perfect number between 1 and 100. The Pythagoreans grouped all even numbers into three classes: superperfect, decient, and perfect. Superperfect numbers are those even integers for whom the sum of their fractional parts is greater than themselves. If we take the number 24, for example, we nd that 1/2 of 24 = 12; 1/3 = 8; 1/4 = 6; 1/6 = 4; 1/12 = 2; and 1/24 = 1. The sum of these fractional parts (12+8+6+4+2+1) is 33, which is greater than 24, making 24 a superperfect number. Likewise, decient numbers are those even numbers for whom the sum of their fractional parts is less than themselves. 14 is a decient number because 1/2 of 14 = 7; 1/7 = 2; and 1/14 = 1.

The sum (7+2+1) is 10, which is less than 14. Perfect numbers are quite rare. For these even integers, the sum of the fractional parts is exactly equal to the original number. The Pythagoreans would thus describe 6 as a perfect number because 1/2 of 6 = 3; 1/3 = 2; and 1/6 = 1. The sum (3+2+1) is 6. As noted, the next perfect number after 6 is 28, followed by 496 and 8,128 – these four are the only perfect numbers between 1 and 10,000. The number 6 was held in very high esteem by the ancient philosophers as the perfection of all parts, representing, according to the conception of Clement of Alexandria, the creation of the

world according to both the ancient Mysteries and the Biblical prophets. And since 36 is 6 X 6, it could be considered the “perfection of perfection” of that creative intelligence.



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Key Gann Connections We shouldn’t overlook the fact, however, that 36 is also the product of 4 X 9. The importance of these numbers is evident to any serious student of W. D. Gann’s work, and they have particular signicance in the quartering of the year by the cardinal axis of the zodiac as well as in the powerful numerical relationships revealed through the application of the Square of 9. All of these strong resonances are reected in the Mercury/Neptune dynamics that impact the markets. Knowledge of W. D. Gann and his contributions to astro-trading can make a major dierence in practical trading results; you can download a free copy of the Ex p a n d e d W . D . Ga n n F i n a n c i a l T i m e T a b l e at http://bit.ly/GannTime as a starting point for Gann studies.

Practical Applications With so many potent correspondences to the interactions of Mercury and Neptune, we have a lot to draw upon as we look for expressions of the Law of Vibration that can serve as useful tools for forecasting and market timing. To start with, we can examine cyclic patterns that relate to 6, 11, 19, 36, or 164 in various time frames (days, weeks, months, or years). And of course we will want to pay close attention to the fourth harmonic (90º increments), the sixth harmonic (60º increments), the eighth harmonic (45º increments), and the ninth harmonic (40º increments) in our analysis of prices and trends. But although the numerological and symbolic implications of Mercury and Neptune are fascinating to contemplate and although they can in fact give us key insights into the inner

workings of the Law of Vibration, as prudent astro-traders we must always make sure that our trading behavior is based on observation of real market action and on empirical back-testing of planetary eects. When we look at the ways that Mercury and Neptune interact in specic markets, what we nd can often be surprising. To begin with, the strongest planetary impacts do not always coincide with the tenets of ancient astrology, or with our typical assumptions about planetary strength. For example, when we backtest Mercury/Neptune eects on the S&P 500, it is not the rst-harmonic or second-harmonic alignments that prove to be the most important.



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The conjunctions of Mercury and Neptune (shown as points “A” on this chart for the S&P) are essentially neutral in their impact on the price actions in the index, with the S&P equally likely to respond in a bullish or bearish fashion following the planetary alignment. The 180º Mercury/ Neptune oppositions (shown as points “B” on the chart) have a slightly bearish bias, however, and are about 51% more like to be associated with isolated highs in the S&P than they are to be connected with isolated lows in the index. Even so, the Mercury/Neptune oppositions do not have a particularly strong correlation with negative trend reversals. As the research that was published in the book M e r c u r y , M o n e y a n d t h e M a r k e t s (Harmonic Research Associates, 2012) has illustrated, the S&P 500 is most likely to hit a trading top when the angle of separation between Mercury and Neptune is 90º, with trading lows most likely to occur when that angle is either 226º or 293º.



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If we go to the London Stock Exchange and examine historical trends in the FTSE-100 Index, there’s a dierent emphasis revealed by the interactions of Mercury and Neptune. The strongest impact comes when the two planets are separated by 141º – it coincides with a trend reversal about 74% of the time.



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For the All Ordinaries Index in Sydney, Australia, the critical separation between Mercury and Neptune is 199.5º – it is associated with signicant price reversals about 72% of the time, and its eects have sometimes been quite dramatic.

A trip to India and the SENSEX on the stock exchange in Mumbai reveals a particularly strong correlation between trend reversals and alignments between Mercury and Neptune with an arc opening of 280º – it has proven to be an accurate indicator 88% of the time, and brings a slightly bullish bias in its actions on this index. Note that 280 is 10 times the perfect number 28, and is also 7 X 40, in an exact expression of the ninth harmonic. We can of course apply planetary dynamics to commodities markets as well. In this chart for the trading action in Gold, we see the impact of a Mercury/Neptune angle of 293º. In about 70% of the cases in which it has occurred, it has corresponded with price reversals in the yellow metal.



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Our nal example is of another stock index – the tech-heavy NASDAQ Composite. Our backtesting has shown that Mercury/Neptune angles of 65º have a strong correspondence with the trading action in this index. Even so, the net eect is essentially neutral in terms of trend direction, although this planetary angle is associated with isolated trading lows about 70% of the time.

Adding It All Up By this point, the conclusions from this exploration should be fairly clear-cut. First of all, an examination of the dynamic relationships in planetary pairs can give us extraordinary insights

into trends and actions in the markets. Secondly, if we take the time to dig a little more deeply into the esoteric dimensions of those relationships we can discover important keys for more fully understanding the Law of Vibration and implementing it in our own trading and market analysis. If we are willing to persist in this endeavor, the multiplying rewards can be enormous. Finally, as our trading charts illustrate, there’s the i mportant lesson that even though planetary

pairs can be enormously powerful in their impact on the markets, they nevertheless inuence dierent markets in dierent ways. There’s simply no substitute for careful observation and WWW.TRADERSWORLD.COM


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rigorous back-testing. And when we combine empirical results with esoteric insights, we can truly begin to appreciate the full dimensions of the astro-trading advantage.



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HIGH PROFIT, HIGH PROBABILITY PATTERN: THE UNKNOWN TIME By David W. Franklin

DEFINITION: PATTERN http://www.thefreedictionary.com/pattern noun 1. an arrangement or design of repeating or correspondin g parts, decorative motifs, etc: 2. the repetition of an element in a work. Examples:

Unknown to the world of technical analysis is a pattern made by unique Time calculations. These calculations provide trading opportunities of high probability and substantial prot. This recurring event happens when two independent lines of Time, one BLUE and one RED, come together and/or overlap each other in a narrow range of identical values. This is an Equilibrium of Time pattern. Here are Real Time examples of the DOW market:



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Together, the BLUE and RED lines are proportional, mathematical representations of TOTAL TIME available in stock options for a Market or an individual stock. Individually, the BLUE line is a proportional, mathematical representation of the total value of all time in Put Options.



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Conversely, the RED line is a proportional, mathematical representation of the total value of all time in Call Options.

This Equilibrium of Time informs the author as to WHEN the sum of option Time for the long and short sides of a Stock or Market have become equivalent, in balance, and therefore at the highest probability for price reversal. To achieve a deeper understanding of the above, the reader is strongly encouraged to visit the following website: http://www.timesinewave.net/ furtherreading/. In particular, please read and study to comprehension, the following articles: “A Sine of the Times” and “My Story and the Truth about Time”. These documents contain the mathematical “SEED IDEA” of how these Time calculations are derived and maintained. The author has achieved this purely mathematical understanding of Time by applying the investigative principles of Science; specically, the physics of the Laws of Motion combined with his university training in the sciences of logic, chemistry, and mathematics. Each Real Time charts presented in this article contains over 80,000 points of Real Time data. As such, it is and would be impossible for your author to invent, make up or fake these results. Further, more than a decade of tracking these Time values in Real Time have proven their viability, validity and adherence to the scientic principles of reliability and repeatability.

WHAT DO THESE “TIME EQUILIBRIUMS” MEAN? There are many individual true answers to the question above. Each one reveals a part of the whole Truth about Stock and Market Time. All the answers known to your author provide a complete understanding of the how and why these Time Equilibriums occur. Here are two: Stock and Market Time Equilibriums represent; A. the 50% area of Total Time wherein the maximum Time and distance losses accrue to the

substantial majority of all short and long positions. B. A Time stalemate of all long and short positions, wherein any variety of straddle positions will result in either a loss or extremely small prots if any, after commissions. The diagram below illustrates one of the possible stalemates (equilibriums) in a Chess game:



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Readers who are seriously interested in achieving a deeper understanding of the equilibrium concept are encouraged to consider the work of the late, brilliant John Nash. In 1994 Mr. Nash was awarded the Nobel Memorial Prize in Economic Sciences for his work on noncooperative game theory. Professor Nash pioneered the mathematical principle in game theory known as the Nash Equilibrium. “In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his or her own strategy.[1] If each player has chosen a strategy and no player can benet by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payos constitutes a Nash equilibrium.”

SEE: https://en.wikipedia.org/wiki/Nash_equilibrium See also: https://en.wikipedia.org/wiki/John_Forbes_Nash_Jr. Whether in a Bull or Bear Market, weekly and monthly charts demonstrate the fact that in a single year, there are perhaps, a dozen times or less, when a stock or market moves a great distance in a very short period of time. These fast, periodic moves provide wonderful opportunities to make substantial prots quickly for those with this degree of knowledge. As revealed in this article and others on the timesinewave.net website, it is those opportunities WWW.TRADERSWORLD.COM


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wherein the Time Sine Wave Analysis© shines brightly.

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The author has a serious interest in partnering with a qualied professional trading rm(s) or individuals, for the purpose of bringing this proprietary knowledge to a technological ‘speed of light’, ‘state of the art’ performance level, for mutual benet.

Interested professional trading rms and/ or individuals should possess the following qualications: A. An open mind capable of setting aside all

prior Stock and Market predispositions. B. the skill and willingness to think far outside the “Box” C. the skills and capability of creating cus tom, ‘compartmentalized’ proprietary software to achieve maximum protable utilization of this unique knowledge. Qualied parties are encouraged to submit a Letter of Interest accompanied with a statement of credentials to: tswa@ timesinewave.net.

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The Next Wall Street Class Action Suit Starts Here By Steve Selengut This is the rst in a series of articles that could encourage the “regulators” to change their direction and focus. Quick as they are to punish product salespersons, and focus on costs instead of quality and income, most of their eorts prove counter-productive and more expensive for investors. It almost(?) seems that they work for the “Master’s of the Universe” and against the average investor/shareholder. In my experience, I’ve determined that most regulators are blind followers of “da law”, with little practical knowledge of investing. They write their quota of trac tickets, punch the clock, and repeat the process with the next victim. Let’s give these terriers better guidance, and turn their generally rude behavior on the real malfeasants in the institutional hierarchy. We need clearer statement information, better products, and fairer pricing. The nancial industry “Police Force” (SEC, DOL, FINRA, etc) is ignoring all three. We’ll be looking at several issues, including the following:

Wall Street’s Purposely Confusing Account Statements Requiring Clients to pay Fixed Fees Instead of Variable Expenses Allowing Exorbitant Pricing for On Line Trading In F u l l Se r v i c e Fi r m s Tacking Service Fees, and SEC Fees, On Top of Everything Else Hijacking 401ks Within Institutions In Spite of Low Income Only Product Choices Holding Interest Rates Down as Part of a “Long Con” ------------------------------------------------------------------------

“Compliance” related employment is one of the fastest growing professional elds in America. We are expected to believe that the regulatory oversight protects us, and makes us safe. But, in reality, it does little more than increase costs, interfere with progress, and make life miserable for nancial services practitioners. It paralyzes independent thought, reduces productivity in every area it touches, and

institutionalizes absurd redundancies, while turning nit-picking obstructionism into an art form.

And we are paying dearly for the regulatory overload



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The DOL is attacking costs within 401k and IRA investment programs while they ignore the high risk products and anemic income production inside. The SEC requires small advisory businesses to comply with rules designed for huge organizations while ignoring both the misleading statement information provided by institutional Wall Street, and the trillions in excessive “service” fees that rub our nostrils raw. Compliance ocers levy nes on their own employees for minor clerical errors, just to avoid a confrontation with or whipping by FINRA’s “cat-o’-nine-tails”. As a result, they make it virtually impossible for their dependent advisors to bring better and fairer products to the market place, or to do timely new product marketing.

While small rm compliance directors huddle in fear, regulatory agencies poll institutional Wall Street rms for their regulatory advice. Who do you think benets from that collaboration? 1. Wall Street Prepared Account Statements Most professional investors would agree that A S S ET A L L O CA T I O N (growth purpose vs. income purpose), various D I V ER SI FI CA T I O N guidelines (position size, sector participation, etc.), fundamental security Q U A LI T Y (risk level), and realized I N C O M E production are important

areas of portfolio development that all investors should be helped to understand.

Wall Street prepared statements ignore all but one of these... the realized income. As a private portfolio manager, the rst thing on my “regulators-could-x-this” list is the account allocation “pie chart” that my clients see on their monthly account statements. According to my personal National Financial Services (NFS is the custodian subsidiary of Fidelity Investments) statements, my investment portfolios (at age 71) are 97% invested in equities, which most normal people would think means the stock market. I know that only about 15% of my total portfolio is in growth purpose securities, while the rest is invested for tax free and taxable (in the IRAs) income, and that the actual common stocks are Investment Grade Value Stocks (please Google IGVSI if you think I’m talking about what Wall Street calls “value stocks”). The account statements reveal nothing about the “purpose” of my securities, the sectors they belong to, or their “fundamental” risk level? Nothing species or summarizes my actual portfolio diversication numbers by either individual security, or by class of security (income vs. equity).

According to NFS (the paid custodian of my total investment portfolio) I am almost 100% invested in equities... as are most of my clients. In reality, after this 9+ year rally, my portfolios contain fewer individual common stocks than in either the preWWW.TRADERSWORLD.COM


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crash summer of 1999 or in June of 2007. Shouldn’t the “custodian” be sending out an “equity overload” warning message? or are they not duciaries either? ----------------------------------------------------------

Several years ago, I received a call from an irate client: “What have you done to my Municipal Bond Portfolio”, he blustered, “my statement says you’ve got me 100% in the stock market!” What I had done was take smaller than expected profts on his odd lot individual bond holdings and replace them with a diversied portfolio of Tax Free Closed End Funds (CEFs) paying about twice as much interest, in monthly increments. Not one common stock in the lot.

Why “smaller than expected”? Because Wall Street rms put shamefully unrealistic bond market values on customer account statements. Go ahead, ask your broker to get you a live “bid” on your individual bond holdings. Why has this been tolerated for so long? Yes, CEFs do “trade like equities”, but should the statement’s “ACCOUNT ALLOCATION” pie chart tell the unsophisticated investor (or an unscrupulous product salesperson), that the account is fully invested in the stock market?

Not by any stretch of the regulatory imagination should portfolios containing hundreds of municipal bonds, corporate bonds, preferred stock, senior loans, and convertible securities, etc. for even one eye blink be considered in the same nancial risk category as any common stock. -------------------------------------------------------

Should a Blackrock Municipal Income Trust or a Pimco Muni Income Fund be represented to the investor in the exact same category as a penny stock? The regulations seem to allow it. Couldn’t Mutual Funds show the Morningstar “risk” assessment? Shouldn’t stock symbols be accompanied by the S & P quality rankings? Wouldn’t it be nice to know the % of portfolio for each security or fund?

The information is readily available, and a whole lot easier to understand than the two and a half pages of boiler plate footnotes and legalese at the bottom of account statements. Smile if you’v e never read even half of the ne print. As an alternative to individual income securities, CEF professionally managed income

portfolios are traded for regular commissions instead of “manipulatable”, and invisible, markups. Individual bond portfolios are dangerously illiquid and impossible to price accurately on statements. Where’s the required consumer protection warning label about these

nancial cigarettes! CEFs eliminate both unrealistic pricing AND illiquidity... but the nancial institutions WWW.TRADERSWORLD.COM


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don’t want you to know that they exist. And (conspiracy theory again), are the individual “odd lot “ positions an attempt to diversify or simply a set-up for a “double-dip mark-up” tax swap a year or two later. Perhaps unwittingly, some nancial advisors use shorter “duration” bonds to soften the “on paper” market value impact of rising interest rates, while the regulators nod their (empty) heads in approval. Don’t they understand that m a r k e t v a l u e c h a n g e r a r e l y h a s a n y i m p a c t o n t h e i n c o m e produced by fxed income securities.

CEFs provide instant income portfolio diversication AND an opportunity to take advantage of changing interest rates, in either direction. Comprenez? But most institutions seem to insist that their salespeople focus elsewhere. --------------------------------------------------------At a conference a few years ago, I had an opportunity to present my “misleading statement observation” to a National Financial Services (NFS) representative. Long story short, NFS had no interest in changing its statement presentation.

An equity is an equity is an equity (who cares what message is received by the customer)... unless, of course, the boss wants the statements to lead that consumer in a particular direction. Interesting or, perhaps alarming, NFS has recently set up a new statement sub-category called “Exchange Traded Products” where they now list the endless varieties of ETFs ... not

“investments”, not “securities”, not “sector speculations”. Funny, but these market timing

gaming devices are (drum roll please) traded like equities! AND aren’t CEFs Exchange Traded Products, but with a much safer recipe? If you own open end equity and income Mutual Funds, stock options, futures contracts, etc., I’m guessing that their “account allocation” is equally as inappropriate as it is for the income CEFs. ---------------------------------------------------------------------------------------

The solution isn’t too dicult; all the information is out there. S &P publishes common stock quality rankings and Morningstar publishes apples-to-apples comparisons of income (and equity) CEFs. Mutual Funds are risk analyzed as well. Fi n a n c i a l I n s t i t u t i o n s a r e n o t r e q u i r e d t o d i s cl o s e p o r t f o l i o c o n t e n t t h a t “ w e t h e i n v e s t o r s ” n e e d i n o r d e r t o u n d e r s t a n d w h a t t h e i r e m p l o y e e s h a v e so l d u s . I s i t t h e r e g u l a t o r s o r t h e i n s t i t u t i o n s t h a t a r e c u l p ab l e .

Why is it that employees of nancial institutions are being deemed “duciaries” when the company itself is not? How much “lobbying” did that take? WWW.TRADERSWORLD.COM


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Let’s make them (the institutions) preface the pie charts (yes, there should be more than one) with layman’s language expectation paragraphs and simple explanations of the ingredients in at least three new and required account allocation “pies”.

The Risk Assessment Pie is a summary of individual security portfolio risk assessment arrows and S & P “fundamental rankings” inside the portfolio. The * should state that the less nancially risky income purpose securities are more likely to be price impacted by rising interest rate expectations, BUT, that market value generally has little or no impact on the income produced. The Sector Diversication Pie is a sector by sector breakdown of the individual securities AND products inside the portfolio. My personal portfolio, for example, would show 90% national municipal bonds, 4% NY bonds, 4% NJ bonds, and 2% PA bonds. It could be further separated by: quality, duration, and risk. The Asset Allocation by Purpose Pie is a growth vs. income purpose, asset allocation assessment. The purpose pie chart for my IRA portfolios would show: 70% income generation, 30% growth of capital... my objective is to generate more than enough income to pay the RMD, 1/12 monthly. There is also a lot of work to be done in the “Current Holdings” section. Every security description should be required to include the S & P Ranking, or Morningstar Risk Arrow/Analysis, a sector categorization, and the % of the total portfolio cost basis that the security represents.

This is not new information... standard portfolio management software can do most of it, for example: Honeywell, Int’l, HON, S & P Ranking = A, Sector = Aerospace & Defense... and (1.5% of total portfolio cost basis) next to the cost basis. The estimated yield, and cost per share are already provided. Pimco Income Strategy Fund CEF, PFL, No S & P Rating, Morningstar Analysis = 4 Stars, Taxable Bond Income... 2.75% of portfolio cost basis.

Conspiracy Theorists, rev up your imaginations! Why is none of this important information included in our account statements? and “why oh why”... •

are there no CEFs in 401k portfolios,

•

has your Wall Street rm broker never once suggested that you add an income CEF to your portfolio,

•

not even once, ever, have you heard about the scores of income CEFs that have been paying WWW.TRADERSWORLD.COM


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yields well above what you have been


receiving... since the early 1990’s •

is a Vanguard Retirement Fund yielding


less than 2%, invested 30% in equities,


and 15% in non US debt, one of the most popular (over $10 Billion) in the 401k space... when so much better yielding “stu” is available. Let’s get this information out there, and force

the regulators to do something about this, and a growing number of other issues, that they have routinely (if not negligently) ignored.

Hmmm, should I sue my brokerage rm or the regulators for not telling me about much better yields and potentially dangerous portfolio content or conditions?

QUARTERLY MAGAZINE SUBSCRIPTION Read articles explaining classical trading techniques, such as W.D. Gann, Elliott Wave, astro-trading as well as modern technical analysis explaining indicators in eSignal, NinjaTraders, MetaStock & Market Analyst. COMPLETE BACK ISSUES OF TRADERS WORLD Magazine (ISSUES 1-64) You also get our complete archive of 60 back issues from 1986 to present. This, contains articles, product reviews, hundreds of chart examples, how-to-trade articles and much format, which you can read online anytime. In every issue, you get the information you need to trade the markets better with charting, astro, cycles, oscillator tools. Works for stocks, bonds, futures, options.


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Crisis Cycles Clashing 4Q 2016 Ushers in Critical Phase By Eric S. Hadik

Crunch Time Since early-2015, INSIIDE Track has repeatedly described expectations that equities would go through a topping process (in 2015/2016) similar to what was seen in the DJIA in 2000--2001… and an ensuing decline (3Q 2016--2017) - akin to what was seen in 3Q 2001--4Q 2002. The intensication point - identied in early-2015 - is nearing. 4Q 2016 represents the transitional phase - when a ~1.5 year topping process is expected to shift gears. There were many factors - some technical, some cyclical & some fundamental - incorporated into this outlook & the continued focus on late-2016. At their core were corroborating examples of Hadik’s Cycle Progression (see Diagram #1). Before getting to those…



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Context is Critical In any form of analysis, it is best to begin with an awareness of the broader context. Analyzing isolated events - robbed of their proper setting - can lead to misleading conclusions. Nowhere is this more applicable than in the markets. And nowhere is the absence of context more dangerous!

A 200-point rally in the stock market (DJIA) would be viewed signicantly dierent if it came at the tail end of a 3,000-point, multi-month advance OR after a 2-month consolidation phase

within a 400-point trading range OR after a 2-week plummet of 2,000 points. In the rst case, it is more routine although it could mark a blow-o rally. In the second case, there would be an increased likelihood the market is poised to accelerate to the upside… after breaking out of prolonged congestion. Alternately, in the third case, it would be barely a blip on the radar… a feeble excuse for a ‘dead-cat bounce’ in which a few shorts covered positions. The same move would have dramatically diering ramications, depending on the actual context.

2016 - 2021: The Big Picture Such is the case when viewing the coming years and market events that are already unfolding. Many of those appear similar to corresponding ones in recent years (rally in gold & silver, topping formation in stocks, rally in Dollar, etc.). However, I contend they are radically dissimilar and will have exponentially greater impact on ensuing moves in 2017… and into 2021.



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From a fundamental perspective, the US, Europe & other industrialized nations are still

staggering from the meltdown of 2007--2008. Though anecdotal evidence (often cherry-picked for this very purpose) sporadically shows signs of improvement, the economies, national debts, civil unrest & personal nances of most citizens reveal a contrasting reality. In that reality, there HAS been a recovery since 2009 or 2010… but from a much lower level. It has been far more anemic - and far less encompassing - than previous recoveries, with the resulting economic infrastructure left far more vulnerable to the impact of the next downturn. In other words, this recovery has a considerably dierent context. And, the current social structures are considerably more polarized. Another stress on the system would be like a 7.0 earthquake striking a region that is only beginning to recover from a 7.5 earthquake. The ability to withstand another seismic shock is severely compromised. And that appears to be even more the case in Europe, than America… reinforcing my ongoing outlook into 2018--2021.

2011--2021 - The Bigger Picture With that as the backdrop (context), it is important to build on that analysis. There are many warning signs that have been anticipated as validation to the outlook for 2016--2021. These are all pieces of the same puzzle. And that puzzle is powerfully impacted by the uncanny 40-Year Cycle.



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These signs have been published for over a decade. One of those involves the 2011--2021 outlook for gold & silver. 2011 was projected to usher in a Major, multi-year top in precious metals with gold forecast to peak on the 40-year anniversary of the Nixon Shock of August 1971. (The related 2011 ‘Date with Destiny’ reports can still be viewed at http://www. insiidetrack.com/reports.) That was forecast to trigger a multi-year crash in silver, directly related to that 40-year cycle, into 2015. See Diagram #2 [Hadik’s Cycle Progression & Silver’s 40-Year Cycle].

Silver’s (& Gold’s) 40-Year Cycle This analysis has been detailed separately (dating back to the 1250’s), but here is a brief recap… 1811 - Expiration of charter of 1st Bank of the United States; Set o intense, ~5-year battle for & against a national bank and control of currency (impacting role of gold & silver). Led to 1816 chartering of 2nd Bank of US and ensuing Panic of 1819. 1851 - Act of March 3, 1851 - debasing Silver coins from .900 ne to .750 ne. Followed by Coinage Act of 1853 (reducing silver content in half $, quarter $, dime & half-dime) that led to suspension of Silver in 1857 & Panic of 1857. 1891 - Sherman Silver Purchase Act of 1890 (part of Billion Dollar Congress of 1889--1891) led to collapsing silver prices in 1891--1893 & Panic of 1893. Election of 1896 surrounded silver & gold. 1931 - UK abandons Gold Standard, followed by the US in 1933. Silver Act of 1934. Led to easy credit until 1936, when Fed abruptly began tightening credit, resulting in 2nd stock market crash of that decade - in 1937. 1971 - Nixon Shock when Nixon slams shut the gold window to international convertibility. Leads to 1973 collapse of Bretton Woods and ultimately to 1976 Jamaica Agreement, the Dollar’s divorce decree from precious metals. The events of 1811, 1851, 1891, 1931 & 1971 led to various attempts to abandon/devalue gold & silver. Combined with a myriad of other cycles, technical indicators & fundamental events, that 40-Year Cycle led to projections for a multi-year crash in silver, beginning in 2011 - the transition of the latest 40-Year Cycle. As culmination of those expectations, 2016 was projected to be The Golden Year and represent the start of a multi-year advance in precious metals - following the completion of silver’s projected crash (in 2015).

2016 - The Golden Year Update WWW.TRADERSWORLD.COM


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As published in 2015, IF the scenario for 2016--2021 was to be validated, gold needed to see successive surges in 1Q 2016 and 2Q 2016 - leading into weekly & monthly cycles peaking in mid-2016. See http://40yearcycle.com/tag/mid-2016-gold-peak/. That was the context leading into this year. It sets the stage for 4Q 2016. In January 2016 (Trader’s World Issue #62), this author wrote The Clash of Cycles II & reiterated that analysis, explaining why gold was poised to see its biggest surge since 2011. In May 2016 (Trader’s World Issue #63), The Clash of Cycles III was written & rearmed that analysis, explaining why June 2016 would see another surge… leading into that expected mid2016 peak. That analysis has been powerfully conrmed with gold & silver surging in June and topping within the rst few days of July 2016… precisely at ‘mid-2016’. A multi-month correction was forecast and is expected to lead into the second-best buying opportunity in this decade (second only to the mid-Dec. 2015 buy signals… see http://40yearcycle.com/tag/golden-year/). [As part of that analysis, gold & silver were forecast to see a quick, sharp drop into late-August which is currently unfolding. That is a decisive, intermediate cycle low in precious metals.] Similar to 1976--1980 (one 40-Year Cycle ago), a renewed inationary surge in commodities & precious metals is expected… in 2016--2020. That is one piece of the puzzle.

The 8-Year Cycle - Update Another piece of the puzzle involves the outlook for Europe from 2011--2021. That outlook has been published since 2008 and includes projections for a declining Euro and the fracturing of the current European Union, leading into 2018. That would usher in a unique convergence of Cycles of European (Re-) Unication in 2018--2021. The latest trigger for that evolving Euro Crisis was described in May 2016 and included in The Clash of Cycles III (Trader’s World Issue #63). That article reiterated the 8-Year Cycle that involves Britain/UK and a persistent, recurring ‘pummeling of the Pound’ - previously seen in

1968, 1976, 1984, 1992, 2000 & 2008. It was projected to trigger another pummeling in 2016 and led to the conclusion that the British would likely vote for Brexit in late-June. A month later, the Brexit vote powerfully fullled that and the British Pound suered yet another pummeling. (See http://40yearcycle.com/tag/ european-union/). However, it is the longer-term repercussions - of that ‘surprise’ vote - that are the most concerning for European Unity.

Déjà vu: 2000--2002 Parallel A third piece of the puzzle incorporates ongoing analysis that 2015--2016 would witness a Major topping formation in Stock Indices - similar to that seen in the DJIA & DJTA in 2000--2001 - that WWW.TRADERSWORLD.COM


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confounded traders for almost 18 months before a convincing decline nally took hold (in 3Q 2001). See http://40yearcycle.com/tag/2000-2002-parallel/. That forecast originated with one of the largest cycles - the 40-Year Cycle (dating back 200+ years). Over the last century - since the bottom of 1932 - the stock market experienced successive, ~40-year advances. The rst went from July 1932 until Jan. 1973 - a total of 40 years & 6 months. That was followed by one of the most tumultuous periods in modern American history - including the resignation of a US President, a Middle East war that pitted US proxies against USSR proxies (not unlike modern-day Syria), the wielding of the oil weapon against America, social upheaval and a corresponding 50% crash in stock prices… in less than two years (Jan. 1973--Dec. 1974). The second began in Dec. 1974 and lasted - in many Indices - until 2Q 2015, another advance of 40 years and ~6 months. Leading into and through this peak, however, it was another cycle that was uncanny in pinpointing the nal accelerated advance (from mid-2013 into late-2014) and the ensuing topping process - timing each subsequent high & sell-o with great precision. And, that cycle has a lot to say regarding the period from mid-August ’16 into April ’17.

Stocks & 32--33 Week Cycle Diagram #3 [Hadik’s Cycle ProgressionTM & 32--33 Week Stock Cycle.] illustrates how this 32-33 Week Cycle has evolved to where it is currently. In a textbook ‘Cycle Progression’, a cycle times 4 consecutive lows and then transitions to 4 subsequent highs (often confounding many cycle enthusiasts). In mid-2013, the 32--33 Week Cycle Progression diagram was published with the corresponding analysis that stock indices were poised for an accelerated advance into late-2014 (40 years from the late-1974 bottom) as that Cycle Progression transitioned to future highs. Those highs typically pinpoint the peak of a wave ‘3 of III’, the peak of a wave ‘5 of III’, the peak of the wave ‘V’ and then the (lower) peak of a wave ‘B’. After the 4th consecutive high, the market prepares for a more sustained decline as it readies itself to begin timing subsequent lows. [NOTE: There are several crucial lters that MUST corroborate any Cycle Progression!] The stock market was projected to see an initial peak in early-Sept. 2014 and then a more signicant peak in late-April/early-May 2015. That is precisely what unfolded as the markets underwent a ‘precursor shock’ in Sept./Oct. 2014 and then a much larger ‘shock’ in May--August 2015. See http://40yearcycle.com/tag/32-33-week-cycle/.



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The ensuing phase occurred in mid-Dec. 2015


and was forecast to trigger a similar drop and


contribute to a 5-month series of developing lows in late-Aug. ’15, late-Jan. ’16 & late-June ‘16. That foreshock did occur and did (again)


jolt the markets, leading into late-Jan. 2016. Each one of these peaks, and each one of those ensuing ‘tremors’, heightened the focus on the decisive phase of the 32--33 Week

Cycle Progression - during the rst half of August 2016. That is when a more critical peak was/is expected and when a more decisive decline should soon begin to unfold (though acceleration is not expected until later


in 2016).

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Three Top Forex Markets that Should Continue their Strong Bear Trends to New Lows By Jaime Johnson, NoBSFXTrading.com In the NoBSFX Daily Reports and Net Trend Videos we look at the seven top Dollar crosses as well as the GBP/JPY continually looking at the trends in the weekly charts down to the 60 minute charts. Two of the top Dollar crosses we pay strong attention to are the British Pound vs US Dollar (GBP/USD) and the US Dollar vs Japanese Yen (USD/JPY). Both have been in bear trends for at least the past year and the pattern is suggesting the bear trends should continue to new lows. In this article, we will discuss why the bear trends of the GBP/USD and USD/JPY should continue. We are going to look at pattern and momentum/oscillator position to explain the probable continuation of the bear trends of both markets. While the bottom oscillator used in these charts is a proprietary 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



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Slow Stochastic. This article was written during the third week of September 2016.

The GBP/USD Chart 1 is a GBP/USD weekly chart. The GBP/USD has been in a bear trend from the July 2014 high. However, in a long term bear trend there will be multi-week, if not multi- month corrective bull trends. There are two multi-month conrmed textbook ABC corrective rallies shown in Chart 1, the April 2015 – June 2015 rally and the March – June 2016 rally. The March – June 2016 corrective rally was completed following the Brexit announcement. It is looking like another corrective rally is unfolding, if not already complete, from the July 2016 low. It is very likely already complete as of the high of the week ending September 9. The dierence between this corrective rally from the other two is if it is complete, it is an irregular ABC correction. It is irregular because the Wave C high did not exceed the Wave A high. However, the result of the last corrective rally should be the same as the other two, a decline to a new low. In this case, a decline to below the July 2016 low. Let’s now take a look at weekly momentum or oscillator positions. Both oscillators in Chart 1 use settings in which their highs and lows correlate relatively well with the swing highs and lows of the weekly GBP/USD. Both oscillators are currently Bear, with their fast lines far from the oversold zone. This is a strong weekly momentum signal that the net trend of this market should



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be down for several weeks very likely to below the July low conrming the high of the week ending September 9 as a corrective high.

The USD/JPY Chart 2 is a weekly USD/JPY chart. This market has been in a strong bear trend from the June 2015 high. The July 2016 high is in the ideal position to be the completion of a textbook ABC corrective rally and the high of the week ending September 2nd is also in the position to be a corrective high. Like the GBP/USD, both the weekly oscillators are Bear, a strong weekly momentum signal that the net trend over the next several weeks should be down very likely to below the June low conrming the July and September corrective highs.

Daily Charts So should we jump into short positions right away? Not exactly. In multi-week bear trends there will be multi-day corrective rallies and at the time of this writing, September 22, 2016, both markets are in the position for multi-day rallies, very likely corrective rallies. Charts 3 and 4 are GBP/USD and USD/JPY daily charts respectively. Both markets have Bull daily oscillators, strong daily momentum signals their net trends should be sideways to up over the next several trading days. With weekly oscillators Bear, any multi-day rallies should be corrective rallies in higher degree time frame bear trends. For the GBP/USD (Chart 3), short positions may be considered following a daily oscillator Bearish Reversal (the fast line crosses below the slow line), above the oversold zone as long



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as the Sept. 6 high is not exceeded and the weekly oscillator remains bear. This would put both weekly and daily oscillators in the same Bear position. Very likely the next daily oscillator Bearish Reversal will coincide with a minor corrective high. For the USD/JPY (Chart 4), short positions may be considered following a daily oscillator Bearish Reversal above the oversold zone as long as the July 21 high is not exceeded and the weekly oscillator remains bear. A rally above the Sept. 2 high does not void the July 21 corrective high. Considering these short trade set-ups can put you in positions for declines lasting several trading

days, if not several weeks potentially to below their July/June lows.

The GBP/JPY We looked at the GBP/USD and USD/JPY, let’s now take the US Dollar out of the mix and look at the GBP/JPY. Chart 5 is a weekly chart and it looks very similar to both prior markets, actually more similar to the GBP/USD. The high of the week ending September 2 is a probable irregular Wave C corrective high and the weekly oscillators are Bear. Very likely a new low will be made in this market, but like the other markets, the Bull daily momentum suggests that the net trend should be sideways to up for a few, if not several days.



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Conclusion If you trade any of these three markets, the trend should be down for several weeks if not longer very likely taking out their June/July lows. Shorter term traders keep in mind during these potential bear trends, there should be shorter term trade opportunities in both directions. 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 declines in these markets and for short term corrective rallies during these

declines, check out my NoBSFX Trading course (info below).

More Information as the Market Unfolds With these markets 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 these three markets 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 and the NoBSFX Net Trend

Video Reports (info below). Jaime Johnson is a full time trader and the author of the NoBSFX Trading Workshop, the NoBSFX Daily Reports and the NoBSFX Net Trend Video Reports. For complete information, go to www. nobsfx.com or send him an email at [email protected].



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EXECUTION IS KEY IN TRADING By: Samuel Bassey, MBA How one executes a trade is a key factor, in an individual being protable in trading. Regardless of the market the person is trading; execution is denitely viable in the outcome of the trade. When one executes a trade, there is no turning back, that person has to hone up to the trade and its liabilities. It is very important to study a trade, before executing the trade. The trade will either go in one direction or it will go the opposite direction. The question should not be on what an individual does to execute a trade; but should be about how one prepares for executing a trade eciently and eectively? That question though a relevant one, is a hard question to answer. Anyone who is a trader or investor has their own unique way in trading and investing in the nancial markets. I may execute a trade dierent from someone else because I view the transactional history dierent. Someone else may execute a trade dierent from me because he/she believes the trade will go in his/her favor, or against them. There is no right and wrong way to place a trade in the markets; it’s just making sure one can execute the trade with whichever method he/she pursue eectively. Once an individual can nd a routine of executing his/her trade, he/she should consistently use that routine to make amends in their strategy. If a person can consistently execute trades that make them protable, this individual can now institute a strategy that can be self serving in growing their trading accounts daily. Execution is symbolic in trading because it allows the person to see if the position he/she placed in execution, worked in his/her favor. If it did not work in the person’s favor, the person should try a dierent approach in their trading mechanisms, or he/she can take note of their trades for that particular day, simulate future

trades for practice and return on a dierent day to anticipate on protable trades down the line. There are no guarantees in executing a trade in a certain manner or certain way, as such there is no way to determine the global markets either. If one places a trade, there is nothing in the markets that indicate that though a trade was placed in “proper form”, which way the trade WWW.TRADERSWORLD.COM


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will go in his/her favor, to make that person more protable. If this was the case, many people who have the right setup and execution in trading would be innitely rich; and that is not the case realistically. If everyone had a proper execution all the time, many more people would be millionaires and billionaires, instead of losing most of their money in the markets. Instituting a formidable setup is a precursor to a strong execution, which then will enhance a person’s gains. When there is a good setup of the trade being established, this allows for greater prots and in any case, allows for more established setups to be concurrent from the previous. When one can produce reoccurring setups that makes sense to the individual, the individual will be able to position themselves in executing more eectively. Setting up how an individual wants to execute a trade is important because the setup allows the individual to foresee the whole picture entirely. Having a bad setup can be an error that makes an individual lose way more money then he/she should. This can denitely be a problem because without an established setup that is producing gains for your trading, it is leaving you account to be blown away and then you either are going to reinvest or stay away from trading altogether. Having a neutral but winnable setup is important in maintaining control over your account. Understanding order execution is also important, as the order of the position is placed,

numerous orders are lling in the buy and sell, and so an individual must understand the order of execution in their respective markets. When you execute an order, one must analyze the market and where the market may or may not be moving towards. Again, no one exactly knows or can dictate how the nancial markets are going to play out, but anticipation and speculation is a factor in attaining monstrous prots. This need to be noted when one is planning a trade. Preparation of the execution needs to be adhered, preparation is key in any trading activity, preparation is key in execution, progression and in life. When one can prepare his/herself for the trade, the execution becomes simple and depending if it the right time of the execution, can provide major opportunities. The more the person prepares for the trade in hindsight, can make other objectives in the trade easier. Execution allows an individual to enhance their skills and provides how the dynamic of the trade may formulate. Execution does not guarantee prots; it does make sure one knows how to gure out methods to maximize their prots. The goal i s to make sure the execution can weigh in the favor of the trade, now if it does not do that then there are other options to determine, such as reevaluating the trade, or reviewing where the execution went wrong and why it did go wrong? It should be noted that the execution is one of the many pieces of the pie, when in trading or investing. It is only a part of the dynamics in trading, don’t rely on execution as being the beginning and the end, it can be either or but it is not suited to be both at one time. Comprehend the execution allows you to do what it exactly is meant; and that is and to fully execute. With the right preparation, setup in place and execution, one can be a masterful trader, or at least highly successful in trading. This does not mean that all the time one will be protable, there are sometimes when the trade is not meant to be or goes against what a WWW.TRADERSWORLD.COM


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person has practiced and prepared, one can not

control the markets, but in any case one should go back and reevaluate his/her processes, and return with a more viable solution toward his/her execution.

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Check more from Samuel Bassey @ EconomicandFinanceReport.com & S a m m y B u y s H o m e s . com. He can reached via



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The Importance of Timing By Andrew Pancholi

Super trader and Hayman Capital portfolio manager Kyle Bass has made billions both personally and professionally. He shorted the sub-prime mortgage situation back in 2007 and 2008. His return was deemed to be 600% in 18 months. He also made a huge fortune shorting the demise of Greece, and he had a successful campaign on pharmaceuticals. In one interview he said, “I know what is going to happen, I just don’t know when.” So he buys insurance in the form of options and other leveraged derivatives. Eventually each bet comes in and when it does, it generally comes in big time! He never talks of the use of any timing system. Portfolio managers and traders in such situations would be able to run their operations far more optimally if they had a handle on when such events might occur. This would increase their protability substantially as they would be in a position to know when to “overweight” that particular part of their portfolio and thus maximize prots. By adding timing, we can transform other concepts into a very eective trading systems. One example of this is the use of Commitment of Traders data with market timing. Astute analysts are able to spot trends in the making well in advance by looking at the dierence between what positions dierent “groups” of traders are holding. This entails looking at what the direction and size of the positions held by speculators versus those held by end users. Put simply, the Commercial Traders ( i.e., Farmers, Hedgers, Producers, and Factories) are usually right and the Large Speculators (i.e., Banks and Large Financial Money Managers) are usually wrong. When a huge divergence takes place between their positions, we can expect a large move. By monitoring changes in these situations, people like Steve Briese of Bullishreview.com are able to forecast the direction of a move coming up within a larger time window. With the addition of market timing, we are able to ne-tune these windows into precise weeks and even days.



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By being able to time these situations accurately, we create a very big advantage for ourselves. As we can see from the above, the smartest traders and investors combine a serious of techniques and indicators to increase their probability of being successful. Of course, we must also add money management to this, but that is a dierent topic. The Market Timing Report is created to give traders and investors valuable timing information which, when combined with their existing systems, will give them a massive unfair advantage. It is a monthly report covering the S&P500, Crude Oil, Gold, EURUSD and the Dollar Index. So what are the benets for you, the trader and investor using The Market Timing Report? The report gives you both the big picture and potential daily turns. If you are an investor, you can focus on the the editorial comments and the larger cycles mentioned at the beginning of each section. These in themselves are worth their weight in gold! You receive this information in a variety of ways. The editorial section looks at what is coming up ahead. Regular readers already know that we are expecting some of the biggest macro long-term cycles to occur over the next one to three years, aording those who are prepared unparalleled opportunities for success. As a recap, the two major cycles that are coming in are 1.) The 90 year cycle from the 1929 Crash and 2.) the 30 year cycle cycle from the 1987 crash, which also coincides with the 60 year cycle from the 1957 sell-o and the 180 year cycle from the 1837 Boom and Bust.

The 90 year

cycle is likely to create a major event just in itself. After all, the half-way point of this cycle was in 1974, which was the beginning of this last bull market. 1974 marked an historic low during which the western nations were brought to their knees by the OPEC oil crisis. Since 1974 the market has headed up, and the lows of that time frame have never been revisited. Many of you are keen not only to receive the information, but also to learn techniques on trading and analysis. Most months such tutorials are added. As The Market Timing Report is published monthly, forecasting price up to a month in advance can be dicult. We will often show some price forecasting techniques in action in order to help you synthesize the timing information. Each section opens with comments on long-range cycles. These are applicable to all readers, but investors will get the most out of this section. The points are made in red. These are usually the bigger swing points of the year. These turn points are explained shortly. We then identify the key recurrent patterns and cycles that are likely to inuence the month ahead. Then we look for correlations in them.



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We also reveal daily probability based on the content of our databases. For example, did you know that on 75% of occasions since 1975, Gold has closed up 75% of the time by the end of trading on October 6th compared to the previous day? Similarly, on the 20 th January, Crude Oil has had a down day 76.2% of the time since 1983. These probabilities are signicant. If we combine these with indicators giving conrmation, we are increasing our probabilities of success. It’s things like this that give us the edge. The report takes these set-ups further by looking at long-term moves. For example, did you know that Crude Oil has traded lower on 21 st November 75.8% of the time than it traded on 11 th October 75.5% of the time since 1983? So again, if you have other factors

conrming this and your risk-reward proles align, then this could provide you with a great opportunity. However, the most important and accurate feature of The Market Timing Report is the ability to forecast dates using the “Prot Finding Oracle” system. This is a proprietary series of formulae and they are resolved into histograms. These generate very high probability turn point dates across a variety of time frames. At the time of writing, a major turn point is already coming up on the S&P500 and other global indices for the week ending 9 th December 2016. The Prot Finding Oracle is already seeing that on its radar. We can also expect a major turn for the week ending 21 st July 2017. Mark that in your diary along with the rst week of June 2018! I guarantee a market turn then, too! How many other people are able to give you such certain information so far in advance? How could this change your ability to be more protable? If Kyle Bass is reading this, would he nd such information to be useful? I am sure he would. I am also convinced that his protability would improve massively!

Come and join us at The Market Timing Report. Watch the critical cycles over the next few years unfold well in advance of the general public. They, of course, will be living in hope, fear and greed. Some of them will lose their shirts. We will know what is coming up so we can take a measured successful judgment and response. We will take advantage of the situation. Not only will you be forewarned of what’s coming up, we will make it risk-free. If you are not satised within the rst 28 days, we will make you a ‘no questions asked’ full money back promise. That’s our guarantee. Click on this link and receive a full year of The Market Timing Report. Don’t forget that there is a 28 day money back guarantee! https://ws227.isrefer.com/go/mtratw/larry/



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W.D. Gann and The PATH System By Patrick Hughes StockMarketHarmony.com [email protected]

There is has been much written on William D. Gann and many of you already know he was a trader in the early 1900s, and he was extremely successful. He utilized all types of mathematic techniques geometrical, and astrological ones to help determine market changes. He was extremely successful and created educational courses, where he taught his techniques. For many years, technicians, have been trying to nd the elusive Gann secret that he took to his grave and many of us technical analysts believing that we have discovered this important secret. Of course, we will never know for sure what that is, but I do believe he has given us something even more important, which is a psychological drive to work to discover new techniques and analysis. I started to learn my analysis with the help of Michael Jenkins as I learned from his books, where I put in place his techniques that became very helpful to me. There was a concept that Michael put in one of his books “ Chart Reading for Professional Traders” that referred to adding from a divisional 360° circle increments into workable numbers. This I believe to be very true, and I utilize this within my work. I take that concept one step further, as I think Michael would even agree to show that everything comes into perfection when looked at under the right lens.

What is the PATH system? The PATH or (Perfect Adjustment Through Harmony ) system was created by myself to account

for uctuations in a forecasted price and the actual price. The reason why this is important, but often disregarded is that if we understand that our forecast is of sound mathematical reason, then any dierence needs to be accounted for in future moves. This dierence between forecasted and actual calculation values should not be disregarded. I say it needs to be accounted for in further calculations to adjust prices back into their harmonic and correct movement. So both the forecast and actual have equal importance. Consider a ne instrument that goes out of tune. We do not throw out the instrument when it gets out of tune, but we adjust it and we do not blame the instrument for an un-tuned instrument. This is similar to a car that needs a tune-up. We do not throw the car out, but we know that he just needs a little bit of ne-tuning to bring it back into ne running order. This is similar in the marketplace because if we are using sound mathematical principles, then we know that our calculations should be correct, but there is a ner, deeper reason for the lack of exactness. PATH or Perfect Adjustment Through Harmony can be considered as if we are looking at a

photograph and I moved it quickly, and it became blurry. The photograph is still intact without WWW.TRADERSWORLD.COM


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precisely giving the exact distance, speed and direction moved it would be dicult and impossible to get refocused. This is what I believe happens to price action in the marketplace. This is what happens to people when they do a 50% retracement, and prices do not stop perfectly on them. It does not mean that it is not working perfectly it means that we have to account for that slippage or discrepancy which I call now PATH.

The Gann Soybean Chart If we take a look at Gann’s famous soybean chart there is an area where has not been noticed within the chart. Many have looked at the planetary lines that Gann has drawn such as Mars and Jupiter line, in showing their inuence, and this is compelling. What also is compelling, but disregarded is the upper right-hand corner, where he draws in the 67 stating it’s the low, and adds 180° to it. Gann does it in the next column too, and draws the low of 44 + 180°, and he is clearly adding them together. What is interesting is he makes a mathematical mistake when he puts down 227 instead of 247. He then averages them together but what is more important is that he’s adding in 180° to the calculation showing the importance of adding in the circle rotations into the calculations from the low.

Main image courtesy of Myles-Wilson-Walker.com but modied If Gann thought all lows and highs were so important, then why would he not utilize the most simplistic measurement known to man as the circle and fractionalizing it? Did he already do by using a timeline such as using 180 degrees or half of 360 converting it? The 45 degrees timing

line is a similar representation of the 180 since it is showing half or 50%.



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In using 67 + 180° = 247° or price of 247. This is the balance price, and when prices become unbalanced/overbalanced, they could be over bought or oversold. What he is also doing is averaging two major important lows and showing the importance of opposition and giving the next progression and potential high becoming a major resistance in the future.

•

Gann starts by adding 180 degrees or opposition to the important lows. (See red arrows)

•

Gann then averages out both of the low forecasts and divides by 2 (he makes an arithmetic mistake in averaging out the numbers)

•

240 price starts the count of days forward. (This shows he knows its importance)

•

At the low of 67 in both counts, prices take a major turn (1 becomes the high or last high and the other 67 count catches the fast break in price). (See black arrows)

•

So basically Gann counts from 240 in price time forward by looking for the 67 low in time and price.

•

67 low – 44 low = 23 PATH

•

23 x 2 = 46 (Expanded and close to 45 degrees)

•

44 low + 180 degrees opposition + 46 (PATH expanded) = 270

•

3.60 degrees (PATH please see my book stock Market Harmony for reference) x 2 (expanded) = 277.20 (the top)

1929 Crash using PATH and Venus These examples show the PATH system with Venus to forecast movement. Traders need to remember that although the degrees are o slightly you would see the change occur quickly and move into perfection since Venus is a fast planet. All we are doing is adding in degree movements to forecast potential turns.

•

123.25 Venus on 9/3/29 + 45 degrees = 168.25 Venus degrees

•

358.80 on 10/11/1929 = Venus 168.92 WWW.TRADERSWORLD.COM


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•

123.25 Venus + 90 degrees Square = 213.25 degrees

•

213.25 degrees – 3.60 (PATH) = 209.65 Venus

•

386.10 / 2 = 193.05

•

193.05 + 209.81 Venus = 402.86

•

402.86 – 360 degrees = 42.86 Venus Degrees •

•

360 degrees – 209.81 Venus low = 150.19

•

150.16 + 42.43 = 192.62

•

192.62 + 105 time = 297.62 price

•

42.43 Venus + 60 degrees = 102.43

•

102.43 – 2.40 (PATH) = 100.03

•

99.67 is actual Venus top on 6/2/1930

•

42.43 4/16/30 Venus high x 3 = 127.29

Very close to 127.14 Venus degrees. These methods can be done with all the planets under any timeframe.

The Balancing of time and price using PATH It is impossible to really discuss market corrections without coming to the 1929 crash, but it really perplexes me to see such little work done on this time frame. The reason why I really like this time frame is that the numbers are in more reachable and in more presentable ranges. The 1929 crash was before the time of computers and hedge funds or mutual funds. So although manipulation still occurred, we cannot say that this was computerized trading, creating the market moves. Think this is a powerful dierence and helps validate any conclusions, we may come up with as long as they are strong with merit.



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TJ-1929-GSDL-3

Using Gann Single Degree Lines in the 1929 Crash In this chart, we have the 1929 crash. Of course, the most dramatic crash in history, and we can see by utilizing our tools that prices show that there is harmony at work. Gann’s concept of balance in time and price comes at the point where Gann explains the 45° angle as a balancing point in time and price. When we are using the Gann single degree line. The GSDL or Gann single degree line is determined by its scale or ratio being using but in its simplistic format it is like 1 point up for every 1 day of movement. We can see how the 45-degree angle holds signicance in the price action. Prices can be seen in this chart coming from the major low as prices stay above the 45° angle for some time until the last several months where prices start to trade underneath the 45° angle again. Of course, this would mean weakness (since prices are below the 45-degree line) as prices abov e the 45° angle show strength. A clear signal to sell. Of course, any recovery from such a big bearish decline would also mean that this rally should be considered a countermove and a continued decline should occur. Utilizing our timing lines from the major highs we can see when prices are crossing these Gann lines, we see that change in trend should occur at those intersections.

•

When we take a Gann line drawn from major lows and then from the major high and look for intersecting angles for support or resistance. In our methods is that we are utilizing a dierent scale for the price and allow for the importance of what is signicant of PATH. We know the numbers 120, 240, 360 are signicant and are PATH numbers, and therefore when we can adjust our angles to represent these numbers. (Just look at the 1.20 ratio o the major low). We see a signicant support or resistance at the trend line.

•

We know that 386 is signicant since it was the 1929 high on September 3 rd. We draw WWW.TRADERSWORLD.COM


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the 3.86° line from the major low, and we could see it intersects important support, low, and holds the prices in the future. •

The use of 331.50 is 360° - 28.50, (which is the all-time low in August 8, 1896). Gann refers to this time in his forecast for the 1929 crash in the supply and demand magazine, where he calls the high to be August 8 th also that it is the 135 line on a Cardinal corner, and also referred to in his “45 years in Wall Street” book.

We have the following; The high from September 3, 1929 x 3 = 11/4/1932. This clearly misses the mark of the major low at 40.60 occurring July 8, 1932. Let’s see why we’re slightly o. When we put PATH to the test. We could see that it accounts for the missing action.

•

386 (9/3/1929 top) x 3 = 1158 or 11/4/1932 – 120 days or PATH = 7/8/1932

Why is 3 x 386 important? •

386 x 3 = 1158 days or 3 years 8 weeks 6 days

You see the reason prices did not stop because this adjustment is necessary part of forecasting.

TW-1929-PATH-2 This chart demonstrates the PATH adjustment or ne tuning and the GSDL hit the 4/16/30 top.

•

360 – 28.50 = 331.50

•

331.50 – 1.20 (PATH) = 330.30



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You can see it catches the top of April 16, 1930 perfectly.

TradersWorld Magazine Premium Subscription

It is imperative that we have an open mind


when it comes to charting and the markets. Remember the market cares little of whether or not you believe in its harmony. The markets move in harmony in time and price. Learn to seek its rhythm and you should be successful. Those that are looking for more answers regarding the PATH system can read it in my new book called S t o c k M a r k e t H a r m o n y Where Time and Price Meet coming in

December. QUARTERLY MAGAZINE SUBSCRIPTION

References


Gann, W. D. (1976). 45 years in Wall Street: A review of the 1937 panic and 1942 panic, 1946 bull market with new time rules and


percentage rules with charts for determining the trend on stocks. Pomeroy, WA: Lambert-

COMPLETE BACK ISSUES OF TRADERS

Gann.


Jenkins, M. (n.d.).

Chart Reading for


Professional Traders. Greensville, SC: Traders


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Higher ProbabilityCommodity Trading A Co m p r e h e n s i v e G u i d e t o Co m m o d i t y M a r k e t A n a l y s is , St r a t e g y D e v e lo p m e n t , a n d Ri sk M a n a g e m e n t T e ch n i q u e s A im e d a t Fa v o r a b l y S h i f t i n g t h e O d d s o f Su c ce s s By Carley Garner – Commodity Market Analysis & Broker at Decarleytrading.com Review by Larry Jacobs

This excellent book takes serious readers on a pathway through dangerous futures trading markets. It sheds great information on topics that are not very well explained in other trading literature from the unique perspective of a commodity broker with the intention on increasing the odds for success for trading market

participants. Carley discusses many alternative market concepts and views such as option selling techniques, hedging future positions with options and even combining fundaments, seasonal, sentiment and technical analysis to gauge market changes. Carley is a contributor to CNBC’s Mad Money TV program which is hosted by Jim Cramer. She has been a futures broker for over a decade. She has been witness to many of the wild swings during that time. Carley does have an ability to come up with complex trading concepts with an easily read book format. Readers will walk away with a much better understanding of how the futures and option markets work. You’ll also get the benet of having this explained through the eyes of one of the foremost experts in the futures and options markets. This book is an easy to understand book for future traders of all levels. Carley makes an otherwise dry subject very interesting. The book oers advanced discussions and building blocks for understanding. I highly recommend this book and I am condent that it will benet traders of all skill levels in the futures and options markets. A v a i l a b l e o n A m a z on WWW.TRADERSWORLD.COM


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Amazon Kindle Books Gann Masters Course by Larry Jacobs $9.95 As you know, W.D. Gann was a legendary trader. Some say he amassed a fortune in the the markets. He wrote several important books on trading as well as a commodity trading course and a stock market trading course. He charged $3000 to $5000 for the trading courses which included 6 months of personal instruction by phone. The Gann Masters Trading Course to help traders become successful.

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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.

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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 prot. 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.

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•

Price and Volume the only True Indicators

•

Uncovering Market Secrets

•

How to handle capital exposure

•

Secrets of Safe Protable Day Trading

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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 prot. 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 prot. “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 WWW.TRADERSWORLD.COM


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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 prot. 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.



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Issue 64

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