ATM Machine Trading Plan

Transcription

THE OFFICIAL MAGAZINE OF TECHNICAL ANALYSIS
TRADERSWORLD
www.tradersworld.com | September/October 2009
Issue #46
Pinball Setup as an
ATM Machine
How to Write a
Trading Plan
Why Do People
Make Elliott Wave
So Complicated?
What Type of Trader Are You?
The Secret Strategies of the Master Traders
Anticipate Major Market Turns
Sonata Trading
Computer
Online Trading Academy
WWW.TRADERSWORLD.COM SEP/OCT 2009
1
Letter from the Editor
Issue#46 of Traders World Magazine will
mark the monumental evolution change
of the publication. It is now 100-percent
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Larry Jacobs
3
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Contents
Office
8 Pinball Setup as an ATM
Machine
TRADERSWORLD
Editor-in-Chief
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September/October 2009 Issue #46
By Rick Saddler
How to do the
Pinball setup using
moving averages
and candlestick for
successful trading.
12 Strengthing Your
Infrastructure
By Adrienne Toghraie
What you should be doing with your
resources in these uncertain times.
20 How to Write a
Trading Plan
By Dwain Sachs
Having a well written
researched Trading Plan
is mission critical to your
success.
25 Why Do People Make Elliott
Wave So Complicated?
By Tony Beckwith
It’s easy than you think trading with
Elliott Wave.
28 How to Use Wyckoff Candle
Volume Analysis
By Todd Krueger
90% of all retail traders are
losing money with technical
analysis. This article will
teach you an entirely new way to analyze
charts successful.
5
34 Determining What Type of
Trader You Are
84 How to Anticipate Major
Market Turns Part III
By Jaime Johnson
One of the most important things you can
do as a trader is determine what type of
trader you are.
By David C. Reif
Explains how he was able to make a very
nice short-term trade in January 2008
based on his principals
37 Interview with Chuck
Hughes
88 TradersPlanet
Mr. Hughes has generated over
4 million dollars of cash income
from selling option premiums
over the last two years.
43 Interview with
Robert Miner author of
High Probability Trading
Strategies
We talk to Robert about the
business of trading, what makes a good
trader.
48 Risk Control & Money
By Bennett McDowell
52 Ponzi Scheme: Part
5 Bernie Madoff
By T.H. Murrey
with the cash, don’t ask, don’t
tell. Newest Investing Strategy
76 The 17-Year Cycle Part III
By Eric S. Hadik
As
evidenced
by
the
previous
quote
(attributed to Israel’s
King Solomon), the
principle of synergy
has been recognized
and valued for at least
3,000 years.
6
By Larry Jacobs
TraderPlanet.com is a new
trading information and social
networking site for traders
89 The Secret Strategies of the
Master Traders
By Brad Stewart
How To Turn a Small
Account into $1,000,000
97 AstroFibonacci
Software Program Review
If you are into financial astrology, then one
of the best programs available anywhere
is the Astro Fibonacci Program by the Magi
Society.
106 Measuring Time
By Earik Beann
If you are failing in your
research or forecasting, a
lot of times that failure can
be attributed to incorrect
assumptions about the
nature of the market you are
forecasting.
112 NI Trading Program
Review by Larry Jacobs
The program is based on the theory that
all trading markets move in time cycles
and that there are cycles within cycles,
that as many as 5-10 simultaneous time
cycles may be occurring at any one time.
This theory was proven by J.M Hurst in his
classical book.
Advertisers
03 Robbins Trading Company
119 Super
Timing Book
www.worldcupavisor.com
Super Timing the
formula is shown
in detail. All of Gann’s public predictions
were analysed to reveal the one common
factor. Super Timing explains all of Gann’s
predictions using the one formula.
09 eSignal
120 Gann Grid’s Ultra 2009
Dow Update
04 Traders World Online Expo
www.tradersworldonlineexpo.com
www.esignal.com/offer/tw
11 Prognosis
www.prognosis.nl
14 Active Trading Partners
www.ActiveTradingPartners.com
15 The Gold and Oil Guy
www.theGoldandOilGuy.com
16 Trading On Target
By Robert Giordano
Several Important key periods and Unique
Chart Patterns for the Dow in 2009
www.TradingOnTarget.com
127 Online Trading Academy
www.tradersworld.com
The Online
Trading
Academy
started in
1997 as a
trading floor
in Irvine, California. They are now one
of the largest educator for traders in the
world.
130 Trading Book Best Sellers
133 Popular Books
138 Special Interest Books
140 Sonata Trading
Computer
What’s in the best multiple
monitor trading computer
and what makes it different
than any others.
21 Traders International
www.tradersinternational.com
33 Know Yourself Astro Report
36 NOBSFX Trading
www.NobsfxTrading.com
45 Dynamic Traders
www.DynamicTraders.com
49 Traders Coach
www.TradersCoach.com
50 Market Optimizer
www.marketoptimizer.com
51 Mikula Forecasting
www.MikulaForecasting.com
69 Murrey Math Trading
www.TradersWorld.com
95 Sacred Science
www.sacredscience.com
105 Magi Society
www.magiastrology.com
110 RSofHouston
www.RSofHouston.com
111 Wave 59
www.wave59.com
126 MMA Cycles
www.mmacycles.com
7
Pinball Setup
as an By Rick Saddler
inball setup? The name of this stock trade
setup was derived from similarities of the
action of a pinball
game. The pinball
(the selected stock)
is propelled upward
by the plunger
on the playfield
(the
technical
candlestick chart of
the stock). As the
pinball descends, a trader observes the setup
as a possible opportunity. Just as the flipper
is poised to redirect the ball up the playfield,
the trader enters the stock long. The trader
must be prepared to act defensively if the
stock encounters a bumper or saucer. Once
the target price is achieved the stock is sold
and another few points (dollars) are added
to the scoreboard (trading account).
During my trading tenure of 12 part
time years and 4 full time years, thousands
of charts have been analyzed. The pinball
setup is one of the most consistent and most
profitable short-term setups in my trading
arsenal. A member of my chat room, Steve
Merritt, a Denver based independent equities
trader, refers to the pinball setup as his daily
“ATM machine”.
P
The Setup
The elementary strategy is to grab the stock
off the bottom after a down trend, preferably
just above the 8ema (exponential moving
average) and exit the profitable trade at the
34ema. The pinball setup commences while
observing a stock’s bullish indication following
8
ATM
Machine
the downtrend. The bullish indication may be
a:
double bottom
bullish engulfing candlestick
bullish harami
Swing Low Buy Signal or golden cross (a
stock’s short term moving average breaking
above its longer term moving average…a
favorite is the 2ema crossing the 8ema
to the upside) close above a significant
moving average (the 8ema and 21ema are
compelling)
To maximize the probability of success,
the bullish indication must be confirmed by
the next day’s candle. No rule exists that
strength always follows the bullish setup;
the bullish setup must be confirmed. The
next positive candle should be based on
your trading time frame window. The setup
is fractal therefore it can be used on any
time frame, shorter or longer than the daily.
I prefer a daily chart, a 60-minute chart
and occasionally a 30-minute and15-minute
chart. My indication chart is the daily. If the
daily meets the parameters, I will drill down
to a 60-minute, 30-minute and a 15-minute
chart for validation and suggested entry.
The daily chart always dominates. Without
confirmation on the daily, seldom will I enter
based only on the intraday charts.
Another entry technique after witnessing
the bullish formation coupled with a stock
ascending is waiting for a pullback. Chasing
a stock for entry is too high risk. The pullback
may be to the 8ema on an intraday chart or
daily chart. The trade will then be entered.
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9
The Entry
Frequently it is challenging to enter at an
exact price. The majority of my pinball trade
entries are market orders. The movements
of the existing market have been volatile,
violent and tumultuous. And as a ‘for profit
trader’, I must pay myself weekly. As a
result my hold times are brief compared to
the more docile market conditions of 2002
to 2007. Most trades are now held between
an hour and 3 days. Refer to Figure 1 to for
an example of the pinball setup with entry,
targets and stop identified. See Figure 1.
Taking Profit
The hold period terminates when an earlier
identified target has been achieved. Prior
to executing the long trade, the exit target
is identified. A favored exit target is the
21ema, 34ema or 72ema. When market
conditions and my selected pinball stock
are acting well in unison, I may sell only
50% at the 34ema and allow the balance
of the position to run to the next target or
10
resistance area. Occasionally the
200sma and 233ema will be used
as exit points.
The risk reward principle suggests
that sufficient room exists on
a chart between the entry price
and the exit. A minimum 3:1 risk
reward ratio is desired, where I
will risk 50 cents to make $1.50.
Stop losses are used judiciously as
most trades are of short duration
and I do not want to be stopped
out during intraday ‘chatter’ or
‘noise’. End of day mental or soft
stops are used. Only if I plan
on being away from the trading
turret do I employ hard stops (a
stop loss entered on my trading
platform and placed with the
electronic broker). Identified stops, always
unique, are commonly placed below an ema
trend line e.g. 11 cents below the 8ema on
a $10 stock. Since the 8ema is the preferred
trend line, a close below, is of significant
concern and cause for an exit at a loss.
A comprehensive understanding of the
pinball setup coupled with cognizance of the
supporting technical indicators will identify
low risk entries and high reward exit targets.
Use the power of the pinball setup to book
profits!
Rick Saddler is owner of Hit and Run
Candlesticks www.hitandruncandlesticks.
com and active trader. He moderates his
chat room during market hours. For a free
1 month trial with Hit and Run Candlesticks
– Trading for Profit. Use the following link:
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free-month
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11
Strengthing Your
Infrastructure
By Adrienne Toghraie, Trader’s Coach
HOME
PERSONAL LIFE
PROFESSIONAL LIFE
COMMUNITY
SCHOOLS
NEIGHBORHOOD
LOCAL GOVERNMENT
hat should you be doing
with your resources in
these uncertain times
to increase the security,
strength, and stability of
your professional and personal life?
When the governor of California, Arnold
Schwarzeneggar, spoke of his determination
to help restore the economic well being of
his state, rebuilding the state’s infrastructure
was a major part of his solution. He proceeded
to list such steps as improving schools and
building new ones, improving the structures
that will protect lives and property in the
event of floods and earthquakes, and
improving roads and bridges. His argument
was that everyone would benefit from these
improvements.
W
12
However, more important than bringing
direct and indirect benefits to everyone is
the fact that a strengthened infrastructure
prevents the entire structure from collapsing
when the stresses are great enough. This
same principle applies to traders in protecting
their professional and personal lives.
How should a trader go about
strengthening and rebuilding his life’s
infrastructure?
Infrastructure for traders
A plan to strengthen a trader’s infrastructure
would need to address all of the aspects of
his life. To ignore all but one part of your life
would be like reinforcing only the northeast
corner of your home’s foundation. When
stress occurs in a system, the weakest part
is the one that will crumble, taking with it
the entire structure.
Let’s take a look at the four major parts
of a trader’s life where infrastructure can be
improved:
Home
A trader’s home, the actual structure, is
a vital part of his stability. When people
lose their homes in natural disasters, they
take a long time to return to their normal
functioning. Addressing and strengthening
the infrastructure of your home is one of the
ways that you prevent your life from being
uprooted.
When was the last time you had your
home
thoroughly
inspected?
Before
economic times get even worse, a trader
should make certain that the major
systems in his home are strengthened and
potential serious problems are resolved
before they become major expenses. This
includes possible roofing, heating and airconditioning, basement and foundation
systems, fireplace, mold, and plumbing
issues. Any one of these areas can create
living problems that can seriously affect a
trader’s working life, as well.
Personal life
The infrastructure of a trader’s personal life
is much like that of his home. He has a set of
basic operating systems that keep everything
going, which include his valued relationships
(spouse, children, parents, closest friends,
etc.), his emotional wellbeing, and his
physical health. Each of these “systems”
could stand a periodic check up.
Neglected relationships can cause more
trouble for a trader than a serious loss in the
market. When a marriage blows up or when
an angry and neglected teenager decides to
act out, a trader’s entire world can go up in
smoke with it. Thus, important relationships
need bolstering and periodic infusions of
time, energy, and attention.
A trader’s emotional and psychological
health is essential to his trading and needs
to have a periodic check up and refueling.
If he is growing depressed or anxious, he
may begin to move in a very negative way
in his trading without even realizing it. Thus,
a trader needs to attend to his emotional
and psychological issues through counseling
or therapy or whatever support he needs
before they cause him to self-sabotage.
Another aspect of building psychological
infrastructure is addressing self-discipline
issues. Without strong self-discipline, a
trader will find himself at the mercy of his
emotions and the influences of the moment.
He will not be able to follow his trading
rules or money management consistently,
and will set up a pattern of self-sabotaging
behaviors.
As soon as a trader reaches his late
thirties or early forties, he needs to be on
top of his health by working with a good
doctor, a nutritionist, and a personal trainer.
Their job is to prevent health issues from
sabotaging his life by establishing healthy
regimens and by identifying and treating
physical issues early before they become
expensive ones.
Professional life
Your professional career rests on the strength
of its infrastructure of physical, financial,
personal, and intellectual resources. Taking
a look at your career from the vantage point
of an inspector can be a real eye-opener.
What would you find?
In what condition is your office; is your
working operation the kind that makes you
13
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14
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15
Presented By
Adrienne Toghraie
Master Trader’s Coach
Author of 10 books on Traders’ Psychology
The aim of the Master Class
is to provide Traders with Winning Psychological Models for Trading
You will learn from Adrienne
 Lessons Adrienne has learned to assist you in overcoming your
self imposed limitations
 A success model to direct your mind towards the information
you want and need to become a master trader
 A success model to deal with time management and getting
things complete
 Lessons of professional traders
Who should attend
 Those who want to learn the pitfalls and lessons before they
start to trade real money
 Those who are struggling with earning profits as a trader
 Those who can’t get to the next level of success
 Those who want to speed up the process to become a master
trader
Master Class – (Day following the Las Vegas Trader’s Expo)
Sunday, November 22, 2009 – 9:00 AM – 12:30 PM
TROPICANA HOTEL
$500 US – pro-rated early enrollment – limited seating - NOW $300
Sign up on www.TradingOnTarget.com or call 919 851 8288
And More (details on back)
Exercises to Direct Your Future
Conditioning States of Excellence
Change Negative Stories & Shift Time
Management towards Top Performance
16
Details
Adrienne’s Master Class for Traders
The first half of Adrienne’s Master Class for Traders is an enhanced
version of the first two hours of Adrienne’s Advanced Seminar for Traders.
Her Advanced seminar is reserved for professional traders. The additional
time for this part of the workshop will be utilized on exercises that will assist
participants to have a deeper understanding of the material presented.
With this new material a trader will learn how he processes information and
directs his focus. This information will make it easier for him to recognize
opportunity in his trading. As a result of working with the new mental
strategies presented, he will be more likely to feel comfortable in taking that
opportunity and identify opportunity that he was not even aware of before.
Trusting his heightened awareness over a short period of time will lead to
him feeling more comfortable in taking increased calculated risk when he is
able to experience increased profits.
The second half of the Master Class is all about lessons Adrienne has
gathered from 50 top traders along with the lessons she has accumulated
over her 20 years experience as a Trader’s Coach. Adrienne in a research
study asked 50 colleagues and clients what was the most important
lessons that they learned in their trading career beyond “Buy high, sell low”
and “It’s all about discipline.” She was amazed at the similarity of most of
the lessons from these highly successful traders. Adrienne will present
these lessons, plus exercises that will make it easier to assimilate this
material.
ADRIENNE TOGHRAIE is a Trader’s Coach, an internationally recognized
authority in the field of human development and a master practitioner of
Neuro-Linguistic Programming (NLP) for the financial and business
communities. Her articles and interviews have been featured in major trade
magazines and newspapers throughout the world. Adrienne has authored
ten books including, The Winning Edge 2, 3 & 4: Traders' & Investors'
Coaching to Excellence; The Winning Edge 1, co-authored by Jake
Bernstein; and Traders' Secrets, which she co-authored with Murray
Ruggiero. She is widely acclaimed for her public seminars and private
consulting and has been seen on CNBC as well as other television and
radio financial programs. www.tradingontarget.com
17
the most competitive or has it been a long
time since you maintained or upgraded your
equipment? It may be time to call in some
professional help in evaluating your needs
and bringing your office into the most viable
and useful condition.
What about your business associates,
employees, clients, information sources,
and service providers: when was the last
time you evaluated their quality; are they
competitive; are there better people with
whom you could be dealing?
What about your money management:
when was the last time you evaluated its
track record? Is it meeting your expectations
and needs?
What about your trading system or
methodology: when was the last time you
evaluated its track record and when was the
last time you upgraded it?
What about your business plan: when
was the last time you produced a new
business plan; is your current one actually
current; could you use it right now to meet
with new clients or money people; have
conditions changed since you last produced
your plan that make it outdated?
Community
A trader does not work or live in a vacuum. If
the community in which he works and lives
begins to deteriorate, his work and personal
life will deteriorate as well. The process of
community deterioration is often slow and
subtle. Major changes do not usually appear
over night but creep along so that it takes a
while before you notice that your community
has declined in safety, in services, in eye
appeal, in attitude and values, and in the
general quality of life. However, in a major
economic downturn, these changes can
occur very quickly if people lose their jobs in
18
large numbers and the public services are in
rapid decline from declining revenues. The
answer may not be an easy one for the trader
to simply move to a better community if
everyone is experiencing the same problem.
At this point, a trader may need to step in
and apply his resources to filling the hole in
the dike. Here are some of the infrastructure
issues in a trader’s community that may
require his attention:
Schools
If his children’s schools have problems,
a trader’s family will begin to suffer the
consequences and soon the trader will feel
the sting as well. A trip to the school to meet
with administrators and teachers may be in
order. But, a trader may need to step up to
the plate and debate with the local school
board at public meetings to bring about a
needed change.
Neighborhood
A neighborhood in decline can dramatically
affect a trader’s life. He may choose to
ignore it but his family will bring home the
problems. Joining a neighborhood watch, a
tenants’ or neighborhood organization, or
simply talking to his neighbors and gaining
their consensus and cooperation can make
all the difference.
Local government
You might argue that a trader need
not concern himself with this particular
infrastructure issue. And yet, corruption,
incompetence, and indifference in local
government can make a trader’s life difficult
when his taxes rise with no compensation
while services decline. Potholes in the streets
are not fixed, snow is not plowed, garbage
is not picked up, and the police and firemen
are not there when you need them. At the
very base of our infrastructure is the political
system that provides the local services to its
citizenry. Speaking out and taking a stand is
the equivalent of shining a light on a leaking
pipe or a rotting joist, making them hard to
ignore.
A Stitch In Time
In Steven Covey’s book, The Seven Habits
of Highly Effective People, he makes the
case for an individual to attend to the things
in his life that cannot be seen long before
they become so obvious that they are major
problems. His point is that you will not have
to be spending all your time putting out fires
if you have done the work along the way that
prevents fires from starting in the first place.
This is just another way to look at working
on your infrastructure.
What I have discovered in coaching
traders and in working with highly successful
people is that it takes character to work
on the things that you cannot see, the
infrastructure. It is easy to work on those
things that bring immediate gratification.
To do otherwise is to deprive yourself of
getting what you want right now, and
most people do not have the self-discipline
and character to do this. But, working on
infrastructure is what builds long-term
success.
In the 1950’s, when Eisenhower
became president, he did so on a mandate
that allowed him to create infrastructure.
So, he built the interstate highway system,
an infrastructure that made possible so
much of the prosperity enjoyed by the
American people for the past sixty years.
Prior to Eisenhower’s presidency, during
the Great Depression, another great
president, Franklin Delano Roosevelt, put
Americans to work building bridges and
other elements of infrastructure. Since
their time, however, the public is loath to
elect a president who talks about building
and maintaining infrastructure. What the
public wants is someone who promises
to give them immediate benefits, the
equivalent of eating your seed corn in the
face of seven years of bad weather.
Conclusion
A trader’s career rests on the infrastructure
of his professional, personal, emotional
and community supports. These supports
are invisible until they begin to deteriorate.
When they fail, they can bring down
the entire house. However, because
they are invisible, it takes character and
self-discipline for a trader to address
their development and maintenance.
Fortunately, there are ample resources
available to a trader to help him to develop
and maintain the infrastructure in his
personal and professional life. All he has
to do is to make the call and he can bring
a host of trained people into his life to help
maintain and upgrade his infrastructure.
These outside resources include the people
who can keep his environment in condition
to the people who can help him to maintain
his own physical and emotional health. They
also include the people who can help him
to maintain and upgrade his technology as
well as his trading and business skills. So,
when economic conditions dramatically
decline, he is strong enough to withstand
them, and when economic conditions
improve, he is positioned to take maximum
advantage of them.
Adrienne Toghraie, Trader’s Coach
www.TradingOnTarget.com
19
HOW TO WRITE
A TRADING PLAN
By A. Dwain Sachs, M.Div.; M.A.
aving a written,
well
researched Trading Plan
is mission critical to your
success! It does not matter
if you are a system trader
or a rule based discretionary trader, your
ultimate success will stand or fall on the
strength of your Trading Plan!
In my webinars I do an experiment with
the audience that always reaps the same
results. I ask the unknown attendees two
H
20
questions. First I explain what goes into
a good solid comprehensive trading plan.
Then I ask the First Question: How many
in the audience actually have a written,
well researched Trading Plan they know,
understand and trade? Usually out of
every twenty five who attend, I will have
about three traders who say YES to that
question. Then the Second Question is
addressed to those three traders; and it
is this: How long have you been trading?
FREE Live Trading Webinar
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the kinds of results that are achievable.
Proof is in real time.
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TradersInternational.com
Trading involves risk of loss. Past performance is not indicative of future results.
21
The answer typically is from two to fifteen
years…The average time in trading is
around five years. What does that tell
the rest of the audience? To survive and
thrive in the trading business, you MUST
have a Trading Plan! Do you get the drift
here? A Trading Plan is Mission Critical to
your success as a trader. Period! So if you
don’t have one, you might consider NOT
TRADING until you get one! That is how
strongly I feel about this issue.
How Do You Build a Trading Plan
First of all, a Trading Plan IS NOT a Business
Plan. Your Business Plan will include your
Mission Statement, your Budget, your
Trading Goals, your Vision of the End
Result (in a defined time frame). And then
you are ready to insert into your Business
Plan your Strategy designed to make it
happen. This Strategy component is your
22
Trading Plan.
A
Trading
Plan
will always have key
elements from which
your plan will be built.
There
are
certain
predefined CONDITIONS
you are screening for.
When these conditions
appear you will have the
makings of your SETUP.
This then leads to your
TRIGGER.
And your
ACTIONS to engage the
market will follow. Once
in the trade, your plan
will address the stops
and TARGETs. Finally,
you need an EXIT
STRATEGY designed to
maximize the profit and
contain the drawdown.
I want to zero in here on the SETUP. In
this stage of your Trading Plan, I assume
you have already defined the following:
1) the market you will trade; 2) the time
frames you will be working in; and 3)
the tools you will be using to identify the
Conditions you are seeking. Think of your
Setup as your “first rule” for your Rules of
Engagement. The Rules of Engagement
provides the answers to three very simple
(but complicated) questions: 1) Where to
get into the trade; 2) Where to get out if
you are right; and 3) What where to get
out if you are wrong!
Your Setup will define the rules for
the conditions under which you enter the
trade. What must happen to trigger your
action to execute this trade? Keep in mind
that trading is about relationships. So
you are essentially looking for your pre-
defined conditions to occur in a repetitive
manner. When they set up you execute…
it is that simple. You don’t think….you
execute! Your thinking has already been
built into your research and prep work…
get it? This addresses the psychological
dimension. Keep in mind your Trading
Plan is the antidote for your psychological
and emotional hang ups…More on that in
a minute….
Once you are in the trade, you will need
to define the Conditions under which you
will exit. I am talking about your target
or series of targets (depending on your
plan). A good trading plan will have well
researched entries and exits to maximize
the performance of the trade.
Some
trading plans are good on the entries and
poor on the exits or vice versa. To have
the best of both worlds requires testing
and research.
The Testing Phase of Your Plan
Here is where a lot of traders fall apart in
constructing their Trading Plan.
Testing
is a lot of work—especially if you do not
utilize the power of the computer. A major
first class short cut is to use Easy Language
to filter test your ideas using the power
of the TradeStation software. Or you can
build a rule based model using EXCEL as a
database to validate the accuracy of your
strategy ideas. TradeStation is a shortcut
for those with the skills to do their own
programming. Or you can hire an Easy
Language developer to do the custom
programming for you.
Trading is a numbers game; and you
must know your statistics that define
YOUR Rules of Engagement. Otherwise
you are “flying by the seat of your pants”,
if you will allow that technical term. At
a minimum, write down your Rules of
Engagement. Then build an Excel Spread
Sheet and start trading and tracking your
Rules in Simulation Mode.
Here are the kind of statistics you are
seeking in your research:
1) Percent
Profitable; 2) Win/Loss Ratio; 3) Average
Losing Trade; 4) Average Winning Trade;
5) Average Net Profit Per Trade; 6) The
percent of time in the market per trade;
7) Your Maximum Draw down; 8) Your
Profit Factor; 9) Your Total Net Profit;
10) Number of consecutive winners vs.
losers….
As I said, this is a lot of work and
becomes the point where traders will want
to take the easy way out and start flying by
the seat of their pants again! But please
be aware of this: The professional traders,
you are up against in the marketplace,
know their numbers! And their agenda is
to take as much of your money as possible!
If you want to be competitive with them,
you have to know YOUR numbers!
The Bottom Line to your testing is
found in your Performance Graph. You will
want to see the trading strategy making
consistently HIGHER HIGHS in real time.
Knowing your numbers or statistics
of your Trading Plan will also address a
critical component of your trading. This
is the psychological and emotional part of
your trading. You see once you have a
“written” “well researched” set of trading
rules, you will discover this will create
what is called the “Positive Expectancy”.
This can provide the drive and motivation
needed to compel you to execute the trade
“without thinking”. This is where you want
to be as a trader. If you start thinking
and analyzing during the heat of battle
(if you will), you will end up chasing the
23
trade because you missed the entry! The
mental training of athletics is based on the
practice and drills where the actions are
already programmed into the neurological
structure of their brains. On the playing
field they are spontaneous in their reflexes!
And that where you want to be as a trader.
My proposition in this essay is you cannot
get there without this PLAN!
I have a Cognative Map of this Plan
outlined in a PDF file. I will be happy
to send you it to you if you email your
request with the words “Outline of Plan”
in the subject line. Send your request to
[email protected]
The Plans Daily Routine
Having a Plan is one thing…but the other
part is this: CAN YOU TRADE IT!
This is
where the “rubber meets the road”. There
is a daily routine you need to follow. At
the end of each trading day you will need
to do your analysis. You will first print out
your charts. Then mark up your charts
and start building a new set of statistics.
This will now be your REAL TIME Statistics.
You must know how your Plan tracks
out in real time. And you must also know
IF YOU CAN TRADE IT in real time! Your
trading equity curve can fall apart in either
of these two dimensions. I know traders
who have great trading plans; but they
can’t trade them. Their hang ups about
the money defeat them in the heat of
battle. These hang ups are called “fear”
and “greed”. Remember? If you cannot
trade your plan, then you have to discover
the problem and then rebuild a plan you
can trade! This is a process of learning
how to compensate for your hang ups
about the money!
So in REAL TIME,
you will begin
24
tracking your results, identifying problems
in both your plan and in your head, and
then making adjustments.
By the way,
these adjustments will be on-going for the
remainder of your trading career!
You
may not be aware of this but when we sent
our first astronauts to the moon, NASA
was OFF COURSE about 50% of the time!
They were always making their mid course
corrections to stay in the channel to hit the
target.
Your Trading Plan will be a work in
progress with on-going adjustments…it
will evolve and change as you grow as a
trader! I know trading system developers
like Joe Krutsinger, CTA who have been
at this on a full time career basis for over
33 years. And they are still working on
their trading strategies to keep building
a better trading mouse trap.
They can
also provide you with a lot of shot cuts in
your on-going research. In the next issue,
Joe Krutsinger will discuss THE FIVE KEY
TESTS that all of his trading strategies
must pass to be incorporated in a Trading
Plan.
Good luck in your building YOUR Trading
Plan…See you in the market place!
Dwain Sachs left a successful career in
real estate in the 1990’s to transition into
a full time career as a trader. It was Joe
Krutsinger, CTA who first consulted with
Dwain and introduced him to the world of
systematic trading. They have continued
to work together as a team over the past
10 years with Dwain becoming Joe’s full
time Administrative Assistant from early
2000 to the present. Their Research can
be reviewed at www.eTrackRecords.com
Dwain can be reached directly at his Office
at 573-224-3366.
Why do people make
Elliott
Wave
so complicated?
By Tony Beckwith
he Elliott wave principle is
a form of technical analysis
that attempts to forecast
trends in the financial
markets and other collective
activities.” So says the
opening entry in the online encyclopedia
Wikipedia, under the heading “Elliott
wave principle”. Perhaps the very word
T
“forecast” gives a clue as to why this type
of analysis is, on one hand, revered by
devoted followers and, on the other hand,
thoroughly despised by critics...
If you accept the standard premise that
active markets tend to move in a pattern
of 3 waves in the direction of the trend ‘impulsive’ or ‘motor’ waves - with 2 waves
in between correcting against the trend –
25
‘corrective’ waves (see the chart below) you may be forgiven for thinking that you
have cracked the secret to trading for profit.
Surely, if you know a wave 5 follows a wave
4, you can know where and when the move
will finish and trade perfectly every time?
Well, the real world is not quite like that...
As anyone who has ever tried knows,
there are numerous difficulties with using
the standard interpretation of Elliott wave,
including simply being able to identify the
waves to begin with; fitting a small pattern
cozily inside a bigger (called larger-degree)
pattern; breaking down a big pattern
into smaller, snug patterns; connecting
patterns following each other by using
convenient bridges or ‘x’ waves; treating
an unconventional pattern in a wave as
just ‘complex’ and so on. And we have not
even touched on the challenges of actually
trading with Elliott wave!
Play MT Predictor Movie
26
So, why not use or trade Elliott wave
only on those occasions when the pattern or
sequence of waves is crystal-clear? When it
is not – as may be the case more often than
not – simply avoid making an analytical call
or actually risking capital in trading. If you
are strong enough to let go mentally and do
this, you have broken through the barrier to
be able to start using the 4 stage process
employed by all good professional traders
– to find a trade, to assess its risk/reward
outlook, to determine how much to risk and
to manage the trade. If you can’t even find
a trade because you are busy forcing Elliott
wave labels on everything that moves, you
cannot even start the process!
So, you can achieve stage 1 and find a
trade by focusing solely on identifying, for
instance, a simple wave 2 or wave 4. Using
the typical Fibonacci ratios (0.618x, 1.00x,
1.618x, 2.618x and so on), you can project
target levels for the subsequent wave 3 or
wave 5 to reach. This enables you to cover
stage 2 and calculate the potential reward
(the distance from the entry trigger price
to the 1st target) against the definite risk
of loss (the gap between the entry trigger
price and your initial protective stop loss).
If the resulting risk/reward ratio is better
than 2:1, in conventional trading terms that
is a good trade to consider. You can now
move to stage 3 and work out how many
shares, futures contracts, forex lots and
so on to trade for a given amount of risk.
If you are risking 0.5% of a US$20,000
account on each trade, you have $100
available. Divide the difference between
your entry price and initial protective stop
into that $400 and hey presto...your money
management or Position Sizing™ is sorted.
Finally, this all means you can manage the
trade with discipline and control – stage
4. For example, if you are trading off daily
charts, look to move your protective stop
from its initial level to your break-even if
price reaches 100% risk (in other words,
the open risk/reward is 1:1 and you have,
therefore, covered your risk)...and plan to
take half your profit if the price reaches
your 1st projected Elliot wave target and the
remaining half profit if price moves further
to reach the 2nd target. Simple!
See the chart 2, on the same US stock as
in the previous chart - APH, as an example
of this simple process:
Notice in this example how the potential
correction down is a clear and simple 3
waves – usually called a zig-zag or abc
correction, as labeled here. The previous
uptrend is also clear. It would be difficult
for a room full of Elliott experts to argue
with this – though some might have a go!
In doing so, however, they run the risk of
over-analyzing and missing a simple trade
opportunity...
Remember also that stage 3 is by far the
most important stage in the flow diagram
– although it has to follow the previous 2
stages in the sequence. Without consistent
money management it doesn’t matter how
well you pick trades, you are likely to end up
losing. You will not have any way to link your
profits on winning trades with your losses
on losing trades. As the industry-leading
trading mentor Van Tharp says “Research
has proven that about 90% of the variance
in performance between portfolio managers
is due to money management. For the
average trader, it makes the difference
between losing, and winning big...”
Of course, you can use other analyses
or indicators to give added weight to Elliott
trade set-ups, however you must avoid
at all costs a ‘paralysis of analysis’. For
example, a simple 14 period RSI or Relative
Strength Indicator showed a clear bullish
divergence (not shown) on the wave 5 low
in the first chart, suggesting the lower price
was a fake move and a reversal upwards
could result. Note the word ‘suggesting’, not
‘guaranteeing’! As another simple example,
the weekly chart of APH was also showing
a clear wave 2 low at the same time as
the abc Buy set-up came in on 6 March 09
on the second APH daily bar chart above,
adding weight to a long position...
We will cover this ground more thoroughly
in future articles.
Tony Beckwith, MTPredictor Ltd.
MTPredictor is the specialist risk control
trading software using the Isolation
Approach™ to Elliott wave
Click Here for more details on MTPredictor
27
How to use Wyckoff Candle
Volume Analysis to
Identify and Trade
Supply/Demand Imbalances
in Any Market
By Todd Krueger
n my experience as a trader and
educator I have found that most
retail traders have very little, if any,
exposure to accurate chart reading
techniques. Many of these traders
mistakenly believe they are reading a chart
with the use of the various formula driven
indicators (i.e. stochastics, CCI, MACD,
etc.) that are commonplace in nearly all
charting platforms and software packages.
The untold truth about these indicators is
that they are dependent variables of price
action and most of them are smoothed or
averaged which causes the indicator to lag
price. Perhaps this is why it is said that
over 90% of all retail traders are losing
their money. In this article, my goal is
to introduce you to an entirely new way
to analyze charts without the use of
any indicators and their
inherent problems. We
are going to explore two
methodologies that have
each been used individually
for well over 100 years
with great success. The
first method that we will
look at is candlestick
charting analysis and the
second is Wyckoff Volume
Analysis. Each of these
I
28
methodologies are designed to detect
supply/demand imbalances on a price chart,
I will demonstrate how to combine both
of these techniques into a vastly superior,
new 21st century trading methodology
called Wyckoff Candle Volume Analysis.
Candlestick charts are very visual in
the way that they display the opening
price, closing price and the high/low of the
bar. When the closing price is higher than
the opening price, the candle body will be
hollow; when the closing price is lower than
the opening price the candle body will be
solid or filled in. It is the variations between
the opening and closing prices that create
the numerous candlestick patterns that
are very popular today. When the opening
and closing price are either very close
to, or the same, a doji candle formation
is created. It is commonly
believed that doji candles
indicate market indecision.
Shadows (also known as
the wick or tail) are formed
when the high and/or low
of the candle exceed the
body of the candle and are
represented on the chart by
a vertical line above and/
or below the candle body.
These shadows represent
when there are supply/demand imbalances
that have occurred on that candle. When
you see a long lower shadow, this indicates
that demand is entering the market and,
at least temporarily, exceeding supply. An
easy way to understand this principle is to
look at what happens to price at the low of
the shadow; as the market trades down to
this level, demand comes in and drives the
price back up to close well above the low.
When you see long upper shadows, this
represents supply is entering the market
and, at least temporarily, exceeding the
demand at that price level. Please refer to
chart 1 to identify the demand and supply
shadows that are labeled. Please also draw
your attention to the two candle formations
that are also highlighted and labeled, these
candles will be the focus for the remainder
of this article. See Chart #1.
Doji’s that occur at market tops and
market bottoms (as our example here) can
Chart #1
be great market “tells” that a price reversal
is possible. The first doji that we see is called
a long-legged doji as the shadows are long
on both sides of the opening/closing price.
This is considered an excellent reversal
candle, especially at market extremes as
we see here on the multi-year low of the
DIA daily chart on March 6th, 2009. This doji
denotes, in candlestick terms, equilibrium
between the bulls and the bears. This doji
is then followed by a gravestone doji. A
gravestone doji is formed when the open
and close occur at, or very near, the low
of the candle. We can see on the longlegged doji that as price probed below
the previous candle, demand came in at
these lower prices to push the market
back up to close well off the lows. This was
the first long lower shadow on this chart
as price had been in a freefall for some
time. The next day the market opened
with a big gap down, traded up above the
29
long-legged doji’s close and then traded
all the way back down to close near the
low of the day which was also the lowest
closing price since the 1990’s. We can see
that as the market tried to trade higher,
supply came into the market creating the
long upper shadow on this candle. With
the gravestone doji, we need to see the
market immediately respond with demand
flooding the market. Ideally, a gap up
opening is what we would like to see along
with a long body, hollow candle. This is
exactly what happened and to date, these
2 doji bar formations remain the low of the
violent bear market. These candle patterns
did a good job at identifying the reversal at
the market lows but try to remember the
bad news that you were hearing from the
media at the time. It could be very difficult
to pull the trigger on this trade with just
the information on this chart. Although we
can see the demand coming in on the long-
30
Chart #2
legged doji, we have no way to quantify
how strong that demand actually is. And
we can see the supply coming in on the
gravestone doji, but how strong is it? We
need to utilize volume analysis in order to
quantify this. Let’s now switch gears and
learn more about Wyckoff Volume Analysis.
See Chart #2.
We will now look at the same chart in the
way that Richard D. Wyckoff did over 100
years ago. Wyckoff learned that a market’s
future probable price direction could be
judged by its own action. He discovered that
all markets work on the law of supply and
demand. When demand exceeds supply,
the market must trade higher; when supply
exceeds demand, the market must trade
lower. By understanding that these supply/
demand imbalances are actually created
by the smart money traders that dominate
the trading activity of the markets, he was
able to follow their activity on a chart by
analyzing price movement together with
the amount of trading activity (volume)
that was occurring. For the sake of brevity,
his principles have been very briefly
summarized for this article. Please refer
to chart 2 and you can see that this chart
shows only a high, low and closing price,
this was the common bar chart that was
used in his era. There is also a volume
histogram at the bottom of the chart,
this allows the trader to measure and
compare the amount of trading activity
to the corresponding price movements on
the chart. Let’s focus again on the same 2
bars that we have been discussing. Bar 1
is labeled a “high volume test”, tests occur
when the low of this bar is lower than the
previous bar’s low. As the market trades
lower, the test bar determines if there is
supply in the market at those lower prices,
in other words, as the market trades lower
are we finding evidence of more sellers in
the market or are we finding that demand
is coming in at these lower prices and
creating a price floor from which prices will
rise. We can see that the market closed
well off the lows with increasing volume
showing that demand, at least temporarily,
was overwhelming supply. It is called a high
volume test as the volume on this bar was
increasing and greater than the last several
bars previous to this new low. High volume
tests indicate that demand did overwhelm
supply but because of the high volume,
there may still be more supply at this lower
price level that needs to be removed from
the market before it can begin a sustained
rally. This is an area where we want to
see what happens to the trading activity,
if and/or when, the price is marked down
near the lower area of the test bar. Bar
2 is labeled a “supply drying up” bar as
the market is marked down, closing near
its low but on greatly reduced volume. If
31
there were still supply (willing sellers) in
the market, you would see an increase in
trading activity as the lower price attract
more sellers. When the volume measurably
shrinks as price trades down near the low
of the test bar, it indicates that there are
no willing sellers and this shows the trained
chart reader that there is now an imbalance
of demand and the market must rise. But
as this chart is omitting the opening price,
we are losing a very important relationship
and pattern that exists which would further
help our analysis of the market. We are now
going to combine each of these valuable
approaches into an even more powerful
methodology called Wyckoff Candle Volume
Analysis. See Chart #3.
As we now look at chart 3, you can
see that we have combined the volume
histogram with the candlestick chart. We are
going to create trading synergy by utilizing
the best of each individual approach while
eliminating the inherent weakness that
each approach suffers from. We can now
clearly see that the long-legged doji was
accompanied by high volume alerting us
that demand was coming into the market
on a doji reversal bar, now that we see the
high volume we also know that this doji does
not represent equilibrium between the bulls
and the bears as categorized by standard
candlestick charting. We also know that
because the volume was high, we want to
see if sellers come back in the market if/
when price is marked down in the future; if
they don’t we then know that there aren’t
anymore large interests of sellers per
Wyckoff analysis. The very next day we can
see that the market gapped down on the
open, which indicates overnight weakness,
yet it immediately traded higher indicating
that again buyers were present at these
32
lower price levels. Then, as the price rose,
supply entered the market and pushed the
price all the way back down near the lows
but we can see that the quality of that supply
is poor because there is greatly reduced
volume. This combination of methodologies
provides the ultimate confirmation that
these are valid doji reversal patterns that
we can trust. The fact that they occur one
after the other, with the correct volume to
verify the pattern, is an immense confidence
booster in very uncertain circumstances!
By combining candlestick analysis with
Wyckoff Volume Analysis, we are now able
to identify when a candle pattern has a
higher probability of working. We also have
the ability to analyze the opening price with
the closing price in order to gain a further
understanding of the price dynamics and
patterns that just aren’t possible when
using just a high, low and closing price
bar chart as Wyckoff did. I hope that this
article has brought to light the importance
of developing your chart reading skills to
improve your trading results. All freelytraded markets operate on the laws of
supply and demand and at critical market
turning points there are important supply/
demand imbalances that exist. Being able
to recognize these areas on your price chart
will greatly enhance your trading skill and
vastly improve your bottom-line results.
Todd Krueger is a professional trader,
educator and creator of Wyckoff Candle
Volume Analysis. He is the founding
President of Traders Code, LLC; which
provides professional trading tools and
education to the retail trader. For more
information please visit
www.traderscode.com or email at
[email protected]
Chart Source – Trade Navigator
Know Yourself
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33
Determining What Type
of Trader You Are
By Jaime Johnson
Dynamic Traders Group
ne of the most important things
you can do as a trader is determine
what type of trader you are. By
doing this you will know what trade set-ups
to take depending on your risk threshold. In
my recent NoBSForex Trading workshop, I
have coined the terms for the two types of
traders I believe exist, a Type 1 and Type
2 trader. Type 1 traders have lower risk
thresholds and they should take the higher
probability trades. The catch is higher
probability trades usually come with higher
capital exposure. Since Type 2 traders
have a higher risk threshold, they can take
trades with lower capital exposure, but
which usually come with lower probability.
But, how do we know what type of trader
we are?
O
34
So I’m a Type 1 Trader, What Does
That Mean?
First, since you have a lower tolerance for
risk, you should take higher probability
trade set-ups. You should let the market
at least make an initial signal your analysis
should be correct before considering a
trade. For example, if you are looking to
get into a trade following a reversal, you
should at least wait until a minor swing low
or a minor swing high has been taken out
before entering a trade. This is the initial
signal the reversal should be complete.
Type 1 traders should not trade the lower
time frames. Stick to 60 minute charts and
higher so you are able to place your stop
losses and walk away from the computer.
Type 1 traders should not continuously
Time to Be Honest with Yourself
To determine what type of trader you are,
honestly answer these questions.
1. Are you just starting your trading career
or do you consider yourself a beginner?
2. Do you have a full-time job or for any
reason cannot continuously watch the
markets during trading hours?
3. Do you have a low tolerance for stress?
4. Do you think trading is a form of
gambling?
trading and they understand trading is a
business, not a get rich quick scheme. Type
2 traders can stomach a string of losses
without questioning themselves or their
trade strategy. Also, Type 2 traders trade
with little or no emotion. A loss affects them
no more or no less than a winning trade.
If you are a Type 2 trader you are able
to take trade set-ups with lower capital
exposure, but you realize these trade
setups usually have lower probability. Type
2 traders often try to pick tops and bottoms
of reversals, rather than waiting for a minor
swing low or a minor swing high to be
taken out. Also, since Type 2 traders do not
jump on an emotional roller coaster when
watching the market, they are able to trade
the lower time frames.
5. Do you question yourself and your
trade strategy after a string of losses?
6. Do you get emotionally involved with
your trades?
7. Does a winning trade bring you extreme
happiness or arrogance?
8. Does a losing trade bring you sadness
or extreme disappointment?
9. Do you lose sleep over trading?
10. Does watching the market put you on
an emotional roller coaster?
watch the market so stay away from the
15, 5, and 3 minute charts.
The Characteristics of Type 2 Traders
Type 2 traders are more advanced than
beginners. They have had success in trading
and understand and accept the risks of
So, Are Type 2 Traders Sexier the Type
1 Traders?
Not at all, what is sexy is making money
in the markets. There is a lot of hype out
there advertising how much money you
can make day-trading. That is just a ploy so
you will spend more money on brokerage
fees or on the pip spread which makes your
broker money. They never advertise how
much money you can lose day-trading.
However, this doesn’t mean you can’t be
a successful day trader. The bottom line is
it doesn’t matter if you are a day-trading
Type 2 trader or a swing or position trading
Type 1 trader, your objective is the same,
making money.
I consider myself a Type 2 trader, however,
I prefer not to spend my time watching the
markets continuously during the day, so
I usually take Type 1 trade set-ups and I
usually trade the higher time frames. This
brings us to an important point. While all
beginners are Type 1 traders, not all Type
35
Now Available
Jaime Johnson’s
Education to Dramatically Improve
Your Forex Trading
7 Hours of Comprehensive Education
Teaching Trade Strategies for Every
Time Frame for Every Type of Trader
Finally, Jaime Johnson, the Co-Author
of the Dynamic Trader Advisory
Reports Teaches his Successful
Forex Trade Strategies
www.NoBSFX.com
1 traders are beginners.
In other words, you may
have the characteristics and
personality traits of a Type
2 trader, but choose to take
Type 1 trade-set-ups for
lifestyle reasons or you just
prefer higher probability
trade set-ups and trading in
higher time frames.
A common question is
how long does it take for a
Type 1 trader to become a
Type 2 trader? The answer
is all traders are different,
so there is not an average
36
time. Some Type 1 traders
never become Type 2
traders nor have the desire
to become Type 2 traders,
which is okay.
It Doesn’t Matter If
You’re a Type 1 or a
Type 2 Trader
Regardless of the type of
trader you are, there are still
a few common ingredients
for being a successful trader.
First, you should always use
stop losses because capital
preservation is the #1 rule
of trading regardless if you
are a Type 1 or a Type 2
trader. Also, you should have
detailed trade entry, exit,
and stop loss placement
and adjustment strategies
and a money management
plan. You should not only
document these and have
them in your trading room
at all time, but you also
need the discipline to stick
to your trading rules. By
applying these ingredients
and by being honest with
yourself about what type of
trader you are you should be
on your way to a successful
trading career.
This article is a summary
of Chapter 3 of the first
section of my recently
released NoBSForex Trading
workshop. The following
six and a half hours plus
of the workshop gets into
specific entry, exit, and stop
placement and adjustment
trade strategies for both
Type 1 and Type 2 traders,
as well as a comprehensive
money management plan.
For more information go to
www.nobsfx.com. Even if
you are not a Forex trader,
Type 1 and Type 2 traders
exist for all markets.
Jaime Johnson is the author
of the newly released,
NoBSFX Trading Workshop.
For complete information,
go to www.nobsfx.com.
Interview
with
Chuck
Hughes
TW: What led you down to the way you
now trade?
CH: Larry I have been trading for more than
24 years. I have tried many different types
of trading methods but the approach that
works best for me is trading with the trend.
I use simple trend following systems like
MACD and Exponential Moving Averages
that indicate the current trend. I buy when
the price trend is up and I sell short when
the price trend is down.
I also use money management rules
in conjunction with my trend following
systems. My money management rules
require me to exit losing trades before
they develop into large losses and exit
winning trades in increments. The overall
goal of my money management approach
is to achieve at least a 3 to 1 profit to loss
ratio which means you realize 3 dollars of
profit for each 1 dollar of loss. I normally
will sell a stock if it drops 7 to 10% below
my purchase price.
If you are willing to risk 7% on a trade,
then you should be expecting a 21% profit
on your winning trades in order to achieve
a 3 to 1 profit to loss ratio. If you are willing
to risk 10% on a trade, then you should
be expecting a 30% profit on your winning
trades to maintain a 3 to 1 profit to loss
ratio. I always think in terms of taking
measured risks with every trade.
TW: What have you found in trading
methods that did not work for you?
CH: Trading methods that try to predict the
future price movement of a market instead
of trading with the trend do not work for
me.
Also I only use trading methods that
are limited risk which means your risk on a
trade is limited to your initial investment.
I don’t use trading methods that risk more
than your initial investment.
TW: Chuck, I know that you have
been a winner in the World Cup Trading
Championship. Are there any secrets to
your success?
CH: I think the most important factor in my
success is being able to adapt my trading
strategies to changing market conditions.
37
For example, stocks
have experienced very
volatile price moves over
the past year. It’s not
uncommon for a stock
to move 10 to 15% or
more in one day.
This table below lists
some of the stocks that
I currently own. These
stocks are on a “buy” signal based on my
trend following systems and my trend
confirmation indicators. The table lists
recent one day declines in these stocks.
One Day Price Declines
As I previously mentioned I use money
management rules when I trade stocks.
These rules require me to sell a stock if the
price drops 7 to 10% below my entry price.
This prevents small losses from developing
into large losses and has allowed me to
achieve a better than 3 to 1 profit to loss
ratio over the years.
But with volatile price swings you could
purchase a stock one day and have to exit
the trade the very next day if the stock
drops 10%.
So instead of purchasing stocks I now
trade “buy writes” or “covered calls” that
give me a lot of protection if the market
moves against me. I can purchase a stock
and sell a call option against the stock and
receive a 20 to 30% cash dividend for the
sale of the call.
For example, I recently purchased
Morgan Stanley stock at 23.90 and sold a
Morgan Stanley call option for 7.00 points.
This call option expires in 4 months. This
created a buy write or covered call trade.
The sale of the call option provided 7 points
of downside protection.
38
Whenever you “sell to open” an option,
cash is credited to your brokerage account
equal to the amount of the option premium.
In this example I sold 5 options for 7
points so $3,500 minus the commission
was credited to my brokerage account.
The sale of the call option resulted in a
29% cash dividend (7.00/23.90 = 29%)
which reduced the cost basis of the stock
by 29%. This gives me 29% down side
protection in the event Morgan Stanley
stock declines in price.
This type of protection allows me to
hold a stock through volatile price swings
and in many cases I can hold my stock
even if the price drops 20 to 30% or more
below my purchase price. With this kind
of protection you have a much higher
probability of producing profitable trades
during volatile price swings compared to
a stock purchase strategy that has no
downside protection.
I also trade option spreads in this type
of environment. If you purchase an inthe-money call option and sell an in-themoney call option the sale of the in-themoney call can provide substantial down
side protection if the underlying stock
declines in price.
Both the buy writes and the in-themoney option spreads can be profitable
if the underlying stock increases in price,
remains flat or even decreases moderately
in price.
So this would be an example of adapting
your trading strategies to changing market
conditions.
TW: Why do 90% of traders lose money in
the market in your opinion.
CH: I think two of the main reasons traders
lose money are number one: they are over
leveraged and number two: they do not
using money management rules which are
just as important as the trading strategy
you use.
If you are an options trader and you
purchase an out of the money call option
with 10 to 1 leverage a 5% adverse move
in the underlying stock can result in a 50%
loss for the option. A 10% adverse move
can result in a total loss of your option
premium. So when you are over leveraged
it doesn’t take much of an adverse move
to wipe you out.
Money management is also important.
Beginning traders have a tendency to
hold on to their losing trades hoping they
can get back to even. They don’t cut
their losses and they allow small losses
to develop into big losses. They are also
quick to sell a profitable position if they
have a 10% profit. After a while you wind
up with a portfolio of losing trades. This
is basic human nature. Sound money
management requires you to do just the
opposite. You must cut your losses before
they develop into big losses and don’t take
small profits on your profitable trades.
TW: Do you use any psychology methods
to keep your fear and greed under control?
under control is to trade within your
“comfort zone”. Every trader has a different
comfort zone or risk tolerance. My comfort
zone requires me to trade only limited risk
strategies and not use any leverage when
markets are volatile.
Examples of limited risk trading
would be stock or option purchases, buy
writes, bullish and bearish option spreads
and purchasing bullish or bearish ETFs.
Examples of trades that are not limited risk
would include futures and Forex trading,
selling naked options and shorting stocks.
If I am over leveraged it is difficult for
me to keep fear and greed under control.
I have a tendency to panic out of losing
trades too quickly and will hold on to
winning trades too long.
TW: Most new traders have no idea
how to get started trading. What is your
recommendation?
CH: My recommendation for new traders
is to start out trading only limited risk
trading strategies such as stock or option
purchases, buy writes, bullish and bearish
option spreads and purchasing bullish or
bearish ETFs.
If you trade futures or currencies there
is nothing worse than to wake up and find
out that an overnight event has caused an
adverse market move in your futures or
currency position that has wiped out your
equity and you now have to wire funds to
your broker to meet a margin call.
TW: I know you specialize in stock trading.
There are over 8000 stocks. How do you
know which ones to trade? How do you
spot the winners?
CH: The best way to keep fear and greed
39
CH: I use a combination of fundamental
and technical analysis to select stocks.
The best fundamental indicator is to track
a company’s stockholders equity growth.
A company’s equity growth reveals a lot
about the ability of the company to grow
and retain its earnings and the balance
sheet of a company. Retained earnings
is the biggest component of stockholders
equity and any debt reduces equity so this
simple measurement can tell you a lot
about the true growth of a company and
the health of its balance sheet. Companies
that consistently grow stockholders equity
typically have low debt levels and the ability
to grow earnings and retain their earnings.
Google and Apple would be examples
of companies with high growth rates of
stockholders equity. These companies
have little or no debt and have the ability
to grow and retain their earnings. Google
is growing stockholders equity at a 65%
annual rate an Apple is growing at a 110%
annual rate.
The airlines and automakers would be
good examples of companies with low or
negative stockholders equity growth. These
type of companies typically have high debt
levels and any earnings they have is usually
40
spent servicing debt. This does not allow
them to grow their stockholders equity.
After
measuring
a
company’s
stockholders equity growth I check the
price trend of the stock. I use 3 trend
following systems. For short term trades
I use MACD, for intermediate trades I
use the crossover of the 50 and 100 day
Exponential Moving Averages and for long
term trades I use the 1-Month price in
relation to the 20-Month EMA. I also look
at on balance volume.
I like to see an up slope for the on
balance volume line for buys and a down
slope for the on balance volume line for
shorts. An up sloping on balance volume
line indicates higher volume on days a
stock closes up and lower volume on days
a stock closes down. This indicates a stock
is being accumulated and can sustain the
price up trend. A down sloping on balance
volume line is just the opposite. It indicates
a stock is being distributed and will likely
continue in a price down trend.
TW: How long are you generally in a stock?
CH: It depends on market conditions but
on average about 2 to 3 months.
TW: Do you recommend day-trading?
money than I have in my trading account.
CH: I think there are a lot of good
opportunities for day traders in the current
markets which have wide price swings. A
lot of money is being made day trading.
I was a successful day trader in the
1990s bull market. But day trading is too
stressful for me and too time intensive so
I no longer day trade. If you have the time
and risk tolerance day trading can be very
profitable.
TW: Do you use stops and why?
TW: I know you recommend stocks over
commodities, bonds and TBills. What are
your reasons.
CH: As I mentioned earlier futures trading
is not limited risk trading. You can lose more
money than you have in your account. If
your futures trade is leveraged 20 to 1 it
only takes a 5% adverse market move
to wipe out the equity in your account. If
you are leveraged 10 to 1 it only takes a
10% adverse market move to wipe out the
equity in your account. It only takes one
unforeseen world event that causes an
adverse market move that can wipe out
your trading account and trigger a margin
call. I have seen this happen in the past
and I am not comfortable risking more
CH: I don’t use stops but I will exit a losing
stock or option trade using my money
management rules.
TW: How do you best follow the trend?
CH: I use MACD and moving average
crossovers that I mentioned earlier and on
balance volume.
TW: Are there any keys to a stock’s
potential?
CH: Stockholders equity growth I
mentioned earlier is the best fundamental
measurement of a stock’s potential.
TW: Any final comments for traders or
investors?
CH: Overall I think the best trading
strategy for most traders is selling option
premium on covered options to generate
cash income. Most traders are familiar
with buying calls or puts but they not
familiar with the concept of selling option
premium to generate cash income. When
you sell an option to open a position, cash
is immediately credited to your brokerage
41
account. Selling covered options can
realistically produce a 20 to 30% or higher
cash dividend that is credited to your
brokerage account when an option is sold.
The key to selling option premium to
generate cash income is to make sure
the option you sell is covered. There are
generally two ways to sell option premium
on covered options:
The first way is to purchase stock and
sell a call option against the stock. This is
also known as a buy write or covered call.
And the second way is to purchase a call
option and sell a call option with a higher
strike price to create a spread.
In both examples the short option is
covered by owning the stock or owning
a call option. Because the short option is
covered this is a limited risk strategy.
Buy writes and option spreads can
provide good returns and at the same time
provide substantial downside protection
that allows you to maintain a trade and
profit even though the underlying stock
declines 10% to 15% or even 20% at option
expiration.
This strategy incurs considerably less
risk than owning stocks or options but at the
same time can provide consistent returns
during any type of market condition.
I’ve been able to generate up to a 50%
or higher annual return selling option
premium. I trade both bullish and bearish
buy writes and option spreads depending on
market conditions. Selling option premium
can result in a high percentage of winning
trades even if your market timing is not
very accurate. It also allows me to normally
exit losing trades with a small loss enabling
me to trade within my comfort zone.
I trade the cash dividend strategy in eight
different trading accounts most of which are
42
retirement accounts. All of the trades in my
8 trading accounts are currently profitable.
The brokerage account Profit/Loss
Report below for one of my eight trading
accounts shows my current cash dividend
trades for that account. This account had
a $311,900 starting balance in mid March
when I initiated the current trades. There
are currently $118,546.86 in net profits
after commissions for this portfolio.
I received a total of $152,900 in cash
dividends selling option premium for the
current trades resulting in an average
cash dividend of 49% for the portfolio. I
reinvested the $152,900 cash dividends I
received in additional trades allowing me to
compound my trading results. This portfolio
is widely diversified across different industry
groups. All of the trades in this portfolio
are currently showing a net profit for the
spread. Even if the underlying stocks in
this portfolio decline moderately I can still
realize a good return for the portfolio.
I normally take profits when a cash
dividend trade reaches 90% of its profit
potential. This enabled me to take profits
on trades well before option expiration and
initiate new cash dividend trades allowing
me to compound the cash dividends I
receive.
I have generated over 4 million dollars of
cash income from selling option premium
over the past two years. Copies of my
brokerage account confirmations that list
the call and put options I sold to generate
this income are available in a PDF format
on my www.chuckhughes.com website. My
chuckhughes.com website also contains
my blog.
Interview with Robert Miner
author of
High Probability Trading Strategies
R
obert Miner is a long time
contributor to Traders
World Magazine. In the
late 1980’s he authored
the W. D. Gann Home
Study Trading Course
(no longer available).
His first book, Dynamic Trading, was
named the Trading Book of the Year by the
Supertraders Almanac. Last fall, Robert’s
new book, High Probability Trading
Strategies (Wiley), was
released. It is his first book
to be published in over
ten years. We talked with
Robert about the business
of trading, what makes a
good trader and what is
new in his new book.
TW: It has been over 10 years since your
first book, Dynamic Trading. How is High
Probability Trading Strategies different
from Dynamic Trading?
RM: I’ve learned a lot in the past ten years.
Both in simplifying trading strategies and
how to be a better educator and writer.
It has actually been a 20 year process
since my first trading course, The W. D.
Gann Home Study Trading Course, was
released 20 years ago. High Probability
Trading Strategies is a very concise yet
comprehensive approach to a complete
trade plan and trade
management.
The
theme is to teach the
reader how to identify
conditions with a high
probability
outcome
and acceptable capital
exposure
and
to
manage the trade from
entry to exit for maximum returns.
I’ve simplified the time and price
strategies and E-wave analysis to just
a few key techniques that are all that is
necessary to understand the probable
position of any market and any time frame.
A major addition to my trade strategies is
Multiple-Time-Frame-Momentum setups.
This strategy makes a huge difference in
the bottom line and allows the trader to
qualify if a time or price target is likely to be
support or resistance or a trend reversal.
TW: What do you mean by
Multiple-Time-Frame-Momentum setups?
RM: It’s very simple. You identify a
momentum indicator that is at least fairly
reliable to identify momentum reversals.
You trade in the direction of the larger time
frame momentum and execute following a
momentum reversal in the smaller time
frame. You can use any two time frames
including intraday if you want to be a short
term trader. I usually use our proprietary
43
Dtosc in my Dynamic Trader trading
software which I’ve used for almost 10
years. But, I teach in the book how you
can use almost any indicator with lots of
examples with the MACD, stochastics and
others. I also teach in the book how to very
quickly identify the best settings for any
market and time frame for any indicator.
and possibly price low. If the lower time
frame momentum makes a bullish reversal,
more than likely the 50% retracement will
be the price reversal point. This is a very
simplified example but shows how the dualtime-frame-momentum indicator position
is only useful in the context of the price
position. The time and pattern positions
are the other two key factors to consider.
TW: A lot of traders and trading educators
criticize indicators as not being useful
because they give too many false signals
or are not reliable to identify market
reversals. What do you say to that?
TW: For many years you taught Gann,
Elliott Wave and Fibonacci trading
techniques. Are they still important and do
you teach them in your new book?
RM: I say they haven’t taken the time to
learn the strengths and limitations of an
indicator and haven’t learned a practical
application for an indicator. In other words,
they probably haven’t read my book!
First, the trader must understand
that an indicator represents momentum
cycles, not price cycles which is why a
trade plan just based on momentum is
likely to be a real loser. The Multiple-TimeFrame-Momentum strategy I teach uses
the indicator position for a filter but only in
the context of the time, price and pattern
position.
A simplified example is the trader has
three price retracement levels, say the Fib
retracements of 38.2%, 50% and 61.8%.
Which is likely to actually be support or
resistance or trend reversal? The market
nears the 38.2% level but the higher time
frame indicator is bearish and not oversold
indicating there is probably more downside.
The market is likely to go through the
38.2% retracement. The market continues
down to near the 50% retracement but
now the higher time frame momentum is
oversold and in a position for a momentum
RM: My first educational trading product
was The W. D. Gann Home Study
Trading Course I released in 1989 at
your predecessor magazine, Gann-Elliott
Trader! How time flies.
Almost all time and price strategies
are derivative of Gann’s work. His basic
approach was future swings or highs and
lows would be made at price levels and
time targets that were proportional to
past swing highs and lows. That is the
approach I’ve taken for many years but
have constantly simplified regarding both
which swings are important and which
ratios are applicable for different market
conditions. I have simplified the process to
a very powerful strategy that is very quick
and simple to implement.
Regarding Elliott wave, I’ve gone
the whole route from labeling every little
zig and zag for many years to just one
primary guideline to identify if a market is
probably in a trend or a correction and three
guidelines to help identify if a market is at
or near the end of the trend or correction.
E-wave is actually very useful for practical
trade decisions once you simplify it and
44
Dynamic Trader
Software and Trading Course
Version 6
Scheduled Release Late Sept.
THE Trading Software and Education for
Time - Price - Pattern Multiple Time Frame Momentum
Trade Strategies and Much More
DT Daily Reports
for Futures, Forex and Stocks/ETFs
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45
understand its strengths and limitations.
After reading High Probability Trading
Strategies, any trader should be able to
understand the probable trend or countertrend position of any market and any time
frame in about 10 seconds.
While I use many of the common Fib
ratios, I’ve added a few that are related but
not often used by many traders. Everyone
can put the Fib retracements on a chart
and see how most of the corrections
in the past were made at one of the Fib
retracements. The challenge is to identify
in advance which retracement is likely
to be the reversal by using a couple of
other simple price target strategies. The
next challenge is if a market reaches the
probable price reversal target, how to
confidently identify if a reversal should
be made. That is where the momentum,
time and pattern strategies all qualify the
position to each other.
TW: It is reported that 80%-90% of
traders lose money trading. Why do you
think this is?
RM: I’m not so sure the percentage is
that high but let’s just say it is a high
percentage. Certainly higher than it should
be because trading and investing is not
really that complicated. Most traders don’t
have a specific, written trading plan. A
trader needs to develop a trading plan that
includes just a few key pieces of information
that he or she clearly understands that
consistently identify the probable position
of a market. The trading plan must include
objective entry strategies with very low
capital exposure for any one trade, and a
specific exit strategy. It is very important
not to overcomplicate the whole process
46
or include irrelevant information that is not
consistently reliable.
A huge factor for success is taking only a
very small risk per trade. Most unsuccessful
traders take way too much risk or capital
exposure on any one trade and can be
financially crippled by just a few losing
trades. If a trader risks more than 3% of
his or her account on any trade, they are
not in the business of trading to win.
There are other factors why traders
win or lose but not having a relatively
simple trading plan and managing risk are
probably the two most important.
TW: Why don’t you do more on or offline
workshops?
RM: I haven’t done many live workshops
in the past 10 years. The last time I did a
workshop was over two years ago. Frankly,
it just takes too much time and energy to
organize and prepare good material for a
live workshop for the return so I only do
workshops every two or three years as
much for my benefit to get out and meet
traders and get feedback from them about
my material and learn what else they are
up to.
I produced a multi-media home study
course about three years ago called the
Dynamic Trading Multimedia E-Learning
Workshop which is a much better learning
process than I could ever do in a live
workshop. It is almost a 40 hour course
that I incorporated accelerated learning
techniques based on the multiple levels of
intelligence learning process. All for far less
than most on and offline trading courses.
I will probably do a short series of
live workshops this fall or winter for my
Dynamic Trader software owners. I would
much rather do a workshop where everyone
comes in with some common background
and experience. That way it can be really
productive since we don’t have to take time
to teach the basics.
TW: Your company, Dynamic Traders Group,
has a number of products and services. How
do you find time to trade?
RM: Firstly, for the past few years, I’ve only
traded intermediate to long term meaning
trades that last from several days to several
weeks. It takes about 15 minutes a day
to identify potential trade setups for the
several markets I follow. It’s not very time
consuming. I don’t have much use for day
trading. It is unquestionably the least return
for time and capital of any sort of trading.
My step-son, Jaime Johnson, writes all
of the DT Daily and Just-In-Time reports for
the Forex, Futures and Stock/ETF markets.
I edit them occasional when a market is at a
critical juncture but he does an excellent job
on a day to day basis. I occasionally do long
term special reports for subscribers. I’ve
produced a few multi-media courses which
are available on our web site.
My basic lifestyle is to spend the summer
to fall working on Dynamic Traders Group
business and the winter goofing off. I
spent most of last winter in Colombia and
Argentina. The beauty of having a business
that is based online and trading intermediate
to longer term swings is you can do it
anywhere there is an internet connection
and it doesn’t take much time each day as
long as you have good people working for
you.
TW: What is your forecast for the financial
markets for the balance of 2009 and beyond?
RM: I don’t like to make forecasts unless I
have the space to explain why I think the
forecast is probable and show the relevant
data, so I’m not going to give a specific
forecast. I issue intermediate to long term
forecast special reports once or twice a year
for DT Report subscribers. I do have very
strong and confident opinions on how I think
most of the major markets will play out in
the next few years but we’ll save that for
another time. The best I can say now is the
economy is probably not going to get better
for several years and will probably get a lot
worse. This, of course, is not relevant to
traders because it doesn’t matter if there is
a bull or bear market. But, it is very relevant
to major financial positions based on
housing values, interest rates and more so
everyone should at least have a good idea
of the probable long term trends to protect
themselves.
TW: Any last words before we conclude the
interview?
RM: High Probability Trading Strategies is
the best trading education your readers can
get and the book is only about $40 from our
web site and a few dollars more at Amazon!
Of course I am a bit biased!
For more information about Robert
Miner’s new book, High Probability Trading
Strategies, go to:
www.HighProbabilityTradingStrategies.com.
For information about Robert”s DT Daily
Forex or Futures or Stock/ETF Reports,
Dynamic Trader software and other
education material, go to:
www.DynamicTraders.com.
47
Risk Control &
Money Management
By Bennett McDowell, CEO TradersCoach.com
isk control and money
management in trading
or
investing
involves
specialized
techniques
combined with your own
personal judgment. Failure
to adhere to a sound money management
program can leave you subject to a deadly
"Risk-of-Ruin" exposure and most probable
equity bust.
R
48
Calculating Proper "Trade Size"
If you are trading the exact same number
of shares or contracts on every trade, then
you may not be calculating the proper "Trade
Size" for your own personal risk tolerance.
"Trade Size" can vary from trade to trade
because your entries, stops, and account
size are constantly changing variables.
You Must Believe You Need It
In order to implement a money management
An expert in the field
of finance reveals his proven
trading system.
As a trading coach and financial advisor, Bennett McDowell has used his
own proprietary trading system--Applied Reality Trading or ART to enhance
the performance of his clients’ portfolios. Now McDowell outlines the
unique benefits of his system and makes the case for trading the reality--not
the fantasy--of financial markets. Readers will discover the importance of
simplicity in a trading approach; how to develop “The Trader’s Mindset;”
how to use ART(r) technical analysis software; and much more. The ART
of Trading will enlighten readers in how to use reality to enrich both their
financial portfolio and their own financial psychology.
978-0-470-18772-2 • Hardcover • 320 pages
US$ 70.00 • CAN$ 76.99
• UK£ 36.99
Not adhering to a sound money management program can expose a
trader to unnecessary risk, and possibly destroy their account. A few
essential money management techniques can make a big difference
to the bottom line. In A Trader’s Money Management System, author
Bennett McDowell introduces readers to the most important elements
of money management in trading. Topics covered throughout this
a trading system; how to calculate the best trade size on every trade;
how to analyze profit/loss results and identify weaknesses in a
strategy; plus much more. Along the way, McDowell also addresses
the importance of risk control and stop loss exits. The book also
includes a one-month free trial of the Trade Size Calculator software.
978-0-470-18771-5 • Hardcover • 224 pages
US$ 70.00 • CAN$ 79.99
• UK£ 36.99
Bennett A. McDowell
(San Diego, CA) founded TradersCoach.com® in 1998 and is an expert in technical analysis
and complex trading platforms. He lectures nationally and writes articles for many prominent trading publications.
McDowell is also a recognized leader in trading education.
1 (800) 695-6188 www.TradersCoach.com
49
Novice traders tend to focus on the trade
outcome as only winning and therefore do
not think about risk. Professional traders
focus on the risk and take the trade based
on their proven trading system indicating
a favorable outcome. Thus, the psychology
behind "Trade Size" begins when you
believe and acknowledge that each trade's
outcome is unknown when entering
the trade. Believing this makes you ask
yourself, "how much can I afford to lose on
this trade?"
Once you've answered this question (based
on your money management rules), you'll
either want to adjust your "Trade Size" or
tighten your stop-loss before entering the
trade. In most situations, the best method
is to adjust your "Trade Size" and set your
stop-loss based on market dynamics.
Draw-Down
During "Draw-Down" periods, risk control
becomes very important and since
experienced traders test their trading
systems, they have an idea of how many
consecutive losses in a row can occur.
Taking this information into account, allows
program to help reduce your risk exposure,
the first step is for you to fully believe that
you need this sort of program. Usually this
belief comes from a few large losses that
have caused the kind of psychological pain
that makes you want to change. This kind
of experience can enable you to see how
improper "Trade Size" and lack of discipline
can sabotage your trading results.
How Much Can I Afford To Lose On This
Trade?
50
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you to further determine the appropriate
risk percentage to allow for each trade.
Conclusion
It is important to realize that you must be
aware of the risks in trading the financial
markets and live in full awareness. Let your
positive beliefs lead you to take the action
necessary to succeed. By acknowledging
the good and the bad, the reality, and by fine
tuning your money management system
you are on your way to greater prosperity.
Mr. McDowell is founder of TradersCoach.
com and created the Applied Reality Trading
software and has written several important
books such as The Art of Trading and A
Trader’s Money Management System.
51
Ponzi Scheme: Part 5:
Bernie Madoff
(with the cash) Don’t Ask Don’t Tell: Newest Investing Strategy
By T.H. Murrey
Americans are “too busy” to follow their
own profit making investing strategy, so
why get mad at Bernie when he pays
you to “Don’t Ask – Don’t Tell?” You
can’t have it (cash) both ways: you follow
your Money Manager’s Fundamentals of
you accept huge losses when the Truth is
“outed?”
Ponzi Scheme: # 01: 1927: US Stamps
to converted Foreign Governments to US
Stamps: + 25% a month.
Ponzi Scheme: # 02: 1927: Nashville,
52
Tennessee: 1,000 Trusts with money
moved (every) 30 days
Ponzi Scheme: # 100: 2009: Nashville,
Tennessee: Don’t ask Don’t Tell Investing
(with) Bernie Madoff
Ask your “current” Money Manager or
Hedge Fund Manager, what their investing
strategy is and you will be perplexed and
confused to know what they
use to evaluate future market
reverses.
98.4375% of (all) Investing
Money Managers and Financial
Planners can’t tell you what
technical analysis they have
been using to show you major
reverses. Most use none
(ever). Why?
Murrey’s Law of Fives
(5): Ask your Money Manager,
Hedge Fund Manager and
25,000 Financial Planners to
show you the (last) Five major
reverses (starting) back on
1) 1990.10.09 forward: 2)
2000: 3) 2002: 4) 2007: and
5) 2009. They will (even) give
you the exact day: month: and
price of each: true?
Rookie Murrey Math Traders are required
to know (exact) Time and Price of the last
five (5) major reverses before they could
step in front of the Murrey Math Class and
declare: “I affirm I know the past five
major US stock market reverses and will
(upon demand) quote the (exact) day and
price of the Dow 30 Index: S&P 500 Index
and the S&P 100 Index, so I am credible
with potential (new) students and able to
talk to logic with “old school” farts who still
deny these last (5) reverses as to time or
price percent.”
Murrey Math Master Level Traders are
able to go back to 1986 – 87 but this is too
much for most experts.
Gann said: 1942: “Find the major
reverses over 5: 10: 20: 30: 50: 60: 100
years and divide it by eight (8).
3,125,000 Million “followers” of Gann
since 1942 book: How to Make Profits
from Commodities
W. D. Gann: 1942: wrote his book
solving the Investing “public’s” question:
“When to expect major reverses in
the US stock market?” He produced his
classic reversal signal: # 01 rule: take the
extreme highs and lows from a long period
of time (you pick it) and divide the range
by (8) and you will see future reverses
want to reverse after moving 3/8th or 5/8th
runs (moves) inside these (two) extremes
(you pick).*
*Socrates wrote his thesis for Common
Sense along with Thomas Pain (in the ass)
and they agreed: “You have to: know when
to holdum and know when to foldum.”
Lows predict highs and Highs predict
lows (in the future) off Percentages:
Ratios or Murrey Math
Just put your money in your
mattress: 1935 when 437 US banks went
bankrupt: June 10 2009 CNBC TV revealed
an old Jewish widow threw out $1,562,500
cash saved since 1935 after she bought
a new mattress: she couldn’t remember
what she did (same time and price) for 70
53
years. What’s next, logic?
3,125,000 Million “followers” of
Murrey’s Trading System: 1992- 93
(finally) worldwide
“Too
Busy”
study,
think
or
react: then join us at: www.
murreymathonlineforum.com:
we
provide weekly and daily and intraday
“live” classes for members to profit
off 90 minutes off opening bell.
US Stock market and futures “too
confusing” for you, then come to
our Forex Spread classes or ask us
to direct you toward Murrey Math
commodity traders, who know the
Murrey math Trading Lines, so you
and your vroker can be on the same
page on the (same) trade.*
T. Henning Murrey sets the 9exact)
spreads for the S&P 500 futures
against the cash every 13 weeks with
(only) one number, since 1996.10.09.
54
You just ask us for them quarterly,
thanks.
The Murrey Math Trading System:
created
10.09.1992
to
10.09.1993
Nashville, TN 37215
Disclaimer: This is a 100% original
trading strategy discovered 1992 1993
Nashville, Tennessee by T. Henning Murrey
(alone) since all Nashville Experts reported:
“all markets random off highs and lows.”
It has never been mentioned, considered
or attempted, by any group, to set all
markets off one (1) number: Murrey’s Profit
Pie: M’$pie = 3.125.* T. Henning Murrey
set out to prove “no random” markets.
BAC or MER have (over) 14,000
Financial Planners and all these experts
know these (exact) Time and Price
reverses of the S&P 500 Index S&P 100
index and Dow 30 Index as (every) rookie
MM student.
312 different MBA Business Schools and
500 different US Universities and 5,000
junior colleges and 5,000 largest US high
schools refuse to allow (1) innocent child
to ponder if markets are random or exact.
Murrey Family 17 Yr US Economic
Time Price Cycle (started) 1990.10.09
from 1854.10.09
Every Grandfather of T. Henning Murrey
has procreated with their wives from 1797
up to 1941 to produce a higher than IQ
child beneath the Skull and inside the
Coffin. Galgatha = Skull and Coffin = Nash
= village of nash = Nashville and Nashville
flag has skull carried by 31st generation
Cherokee Indian with Flute set to 437.50
cycles per second. Nashville, Tennessee is
the Octave set from the Pyramid at Giza
on the wing of the Dove as proclaimed
in the book: Wisdom of Enoch, so
312,500,000,000 will come to Nashville
soon. It is 625 feet above sea level to
1,250 for hills.
Murrey’s Family: Murrey’s Birthday
October 09 (biggest market reverses) 1st
Week of October*
*Trader’s World Magazine (last) Issue
had 5 articles on proof of October (major)
reverses.
Gann and Murrey agree: you must be
able to see the Five Perspectives of any
market.* Murrey coaches students to “see”
how to trade off all (5) different MM Price
and MM Time Frames. 1942 Gann said:
“You must be able to divide all the ranges
(extremes) into ½ then ½ then ½ then ½
then intraday day.”
Gann and Murrey agree: find the
(last) five extremes and remember them
and trade against them:
5 Major Reverses: ……1990.10.09*……200
0.01.14.……2002.10.09*……2007.10.09*…
..2009.03.06
Dow 30 Index: 2,500.00
11,718.75
7,187.50
55
14,062.25*
6,666.66*
S&P 500 Index: 312.50
1,531.25
781.25
1,565.625*
666.66*
S&P 100 Index: 156.25 843.75 390.625
730.625* 312.50*
Ponzi Scheme Buster: The Murrey
Math Trading System: created 1992 –
93 (alone) by Murrey
Proof: All markets reverse off
Murrey’s Profit Pie: M’$pie = 3.125*
Please send us $3,125,000 million
for betting us all markets are random
or E Mail us and we will send you
(free) and code it “cheap” (every)
exact reverse for Nasdaq Index the
next 13 weeks.*
*Murrey publishes (every) exact
reversal price starting October 09 each
Fall Season for: S&P 500 Index: and
futures: Dow 30 Index and (futures)
and S&P 100 Index. Accuracy:
56
98.4375%.
Open
Book Test: Start Now
(without) putting it off till 2012 A.D.
divide 3.125 into each of the five (5)
reverses in MM Price off MM Time: go.
What did you discover? Did you do it
in your head?
Public Record: All major and minor
article writers for magazines to help
investors agrees to all of the (exact)
reverses, plus every Money Manager
with a degree hanging on the wall agrees
along with every MBA Business Program
Professor agrees to these same (exact)
Time and Price Reversals printed in The
Wall Street Journal on the same (exact)
day it happened and recorded on TV tape
at Vanderbilt University, since 1968 when
they started recorded all TV news shows
for us so we could remember past.
Happy Birthday Murrey Math:
Murrey’s Birthday: October 09: King of
Clubs: Logic (math) genius: 1929 All Time
Highs; next lows 1932 next lows off Ten
yr. Cycle: 1942 when T. Henning Murrey
was born: Then 1987 = 45 years later:
next 2002 = 60 Yr Cycle of Man: Ezekiel:
1990.10.09 Murrey Family Time Price
Cycle of US Economy: (back from 1854)
to 2007 (17 years forward): and 1987 to
2007 Twenty (20) Yr Cycle: and 1997 to
2007 Ten (10) Yr Cycle: and 2002 to 2007
Five (5) Yr Cycle: and lastly the 2007 to
2012 (end of) 26,000 Mayan Calendar
Cycle, when the light from the Sun goes
180 degrees across the Milky Way to the
Heel Stone at Stonehenge, England.
We are (all) in this Financial toilet bowl
together, so hold on and wait for big flush,
market failure: enjoy.
Thomas (double doubting) Henning
Murrey set out in Nashville, Tennessee
10.09.1992 to 10.09.1993 to ask 125
different genius Money Managers, stock
brokers, Hedge Fund Managers, MBA
Business School
MBA Professors and local rich “know it
alls” if the markets are random or exact?
They laughed and said: “All markets are
random so who cares, you just stay in the
market till you need your money, honey.”
Murrey went (back) to 1,875 BC and
found math formulas which were used
to construct the Pyramids at Giza and
remembered his grandfather of 1854 had
gone to Egypt after the Civil War to study
math and its hidden values tucked inside
the Scriptures, so the Gnostic Jews (3,125)
would not be killed: sorry.
1st Tool: Murrey used to find out how
to “figure out” if everything in our World is
Random: 13 Circles to Wisdom or 13 Paths
of Gra or The Sefirot: Kabbalah: Kabbalist:
57
Sephira: Gematria: Yod (10): He (5).
Torah: reveals 4 levels of Understanding
for Logical Actions and 5th (hidden) Level
for Math and Money*
*5th Level (reveals) (revealed only
to Genius Math Lovers) how to make
money off 12 Musical Scale Tones (reduced)
to (7) sounds inside Octave: which Murrey
discovered 10.09.1992-10.09.1993 by
extracting the 12 “tones” of Music Harmony
of the Mother as she sings to her baby
and wrapped (into) the 613 (365 + 248)
Mitsuot: = bones + veins which were nailed
on the Cross the day Jesus was crucified
at Golgotha who knows: who cares? Was
Bernie a little “short” on Math on the 5th
level?
365 = Don’ts for Jews & 248 Rules
of Logic for Jews = 613 Rules (nailed on
Cross) for Judah House
613 + 12 (musical notes) = 625
= 5/8th = .625 or 62.5% of Murrey’s
Master Square: 1,000 from Solomon’s
Lily Pod: 625 = Sacred Number to
figure the New Jerusalem*
625 + 375 = 1,000: 100: 10: Keter:
‘Hokhama: Binah: Da’ at: Hesed: Gevurah:
Tiferet: Netsa’h: Hod: Yesod: Malkhut:
+ two others (secret) to revealed at my
death (like) Gann refused to do: sorry.
Numerologist: Torah Cards (from
Atlantis): Your name is set in Stone
(stoned) ahead of Time
Coincidence: makes more multi
millionaires than MIT Geniuses who love
Math (BS: MA: PHD)
Lord means Master means CEO means
Governor means President means head of
Household
Greek and Hebrew words were set
as degrees off circle: Female Egg after
Ovulation at 14.0625 Yrs
58
Lord Jesus Christ: Translates to:
3,168 Hebrew Numbers: 3 + 1 + 6 + 8
= 4 + 14 = 18 = 9 Numbers
3 x 1 = 3 x 6 = 18 x 8 = 144 = 144,000
to go to New Jerusalem: 12 x 12 (Squared)
4 x 3 by 3 x 4
12 x 12 = 144 x 2 = 288 (exact) number
of broken vessels when Light of Truth came
to Adam and Eve
31,680 feet Perimeter of New
Jerusalem: 31,680 miles perimeter of
Earth: 31,680 Rods: Radius of the Earth:
3,168 Perimeter of Moon:
316,800
Diameter of the Sun: 316,800 feet at
Sarsen Circle: Stonehenge: 316,800 Cities
of Refuge: you tell me more of these which
mean nothing: sure.
5th Level of Torah: Profits from the
Prophets: set to (5) He: Master of the
Fives: 5 will (reveal) all Numbers: Torah set
(one): Book of (5) Books to: Numbers, so
Religious exotics will hate Numerologists:
Harmonic Logical Math: Murrey Math.
Genesis has 50 chapters, why? Male = 3
and Female = 2 = 5
Chart: # 01…..13 Paths to Wisdom
(hidden) in numbers expressed as letters
then words……………... Chart: # 02…..Dow
30 Index (lows) 1990.10.09 so we may
project (future) highs to 2000 and 2007……
Chart: # 03…..Dow 30 Index: Long Term:
17 Yr Cycle: 1990.10.09 to 2007.10.09 to
03.06.2009 …… Chart: # 04: ….S&P 500
Index: Long Term: 17 Yr Cycle: 1990.10.09
to 2007.10.09 to 03.06.2009… Chart:
# 05: …S&P 100 Index: Long Term: 17
Yr Cycle: 1990.10.09 to 2007.10.09 to
03.06.2009…… Chart: # 06: 2007.10.09
to 2009.03.06……Price at 14,217.75 on
10.11 and 03.06 at 6,718.75 = - 7,500
US Dollar Index from October 09
1999 at 96.875 up to 121.875 in 2000
went up + 25 points and hit its all time
highs and fell – 75.00 points (- 6/8ths) last
year and reversed up fast, just as Dow 30
Index did. It reversed up down at 71.875
and the Dow 30 Index reversed up down at
7,187.50 on 2002.10.09.
IBM fell from 121.875 to 71.875 a
few years ago: go back and find it your
(own bad) self.
PHD: Thesis: All markets Random on
reverses: No markets random on Reverses:
Answer: No and Yes
Wall Street does (not) want you to know
all (future) market reverses are preset by
T. Henning Murrey: Nashville Tennessee,
since 10.09.1992 (1942 to 1992 = 50: 5)
when he published his book and started
renting and selling his software program
and offered The Murrey Math Online Trading
Community, whereby anyone (even those
who are dumb or hate Murrey Math) may
pay to receive (exact) future reverses for
markets.
Join us: contact us at:
[email protected]....
www.murreymathforum.com*
We, Master Level MM Traders make
daily: weekly predictions for all traded
markets ending (price) with a (5) or a (0),
so any market may be predicted (exactly)
off a musical scale pitch: 437.50 cycles per
sec.*
T. Henning Murrey: 1992 - 93
listened, but didn’t go along with the
notion, all markets are random in their
reverses and since they are random we
may insert the Golden Mean: .618% and
.382% and expect = (in the future) all
random markets to revert (back) into exact
formulas of higher or lower expectations
off no more logic or deductions than “panic
selling” and exuberant buying markets
59
(already) too high.
Murrey went (back) and remembered
the 625 Numbers and 375 void thoughts
to = 1,000: 100: 10 and deducted
everything you think: hear: imagine:
speak is a musical pitch set to squares: off
base Ten: 100: 1,000: 10,000: 100,000
or 1,000,000 which will predict (exactly)
every future reverse of any market when
the numbers end in (zero) or (five) which
is the same as the 12 Houses of Levi
prepared for War: soldiers.
Golden Mean: = Let your Golden
Years (retirement monies) fall – 50%
but don’t be mean and ask why (not)?
Or why (not) exit with + 100% or +
375% as in 2002 and 1993?
George Bush got US stock market
up + 100% from 10.09.2002 to
10.09.2007: who cares? And Bill
Clinton got the US stock market up +
375% from 1993 to 2000: Who cares?
Never take profits.
No expert (making up the rich)
investing community will admit the
markets are (not) random. They lose
(now after 10.09.2007)
all credibility
with the normal “worker” and rich retired
Americans who are forced to accept
all markets are random and no one has
“figured out” how to predict future price
reverses off any logical strategy. This is a
joke 100% since Murrey proved: 1992 –
93 no random market reverses.
Put your random investing money
where your mouth is: prove all markets
random: start now: go.
437.50 cycles per sec*
Noah was voted the world’s most
laughed at (Fool) by building an arc and
entering (it) on the 17th Day of the 2nd
month and exiting it on the 17th Day of the
60
7th month, just as the Jews left Egypt on the
17th day Of Nison as the Sun shone down
on the Pyramid at Giza at its vertical, just
as Noah begot Cain and Cain begot Jubal:
who set all musical pitch scale to ten times
the Earth’s Harmonic Pitch: 43.75 cycles
per second (near) 1875 B.C. Revelations
states: All Religion ends on the 17th Day of
the 2nd month?
Everything on any measurable
scale will have to be set to music pitch of
Light: Music of the Earth: or Speed of Light
or heat of colors of the Rainbow: 43.75:
437.50: 4,375: 43,750: or 437,500.
Day Break: 6,250 and Dark of Night
= 4,375 = Difference 187.50 = 3.125 by
187.50 = 60: 6: 600
Gann on page 68 (in his book) declared:
He loved 18.75% as his favorite Natural
Percentage
10.09.2202 lows at 7,187.50 (312.50
from 7,500) US stock market moved up
+ 1,875 points (exact) to 9,062.50 double
Top Murrey predicted on 10.07.2002 at his
Birthday Party 10.07.2002.
10.10.2008 the US stock market
reversed up + 1,875 points in (only) three
days and fell lower.
Sept. 11 2001 US stock market (near)
9,687.50 and it fell to 8,125 lows – 3,750
from all time highs up at 11,875 (near)
actual 11,718.75 and Sept. 20 2001 it
went up + 1,875 points from attack.
Nov. 04 2008 US stock market at
9,687.50 and fell to 6,562.50 (intraday) to
6,666.66 March 06 2009.
March 06 2009 US stock market at
6,666.66 and at same time S&P 500 Index
at 666.66 (intraday).
Jan. 20 2009 the Dow 30 Index lows
reversed off 7,500 and S&P 500 reversed
off 750.00.
Ratio: 10:1 for Dow 30 Index to S&P
500 Index: S&P 100 Index Ratio: 1:2 and
1:20 (exact)
1990.10.09 (last) up cycle of US
Economy set to Murrey Family Time –
Price Cycle at 2,500 and two days (later)
on 10.11.1990 price at 2,343.75 so we
predict (exact) future highs by sung the 5’s
and 6’s and see 2,343.7 x 5 = 11,718.75
and it was the (exact) all time highs on
01.14.2000 and 2,343.75 x 6 = 14,062.50
and it was the (exact) opening high on
10.09.2007 on the last closing high from
(last) 17 years.
Murrey Family 17 Yr. Cycle of USA
Economy from MM Time and MM Price:
43.75 by 3.125 – 14
14 (2: 4: 8) x 5 = 70 Families started
(what – which) Religion?
Murrey Family Time: *USA Economy
is set to: Murrey Family 17 Cycle starting:
1854 October 09) forward (every) 17:
1854: 1871: 1888: 1905: 1922: 1939:
1956: 1973: 1990: 2007 (end) on October
09: 100% True: 1854.10.09 to 2007.10.09
= 153 Fish Yrs (forward)
Murrey “discovered:” 1 thru 17 added
up = 153 (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 +
9 + 10 + 11 + 12 + 13 + 14 + 15 + 16 +
17) = 153 “fish” years USA Economic Time
Price Cycle (oldest) 17 on bone 43,750 BC
1990.10.09 the USA stock market
entered its (last) up Economic Time
Cycle off the S&P 100 Index at 143.75
(intraday) and closed at 156.25. The Hertz
resonation of the Mother Earth sounds at
43.75 roentgens per 24 Hours, so all the
(other) parts of this Universe must move
at its percentage.
The Theory “all things move across our
Universe, starting 1st as a sound wave,
ripple or explosion.
43.75 = 3.125 divided (into) equally 14
times. 14 x 5 = 70 = Earth.
1990.10.09 the S&P 100 Index was
traded at 143.75 (intraday) and ended
the day at 156.25. It had been moving at
3.125 x 46 = 143.75 and ended the day at
3.125 x 50: Jubilee Spread.
Proof: There are (no) random market
reverses (when you use) off: 3.125: 31.25:
312.50: 31,250: 312,500
143.75 price of S&P 100 Index on
1990.10.09 (intraday) shows us this
market is above 125, which is MM Major
1/8th between zero and 1,000: Murrey’s
Master Square: 1,000. So we deduct
Murrey Math 4/8th to be 125: next 250:
then 500 as price moves up to the right
toward 1,000.
Starting Point: 1990.10.09 price at
143.75 so we know this market will run
up in increments of: 3.125: 6.25: 12.50:
25.00: 50: 100: 250: 500: 1,000. We
also know this market will want to run up:
500: 600: 700: 800: 900: 1,000. We also
know ahead of time and price to expect
any market to know to divide any (future)
up run into (8) equal parts off its starting
point (price) lows: 143.75 then.
All markets want to move up: +
125: 250: 375 (3/8th): 500: 625 (5/8th)
Fibonacci Spread, so from anywhere you
start you expect any market to stall out off
highs known set to Major MM Trading Lines
inside its “current” largest Murrey Math
Master Square (in this case) we moved up
from 100 to 1,000.
143.75 + 700 = 843.75: so 1/8th
of 700 = 87.50 and 1/16th = 43.75. So,
you know years ahead of price and time
your market would want to stop at 437.50
x 2 = 875, but our lows started down at
143.75 on 1990.10.09 on the (last) up US
61
Economic Murrey Family Time Price Cycle.
MM 0/8th at 143.75 and MM 8/8th at
843.75, so MM 1/8th = 87.50 and MM
1/16th = 43.75 music pitch. So we know
every (higher or lower) future move will
know (within 3.125) points: 0/8th MM
143.75 + 43.75 = 187.50: + 87.50 =
231.25 1/8th: 231.25 + 43.75 = 275.00:
+ 87.50 = 318.75: at MM 2/8th: 318.75
+ 43.75 = 362.50: + 87.50 = 3/8th at
406.25: + 43.75 = 450: + 87.50 = MM
4/8th at 493.75: + 43.75 = 537.50: +
87.50 = 581.25 at MM 5/8th: 581.25 +
43.75 = 625 (Major MM 5/8th): + 87.50 =
668.75 at MM 6/8th: + 43.75 = 712.50:
+ 87.50 = 756.25 at MM 7/8th: + 43.75
= 800: + 87.50 = MM 8/8 843.75.
500 = Major MM 4/8th between MM
0/8th at 250.00 to MM 8/8th at 750: 1/8th at 187.50 and MM – 2/8th at 125: so
MM + 1/8th at 812.50 and MM + 2/8th at
875.00: MM 1/8th at 62.50 and MM 1/16th
= 31.25 points inside Murrey’s Master
Square: 1,000.
1990.10.09 S&P 100 Index price at
end of the day was at 156.25 (343.75)
from 500: which equals 7 x 7 x 7 or
343.75 from 500 or 312.50 or (156.25
x 2) + 31.25 points: 11 x 31.25 =
343.75.
2000.03.24 S&P 100 Index price
up at all time highs 843.75: - 500 =
343.75: 11 x 31.25 = 343.75.
Lows at 156.25 on 1990.10.09 +
343.75 + 343.75 = 687.50 = 843.75: +
687.50 = + 5/8th (625) + 62.50 = 22 x
31.25 = 687.50: 22 Letters Hebrew set to
3.125 degrees off 360 degrees (circle).
22 Letters of Hebrew may be derived
from 13 Paths of Gra: Tree of Life: 22 x
3.125 = and 31.25 x 22 = 687.50 which
was the (exact) spread from 1990.10.09
62
to March 24 2000 all time highs.
Numbers and Numerology are
100% Fraud and created by the 666
Devil.
Dow 30 Index: 1990.10.09 start
of (last) up US Economic Time Price
Murrey Family Cycle
2,500 on 1990.10.09 and on 1990.10.11
price at 2,343.75 x 5 = 11,1718.50 and
x 6 = 14,062.50 and All Time Highs on
01.14.2000 Dow 30 Index at 11,718.75
and x 6 = 14,062.50.
2007.10.09 close for Dow 30 Index
at 14,166.25 and MM Major 1/8th =
1,250 x 6 = 7,500 and Murrey coaches
all students to expect reverse up at
93.75% when any market is down –
6/8th on any price scale over extended
MM Time, which means a reversal
from 14,166.25 – 7,500 = 6,666
03.06.2009.
All major US Universities MBA
Schools of Business through the Board
of Directors accept the monies from their
alumni and they tell them they don’t
know all markets may be random
or (not) so “just go with the flow” and
loose hundreds of millions of dollars from
2007.10.09 to March 06 2009 with no more
reason to back up the same reason the
US stock market crashed (- 7,500) (from
10.09.2007 to March 06.2009) points than
the crash was random, so don’t worry the
markets will come back (up) even, when
they know the S&P 100 Cash Index went
up from 156.25 on 10.09.1990 to 843.75
on March 24 2000 and down to 317.375
on March 06 2009. What high IQ human
wants to (just) come out even over and
over?
The top ten US stocks + the next 90
largest US stocks are a combined index
called the S&P 100 Cash Index and it is
down from 843.75 March 24 2000 to March
06 2009 to 317.75 down – 3.125%.*
*What business is expected to lose –
265% over the past (nine) years just to
get (back) even plus eight years forward
when you need the money at retirement,
when we “lived thru” President Bill Clinton
moving the Dow 30 Index up + 375% in (7)
years and President George Bush moved
the Dow 30 Index and S&P 500 Index up
+ 100% from 2002.10.09 to 2007.10.09:
5 Yr. Plan Cycle?
The Murrey Family 17 Yr. USA
Economy Time Price Cycle: (called)
predicted both highs (exact)
Proof: There are (no) random market
reverses (when you use) off: 3.125: 31.25:
312.50: 31,250: 312,500
The S&P 500 Index at 10.09.1990
(312.50) reversed up off (exactly) Double
S&P 100 Index price 156.25 on 10.09.1990:
lows on last (up) 17 Yr. Murrey Family
Investing *attitude) Cycle.
The S&P 500 Index was trading at
312.50 or twice the S&P 100 Index on
1990.10.09 and it was trading 1:8 for the
Dow 30 Index which was trading at 2,500
on 1990.10.09.
312.50 price for the S&P 500 Index set
it inside Murrey’s Master Square: 1,000,
so we expected the largest (5) to be: 500
then double up to 1,000, if and when price
closed 500 minus (-) 312.50 = 187.50
above 500 + 187.50 = 687.50 then we
would move up our “current” largest MM
4/8th Trading Line from 500 to 1,000 and
we would expect 500 to be MM 0/8th and
Mm 8/8th at 1,500.00.
1990.10.09 with S&P 500 Index at
312.50 were also 625 + 62.50 from MM
4/8th at 1,000 of 312.50 x 22 Letters :
Notes, so (on) 1990.10.09 we could deduct
we would expect a stall up + 687.50 above
1,000 = 1,687.50 Maximum) the 1st time
up (near) it. All Time Highs were 1,562.50
(open) on 2007.10.09 and all time closing
price was 1,565.625 = 1,562.50 + 3.125
by calculating 312.50 x 5 on 1990.10.09.
The next two days the on 10.11.2007 we
saw it “touch” reverse lower at 1,578.125.
2007.10.09 (opening) price at 1,562.50
from 1,000 = + 562.50 added to – 687.50
= 1,250 points or (exactly) 125 x 8 (8/8th)
= 1,250 or 1/8th of Murrey’s Master Square:
1,000. How hard is this to see?
$62,500 per year tuition the 312 major
US MBA Business School Programs force
you to pay and (not) one of them, except
Vanderbilt University’s Owen Graduate
School of Business’ MBA Professor Bob
Whaley and his VIX Index can tell you when
the US stock market will reverse long term
or intraday set to Murrey Math Lines since
1993. Only (1) US University will (ever)
mention technical analysis. Who?
All literature produced by USA
newspapers and Financial TV Show
Experts will tell you no one can predict
any future highs or lows off any math
formula, so just “relax up” and accept
loses.
Every USA University MBA Business
School Professor who espouses the Long
Term Buy and Hold Investing Strategy
has “netted” loses from the all time highs
of March 24 2000 at 843.75 when they
refused to tell “workers” and alumni to take
profits of + 540% profits over the past ten
years. Are they (still) “too busy” to stop
and research Murrey’s MBA Thesis: There
are (no) random market reverses.
17 is Murrey’s Harmonic Octaves:
(key) Number to know exact (future)
63
reverses of all markets.*
Tree of Life+ Knowledge = Square
Root of (Truth) seen in Numbers:
Fractions: Ratios: Fractals
Gnostic Star Essen’s’ Observatory
on Mt. Carmel: was handed down from
Stonehenge, England of the math from
Wales, the key to math formulas in
our Universe for (only) 26,000 years by
accepting, remembering and passing on
to all high IQ Nazarene Jews the (only)
“seen” Square Root: 12.368.
Wales: 3,125 BC Astrological Math
Geniuses went to Stonehenge, England
and set Blue Stones off “Sarsen Circle” at
31,680 feet and set Heel Stone: Summer
solstice: June 22 year 3,125 BC as Druid
Holy Rollers. How can USA citizens (not)
know why we set our clocks to 24 hours
per day and Wales Math Geniuses “figured
out” the (exact) future date of the Sun Set
for 26,000 years in a row?
153 Fish appeared the 3rd Time at the
Sea of Tiberius: red it and weep
Do you believe Jesus arose from (with
or by) the Great (ful) Dead or the crowd
as more impressed 153 fish fed 4,000 or
the 5 loafs of bread fed the 4,000? Most
were there for the “hand out” food stamps
not how to fish or catch a fish or how to
multiply (5) 17 times. Lord Jesus Christ =
Jew = Number 3,168
Jesus was starting a Ponzi Scheme
against the Jews, or he was offering the
Jews a (last) chance to follow Solomon’s
50 Year: Jubilee Rule where rich Jews
gave back ½ their wealth to 3rd generation
Poor Jews whose father’s were “too brain
washed” to be poor they lost everything,
especially ambition.
Hebrew Gematria (math off the circle
360 degrees) 70 = The Secret = Wine (of
64
the round grape)
70 AD Jerusalem = Greed = Solomon’s
Temple (stored) 60 Billion Dollars (of)
Gold and Jewels and (next) 10,000 Roman
soldiers broke the bank and took it and
20,000 Jews to Rome as slaves to finish
the Coliseum; then fed the Jews to the
Lions.
One Man Breaks the Bank: Bernie
Madoff from Babylon, NYC (with the
cash) at 62.50 Billion Dollars on 17th floor
of Lipstick Building (owned) by Israel
government near 34th floor.
17 Harmonic 3.125: 31.25: 312.50:
3,125: 31,250
Is the US stock market Harmonic in its
moves up or down off 17 “anything?”
If the 200,000 Jews left Egypt 1,500
(1,446) BC on the 17th day of Nison, walking
five (5) miles per day, could anyone see
any math Logic to how to predict the highs
of the S&P 100 Index (back) at 10.09.1990
(intraday) at price: 143.75? Noah went
into and out of the Arc on the 17th Day:
why?
The Book of Creation: dissolves the
Mysteries of Life on (this Earth) to Math
Formulas*
Gematria: Numerology dissolves
the Mysteries of Price and Profits into:
Fractions: Ratios: Fractals*
The Murrey Math Trading System:
1992-93 reveals The Lost Truth: Murrey’s
17 Harmonic Octaves: The Lost Sound:
MBA: .00152587890625
1990 (October 09) Start (last) up cycle
of US Economy set to The Murrey Family
Time (17) Price 3.125
So, we remember 1990.10.09 the
(intraday) price of the S&P 100 index was
100 + 437.50 = 143.75. 143.75 lows up
to 843.75 on March 24 2000 = spread:
7: 70: 700 (right) and 43.75 x 16 = 700,
so 1) 43.75 Hertz per 24 Hours = Earth’s
Harmonic Sound: and Binary Double:
1) 43.75: 2) 87.50: 3) 175: 4) 350: 5)
700 and 2007 (October 09) the highs at
730.625 and 2007.10.11 highs at 734.75
and we know it by multiplying 43.75 x 17
= 734.75, luck?
843.75 All Time Highs March 24 2000
and highs 10.09.2007 at 730.625 and
2007.10.11 at 734.75 so difference was:
843.75 minus (-) 730.625 = 113.125 and
843.75 minus (-) 734.75 = 109 difference.
Chinese love 700: Kuan Yin = Mother
Earth
Jubilee Number: 50: 500 so 500
divided 16 times (into) = 31.25: (3.125 x
10) = 31.25
31.25 x 22 (Hebrew Letters) = 687.50:
and 1990.10.09 price at 156.25 up to All
Time Highs on March 24 2000 at 843.75 =
difference 687.50 or 31.25 x 22: luck?
October 09 1990 S&P 100 Index
at 156.25 and March 06 2009 price at
312.50 – 156.25 + 156.25
Proof:
Dow
30
Index:
Date:
08.11.2008: Chart # 01 (A) Price at 13,125
on MM + 1/8th yellow Key C
Proof:
S&P
500
Index:
Date:
08.11.2008: Chart # 02 (A) Price at
1,312.5 on MM + 1/8th yellow Key C
Proof:
S&P
100
Index:
Date:
08.11.2008: Chart # 03 (A) Price at 656.25
on MM + 1/8th yellow Key C
Ratio: Dow 30 13,125 to S&P 500
at 1,312.50 = 10:1 and 656.25 = 1:2
and 20:1
656.25 (1/8 = 31.25) x 2 = 1,312.50
(1/8 = 62.50) x 10 = 13,125 (1/8th =
625)
Murrey’s Profit Pie: M’$pie =
3.125 discovered by t. Henning Murrey
10.09.1992 to 1993
MM Price: set to: M’$pie = 3.125 and
MM Time: set to 10.09.2007 (every: 4:8:
16: 32:64: 128: 256)
Dow 30 Index: (A) 08.11.2008 price
at 13,125:* S&P 500 Cash Index: (A)
08.11.2008 price at 1,312.50:* S&P 100
Index: (A) 11.08.2008 price at 656.25*
*Dow 30 Index: MM 0/8th at 7,500
and MM 8/8th at 12,500: MM 1/8th = 625:
Ratio: 2:1:20
*S&P 500 Index: MM 0/8th at 750.00
and MM 8/8th at 1,250: MM 1/8th = 62.5:
Ratio: 1:10:2
*S&P 100 Index: MM 0/8th at 375.00
and MM 8/8th at 625.00: MM 1/8th = 31.25:
20:1:2
“Current” High Price Time USA
Economic Cycle: 08.11.2008 and
“current” lows 03.06.2009
Please look at (3) major USA markets:
1) Dow 30 Index: MM 0/8th at 7,500 and
MM 8/8th at 12,500: 2) S&P 500 Index: MM
0/8th at 750 and MM 8/8th at 1,250: and 3)
S&P 100 Index: MM 0/8th at 375 and
MM 8/8th at 625.00. If you have a 5th
grade education and an IQ of 64 points, you
will see these three markets are reversing
off the same number: M’$pie = 3.125 as
Dow 30 Index MM 4/8th at 10,000 = 3200:
S&P 500 Index MM 4/8th at 1,000 = 320:
and S&P 100 Index MM 4/8th at 500 = 160,
so how do MBA Business School Professor’s
imagine all markets to be random reverses
off random highs or lows?
All Time Highs (ending) Murrey Family
17 Yr. Economic Time and Price Cycle:
10.09.2007 and the next lower support of
the US stock market was on 10.09.2008
and 10.10.2008 when we saw the three
major US markets reverse up: Dow 30
Index (3 days) + 1,875 points (actual) +
65
1,912 points: S&P 500 Index up (3 days)
+ 187.50 points (actual) + 205 points:
and lastly S&P 100 Index went up (3 days)
93.75 points: + 97.75 points (actual), so
how many Money Managers know we had
this large move up in (3) days?
11.04.2008 US Election: President
Obama wins: Dow 30 Index at 9,687.50 and
Murrey remembered Sept. 10 – 11 2001
when the Dow 30 Index was at 9,687.50
when he had classes in Brentwood, Tn.
11.20.2008 the Dow 30 Index was
priced down at 7,500 and the S&P 500
Index was priced at 750. You tell me how
two different markets with 30 stocks and
500 stocks can (both) reverse the same
day at the same price off the same MM
0/8th and Mm 8/8th and the same MM 1/8th?
It ain’t random no more.
March 06 2009 lows for Dow 30 Index
down at MM 1/8th at 6,562.50 (actual
intraday action) 6,666.66 and S&P 500
index down at MM 1/8th at 656.25 (actual
intraday action) 666.66 and S&P 100 Index
lows down at MM – 2/8th at 312.50 (actual
intraday action) 317.75. Again these lows
ain’t no random luck.
Last Murrey Family (up) Price Time
USA Economic Cycle: 10.09.1990
1990.10.09 the S&P 100 cash Index
was at 156.25 and it went up to 843.75 on
March 24 2000.
Who told you to exit with large profits
from doing nothing but going to work
(daily)?
156.25 x 100% = 312.50 + 156.25 =
468.75 + 156.25 = 625 + 156.25 = 781.25
+ 62.50 = 843.75 which was the exact
March 24 2000 highs with no fundamentals
(only) Murrey’s Doubles, plus his Binary
Regression: ½ Note: (62.50) proves all
markets are set to Musical Pitch Scale:
66
437.50 cycles per sec.
Note of Interest: Contact your local
MBA Business School (Professors):
ask them why no one except Bob Whaley
and T. Henning Murrey have researched
market reverses and finally “figured out”
major market reverses. They will deny
Murrey and Bob Whaley exist.
What is the advantage to the MBA
Business School Professors to keep
hidden from their students the simple fact
that all markets are (not) random when
you set them to Murrey Math Trading
Lines?
What is the advantage of the major
US brokerage house’s brokers to
refuse to tell their clients Bob Whaley and
T. Henning Murrey did all the hard work to
“figure out” major market reverses?
How many times does it take for the
“workers” and rich investors to lose 50% of
their profits again, again and again before
they finally search for a logical way to
predict future reverses other than Buy and
Hold? “Old School” Buy and Hold Investing
is 100% a failure for 93.75% of all workers
since 1929?
Buy and Hold Long Term Investing
Strategy saw the US stock market top out
October 1929 and it took till: 1932: 1942:
1952 then till 1954 for the Dow 30 Index
to make a double top (382) from 1929.
1929 to 1954 Buy and Hold Long
Term Moron City University Investing
Cycle to get (even) proved (only) three
women are alive who invested using Buy
and Hold and they are still mad at their
expert brokers who told them to wait
and relax up and you will come out even
(before) you die.
This is trading system is 100%
original Pure Murrey Math Logic, where
all price, is set to reverses inside each
of five (5) different of Murrey’s Master
Squares seen by the citizens of Atlantis
3,125 BC just before the Volcano sent
them to Paradise or their (own) Buy and
Hold Hello.
Experts on market direction and
fundamentals will laugh out loud, when
they hear about or find out Murrey has
been projecting future reverses off
(only) (1) number: 3.125. 96.875%
of all MBA Business School Graduates
don’t comprehend what an octave is or
how to predict future reverses off any
percentage: ratio: or Fractal. 96.875%
of all MBA Graduates cannot read a stock
chart. 96.875% of all Money Managers
don’t use technical analysis or read stock
charts. They just read fundamentals from
liar groups who make up good news on
markets to spout (out) daily to “workers.”
Bob Whaley: MBA Professor at Vanderbilt
University’s Owen School of Business, in
1993 at Duke University’s Fuqua School
of Business created the VIX Index and
proved all future market reversals may
predict (100% accurately), when you set
the VIX Index (inside) Murrey’s Trading
System. Are you afraid to find out? CNBC
TV mentions the VIX Index 50 times a
week and no one knows Bob: why?
1993 T. Henning Murrey created
The Murrey Math Trading System by
seeing all markets reversing inside (8
minimum) Harmonic octaves inside one of 5
of Murrey’s Master Squares with no regard
to Fundamentals, gossip or conversation
by TV Experts on major (liberal) TV and
Radio Shows in USA.*
WRNO: Radio New Orleans, LA
(every) Saturday or Sunday: ceck the web
site or call the radio station
Murrey Math Student: Master Level
Trader # 15: Lynn (Francis) Newton has
been on the radio: (call letters) WRNO
Radio, New Orleans on the Jerry V Show
who is also the radio announcer for the
New Orleans Hornet Pro NBA Basketball
team, has predicted the (exact) lows and
highs of the Dow 30 Index “live” on this
radio station for 6 months in a row, on
the weekend two days ahead of the next
week’s trading action, as witnessed by
millions of radio “listeners” who wait each
weekend for Francis’ future projections of
the US Economy and US stock market set
inside Murrey’s 17 Harmonic Octaves: set
by T. Henning Murrey from 10.09.1992
to 10.09.1993 in Nashville, Tennessee by
himself.
You may check out her predictions by
going to www.wrno.com and finding her
pod cast recordings.
There are (only) five different
harmonic octaves any US market may
travel (into) or out of, up or down,
so every (exact) price is known years in
advance before they rise and fall down
into each of (only) (8) different octaves
which may be learned by any 5th grade
school girl in 32 minutes. Adult Buy and
Hold investors can’t learn them, nor will
they tell you about them, till the market
goes to zero.
Socrates mentioned the Citizens of
Atlantis “figured out” the Five: (5th
dimension) Harmonic Squares set to
Base Ten. The Musical Fifths encompasses
the Square of Five. Hermopolis, Egypt
always gave the prize of Master of the
fives to the math genius who could repeat
the move from one dimension to the next
set to musical scale. 1954: Communists
brought Buy and Hold to major US
67
university campuses.
T. Henning Murrey solved the
puzzle: (by himself): figured it out and
solved the problem by presenting the Lost
Truth: The Lost Sound: 63/64th = 1/156th
of 10,000. You may accept it, too.
312 MBA Business Schools x 500
students = 15,600 yearly brain washed
high IQ geniuses who are forced to accept
“random guess” investing, since their
professors tell them not to contact Bob
Whaley or T. Henning Murrey to find out
“what’s up.” Are the universities doing
research for Logic Investing?
Murrey discovered The Lost Truth;
discovered in 1993; The Lost Sound
63/64th Vibration set by Jubal 1,875 BC
in the Sinai Peninsula and recorded on the
oldest found clay tablet scale of Music:
set at 437.50 cycles per sec for the Lyre
and the Flute without a computer. Flood:
Noah: Cain: Jubal Master of Music Scale:
1875 BC.
Ponzi Scheme “Buster” software
program: The Murrey Math Trading
System: 1992 – 93: Nashville
If you are “too busy” to watch your
money and ask how your financial planner
where they are moving your money, please
request our end of day software program
and you will “see” the exact highs and lows
to expect future market reverses or go to
MBA Professor Bob Whaley at VU and he
will tell you daily.
The Lost Truth: Murrey’s 17 Harmonic
Octaves (predicts) all future reverses (for
you). Why guess?
1500 (1446) BC Jews left Egypt on 17th
Day of Nison. 375 years span of Time to
exit to Promised Land.
Murrey’s Sacred Fractals: .375 and
.625: Rational Sq. Root: .375: 375 x
68
375 = 140,625 (remember).*
Murrey’s
Law
of
Decimals
(to
right):
140,625:
14.0625:
14,062.50….2007.10.09 (open) price
of Dow 30 Index at 14,062.50: luck?
Please go back to 1990.10.11 when
price of the Dow 30 Index was at
2,343.75 and we multiply this number
by (6) and arrive at: 14,062.50: luck?
What about starting at 1990.10.09
when price of the Dow 30 Index was
at 2,500? So we add 10,000 (1,250
x 8) = 10,000 where a major MM
1/8th inside Murrey’s master Square
= 1,250; so we add 2,500 + 10,000
= 12,500. Now we know all markets
after they run up any amount will want
to move up the 1st time + 12.50% so
12.50% of 12,500 = 1,562.50, so we
add 1,562.50 to 12,500 = 14,062.50.
6,250 BC East Tennessee: the Cherokee
Indians set their “sacred” flute to 437.50
cycles per sec. Jubal set all musical scale
harmonic pitch for flute and liar at 437.50
cycles per second: true?
Investing (gambling) is set to a
standard math rhythm whether you see it
or slow down to figure it out.
Buy and Hold Investing and losing
– 56.25% is 100% acceptable, form
10.09.2007 to March 06 2009,
but
gambling in Vegas is a Sin: duh. When
does the public ask for their money back
from experts
Murrey’s Law of Shut your Mouth:
Look: listen and you will ‘see” all markets
are (not) random.
Pythagorean School of Math Logic:
set its 1st Premise to Silence (until) spoken
to personally: 3.125 yrs.
You can never “figure out” investing
since T. Henning Murrey did it for you:
1992.10.09 to 1993.10.09. *
T. Henning Murrey discovered all
markets want to reverse off Murrey’s
Trading Lines (exactly): Murrey’s Fractal:
M’$pie = 3.125: Murrey’s Sacred Square
Root: .625 x .625 = .390625 x 8 = 3.125
Murrey’s Lunar (tic) sq. Root: 1.25
x 1.25 = 1.5625 or the Lost Truth: The
Lost Sound: 1/64th: 1.5625.
Murrey’s
Universal
Number:
19.53125: 1.953125: .1953125
312 different MBA universities in the
US employ (at least) 50 MBA Professors
and (only) two in the USA are capable of
predicting future US market reverses with
at 5th grade formula: 1) MBA Professor
Bob Whaley who created the VIX Index
and MBA Professor T. Henning Murrey who
created The Murrey math Trading System:
1992 to 1993: Murrey’s Profit Pie: M’$pie
= 3.125 (not) Pi 3.14.
Our Universe (God) gave you the
heavens and the Earth after an explosion
of (only) 3.125 minutes.
Radioactivity (decay) starts to reduce
(loose power- decay) from 100 million
years down: 100 M Yrs: 50: 25: 12.50:
6.25: 3.125 so on down to zero radiation:
fossils. You can’t change it or deny it or
prove it: it’s done. Murrey figured out how
to trade off one number and no matter
what you try and improve on it, even John
Bollinger Bands will (not) beat Murrey’s
One number: MBA: .00152587890625.*
Columbus discovered America using
3.125 as a part of his navigational
Triangulation to sail (across).*
3.125 Million Dollar Bet: you can’t
improve on accuracy of the Murrey Math
Trading System.*
*Free Will fools (fundamentals =
opportunities off luck) try and improve
MURREY MATH SUPPLIES
The MurreyMath Trading Frame software program
will automatically decide for you if a market is Over
Bought or Over Sold, and automatically display the
Trading Strategy whenever the Daily Price Action
The MurreyMath Trading Frame Software gives:
• All Gann Lines
(8/8ths)
• All Vertical Time Lines
• All Squares in Time
• Entry Price Points
• Overbought/Oversold
• Set
5
Circles of Conflict
• Parallel Momentum Lines
• Set Speed Angles (7)
• Set Learning Mode Data
• Present “Best Entry Price”
• Present Daily Volume differential
• Sell 50% of Position Price Points
Full Software Package $1000.00
End-of-Day
version
includes:
One
Set
of
Software, Murrey Math Book, CD Learning
Lessons & EMail Updates
Buy EOD Murrey Math Software $1000
Buy RT Murrey Math Software $2750
Buy 60-Day Trial of Program $250
Buy Murrey Math Trading Book $78
Buy Murrey Math Learning CD $150
Call 800-288-4266, or 417-886-5180
69
on Murrey’s Fractal Logic: and charge 3
times more to come to their classes and
tell Murrey Math Students they can coach
them better than Murrey and lose them
more money and they don’t feel guilty and
don’t look back: they blame the Murrey
Math Student for being stupid or dumb;
they go to the next group of new suckers.
How many of you Murrey Math Students
have attended knock off “Murrey Math
Boot Camps?”
The past 17 years Murrey has seen 15
different loyal Murrey Math Students “strike
out” on their own and try and “piggy back”
and try and set up high priced fee based
classes pronouncing they can “out coach”
Murrey and charge three times more and
brag they understand it more in depth
than Murrey, and they coach futures and
options only to have them confused and
larger losers: sorry you left us for them
to trade options with students who are
(not) ready and they leave “losers” and it
takes years to make up for the loses from
being shoved into the markets too fast and
too unprepared. Murrey never certifies
anyone other than himself as an
alternative “coach” to try and figure
out Murrey Math: no one can yet.
As long as investing is set to Base
Ten no (next) smarter trader will emerge
who can deduct or surmise future market
reverses off anything except: Fractals:
Ratios: Percentages set against M’$pie =
3.125.
Murrey doesn’t take the time to
counter all the “fools” who charge more
than Murrey, to provide less (knowledge)
or experience at how and why markets
reverse, except off Murrey’s Math Lines.*
1992 T. Henning Murrey asked
100 different Nashville experts on
70
investing if markets were random or, did
they have a set pattern toward or against
old highs or old lows? Everyone said:
“All markets are random.” No Nashville
Expert wanted to move forward and step
up to research market reverses off preset
ratios: percentages: or Fractals with (only)
(1) number. Were you born from one cell
(egg)?
Murrey (1993) devised Murrey’s Law
of Contradiction: “All market experts
declare all market reverses random, then
all markets are (not) random: end of story.”
Please find any random market where
all price always ends with a zero or a five.
Sorry you can’t produce it, unless you
can’t add, divide or multiply.
Everything is set to a start and end
cycle: it’s my job to find it and point it out
to you, since you are “too busy” to see the
obvious: market Time and Price Cycles for
reverses. Murrey sees all markets exact.
Ask your financial experts to point out
all (5) price and Time highs and low cycles
from 1986 to 2009.
They are required to tell you the exact
price and exact day and percentage of each
major reverse from 10.09.1987 to March
06.2009. See if they can do it for the Dow
Jones: S&P 100 and S&P 500 Indexes.
You will amazed you are handing over
your money to experts who don’t much
about market reverses.
They can’t tell you what price, date or
how much the markets moved up or down
the past 17 years.
MBA = Masters of Business: do you
expect them to know the USA 17 year
business cycle?
This Pure Fractal* trading system
was created in 1992-93 so experts such
as: 1) Money Managers: 2) MBA Professors:
3) sellers of stocks: 4) handlers mutual
funds and 5) Hedge Fund Managers) would
be able to come to T. Henning Murrey and
find out exact future reverses and nw they
can go out get clients.
Remember the Murrey Family Price
Cycle and Economic cycle of the USA from:
1854 Nashville (forward) + 153 fish years
to 2007 Oct. 09 back – 153 years to 1701
when The Masons formulated their 1717
Club and opened it 1718 AD in London,
England.
*Fractal: means whatever you want it
to mean: relax up: our software knows for
you since 1993.
1701 London, England: Alnwicke
Lodge: Mason Rules of Oder (outlined) and
followed.
1701 Free Masonry started 153 x 2 =
206 Yr Economic Time Price Cycle and 206
(forward) = 2007.10.09
The Murrey Family Time Cycle
17 Yrs: Started in Scotland in 1701
and USA 1854 Nashville: (153)
1718: 1735: 1752: 1769: 1786: 1803:
Murrey Family built Nashville’s 1st brick
house: 1820: Nashville’s Andrew Jackson
whipped the British at Battle of New
Orleans: 1837: Nashville “voted” Athens of
the South: 1854: 62.50% of US Bonds
in Nashville in the southern states:
Starts 153 (2nd Murrey Family
Cycle): “fish: Yr Cycle: Nashville:
Thomas Porter Murrey: (Ethlbert Murrey:
Thomas Porter Murrey: Thomas Porter
Murrey:
Thomas
Henning
Murrey):
ordained preacher to teach John: 21.5
= (5:12:13) Triangulation: Parallax: 153
“fish” story of how to make money with
Five (5) Loafs of Bread (squared 17 times)
and 153 Fish’s Lunar (tic) Square Root:
153 = 12.368 Lunar Cycle (to end) Dec.
29 2011 (2012) AD when Milky Way comes
180 degrees to our Universe.
John: 21.5 will be fulfilled and voided
2012 AD when 153 “fish” = 12.368
Lunations will add one more (visible Moon)
and this Fractal Logic will be completed.
Math “haters” will love 2012 Mayan
calendar completion from the last random
26,000 years.
Squaring of the Fives: T. Henning
Murrey “voted in” Master of the Fives:
10 – 17 1959 at Centennial Park: at
Parthenon: on East steps along 17 columns
set 17 feet apart know; prove and share
Murrey’s MBA: Algorithm: .001525 8789
0625 Binary Progression and Murrey’s
Binary Regression: 1992-93.
171 IQ Test set to 5th Grade Math
Quiz: How to find (future) exact prices
and percentages (ratios: Fractals) simply
by squaring the 5 Loafs of Bread. Find
child who can Square 5 x 5. Next, square
answer by (5) and do it up to 17 times and
remember all (17) answers. Who in your
family is willing to try and do this Murrey
Math (math) formula without a calculator?
Warning: when you do it (5th grade
formula: Squaring of the Fives) you will
know (every) future (potential) exact
reversal price and you will have to reject
the “random guess” Long Term Bjuy and
Hold Investing Strategy and convert to
taking profits off Adult Logic set to 5th
grade math from 171 IQ discovery by T.
Henning Murrey 1992.10.09 – 1993.10.09
in Nashville, Tennessee across from
Vanderbilt University: Belmont University
and Lipscomb University Business Schools.
Gnostic
(Jews)
1st
Century
Christians hid the Cabbalist Formulas
of Universal Logic into (4) books of New
Testament. Remember 3,125 Christian
71
Gnostic Jews were killed for telling the
story of John: 21.5 set to: 12: 5: 13 math:
triangulation: Parallax 43.75 years after 1
AD.
Random Guess Investing (dissolves)
and crystallizes into Fractals when you
move forward (mentally) and open your
3rd Eye and “see” all future reverses set to
exact fractions and Fractals of 5 x 5 = 25.
Paradigm Shift: if you lost – 52% of
your retirement monies from 2007.10.09
to March 06 2009, would you exit this
“losing” Long Term Buy and Hold Strategy,
if you had known (back) at 1990.10.09
the markets would tank up at 14,062.50
on the open on 10.09.2007 which was the
opening “bell” price of the Dow 30 Index
and the end of the 153 “fish” up move from
1854.10.09 and 206 year Murrey Family
Cycle from 1701? Why change now? Enjoy
losing tax free money and start over
down at 1990 lows soon.
1701: English Bill of Rights (imposed)
on Scotland and England and Scotland’s
response Act of Settlement (on their part)
to stay separate from England’s taxes and
domination.
1871: British General
surrenders to US: US
Confederation (drawn) up
Cornwallis
Articles of
1888: US constitution ratified by the 13
(original) states when Pennsylvania and
New York said yes.
1905: All Time High in Copper and hosing
Recession started called by Einstein in
Switzerland
1922: End to World War 1 and start of up
72
USA Economy till 10.17.1929
1939: Oct. 09 Poland: Hitler took over
Poland
1956: US Economy expanded with growth
of Interstate System for cars and trucks
1973: Recession: markets lost 43.75% of
your profits
1990 Starts (last) up USA Price and Time
Cycle to end 2007.10.09
All markets are reversing off The Murrey
Family: Started 1854…..Oct. 09: Starts
(last) 153 years up USA Economy to End
153 “fish” years forward from 1854 on
10.09.2007 on Murrey’s Birthday
Murrey’s Profit Pie: M:$pie = 3.125
Price Cycle: 1 Yr: 2 Yr: 5 Yr: 10 Yr: 17 Yr:
20 Yr: 50 Yr: 60 Yr: 100 Yr Price Cycle
The Murrey Family Economic Time
Price Cycle
Ezekiel (Man’s) Time Price Cycle: 60
Years: Buddha 60 Yr Cycle: 10.09.1942
T. Henning Murrey born: at Vanderbilt
University Hospital and sent to Cheatham
“projects” Public Housing in “cab holler”
Nashville and (exactly) 60 years later:
2002.10.09 on Murrey’s Birthday the end
of the Y2K Bear Market with the price of the
Dow 30 Index at 7,187.50 and it started
the 5 Yr Murrey Family (up) Time Price
Cycle since the all time high of the Dow 30
Index was on 10.09.2007 when the Dow
30 Index closing highs were 14,166.25
and 7,187.50 x 2 = 14,375.
10 Yr. Murrey Family US Economic Time
Price Cycle: 1997.10.09 Dow 30 Index at
8,095 x 1.75% = 14,166.25 which was the
exact (high) on 2007.10.09 on Murrey’s
Birthday
1 Yr. Murrey Family Time Price Cycle:
10.09.1986 to 10.09.1987
Long Term Buy and Hold Investing
Strategy (forces) you to read and be
brain washed to accept and invest off 5
Yr Investing Plan (off highs or lows) since
they don’t tell you to “see” extremes: lows
so 1986.10.09 the Dow 30 Index was at
1,750 and it went up in (just) 11 months
+ 56.25% and since it went up + 56.25%
in (only) 11 months you are (not) allowed
to exit with + 56.25% when the price got
up to 2,734.75 and were instructed to
continue to expect more profits the next 4
years and 1 month to fulfill the 5 Yr Plan of
Investing. 1987.10.09 the Dow 30 Index
was at 2,656.25 + 156.25 above MM 2/8th
inside Murrey’s Master Square: 10,000.
The World Bank failed to support the
Russian Ruble and it tanked the US stock
market down – 1,031.25 points or down –
62.50% in only 5 weeks to 1,625. Funny
Game: Long Term Investing with Buy and
Hold Five Yr Plan. You made + 56.25% in
11 months, then gave back – 62.50% in 5
weeks since you are required to lose two
in win when investing in mutual funds.*
*Long Term Retirement Mutual Fund
Investing is the (only) way to invest that
everyone in the industry tells everyone
to just lose to win no matter how much
you lose over time: it’s your money, and
you don’t exit with huge profits in a short
period of time, since you should invest
off (time periods) not profits per time
period. No major junior high school, grade
school, Junior college, top 312 major
US Universities, not one American MBA
Business School Program will force you
took at price percentages as the #01 factor
to exit with profits rather than (only) time
cycles.
No major political party will force their
members to exit off + 375% profits from
doing (absolutely) nothing but putting
money into (lying) CEO free money holes
to steal or fail and get the bail (out) by the
US Congress. President George Bush was
booed on the floor of the US Congress for
suggesting US “workers” could make more
money in a retirement mutual fund than
trusting the Social Security System’s 17
Pay Out Plan (if you don’t die first).
Commodity traders and Currency
Traders fall over in the floor with their sides
bursting from laughter when they hear of
Long Term Mutual fund Investors are (not)
allowed to take profits short term.
5th Grade Logic: Which made more
money the past 50 Yrs US Stock market
or Gold?
1959: US stock market: Dow 3 Index
at: 625 and Gold at 40.625 per ounce
1959 to 2009 Results in: Gold went
up from 40.625 to 1,031.25 on March 17
2008 (now) near 1,000
1959 to 2009 Results: Dow 30 Index
went up from 625 to 14,166.25 and down
to 6,666 up to 8,125.
Ten Yr Investing Cycle: 1998 to 2008
runs up for Gold and Dow 30 Index
Who wins: Gold or Dow 30 Index?
What will the Mutual Fund Sellers tell
you? You guessed it: Mutual Funds always
beat Gold Risks
August 17 1998 Dow 30 Index made 5
support bottoms at 7,500 and gold March
17 at 289.0625, so we ask what % Gold
went up and what % Dow 30 Index went
up in (next) ten years: The Dow 30 Index
went up + 1.875% and Gold went up +
350 % over the next ten years, so why
don’t Mutual fund Advisors swith over and
73
sell Gold Mutual Funds and abandon long
term stocks which have (not) recovered
from the top 100 stocks from march 24
2000 when the S&P 100 Cash Index, which
is the back bone of the US economy has
been a “loser” from March 24 2000: 01:
02: 03: 04: 05: 06: 07: 08: 09 where the
top 100 stocks are down from 843.75 to
near 312.50 march 06 2009, so when does
our Mutual Fund get even from the past
nine (9) years of losing every year and
Gold is up + 350% the past ten years and
up from $40.625 from 1959 to $1,031.25
up + 2,500% and the Dow 30 Index is
up from 7,500 to 8,125 (last week) up
8.125%: whoopee. Last week Gold was
priced at 875.00 so it was up + 2,153%:
whoopee.
A few months ago: FOX Network Morning
Show: TV Commentators asked Dave
Ramsey which was a better investment
Gold or Dow 30 Index and he retorted:
(fast) Gold is the worst investment for the
past 50 years.” He smiled and went on
to the next question. Dave Ramsey was
100% correct with his logic.
Dave Ramsey wrote his NYC bestselling
book: Financial Peace and on page 155
where he asked mutual fund investors to
take a five year horizon plan of Buy and
Hold with no mention of exiting with +
56.25% in any 11 month time period.
President Bill Clinton produced + 3.75%
profits for Democrats from 01.20.2003
to 01.14.2000. March 24 2000 President
Bill Clinton asked Democrats to stay long
in their Mutual Funds and keep working
for more free profits, even after, 300 US
stocks were up over $200.00 per share
with PE Ratios of (up to) 1,400 to one and
CNBC TV told you it was a new era where
earnings don’t matter now (anymore).
74
CNBC TV expert commentators watch
GE go from $100.00 per share to $12.50
off great fundamentals 01.14.2000 in New
York City. They will never ask anyone to
take profits, but now, they tell you the Buy
and Hold Math Investing Strategy ain’t
working anymore. It never has, what’s
new?
Gold went up from 1978 to 1980 from
$250 to $875 up + 350% in ten years;
then it fell to 250 till 1998.
20 Yr. Murrey Family US Economic Time
Price Cycle: 1987.10.09 Dow 30 Index at
2,656.25: now 2,500 is the top of the MM
8/8th when zero = 0/8th; so 2,656.25 = +
156.25 above 2,500; so 10,000 added to
2,500 = 12,500, which = 1,250 x 8 when
1,250 = major Mm 1/8th inside Murrey’s
Master Square: 10,000 on Murrey’s pre
crash Birthday. 1/8th is the next higher
move up of any market after it runs up
+ 100% so we find 1,562.50 = 1/8th of
12,500, so we add 1987.10.09 Dow 30
Index price at 2,656.25 + 10,000 +
1,562.50 = 14,062.50 on open 2007.10.09
and close was 14,166.25 and 2007.10.11
was 14,218.75.
1990.10.09 Dow 30 Index at 2,500…
now Murrey predicted future (17) Yr
highs from 2,500 by adding MM 1/8ths
to 2,500 when the Dow 30 Index is set
inside Murrey’s Master Square 10,000
when each major Mm 1/8th = 1,250; so
2/8th; 3/8th; 4/8th; 5/8th; 6/8th; 7/8th; 8/8th
= 10,000, so we add 10,000 to 2,500 =
12,500 and (now) 1/8th is the next higher
run up of any move up long term, so 1/8th
of 12,500 = 1,562.50, so we add 1,562.50
to 12,500 and we arrive at: 14,062.50 and
this price (14,062.50) is the exact price
exactly 17 years to the day (later) and the
price of the opening bell on 10.09.2007
was 14,062.50. It is (not) luck when you
want to know future price and time price
reversals set to the Murrey Family Cycle.
1990.10.11 Dow 30 at 2,343.75 two
days (after) 10.09.1990 Murrey Family
Cycle (start) went down for two days to form
Pro “S” lower lows done by Floor Traders to
“shake out Longs” to get Breakout Traders
short just before 17 Yr up cycle. 2,500
on 10.09.1990 and 10.11.1990 price at
– 156.25 just as 10.09.1987 the price
was + 156.25 above 2,500 at 2,656.25.
Future highs move up: 100%: 2 x 3 x 4 x 5
and x 6 = highs; so o n 1990.10.11… next
2,343.75 x 5 (500%) = 11,718.75 and all
time highs 01.14.2000 price at 11,718.75
while Bill Clinton was in office…1990.10.11
2,343.75 x 6 = 14,062.50 all time highs
on 2007.10.09 when George bush was
President (on Murrey’s Birthday)
01.20.2003 The Exact day Bill Clinton
was sworn into office as President of the
United States, the Dow 30 Cash Index
was selling for 3,241 and it went up +
3.75% (375%) and his large move up
ended 01.14.2000 when the Dow 30 Index
stopped up at 11,718.75 and Democrats
did (absolutely) nothing to make the stock
market go up, but were not instructed by
President Bill Clinton to sell with the largest
profits off investing in Mutual funds in the
history of Mankind.
Why did (not) MBA Schools Economists,
MBA Professors, stock brokers, mutual
fund sellers, Money Managers, Financial
Advisors, refuse to ask the average
‘worker” or tell them, since they always
believe the stock market is random, so
they think or are conditioned to “just let
it ride” up or down and (accept) take
losses when the markets sell off after
they run up + 375% from 01.20.1993 to
01.14.2000 on the Bill Clinton 7 Yr. Cycle?
The US Congress Library of Congress has
patents and copyrights on 12,500 books on
the US Economy and Long Term Investing,
but (not) one of them will force you to exit
with a profit, but tell you to “Buy and Hold.”
T. Henning Murrey wrote his book and
found the “secret” to exiting (taking profits)
off short term and long term investments:
cars; houses; Gold and silver; stocks and
Bonds and mutual funds.
I’m “too busy” to watch my investments
USA mantra, forces older (mentally lazy)
investors to fall prey to the Ponzi scheme
“know it alls” like Bernie Made off with
the cash and his “don’t ask don’t tell”
investing method of extracting 62.50
billion dollars from investors who were
either “too mentally lazy” or socially “too
busy” to check out why and how they
were (always) making + 10% when the
rest of Wall Street was losing money? The
(next) Healthcare Ponzi Scheme is under
construction in NYC: join.
Join us at:
www.murreymath.com
www.murreymathforum.com
contact us at:
[email protected]
for further instructions to winning.
T. Henning Murrey has taught thousands
of MM Students since 1996.10.09 all over
the world. Please google: murrey math for
more info and how to allow us to help you
increase your (smaller) loses.
75
The 17-Year Cycle
Part III
Synergy, Synergy, Synergy!!!
By Eric S. Hadik
A Cord of Three Strands…
“...Again I saw something
meaningless under the sun: There was
a man all alone; he had neither son
nor brother. There was no end to his
toil, yet his eyes were not content with
his wealth. “For whom am I toiling,”
he asked, “and why am I depriving
myself of enjoyment?” This too is
meaningless— a miserable business!
Two are better than one, because they
have a good return for their work: If
one falls down, his friend can help him
up. But pity the man who falls and has
no one to help him up!
Also, if two lie down together,
they will keep warm. But how can
one keep warm alone? Though one
may be overpowered, two can defend
themselves. A cord of three strands is
not quickly broken.”
Ecclesiastes 4: 7-12
(New Int’l Vers. ©1986)
s evidenced by the previous
quote (attributed to Israel’s King
Solomon), the principle of synergy
has been recognized and valued for at least
3,000 years. My guess is that it has been
76 WWW.TRADERSWORLD.COM SEP/OCT 2009
A
valued for much longer than that… Just
ask the pyramid builders or even those
that built the Tower of Babel whether it
was better to have ten men trying to move
a 500 lb rock individually or whether they
would prefer all ten men be pushing at the
same time.
…Greater Than the Sum of its Parts…
Another common way of expressing
this principle is the time-tested axiom:
“The Whole is Greater Than the Sum of its
Parts”. America’s economic success is built
on that same principle. It is what led to the
‘assembly-line’ method of manufacturing.
You could have 100 men & women each
building a car on their own… OR… you
can have them working together and
exponentially increasing the productivity
and output of their labor. “Two are better
than one, because they have a good return
for their work.”
The same is true of cycles.
A cycle here or a cycle there means
little in comparison to the convergence
of 4 or 5 or 6 reliable cycles in the same
period of time. This is what I have tried
to emphasize for many years. It is why
I believed - and now history has initially
validated - that we would enter a VERY
unique period of time in late-2007 (at the
time the Jewish Year of 5768 began - in
late-September 2007)… and continue in
that period of time for the ensuing decade.
This period was projected to usher
in major geopolitical shifts - a global
‘changing of the guard’. It began - in
perfect synch with diverse cycle analysis
- with the collapsing, debt-based house of
cards in the U.S.
This collapse began - at least when
viewed through stock market action - less
than two weeks into this major cycle.
The first phase - a 50% drop in the stock
market - was forecast to take hold in late2007 and unfold during the ensuing 1-2
years (very similar to 1973--1974). This
was fulfilled with great precision.
On a large-degree basis, major, longterm cycles (many that are centuries and
millennia-in-the-making)
converge
in
2007--2018. These include cycles of earth
disturbances, war, economic malaise,
financial and banking transitions, disease,
etc. Some of these are more prevalent in
the early part of that period, some near
the end and some throughout the entire
period.
Among these cycles are geometric
cycles (as long as 180, 360, 720 & 1,440
years in duration), geometric-heliocentric
cycles (165, 330, 660, 990 years, etc.;
see Focus 5768 Reports for explanation
and examples of ‘geometric-heliocentric’
cycles), 25/50/100-year cycles of banking,
40-year ‘period of testing’ cycles, 17-Year
Cycle multiples, Middle East War Cycles,
Sunspot cycles, decennial & ‘decadebubble’ cycles, 7-Year cycles… and others.
It is the synergy - that comes during a
convergence of these diverse cycles - that
alerts traders (and all individuals) to sit up
and take notice.
Looking a Little Closer…
Within that overall period, there are
smaller ‘sub-periods’ that have the highest
concentration of cycles. The one I have
discussed the most - for the past 5-7+
years - is the period of late-2007--2011.
This period includes the following cycles:
1 - 17-Year Cycle of Stock Market
Declines (just as in 1990, 1973--1974,
1956, 1939--1942, 1906--1907).
2 - 34-Year Cycle of Stock Market
Crashes (often involving a 50% decline
in prices as in 1973--1974, 1939--1942,
1906--1907, 1869--1873, 1837--1842;
this cycle was detailed extensively between
April 2007 - December 2007, projecting a
1-3 year/50% decline in stock indices from
October 2007).
3 - 17 & 34-Year Cycle of Banking
Failures (also documented throughout
2007 and applied to the period of late2007 into 2010; S&L Crisis of 1989--1993
was last incident).
4 - 17-Year Cycle of Real Estate collapses
(commercial real estate collapse of early1990’s was last incident).
5 - 70-Year Cycle of economic malaise
(projecting a stock market bear in 2000-2002, a bull from 2002--2007 and a new
bear from 2007--2012/2013).
6 - 17-Year Cycle of US Presidential
anamolies.
7 - 17-Year Earthquake Swarm Cycles
(2007-2010).
8 - 17-Year Cycle of California
Earthquakes (linking ‘Big Ones’ that date
back to 1857)
9 - 17-Year Cycle of Volcanoes
(particularly in South America and most
notably in the nation of Chile; watch
November 2009)…
10 - 17-Year Cycle of South American
77
Earthquakes (including ones in Chile in
1837-1840,
1905-1908,
1922-1925,
1939-1942, 1960 & 1990-1993)
11 - 17-Year Cycle (340 & 680-year
periods) of Plague.
12 - Geometric-heliocentric (and
Sunspot-related) Plague & Disease Cycles.
13 - Long-term geometric AND
geometric-heliocentric
Middle
East/
Kingdom of Jerusalem cycles.
14 - Geometric (30/60/90 years)
Russian/Iranian/nuclear cycles.
15 - ‘1’ Year Attack Cycles (1941, 1961,
1971, 1981, 1991 & 2001)
16 - Date of Infamy Cycles in Middle
East & Space Race (watch April 2010 &
April 2011).
17 - Longer-term cycles in financial
markets, commodities, currencies &
interest rates.
Suffice it to say, there is great synergy of
cycles from now through 2011.
Looking a Little Closer II…
However, there is another crucial and
decisive market that has cycles reaching
a crescendo a couple years later - in
2013. The terminal phase of that cycle
- and what could be the final decline in
a decades-long bear market - should kick
into high gear in late-2010. So, it is very
likely to dovetail with - or overlap - these
other cycles coming together in 2011.
The cycle (convergence of cycles) to
which I am referring - and about which I
have discussed for many years - is that of
the US Dollar…
Goodbye Greenback?
If all these cycles are accurate, I have
to conclude that the US Dollar will reach
78
a MAJOR crescendo in 2013. This could
be the end of a terminal decline (that
has been going on since 1985… and even
before then).
This could be the time for a major
‘restructuring’ (revalue? …devalue?? …
time for something new???).
It could be many different things.
These cycles primarily provide the first
critical piece to the puzzle: Timing.
Other pieces have already been - and
will continue to be - discussed in separate
publications. Applicable trading strategies
will also be addressed.
For now, the
focus is mainly on these cycles. And, for
starters, a very intriguing cycle that links
our currency with its common divisions…
Two Bits, Four Bits…
Just as our Dollar is based on units of 100,
the major cycles are also based on 100…
100 years.
And, just as the most consistently &
commonly-used division of our currency is
the Quarter-Dollar (25/100ths of a Dollar),
the most common and consistent cycle is a
Quarter-Century Cycle (25 years).
[Note: Since Gold has been the most
stable currency for 2,000 - 3,000 years,
and since the Dollar’s true value is directly
linked to Gold (as opposed to Federal
Reserve Notes that are backed by debt), I
will also include events that impact Gold’s
relationship to the Dollar. This sometimes
provides clarity that is not immediately
apparent when viewing the Dollar or Dollar
Index, since that Dollar has to be based on
- or compared to - something else, in order
to calculate its value.]
The 25-Year Cycle was ‘set’ right from
the start of US Banking history, with a
quarter-century time period between the
first two national banks:
1791 - First Bank of the US
1816 - Second Bank of the US.
However, when you consider that we
are now dealing with Federal Reserve
Banks and not United States Banks (as
of 1913), it is interesting to note that an
overlapping 25-year cycle began a few
years before 1816… and continues to the
present day. As is the case with many
cycles, hindsight usually provides a much
clearer perspective...
1812 - City Bank of New York (Citibank)
chartered. 25 years later was...
1837-1838 - Free Banking Laws in
Michigan and New York.
1837 = 25-year peak in price of Gold.
1837 - 1862 = Free Banking Era…
another period of 25 years.
1862-1863 - National Banking Act.
New rally in Gold.
Gold Certificates
authorized.
1887 - 1888 - ‘extraordinary chapter
in American finance’ as the government
redeemed public debt at a phenomenal
rate, buying back unmatured bonds at
surprising premium since there was no
remaining unmatured Bonds in circulation.
The government had too much revenue
and didn’t know what to do with it… not
exactly the problem of the modern era.
1912 - 1913 - Federal Reserve Act,
16th Ammendment & Revenue Act. (The
seeds for these were laid with the stock
market crash of 1906/07… see 17-Year &
34-Year Cycle of Stock Market corrections
and crashes for details.)
1962 - 1963 - Abolition of Silver
Certificates on June 4, 1963. Final precious
metals connection to $$. The minting
of silver coins (as normal currency) was
discontinued after 1964.
1987 - 1988 - Culmination of Dollar
Crash (drop from 165.00 to 85.00 - basis
the Dollar Index - in less than 3 years)/
Stock Market Crash/Peak of Gold rally (not
exceeded for 18 years).
2012 - 2013 - ????? Could we see
another culmination of a Dollar crash, peak
in Gold surge and bottom of stock market
decline?
…What Has Been… Will Be Again…
Just as the Crisis of 1907 (a stock market
crash and near collapse of many banks
and other financial institutions) led to
the passage of the Federal Reserve Act
of 1913 (and an entirely new structure to
- and authority over - our currency), the
Crisis of 2007-2008 could ultimately usher
in new structure and new authority over
our currency in 2013.
100 years ago, the mid-point of this
momentous 7-year period (a ‘week’ of
time, from 1906--1913) was marked by
a secret meeting of seven bankers and
financiers - allegedly representing ¼ of
the nation’s wealth - on Jekyll Island in
November 1910.
Could 2010 (perhaps November 2010)
provide a loosely-related parallel? Could
some other sort of ‘discreet’ confab take
place? Could seven nations (G-7) and
financiers - representing a significant
portion of the world’s wealth - create
a new destiny for the Dollar and other
currencies? Or, is there really nothing to
these cycles???
As Solomon so eloquently stated (and
W.D. Gann reiterated) in Ecclesiastes
chapter 1:4-11:
“Generations come and generations go,
but the earth remains forever. The sun
rises and the sun sets, and hurries back
79
to where it rises. The wind blows to the
south and turns to the north; round and
round it goes, ever returning on its course.
All streams flow into the sea, yet the sea is
never full. To the place the streams come from,
there they return again. All things are
wearisome, more than one can say. The
eye never has enough of seeing, nor the
ear its fill of hearing.
What has been will be again, what has
been done will be done again; there is
nothing new under the sun.
Is there anything of which one can say,
“Look! This is something new”? It was here
already, long ago; it was here before our
time.
There is no remembrance of men of old,
and even those who are yet to come will
not be remembered by those who follow.”
That chapter of the Bible is the best
definition of cycles I know. W.D. Gann
apparently had similar sentiments. “What
has been will be again… there is nothing
new under the sun.”
So, what could 2012-2013 produce?
Take a look at 1812 & 1913... and then
project it forward. Will ‘what has been
done’ be ‘done again’?
In many ways, it is the process of
removing currency control from an elected,
representative government - as mandated
in the US Constitution - and ‘nudging’
it toward an NGO. [This topic could be
debated endlessly between conservatives
and liberals or by hard money advocates,
conspiracy theorists and a host of other
entities. However, as a cycle analyst,
my first priority is in observing and then
extrapolating out cycles of this nature.
The political nature of this topic can be
debated elsewhere.]
In order to accomplish this, the most
80
important endeavor was to remove any
linkage to hard money: gold & silver. It
took 50 years (2 of the 25-Year Cycles
and ½ of the 100-Year Cycle) - from the
formation of the Federal Reserve in 1913 to
the abolition of Silver Certificates in 1963
- to remove any vestiges of hard-money
backing to the US Currency. Another 50
years forward (a 50-Year high-high-high
Cycle Progression) pinpoints 2013 for the
next MAJOR transition! Could it be time
for digital currency?
What a Difference a ‘Week’ Makes…
With that said, let’s take a look at a more
contemporary cycle that has impacted
the Dollar during this generation…
and corroborates the myriad of cycles
converging in 2013. It is a 7-Year Cycle
(one of the most ubiquitous in all of history
and a cycle that is found everywhere from
the Bible to Jewish dating - a ‘week’ of
time - to organic farming, etc.). And, once
again, it is important to look at it from the
perspective of the Dollar as well as from
the perspective of gold…
This cycle begins…
In 1964 - when the last silver coins were
minted in the U.S.
In 1971 - 7 Years later - the US
abandoned the fixed exchange rate system
(for foreign currencies) AND abandoned
the convertibility of the Dollar into Gold.
This is when the accelerated phase of the
Dollar’s demise began...
In 1978 - 7 Years later - the Dollar
set a 14-Year low and began a 7-Year
advance that carried into 1985. Ironically,
1978 also kicked off the accelerated
advance of Gold & Silver - a parabolic rally
that lasted from 1978 into January 1980
and saw Gold set what would become a
multi-decade peak.
In 1985 - 7 Years later - it was the
Plaza Accord (Sept. 22, 1985) and an
all-out devaluation of the US Dollar. It
plummeted for the next 7 Years. At the
same time, Gold began a 2-3 year surge
that brought it to a secondary peak in Dec.
1987. However, the 1985 low in Gold held
for over 12 years.
finally found a bottom (after a fall from
165.00 to 78.50, basis the Dollar Index - a
drop of over 50% in value). This bottom
held for the ensuing 14+ Years. 1992
also brought us the Maastricht Treaty - in
February - and the development of the
Euro Currency Unit.
- in terms of Gold - tops out as Gold begins
a massive bull market that was projected
to surge into 2006 and ultimately into
2013. So far, it has been right on track.
completes a rebound from its late-2004
bottom and begins a decline that will
ultimately take it to new 40-year lows.
Meanwhile, Gold completed a correction
and began - in October 2006 - the next
phase of its new bull market. It has been
higher ever since.
In 2013 - 7 Years later... its anybody’s
guess. However, there is a strong cyclic
argument for the culmination of a major
Dollar decline that would also complete a
21-Year high-low-low Cycle Progression
and a 14-Year high-high-high-low Cycle
Progression.
It is also interesting that 2013
represents a ‘sabbath of sabbaths’ - or
the culmination of the 7th 7-Year period
(49 years total) - from the Dollar’s final
separation from hard currency backing in
1964. 2014 would be a type of ‘Jubilee
Year’, perhaps when the Dollar is ‘freed’
from any kind of backing.
From the perspective of Gold, it is
likely to accelerate into a major top,
culminating a 14-Year low-low-low-high
Cycle Progression and a 7-Year low-lowhigh Cycle Progression.
If this is to be the case, April 2010 (+ or
- 1-2 months) could provide an important
turning point for gold. The reason is this...
As with many cycles, when a market
is nearing the culmination of a parabolic
move, the cycles begin to divide and
subdivide… as each subsequent move
accelerates. Gold has already shown signs
of dividing this 7-Year Cycle into a 3.5
Year Cycle, with important lows in April
2003 (slightly more than 3.5 years from
its 1999 major bottom) & October 2006
(3.5 years later).
Gold could set a 4th successive low in/
around April 2010 (3.5 year low-low-lowlow Cycle Progression) and then surge for
the ensuing 3.5 years... into October 2013
(3.5 year low-low-low-low-high Cycle
Progression). A low in April 2010 would
also come 7 years from the April 2003
bottom.
This 3.5 Year Cycle could also be
subdividing into a 1.75 Year Cycle, as
well. 1.75 years from the October 2006
low, gold set a secondary top while the
energy markets and the CRB Index were
hitting never-before-seen highs - in July
2008. Gold led the way down, entering a
sharp correction in July 2008. April 2010
is 1.75 years from July 2008 and could
provide another momentous turning point.
The Dollar Index has similar cycles that
come into play in March 2010. There is
81
a unique scenario that could develop between mid-June 2009 and March 2010
- IF the May 29th & June 30th closing levels
corroborate. Specific trading strategies
will be discussed separately.
The Testimony of a 3rd (and 4th)
Witness…
While I am always reluctant to place
too much emphasis on inter-market
correlation, the Dollar provides a unique
opportunity in this regard. Let’s look at it
this way…
When a trader is quoting the price of
CBT Soybeans, it is actually the price of
Soybeans in US Dollars. The quote of Crude
Oil (although this is poised to change) is
the price of Crude Oil in US Dollars. The
price of Gold is the price of Gold in (or
versus) US Dollars.
So, there is a correlation already built
into the quotes for each of these markets.
As a result, some longer-term trends and
cycles - in other markets - could be giving
clues as to where the Dollar is heading.
Nowhere is this truer than in the grain
markets…
Grains have been expected to work
higher into 2012 - 2013. Corn is a perfect
example and could be closely linked to
a new bull market in the energy sector.
Similar to what took place in 2006 - 2008
(the first phase of an important 7-Year
Cycle in Corn), a new accelerated advance
could be seen in 2010--2012/2013. Let’s
look at the last 30-40 years for clues…
Corn has - for the past 3+ decades unfolded in a 13-year high (1974) - low
(1987) - low (2000) Cycle Progression,
which next comes into play in 2013.
This projects an important top at that time.
Throughout the same period, Corn has
82
set major highs on an 8-year basis (.618
of 13 years), peaking in 1980, 1988, 1996
& 2004. The next anticipated peak is
in 2012.
This 8-year cycle has also broken down
into a similar 4-year cycle, creating a peak
in 1984 (that held for 11 years) a low in
1992 (that held for 6 years), a low in 2000
(that has held for 8+ years, and counting)
and a high in 2008 (overlapping the highs
in 1980, 1988, 1996 & 2004 that were just
discussed). So, on a 4-year basis, Corn
has seen a high-high-high-low-high-lowhigh-high Cycle Sequence. This projects
another peak for 2012.
This 4-year cycle has also broken
down into a similar 2-year cycle, with
intervening peaks in mid-2002 & mid2006 supplementing the 4-year cycle.
This could provide peaks in mid-2010 and
mid-2012.
Wave equivalency is another possibility…
Comparing the duration of impulse waves,
Corn’s last Major bull market unfolded
from 1987 - 1996… an advance of about 9
years. Its most recent bull market began
in 2004 and could match the duration of
the previous bull market IF it extends
into 2013… and completes another 9-year
advance.
2004 was also 17 Years from the 1987
low and 2013 would be 17 Years from
the 1996 peak.
Another Perfect Storm…
An advance into 2012/2013 could be
demand driven, as Corn is used (or
expected to be used) as a biofuel and a
food product… similar to 2007/2008.
It could also be supply driven as climate
cycles and the Sunspot Cycle (which is just
turning up now and should head higher
into 2012/2013) create volatile extremes
in growing conditions (from flooding
and early or late freezes to drought and
scorching temperatures). Both of these
are very likely, based on diverse cycles
and current fundamentals.
However, a third factor - the comparative
value (or deteriorating value) of the US
Dollar - could also push the price of grains
to higher and higher levels. If the Dollar
is dropping, then everything priced in
US Dollars - particularly items that are
exported - will surge in (perceived) value.
Even if their actual ‘worth’ has not changed,
the numbers on the charts will continue
to increase due to the plummeting value
of the Dollars which those chart numbers
represent. It is an inverse correlation,
plain and simple.
The period from 2010 into 2013 could
produce a Perfect Storm for commodities…
and for futures traders that love an
inflationary spiral.
This is reinforced by one of the biggest
fundamentals in our nation’s current
activity…
All of the massive spending of 2009 will
probably trigger the illusion of a recovery
into 2010. However, this will probably
trigger the ‘other shoe to drop’ from
2010 into 2013 when the real impact of
that unprecedented spending and Dollar
‘creation’ (out of thin air) takes hold, with
a vengeance. This could be the biggest
reason why a ‘revamping’ of the US
currency is necessary after 2010.
It could even create a 3-year low-lowlow-high-high-low Cycle Sequence (1998
low-2001 low--2004 low-2007 high2010 high-2013 low) in Stock Indices,
completing a 13-year bear market that
parallels the 13-year bear market of 1929-
-1942.
Golden Opportunity!
Already, there are patterns developing that
could validate this analysis while providing
near-term opportunities. One of these
is in gold and involves cycles that come
together around June 18/19th and again
on August 17--21st. The right price action
could trigger a decisive signal.
Looking out a little farther (but still in
2009), there is an intriguing convergence
of geometric, geopolitical and geophysical
cycles all coming together in the same
month. This convergence could impact
diverse parts of the globe in different ways.
These are fodder for a separate discussion.
The most important principle - in all of
this - is synergy. It is the convergence
of a myriad of cycles and other timing
indicators that calls attention to these time
periods.
And, the most important response is
awareness. These topics are NOT discussed
in order to alarm or panic readers. The goal
is to inform those that want to be informed
(you can lead a horse to water…)… not
to sensationalize situations that could be
‘less than ideal’.
Challenging times call for a search
for knowledge, understanding & wisdom
- often gained by studying the past,
observing the present and speculating
(in a calculated and responsible manner)
about the future. This is what the study of
cycles provides.
IT
Eric S. Hadik is President of INSIIDE
Track Trading and can be e-mailed at
[email protected].
Their website is at www.insiidetrack.com
83
How to
Anticipate
Major
Market Turns
Part II
By David C. Reif
n the last issue of Trader’s World I
described the basic tenants of my
Swing Method and described how I
concluded that October 2007 was a
Major Market High. In this article I
will show the setup that occurred in January
2008, where I was able to make a nice very
I
84
short term trade based on the Principles
of my Theory. During the weekend of 20
January, I sent an e-mail to my friends and
the people who had purchased my book or
software that I expected a low in the next
three trading days and that the S&P would
most likely hit 1274. I also told them I
would be buying into that low.
In Chart 1 below, I will describe the
setup that I used to make that buying
decision. This is a daily chart of the S&P and
on it I have placed the Weekly, Monthly,
Quarterly and Yearly Boxes. I call this view
my Wheels of Price and Time. See Chart 1
I will now describe the action beginning
on January 2nd 2008. At that time I noted
that The Weekly Chart had turned down on
12/31/07 creating the third lower high on
the Weekly Chart. My research indicates
that a third lower high or higher low on the
chart will most likely lead to accelerated
action in the direction of the turn. In
this case that was down. In addition, my
research shows that there is a very high
probability of a down year if the December
low is broken in January or February. It
was also easy to see how the market was
setup for a cascade down scenario as a
break of the November low following the
December low would break a down inside
month, normally a bearish development.
My research has shown that a down inside
month has a very high probability of
turning up and when it does not, it leads
to a strong move in the opposite direction.
It was also clear that if this happened the
market would most likely decline sharply
turning the Quarterly and Yearly Charts
down in the process. I call this a Cascade
Down Setup where all the major wheels are
primed to turn down in rapid succession.
It is important to note that after the
Quarterly Chart turned down on 1/7/08,
the price moved basically sideways for
5 trading days before heading lower.
Normally, I would expect a reflex bounce
in accordance with my Principle of
Reflexivity, but since the market was in
a cascade down setup, I did not expect a
reflex bounce until after the Yearly chart
turned down.
If you look att the right side of the
chart, you will see horizontal lines labeled
with the price and number of degrees
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down from the October 2007 high. In the
S&P I use a 90 degree separation and each
separation is called a Square. I described
the Principle of Squares in the last article
so I will not repeat that discussion here.
When you place the Squares on a chart
from an important High or Low, along with
the Weekly, Monthly, Quarterly and Yearly
Boxes, you have a Price and Time Grid that
will help you call many highs and lows in
the market.
If you study the Weekly Boxes, you will
see that the price declined approximately
-180 degrees before a bounce occurred
and then the same action at -360 degrees.
On January 2nd, 2008, I concluded that if
the December low was broken, that the
86
market would cascade down to turn the
Yearly Chart down. I was looking at 1274
-720 degrees down from high as my first
major target in what would most likely be
a major Bear Market. I then expected a big
bounce back to the upside in accordance
to the Principle of Reflexivity. I then
followed the action down using additional
information from Chart 2 which will be
described later. On January 17th the key
Yearly Chart turned down and due to my
research which indicated there would be
a short term low within 3 trading days I
decided to send out my e-mail the following
weekend. As it turned out, the market
made low on 1/23/08 at 1270. I made my
purchase of the SPY at the time the cash
market hit 1274. I immediately expected
a bounce up of about 270 degrees or 3
squares. In looking at the chart a target of
1380 would do it for me. This target was hit
in only six trading days, but knowing that
sharp bottoms like we had just experienced
usually test their lows, I decided to take
my profits on the target and wait for the
inevitable test of the low.
In Chart 2, I show the daily chart of the
same period with my Reif AVX Indicator
plotted below the price action. I described
the construction of this indicator in Part 1
of this series in case you need a review.
On this chart I have placed vertical red
and green lines that show the dates of Reif
Distribution days (RDD’s) in red and Reif
Accumulation days (RAD’s) in green. The
first RDD occurred only six days from the
all time high on 10/19/07, not a good sign.
After a short term bounce a second RDD
occurred on 11/1/07. Following this RDD,
the market declined sharply with many
RDD’s appearing on the way to the late
November low. On 11/27 and 11/28, back
to back RAD’s appeared and this led to a
move back up to test the now declining
50 ma. This rally terminated with an RDD
on 12/11/07. The pair of RDD’s on 1/4
and 1/8/07 signaled that the cascade
down was beginning. The December low
and the Quarterly Chart turned down on
these dates in succession. The RDD on
1/17/08 occurred on the day the Yearly
Chart turned down. It should be noted that
in the rally up from the January low, there
were no RAD’s so I knew that my sell at
1380 would most likely be close to a short
term high.
It is my hope that the reader will see
the value of this indicator when used in
Conjunction with the Swing Charts on
Chart 1. In the next article of this Series I
will describe how I bought into the March
2008 low.
David Reif is author of “Unclocking
the Profits of the New Swing Chart
Method.”
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investors designed to
improve their ability to trade and invest in
the financial markets. Lane Mendelsohn, is
the founder and president . He is the son of
Louis Mendelsohn, developer of the successful
VantagePoint
Intermarket
Analysis Software. Louis wrote
an article for us in one of the
early Traders World magazines
Lane Mendelsohn some twenty years ago.
The TraderPlanet.com site provides articles,
tutorials, commentaries, webinars, books and
software to its members. The membership
is actually free. There are no charges for its
benefits. Advertisers on the site pay for the
expenses. TraderPlanet also allows companies
to highlight their products and services via the
content they share with the community. The
site is designed to be educational to help its
members be more profitable in the markets
by supplying them with data and the ability to
connect to others in similar situations so that
they might learn from collaboration.
TraderPlanet.com encourages its members
to use some of their trading profits for good. To
achieve this objective, they have established
the The TraderPlanet® Charity of the Month, a
poll which encourages members to donate to
the featured charities, recommend and vote
on those for consideration, and ultimately
decide the most productive way to apply
these proceeds. To date, The TraderPlanet
community has donated $90285.30.
If you are looking for guidance on taking a
new trading approach or you have any other
question one section on the site features
88
Trader Ed to give you help.
Give him the question and he
will give you what steps to take
next to improve your trading?
He is the “Dear Abby” of the
Trader Ed
financial markets. He helps
members sort out and address questions and
concerns relating to profitability and market
volatility in both bull and bear markets. In
addition, he offers practical advice on which
markets are the best places to trade based on
current performance and member experience.
In another section of the site readers
can find various articles concerning trading
charts, what's happening with the markets,
strategies of trading, and the like. Members
are encouraged input their thoughts after
reading the articles.
Also available through the site are
educational materials such as ebooks,
newsletters, reference material, brokerage
comparisons and even quizzes to help
its members. Various calculators such as
mortgage and loan, credit card and debt, auto
insurance, business insurance, investment
and retirement can also be found on the
site. There is a multimedia section that offers
various tutorials, webinars, interviews, and
videos. The site also offers free quotes, news
and commentaries on everything from Forex,
to futures, stocks and ETFs. In the community
section you’ll find a question and answer
forum and the TradersPlanet index, which is
a compilation on individuals opinions on the
degree of bullish or bearish sentiment for key
market sectors.
Be sure to check out
www.tradersplanet.com
it might be just what you are looking for.
The Secret Strategies of
the Master Traders
How To Turn a Small
Account into $1,000,000
By Brad Stewart
ost people who develop the
desire to become a trader do
so with the dream of producing
100’s of percent returns and making
millions of dollars in profits from their
trading. This is particularly true of those
who pursue Gann theory, since they were
inspired by Gann’s reputation, beginning
in 1909 with his Ticker interview in which
he produced 1000% return in one month,
leading to the legendary millions in profits
that he made during his career. These
kinds of results are what every trader
truly seeks, and yet, even many relatively
M
successful traders lack a realistic strategy
to produce these kinds of percentages let
alone to build up their trading accounts
to $1,000,000. They may earn a decent
living from their trading, but when it comes
to understanding how to compound their
money into a larger fortune, like many of
the Great Market Masters of the past, such
as Gann, Jesse Livermore, or Roger Babson
have done, pulling as much as $50,000,000
out of the markets, they generally do not
consider such levels of success something
even realistic to imagine for themselves.
Many think that if they could only crack
the mystery of Gann Theory, and call every
top and bottom in the market, that this
would be the only way to accomplish such
a feat. What they do not realize is that it
is NOT necessary to crack Gann to achieve
this kind of success. What IS necessary
is to have a working trading strategy that
gives one a clear picture of what to trade,
how to trade it, and when to do so.
Many long-time traders and analysts
are able to analyze market trends and
call turning points with a relative degree
of success, but are still unaware of
how to take advantage of the trading
89
opportunities which the savvy trader
uses to produce returns in the 100’s to
1000’s of percent in a matter of weeks,
if not a days. What they do not clearly
comprehend is that analysis, forecasting,
and even calling turning points is not
enough to turn you into a Master Trader.
There is a deeper skill that is required to
produce the BIG returns, and that skill
is: STRATEGY! All of the most successful
traders possess specific trading strategies
which are responsible for the great results
they produce. Yet, very few professional
traders ever discuss their strategic
secrets, since those trading strategies are
the closely guarded proprietary secrets
held most dear by professional traders.
These secrets are generally passed down
privately from teacher to student, father
to son, or held in confidentiality by trading
companies, but rarely is such practical
trading wisdom ever made public, at least
not without impenetrable layers of veiling,
as in W. D. Gann and George Bayer’s work.
So what are these missing strategic
elements possessed by the Master Traders
but lacking in the arsenal of the struggling
trader? The KEY elements are a proper
trading psychology, the ideal trading
vehicle and a style of money management
which allows one to compound smaller
amounts of money into a larger fortune.
First let’s discuss trading psychology.
What most aspiring traders do is study a
few simple courses or go to a few seminars
which seem to give them tools they can
use. They begin trading with these tools
and very quickly generate a string of
losses, possibly even blowing through their
entire trading accounts. This immediately
develops a negative trading psychology
which causes them to become fearful
90
and hesitant in their trading, something
they may not be able to shake for many
years. They often begin to hold on too
tight, meaning their stops are too close, so
that even when they are right, they miss
the move they had correctly anticipated,
or they take their profits too soon, only to
sit on the sidelines and watch the move
continue on to produce large profits without
them. Alternatively, they will get into the
wrong move and watch it go against them,
without the proper protection, so their
account burns away in losses. The real
problem is they have just not obtained the
quality and depth of education they need to
even be trading at all, leaving them without
a working strategy that is capable making
the profits they so desire. Gann spent
10 years studying the markets before he
found the tools and style of trading that he
became famous for, and many other of the
great traders took many years to develop
their professional expertise. So you must
be very careful to not begin trading the
markets until you are very clear about
the right way to do so, and have a clear
working strategy that will accomplish the
results you desire.
A fundamental element of this process
that most traders completely lack a clear
understanding of is the idea of money
management. The money management
strategies that the Masters used were very
different from those used by most traders
today, yet it is exactly this point that causes
them to produce only marginal returns
in their trading, even if they are able to
accurately time turning points, and have
a good understanding of market structure
and action. The difference between money
management strategies is the difference
between growing your account by 30% a
year, vs. compounding at rates of 100’s
of percent each month. This is the great
difference between the wannabes and
the Masters.
The Masters understand
how to use only a very small percentage
of their trading capital, invested into the
proper trading vehicle which possesses
the least risk and the greatest potential
return, and then use money management
to compound those profits over and over
again into huge returns.
Now let’s examine the idea of the proper
trading vehicle referred to above. Whether
a trader is interested in the stock, futures
or Forex markets, they often assume that
the best approach is to trade the underlying
stock or commodity, which is the greatest
misconception held by unsuccessful
traders. With the current volatility of the
markets, there is nothing more dangerous
to play than the underlying entity. So,
you may ask, what is one to trade if not
the underlying stock or commodity? The
answer to this question is: OPTIONS!
There is a prevailing myth amongst traders
that trading options is more risky and
dangerous than trading stocks or futures,
but this couldn’t be further from the truth.
Particularly in trading futures, one is
continually confronted with the problem of
the markets running stops, gapping open,
or worst case, moving lock limit against
them for a number of days, leaving one
with losses even greater than one’s entire
trading account.
Options, on the other hand, remove
all of this danger by always limiting one’s
risk to ONLY the amount invested in the
premium and commission costs of the any
options position. Yes, one can very easily
lose this entire investment if a position
goes against you, or if the market moves
sideways while the time value of your
position decays into the options expiration.
However, the market can gap against
you, swing way past what would be your
futures stop position, or even move lock
limit against you, and you will NEVER lose
more than this core cost of your options
position. In these days of great market
uncertainty and volatility, many traders
are afraid to even hold positions overnight,
forcing them to become day traders, rather
than swing traders, against their personal
inclination. But trading options solves this
fundamental dilemma.
Not only that, but many traders do
not realize that the potential returns
generated by the leverage of options
positions can produce returns much
greater than the returns that would have
been produced had one successfully
traded the underlying commodity or stock.
A move in the underlying entity which
would have produced 20-30% returns
will often produce 300-1000% returns in
the options, when you know which ones
to select for your trading strategy. This
insight alone is the first step in converting
from a trader who makes regular 30%
profits to one who makes 100’s of percent
trading the exact same swings in the
market. Yet, surprisingly, the majority of
traders out there simply do not realize this,
so are missing the greatest opportunity to
become highly successful traders.
There are many people who have read
options books or who have taken some of
the many options trading courses available
on the market.
But unfortunately,
most of these courses do not teach the
effective options trading strategies used
by the master options traders. So many
educators out there and courses on the
91
market were written by theorists or those
who have not actually traded profitably,
that you can practically count the number
of successfully trading educators on one
hand. This is why people go from one
course to another without ever producing
any positive results. The problem with
most options books and courses is that
they quickly confuse people by exposing
them to a barrage of complicated
concepts, like delta, gamma, vega and
theta, though most of these details are
totally unnecessary in trading options the
way successful traders use them. In order
to justify their cost, they teach every bit
of technical minutia about options, but it
is not this minutia that shows you how to
make large profits trading options. They
92
show you all kinds of complex strategies
like spreads, straddles, strangles, Iron
Butterflies, and on and on, leaving you lost
in complexities that you can never figure
out how to make any money with. And the
most important thing that they all lack is
a clear trigger mechanism which tells you
WHEN to enter your trades, leaving you
dependent upon some further expensive
service or software to tell you when to use
all of these complex strategies.
So, let’s look at an example of trading
options from a different and much simpler
perspective. If we think the market is
going up we are simply going to purchase
Calls, and if the market is going down we
will purchase Puts. Nothing complex, we
are just going to go long or short using
options rather than the underlying future
or stock, but take our position in the same
way, without complex options strategies.
The first thing that you will notice is that
it is much cheaper to place an options
position than a position in the underlying
entity. Take Apple Computer for example.
On May 28, 2009, Apple is trading at
$135.46. The cost of buying 100 shares
of Apple stock would be $13,546.00,
plus commissions. The cost of a Call or
Put option to control the same number of
shares is only $510.00. If you owned the
actual stock, it is very likely that you could
experience volatility swings that would
quickly move more than $510 against you,
so that it would be difficult to even place
stops with less risk than you would have
in taking an equivalent options position.
However with the option, the market could
move against you significantly before
moving in your anticipated direction and
still keep you in your position, without
ever risking any more than the cost of
that option, $510 plus commissions. The
cost of your options position is less than
a reasonable stop loss, and still protects
you against gap opens, lock limit days, or
even market closures due to some kind of
disaster.
Now let’s do a quick comparison of the
difference in potential returns generated
by an options position vs. a position in the
underlying stock. Following is a chart of
Apple showing a nice bull move from March
9 to the beginning of May, from 83 to
93
around 130. This is a bit over a 50% move
in the stock, so if you had owned it, you
would have made a 50% return in about
2 months. But let’s take a look at what
kind of return you could have produced
with options on the same move. Had you
purchased the “at the money” July 80 Call
options in March, they would have cost
$12.65 each, or $1,265 plus commissions
for your position. The next chart of the
July 80 Calls shows that over the next
2 months those at the money options
increased in price to $54.00, a 326% gain
in the options value for the same swing in
the same period of time.
With the options, your $1,265
investment would have returned $4,135.
That’s over 6 times the percentage gain than
the position in underlying stock produced
in the same period. This gives a very
quick and dirty example of the difference
between trading options vs. trading the
underlying, but these same results can be
seen in any market. Knowing this, you
have to wonder why anyone would trade
the underlying stock or future over the
options. You must ask yourself which you
would rather have traded in this scenario.
If you give the obvious answer of the
options position that produced 6 times the
return, then you must ask yourself why
you are NOT trading options? You can
clearly see that the difference of taking the
same trade but using a different trading
vehicle not only reduces your risk, but
produces much greater returns from the
exact same swings in the market. This is
the essential difference between what the
experts understand and take advantage of
and what the amateurs completely miss.
Now let’s quickly take a look at the idea
of the money management and how the
94
Masters used it to compound profits in a
way that the wannabe traders only dream
of. While this was a very strong move in
Apple, many markets regularly produce
equivalent swings, so let’s look at how the
Masters would have traded a sequence of
such swings. After a first successful trade
like that above, many normal traders
would trade the next swing in the same
way, with only a small investment. The
great traders, however, took a completely
different approach, and would reinvest
the accumulated trading profits in each of
their next trades. Their reasoning behind
this is that they only began with around
$1000 investment, and they look at their
continued trades as just an extension of
that initial $1000, their psychology being
that if they are wrong, and lost it all, they
would only really have lost $1000 of their
initial trading capital. Often, after the
first trade, they would even return the
initial risk capital to their trading account
so that their initial trading capital never
deteriorated. Then they would invest the
balance of those profits in each next swing.
Let’s say that we found a sequence of
similar swings producing the same return
as this initial trade:
$1,265 x 326% = $4,135.00
Return the initial $1265 to your account
so as to never deteriorate your initial
capital, leaving:
$2,870 x 326% = $9,356.20
$9,356.20 x 326% = $30,501.12
$30,501.12 x 326% = $99,433.95
$99,433.95 x 326% = $324,154.68
$324,154.68 x 326% = $1,056,744.26
DANIEL T. FERRERA’S
STOCK MARKET FORECAST
CALLED THE OCT 2007 TOP
TO WITHIN 1 WEEK!
BLUE LINE = ACTUAL MARKET
RED LINE = FERRERA CYCLE FORECAST
WOULD HAVING A MODEL OF THE FUTURE MARKET HELP YOUR TRADING?
In his breakthrough cycles analysis book, Wheels Within Wheels, financial market analyst and
educator Daniel T. Ferrera presented a 100+ year forecast for the stock market out
to 2108. Above you can see that his model called the major turns of the market from
2002 until today with almost perfect accuracy. Below you can see his forecast of the S&P
500 going out to 2036. If this model is correct, we are approaching much harder times than
we have seen so far. Customers of Ferreras work were out of the market and short all the way
down from Oct 2007. Dont you wish you knew about and took advantage of this forecast?
Ferrera also writes a yearly Outlook showing the market perspective for the upcoming year.
The 2008 Outlook is now FREE on our site & the 2009 Outlook is now only $120!
HERE IS A SAMPLE OF FERRERAS
FORECAST FOR THE S&P OUT TO
2036. NOTICE THAT THIS CYCLE
FORECAST PREDICTS FINAL LOWS IN
THE LATE TEENS & THE NEXT BULL
MARKET IN THE EARLY 2020’S. ARE
YOU PREPARED IF THIS IS THE CASE?
DO NOT MISS FERRERA’S
MASTERPIECE:
WHEELS WITHIN
WHEELS
THE ART OF FOCECASTING
FINANCIAL MARKET CYCLES
DR. ALAN ANDREWS ACTION REACTION CASE
STUDY CORRESPONDENCE COURSE
INCLUDES SOFTWARE &
FORECASTS FOR: GOLD, NAT
ARE YOU A FAN OF ALAN ANDREWS GEOMETRIC TRADING TECHNIQUES?
G
AS, BONDS, BEANS, WHEAT &
DID YOU KNOW THAT THERE ARE OVER 400 LOST PAGES TO HIS REAL
MORE. ONLY $450.00
COURSE, AND THAT THE 60 PAGE COURSE MOST HAVE SEEN IS ONLY A
SMALL SELECTION OF HIS GREATER WORK?
CONTACT US FOR DETAILS!
FOR DETAILS ABOUT DAN FERRERAS MANY BOOKS AND COURSES, VISIT OUR WEBSITE:
WWW.SACREDSCIENCE.COM/FERRERA
INSTITUTE
COSMOLOGICAL ECONOMICS & SACRED SCIENCE INSTITUTE
Ө WWW.SACREDSCIENCE.COM
EMAIL: [email protected] Ө US TOLL FREE: 800-756-6141
INTERNATIONAL 951-659-8181 Ө MAIL: P.O. BOX 3617, IDYLLWILD, CA 92549-3617
OF
WWW.COSMOECONOMICS.COM
95
Here we have just compounded a small
$1000 investment into a million dollars
in only 5 trades! This is the method of
compounding profits through strategic
money management that the Great Market
Masters used to generate the millions that
they became famous for. If you have
not worked out a strategy of this kind, it
should be no great surprise that you are
not having the kind of success that the
Masters demonstrated. It is surprising
that no one really tends to bring out these
points, though it is clear that this is the
difference between the men and the boys.
Now some of you may think that this
is just an ideal case and that you could
never find a consistent string of 300%
trades, but actually these trades occur
much more regularly than most people
realize, when you understand the insider
secrets to such options trading strategies.
Actually, there are even better trades that
regularly present even 1000+% returns,
when you know where to look, and how
to find them. Only part of the game is
in knowing the right vehicle to trade and
the proper money management system
to compound the returns. The other Key
is in having the right trading triggers to
determine how to find and when to enter
these kinds of trades which produce the
huge returns that the old masters used to
produce.
Finding these sometimes seemingly
simple keys and strategies is the difference
that separates the successful traders from
the amateurs.
But when insights like
this are understood, what are otherwise
considered to be simple technical analysis
principles can now operate as powerful
technical triggers for the types of options
plays described above. At Sacred Science
96
Institute we specialize in publishing the
very best works on technical analysis,
by the Great Market Masters of the past,
many of whom used insights like these to
produce the vast fortunes they are famous
for. We specialize in proprietary trading
systems helping to predict turning points in
the future, which is essential for knowing
when to trade these kinds of plays.
We are always discovering and releasing
new material by new analysts and lost
material by the older masters, which we
do our best to bring to the attention of the
world. We have recently discovered a lost
cache of papers and writings by Dr. Alan
Andrews, creator of the famous Pitchfork
tool and Action Reaction Lines. Many people
think that Dr. Andrews’ course writings are
limited to a mere 60 pages which can be
found posted on the Internet. This could
not be further from the truth, for there is
a long and vast presentation of Andrews’
teachings that were contained in his longer
Correspondence Case Study Course, which
most people have never seen, and do not
even know exists. Feel free to contact us
to learn more about these materials and
several other new releases planned for
the immediate future, including another
recently discovered cache of lost papers
that essentially cracks the mechanics of
how planetary forces affect market prices
through the medium of Solar Space-Time
Force Fields.
William Bradstreet Stewart, Sacred Science
Institute
Web: www.sacredscience.com
Email: [email protected]
Phone: 800-346-5590 or 951-659-8181
AstroFibonacci
Software Program
by the Magi Society
I
f you are interested in Fibonacci or
have any interest at all in Financial
Astrology, we highly recommend
the Magi Society’s AstroFibonacci™
software program.
AstroFibonacci™ is the best program
of its kind.
It is both a Financial Astrology program
and a technical analysis program. It is the
only software program that allows you to
calculate and graph AstroFibonacci support
and resistance levels.
AstroFibonacci is a discovery of the
Magi Society. AstroFibonacci levels are
created by the alignments of the planets
and by the dynamics of planetary motion;
they are derived from the relative duration
of the orbital periods of the planets.
There are nine primary AstroFibonacci
rations. All three standard Fibonacci ratios
(0.236, 0.382, and 0.618) are nearly
exactly the same as one of the nine primary
AstroFibonacci ratios.
All the other six AstroFibonacci ratios
work in creating support and resistance
levels.
The Magi Society believes the
reason standard Fibonacci ratios work is
because they are nearly exactly the same
as AstroFibonacci ratios.
If you wish to learn details about
AstroFibonacci, we suggest you log onto
the Magi Society website at:
www.MagiAstrology.com
What is the Magi Society? (Pronounced
may-jigh.)
Shao Lin monks formed it hundreds of
years ago in China. Similar to the Free
Masons, the Magi Society began as a
secret society. It remained a secret society
until 1995 when it published its first book,
Astrology Really Works! The Magi Society
is now the world’s largest association of
scientific astrologists with over 5000
members worldwide.
We know astrology has a bad reputation
and for good reason. If you have ever used
97
Traditional Astrology techniques, you had
to have been disappointed by the results.
The Magi Society was also disappointed
by Traditional Astrology – and they
decided to do something about it. The
Magi discovered that Traditional Astrology
almost never worked because it must have
been missing an enormous amount of
vital astrological knowledge. The society
decided to conduct extensive research
to uncover all the missing information.
The result is the Magi Society discovered
the following six crucial pieces of the
astrological puzzle:
1) Heliocentric Astrology
2) Planetary Geometry made by
alignments of the planets, especially
Symmetrical Patterns
3) Planetary Synchronization
4) Chiron, Sedna and other new
planets and asteroids found by the
Hubble telescope
5) Magi Zodiac charts
6) Vertical Alignments of Planets in
declinations and latitudes
By incorporating the above six
discoveries, the Magi Society developed
a new form of astrology called Magi
Astrology. Magi Astrology has none of
the superstitions of Traditional Astrology
and is empirically derived. Magi Astrology
integrates new concepts like the six listed
above and utilizes newly discovered
planets. The result is Magi Astrology is
many times more accurate that Traditional
Astrology ever was.
(For a full understanding of the above
six discoveries and the principles of
Magi Astrology, please log onto the Magi
Society’s website at www.MagiAstrology.
com.)
The Magi Society has published three
98
books teaching Magi Astrology and all
three books have become classics.
The astrological knowledge and Magi
techniques revealed in their books are so
respected and valued that used copies of
their books sell for from $50 to as much
as $300. They are the only used astrology
books that sell for a multiple of their
original prices. That is an endorsement if
ever there was one.
The third Magi Society book revealed
that Chiron, a “new planet” discovered
in 1977, has more astrological power
than any of the nine traditional planets
in crucial areas of life such as the stock
market and love. The book also provided
ample evidence that the alignments of the
planets, not Sun signs, is the single most
powerful astrological influence.
Since the Magi Society published its
first book, it has been changing the face
of astrology all around the world. For
example, if you are a fan of astrology,
and you have wondered why astrologers
are now emphasizing Chiron and the
alignments of the planets, the answer is
that the books of the Magi Society ignited
it all. There is a Magi Revolution occurring
all over the astrological world.
Magi Society Developed Its Own
Software Over Ten Years Ago
The Magi Society ran into a problem.
Because Magi Astrology techniques were
so much more advanced and different from
Traditional Astrology, not a single existing
astrology program could perform any Magi
analysis or calculation.
The Magi Society decided to develop
its own computer software. In order to
finance the costs of software development,
the Magi Society used Magi Astrology
techniques to trade stocks. So of course
the Magi Society also designed and
programmed its own financial astrology
and technical analysis software programs.
AstroFibonacci™ is the Magi Society’s
fourth generation of financial astrology
software. It works on Windows 2000 and
higher, including XP and Vista, and even
the upcoming Windows 7.
The basic version of AstroFibonacci™
costs $675 and gives you the capability
of utilizing all of the fundamental Magi
techniques. AstroFibonacci™ allows you to
perform in depth research that you could
not do before, and that you cannot do with
any other software program.
To help AstroFibonacci™ purchasers to
gain the most benefit from the program,
the AstroFibonacci™ program is packaged
with support including:
1. Lessons on Financial Astrology.
2. Access to databases filled with
financial astrology data.
3. Conference calls for
AstroFibonacci™ clients to help them
learn Magi Astrology, technical analysis,
and exchange ideas.
Click for Financial Astrology Lessons
The following screen shots and text
explains some of the features of the
program.
Main Screen This is the main screen. Just enter the data and time and click the Recalculate Button and the
astrological chart will be displayed. To filter for types of planetary alignments just use the select line angles
menu. This chart shows the double Grand Cross of Oct. 10, 2008 that caused a worldwide crash.
99
Time to Exact Data for Predicting Major Turns
In 1996, the Magi Society introduced software that was the very first to ever calculate the exact time a planetary
alignment became exact. Stock market turns correlate to the times major planetary alignments become exact.
Other software programs tried to copy this feature but is not accurate enough.
AstroFibonacci™ is Helio-Balanced
Heliocentric Astrology is just as important to stock and commodity markets as geocentric astrology. For this
reason, Magi Society software is “Helio-balanced” meaning that anything it can do in geocentric astrology, it can
also do just as well in Heliocentric astrology and can display both types of charts at the same time.
100
Extraordinary Alignments
There is an important principle of Magi Astrology known as the EXTRAORDINARY ALIGNMENT PRINCIPLE, which
says: major turns in stock and commodity markets occur when there are MANY peaks of important geocentric
and Heliocentric planetary alignments. AstroFibonacci™ has a special data grid to help you see and sort all the
peaks.
Planetary Synchronizations
Only Magi Society software can display Planetary Synchronizations, which is a main astrological cause of intraday swings in the financial markets. The Planetary Synchronizations feature is available as an optional upgrade to
AstroFibonacci™ .
101
AstroCharts
An AstroChart is a stock or commodity chart with vertical lines that mark the day when a planetary alignment
peaks. Only AstroFibonacci™ produces AstroCharts for stocks or commodities, like the one below. This allows
you to visually see what happened to stock and commodity prices just before and just after each peak of a
planetary alignment.
Long Range Precision Trendlines
Most stock trading software programs limit the range of technical charting to just a few years. But there are
times when the most important trendline or Fibonacci level is based on a chart point from 10 or more years back.
AstroFibonacci™ is the only purchasable program we know of that is able to project with precision trendlines and
Fibonacci lines from decades ago.
102
Precision Trendlines Are Valuable Trading Tools.
The above chart displays the DJIA for January through November of 2008. The red line is the 18-year trendline
we discussed in the last chart. You can see how valuable it was to know exactly where that trendline was – it
was the most crucial support level for the DJIA.
Support and Resistance Levels Up to Two Decimal Places.
Below is a screenshot of AstroFibonacci™ ’s data grid that shows the exact value of trendlines, up to two decimal
places. This way, you know what the precise value of a crucial trendline is for each day.
103
AstroFibonacci Feature
This is the only program you can buy that gives you the ability to draw AstroFibonacci retracement levels, and
it does so with precision, over a long period of time.
Magi Fibonacci Is More Accurate Than Classic Fibonacci.
Every AstroFibonacci level provides support. A trader that knows about these levels in advance will be able to
improve performance and profitability.
104
ASTROFIBONACCI WORKS BETTER
THAN CLASSIC FIBONACCI!
In early March of 2009, when the S&P broke down below the 61.8% Fibonacci level of 740,
nearly every technician said there was no significant support underneath the markets.
All those technical analysts were wrong. Just a week later, the S&P found enormous
support at the 66.4% ASTROFIBONACCI LEVEL of 674. And then staged
a huge 15% rally in just a few days.
(23-Year Chart of S&P 500 showing AstroFibonacci Retracements
using the Oct 1987 crash low and the Oct. 2007 all time high.)
AstroFibonacci Gave You The Only Clue
There Was Support and a Rally Could Come!
There are ten AstroFibonacci Ratios and each is created by Planetary Motion Ratios.
In fact, the reason Fibonacci works is because AstroFibonacci works.
Proof of this fact is that all four main Fibonacci Ratios of 0.236, 0.382, 0.50 and 0.618
are virtually exactly the same as four AstroFibonacci.Ratios (0.234, 0.387, 0.509, 0.615).
The six other AstroFibonacci Ratios are just as effective as the four main Fibonacci Ratios.
Please visit our website at:
MagiAstrology.com
• Use our free AstroFibonacci Calculator so you can test AstroFibonacci
• Read how the alignments of the planets move stock and commodities prices
• Learn about new discoveries in AstroGeometry that can help you be a much more successful trader.
105
Measuring
Time
By Earik Beann
I
n both trading and researching
markets, one of the major hurdles
to success has to deal with our own
biases and assumptions that are
always present in
our forecasts and
decision making
processes.
In
trading, this has to do
with projecting your own
agenda onto the market and
expecting price to follow the
orders you’ve dictated to it.
A lot of beginner traders sit
down to “decide” what the
market will do tomorrow,
then
find
themselves
extremely frustrated when
the market goes ahead
and does something totally
different than what they had
forecasted - usually with
them holding a large open position the other
direction.
Forecasts are often incorrect, but it is really
only an issue if the trader is so attached to the
forecast that they can’t adapt to the changing
reality of the actual price chart. Attachment
to forecasts, individual trades, and particular
signals can be very detrimental in trading.
106
Because of this, it is important to continually
examine yourself to see what assumptions you
are bringing to the table that could trip you up.
If you are failing in your research or
forecasting, a lot of times that
failure can be attributed to
incorrect assumptions about
the nature of the market you
are forecasting. If you are
forecasting with Elliot Wave,
you are assuming that the
market actually does run
on Elliot Waves. If you use
news in your analysis, you
are assuming that your news
actually has a bearing on the
market you are trading. Both
of these examples are obvious,
but if we look a little deeper,
we can find assumptions we
didn’t even realize we had.
For example, how do we
measure time? Just looking at the charts we
all use makes it clear that we assume the
market should be measured in calendar cycles.
We have daily charts, weekly charts, monthly
charts, quarterly charts, etc, all laid out using
the same calendar system that we’ve set up for
human society in general. Obviously it makes
some sense that this system would also apply
to markets, but just because something makes
sense in markets doesn’t necessarily mean it’s
true.
Anytime we look at any kind of time
projections on our charts, whether it be
Fibonacci, Gann, Periodograms or even Neural
Networks, we are assuming that calendar
cycles are the correct ones to be using, and
our forecasting tools will all be influenced by
that base assumption. For this reason, it’s
important to examine this belief before we get
too involved into the minutia of the particular
technique we are trying to apply.
In my own work, I’ve found that while
markets do respect calendar cycles, there
are other cycles in play that are oftentimes
much more powerful. All calendar cycles are
astronomical in nature (a day is just one
rotation of the Earth, after all), so looking at
other astronomical cycles is oftentimes quite
enlightening.
Let’s take a look an Intel over the last 10
years or so. See Figure #1.
This is a weekly chart, and I’ve marked
off the swing points we’d be interested in as
traders. We start off with the major high back
in 2000 as point “A”, then walk forward through
all the letters until we get to point “K”, which is
the one we’d be interested to know the date of,
as it hasn’t occurred yet.
Now that we’ve isolated some turning
points, let’s do a simple exercise. We’ll start
at the major high point “A”, and measure the
distance between that point and the other
points. Rather than measuring in terms of
calendar cycles, we’ll measure in terms of the
degrees travelled by the planet Uranus, as seen
here on the Earth. I’m using Wave59, and this
function is built into the bar-counter tool which
makes finding these values a snap. Here are
Figure #1
107
the results in the following table:
Swing
A-B
A-C
A-D
A-E
A-F
A-G
A-H
A-I A-J Uranus Degrees
12.4 º
15.1 º
24.6 º
38.3 º
47.9 º
57.0 º
68.6 º
84.0 º
95.7 º
Take a look at the results in the table. Do you
see a pattern? A few swings are a bit disguised
by market noise, but it you look closely, you’ll
see that 12 degree movements of Uranus play
an important role in Intel. A-B is 12 degrees,
A-D is 24, A-E is 36, etc.
Let’s put this on a chart to make it easier to
visualize. See Figure #2.
I’ve inserted the ideal 12 degree cycle into
the chart, as shown by the red swings. All
points B through J land on some multiple of
12 degrees, with the one exception being point
C, which happened at 18 degrees. 18 degrees
is halfway between point B at 12 and D at 24,
so it was still related to the main cycle. All it
took was a simple shift in the way we measure
time, and the relationships between all of
these swings became immediately clear. Some
swings are a bit early, some are a bit late, but
all-in-all this one cycle explains everything
INTC has done over the last 10 years. In case
Figure #2
108
you were curious, point K is associated with
108 degrees, and happens on Jan 1, 2010.
This example came from a weekly chart, but
we can do the same thing on any timeframe.
Let’s zoom in to an intraday chart of the ES.
See Figure #3.
This is a chart of May 22. We can do the
same technique – take the low of the day
at point A, and measure out distances to
important turning points. In this case, I’m
tracking the rotation of New York City against
the sky, rather than a particular planet, and we
seem to be running on multiples of 16 degrees.
So 16 degrees up to point B, 16 degrees down
to point C, then we do another split – 8 up to
D, 8 down to E – and we finish with 16 up to F
and a big slide down to G to close.
I’ve met astro-traders who set their charts
up so that each bar represents one degree
of travel of a particular planet important to
the market they are watching. So rather
than one bar per day as we’d see on a daily
chart, they’d have one bar representing one
degree of movement of Mercury, for example.
So counting 10 bars out on a chart like that
would be equivalent to counting 10 degrees
movement of Mercury, and the results obtained
using Fibonacci or other projection techniques
would then be based on something quite a bit
different than calendar time or trading days.
Of course, those charts are a lot of work to
maintain, and we can get the same results
using techniques from Wave59 and other
astro-friendly software programs.
Figure #3
109
R.S. of Houston Workshop WILL help you
realize YOUR full Potential as a Trader
You CAN break into the Winner’s Circle!
Creating Winning Traders for over 14 years
I’ve
demonstrated
a
very simple technique in this
article, but hopefully it gives
you ideas for further research.
More than that, I’m hoping it
has helped poke a hole or two
into the ideas you may have
acquired about the “right” way
to set up a chart.
Markets are beautiful,
and the rules that govern
them are oftentimes not very
complicated. But in order to
see that beauty and simplicity,
it is necessary to jettison a
few built-in preconceptions
that tend to muddy the
waters. Most traders lose
money, which tells us that
most traders look at things
incorrectly. For us to succeed
where they fail, we have to
look at things differently, and
it may come down to the most
basic of concepts such as time
and price that need to be
adjusted in order for us to see
the truth.
Earik Beann is the CEO
of Wave59 Technologies
Int’l, Inc. He splits his time
between guiding Wave59,
researching new techniques,
and trading his own account.
For more information about
Wave59, or to contact the
author, please visit www.
wave59.com.
110
Have you been catching the
reversals in recent volatile markets?
We have, in both time & price.
Now you can too. Learn the secrets of a professional Astrotrader.
Industry statistics show that only around 10% of traders make money in the markets over time. In the top 0.5%
or so, we find traders that not only can trade profitably, but do so in a way that both astounds and amazes
others in the industry. During their time, WD Gann, George Bayer, and George Marechal fell into this category.
What did they have in common? Their forecasting methods were primarily based on astrological techniques!
Visit www.techniques-of-an-astrotrader.com to order Techniques of an Astrotrader today.
Want to be in the top 0.5%?
Start with Techniques of
an Astrotrader.
Wave59’s Techniques of an
Astrotrader course is designed to
show you how to forecast using
guarded astrological methods,
and it covers everything you need
to know to become a consistent,
successful trader, including:
• Rules on entries, exits, stops
• Money management
• Position sizing
• Discipline
• And much more…
Break-even traders can move into
the professional category, and
advanced traders should be able
to see measurably increased profits.
These methods are very simple
and easy to apply, yet they’re
incredibly powerful.
In the course, you’ll learn the
scientific basis of the astrophysical
effect on human emotions and the
markets, and how the information
can be used to forecast turning
points in price and time with
incredible accuracy.
What are you waiting for?
Taking advantage of these
techniques could not be more timely.
In the course, you’ll learn about two
powerful systems, one for daytrading, and a position trading method
for the end-of-day timeframe.
Need proof? In the video portion
of the course, you can watch one
continuous week’s worth of live
trades and comments on the market!
This revolutionary course includes a
manual, special software with a
complete standalone system, and
over two hours of video.
How does Astrotrading work?
Cycles, Vibration, and the
Incredible Energy Model
When you apply the right techniques,
you can know down to the minute
when a turning point will occur in
the market. Most of the techniques
used by professional astrotraders
tend to be quite a bit different from
what you'll find in an introductory
astrology book at your local
bookstore. There is an intimate
connection between price, time, and
zodiac degree that most traders are
unaware of. Once you know how
each relates to the other, you can
generate some amazing forecasts
for any trading day.
Order today!
www.techniques-of-an-astrotrader.com
(Use coupon code TW10P to receive 10% off!)
Techinques of an Astrotrader is published by Wave59 Technologies.
111
NI Trading
Program
Based on the Principles of J.M. Hurst
Reviewed by Larry Jacobs
The N.I. Trading Program includes
a detailed manual and N.I. indicators
formatted specifically for TradeStation.
The program is based on the theory that
all trading markets move in time cycles
and that there are cycles within cycles,
that as many as 5-10 simultaneous time
cycles may be occurring at any one time.
This theory was proven by J.M Hurst in his
classical book, The Profit Magic of Stock
Transaction Timing written in 1970 and
his follow up course written in 1997. Mr.
Hurst, in testing out his theory, was able to
achieve an 85% of winning trades, which,
at the time, was an extraordinary feat. See
the sidebar on J.M. Hurst in this article.
The author of the N.I. Trading Program
believes that his program has proven that
PRICE LINE
TOP
INDICATORS
BOTTOM
INDICATORS
112
the Hurst cycles work and that his theory
is correct. He feels that the N.I. Program
goes way beyond what others have done to
duplicate the Hurst Cycle trading method.
Now let’s look more closely at the N.I.
Trading Program.
The N.I. Indicators:
Looking at the first chart in this article,
you will see that in the middle third of the
chart there are four colored lines, known
as the Top Indicators in the manual. In
the bottom third of each chart there are
four additional colored lines, known as the
Bottom Indicators. Both of these indicator
groups are actually sub-groups of a single
indicator. That means we have one main
indicator (Top Indicators) in the middle
third of each chart and one main indicator
(Bottom Indicators) in the bottom third
of each chart. After countless hours of
experimentation, the author discovered
that there are four actual sub-sets of each
indicator that define the hidden cyclical
action of the price line.
The black line is the largest sub-cycle,
followed by the yellow line, then the red
line, and finally the smallest sub-cycle, the
blue line. The blue line being the smallest
hidden sub-cycle in the price line is kind
of an advance “scout”. The blue line is the
most important indicator for predicting the
future just before a reversal in the price
occurs. The three other colored lines can
also be precursor signals, but the blue
line outshines them all, because it usually
shows the predictive signals much earlier
than the others. The price line itself has
little or no predictive value but the hidden
cycles of the price are revealed by the N.I.
Indicators. The author says that the N.I.
Trading Program “decodes” the market with
J. M. Hurst is a legend to knowledgeable
individuals interested and involved in the study
of cyclical price movement in the financial
markets. An aerospace engineer by training
and background, he was the first pioneer in the
computerized research into the nature of stock
price action. In the late 1960's a small group
of private investors in California rented time
on a mainframe computer---the only kind that
existed at that time---and asked an aerospace
engineer, J.M. Hurst, to help them in their stock
market research. The results of over
30,000 hours of computerized data
analysis were distilled and revealed
in Hurst's 1970 book, The Profit
Magic of Stock Transaction Timing,
which has become a classic work on
cycle analysis. For more details on the book click
here.
Hurst taught the principles of his cycles
through a course in a series of seminars for
a year or two. The material in this course is
considered by many to be the clearest and most
thorough material ever made available for those
interested in learning about cycles and how to
trade profitably with them. There were only 250
copies of the course ever sold. It has been out of
print for the past 25 years.
In the mid 1970's, Hurst, an intensely private
individual, disappeared and has not been heard
from again. We have had many subscribers who
over the years who were tremendously interested
in Hurst and his work and were extremely
interested in contacting him. They wanted
anything he had written or done beyond his The
Profit Magic of Stock Transaction Timing, and if
the course was going to be made available. But
nothing was available.
In 1999 the course was made available
again and it consisting of ten manuals spanning
nearly sixteen hundred pages and eleven fulllength audio tapes (15-18 hours). For more
information
on
the
course click here.
113
a high degree of accuracy. He believes that
there are no other cycle analysis systems
out there that come even close to decoding
the hidden cycles with the same degree of
accuracy as the N.I. Trading Program.
The Top Indicators:
The four sub-indicators of the Top
Indicators are created using a percentage
formula which shows that when the
indicator lines strike the 80%, 90%, or
100% prime resistance lines at the top
or the 0%, 10% or 20% prime resistance
lines at the bottom, that the price line
reverses direction. These prime resistance
lines create barriers. The Top Indicators
are the main indicators because of the
prime resistance lines and because they
provide more accuracy in displaying the
various patterns in the course.
The Bottom Indicators:
The four sub-indicators of the Bottom
Indicators are a backup to the Top
Indicators. They provide information not
always demonstrated by the Top Indicators.
Even though there are no prime resistance
lines, the relationship between the four
bottom sub-indicators, especially the
blue line because of its ability to show up
earlier than the other three colored lines,
adds a new dimension of information.
They provide an excellent backup to the
Top Indicators to create an overall level of
predictability in predicting winning trades.
The precursor signals can give advance
warning to virtually all price reversals
(potential trades), from tiny fractal cycles
lasting less than a minute to large fractal
cycles lasting months or years. And if
the trader missed the advance warnings,
there are still plenty of precursor signals
114
that identify the price reversal at the exact
time of the reversal or shortly after that
point is reached in real time, and not long
after the fact like most other indicators
are able to show. They also allow trades
to be monitored all the way to completion
including accurate assessments of all the
smaller retracement cycles within the
larger dominant cycles.
Trading Manual:
The N.I. Trading Program includes a
detailed manual that covers the important
points that the author feels students need
for successful trading. It also includes 53
video Tutorials necessary to master the
N.I. system. Both the manual and video
tutorials are available online once the
students purchase the NI Trading Program.
The author feels that the manual covers
the essentials and that the students of
the system should be able to begin paper
trading within days, demo trading within
1-2 weeks, and lives trading with real
money within 2-3 months. He recommends
re-reading the manual over and over again
and using it as a reference when studying
chart
patterns,
verifying
particular
patterns seen in the live charts, and crosschecking many screen shots with those in
the manual.
Key Elements of the N.I. Trading
Program:
Fractals: These are the multiple cycles
within cycles, and, through the NI chart
windows, demonstrate how the small and
large cycles overlap and blend into each
other. The larger cycles take preference
over the smaller ones. Please note that the
workspaces contain 10-11 chart windows
in all time frames from weekly charts all
the way down to tiny tick charts. This
gives a panoramic view of all the fractal
cycles and an incredibly clear overview of
all the cycles that could be considered a
dominant cycle for trading purposes, as
well as a clear view of all the retracement
cycles within any dominant cycles, with a
clear visual ability to see when they have
reached the point where they are now
flowing back into the dominant cycles and
ideal places to trade. See second chart.
Retracement Cycles: These are the
smaller cycles that go up and down in a
zigzag pattern within a larger cycle, and
in the case where the larger cycle is going
up, the tops of the retracement cycles
are higher than the previous tops and
the bottoms are higher than the previous
bottoms. The manual teaches the students
how to use these retracement cycles as
springboards to go into a trade right after
the half-way point of these mini-cycles
is reached. The manual also teaches the
exact points where to place the stop losses,
which are slightly past the bottoms or tops
of these mini-cycles.
Consolidation Areas: These are the
areas between opposing cycles, or nontrending areas between two parts of the
same larger dominant cycles. They are
composed of mini-cycles where, generally,
there are no clear-cut up or down trends,
except in relation to the larger dominant
cycles.
Main Tools of the N.I. Trading
Program:
Channel Lines and Trend lines identify
the support and resistance lines of the
smaller retracement cycles within a larger
dominant cycle. The channel lines become
trend lines when the reversals take place,
which is confirmed when these lines are
broken by the price line passing through
them.
Horizontal and Long Distance Touching
Lines identify the support and resistance
lines of the larger cycles, which, aside
from other possibilities, can sometimes be
considered large retracement cycles within
much larger dominant cycles.
Main Indicator Components
Explained:
Prime Reversal Lines are the 10% and
90% lines in the top indicators for smaller
size charts, and 20% and 80% lines in the
top indicators for larger size charts. These
lines act as powerful resistance points.
When the indicators hit these lines, the
price reverses.
Thread Patterns are created when
two or more sub-indicators (one of the 4
indicators within the set of 4 indicators in
either the top or bottom indicators) are
moving together, either side by side or fused
together. They represent a strong price
movement in the direction of the thread. If
the thread is going up, the price is going up
strongly, and vice-versa. The closer all the
4 sub-indicator threads are, the stronger
the price moves. If there is a double thread
and the other two sub-indicator lines are
separated, it means a zigzag movement of
the price in the direction of the thread, but
still means a fairly strong move. There are
many variations of the thread patterns,
like double-double, triple, and quadruple
threads, but they all mean more or less
the same thing. The thread patterns are
more noticeable in the top indicators, but,
sometimes, a thread pattern in the bottom
indicators can be even more significant.
Indicator Strength, with or without the
115
thread patterns, is observed when most
of the indicators are moving in the same
direction. When all 4 are moving in the
same direction, it represents the strongest
pattern. Even ¾ usually means a very
strong pattern, especially in the vicinity
where a classical reversal pattern has
been completed, where the 4th indicator,
usually the black one, is just “rounding
the bend”, getting ready to join the other
3 in the same direction. Here, the black is
always on the outside, not in between any
of the others for the strong direction to be
maintained.
Spaces between Indicators can give
information about the direction and
strength of the price move. Each of the
4 colored indicator lines in the two sets
of indicators identify 1 of 4 sub-cycles of
the price movement. The spaces between
these indicators are more noticeable in
the bottom indicators. These spaces act
as energy barriers or resistance to price
movement. For example, if the bottom
indicators are such that the order of the
colors of the indicators are black on the
top, followed by yellow, red, and blue on
the bottom, it signifies that the price will
either soon be going down or is already
going down. For the opposite, blue on top,
followed by red, yellow and black on the
bottom, signifies that the price will either
soon be going up or is already going up.
The Spaces between the indicators create
a fan or spread pattern, which is more
noticeable in the bottom indicators, but
often in the top as well.
Patterns in Bottom Indicators are
important since the bottom indicators are
not restricted by prime reversal lines as
the top indicators are. They have their
own peculiar way of moving that adds
Typical Workspace that Comes with the NI Trading Program
116
new information to the analysis of the
scenarios.
Below are some key patterns in
either the top or bottom indicators
that are noteworthy:
Angles of the indicators can give information
regarding an imminent price reversal. The
indicators form angles, which give clues as
to where the price is heading. For example,
if the top indicator is close to 90% when the
price is going up, it indicates that the price
is showing upward momentum, and, vice
versa for a downward move. If the price
is going up, and the top indicator angles
to the right as it nears the 90% line, it
represents a weakening of the angle and a
potential downward move of the price for
that particular cycle as it hits the 90% line,
and of course, vice versa. Experience with
the study of N.I. will give the student more
grasp of the angles as part of the overall
understanding of the N.I. Language.
Merger Points are the final points where
the top indicators hit the prime reversal
lines. Following the chart windows down
in size from larger to smaller, you will
notice smaller cycles bounce up and down
into these merger points, showing what is
called a flat line effect, which leads to the
merger point, followed by a total reversal
of the price for that particular cycle that
reached the merger point.
Anchor Points which are visible on
both the price and the indicators enclose
a complete cycle and represent the areas
where classical reversal patterns occur.
They are visible in both large cycles and
small cycles, and, as small cycles, they
are often shown as a mini-cycle in the
consolidation areas between two larger
cycles, where they indicate a reversal of
the larger cycle.
Guide to Trading:
The manual gives a guide to trading that
identifies all the cycles or trends you can
find starting from viewing the very largest
size charts and identifying the dominant
cycle starting from the weekly, then the
daily, and viewing the ones to the right
of the daily right across the workspace to
the top right, and then on down from the
bottom right to the last and smallest size
chart on the bottom left. List these cycles
or trends in a notebook or whatever you
use to take notes.
It is recommended in the manual that
you narrow down your vision to identify
the most obvious dominant cycles. For
example, there may be a large dominant
cycle operating, or the large cycle may
be in a sideways phase while a medium
dominant cycle may be operating. If you
cannot detect either large or medium
dominant cycles, then look for the largest
dominant cycle from the smaller ones and
that will become your dominant cycle for
possible trading, which means you may
trade that cycle or the mini-cycles or
retracement cycles that are part of this
dominant cycle.
And finally after a trade is placed it is
recommended that you risk no more than
5% -10% of your capital and that you enter
a protective stop. Also you should protect
your profits by moving the stops after each
retracement. You should also continue to
draw all possible lines on the charts to
identify possible resistance areas. That you
don’t trade unless you can clearly identify
patterns, cycles, divergence, momentum,
For an NI Trading Program
Demonstration - Click Here
117
precursor signals, consolidation areas and
the like, and preferably classical reversal
patterns as taught in the manual. Exit
points can be used based on channel lines,
reversal lines and precursor signals.
The manual also gives psychological
factors to watch for such as greed and
false belief systems, a short term trading
methodology, medium and long term
trading methodology, trading the news,
etc. Also given is more information on risk
management such as guidelines for paper,
demo and real-trading, locking in profits
without exiting trades and how to handle
losing trades.
For more information about the N.I.
Trading Program please go to: www.
nitrading.net.
You
can
view
the
introductory video tutorial by clicking the
green bar.
The NI Trading Program is a new trading
methodology not yet known to the trading
world except in very private circles. I heard
about it, and was intrigued by it. I got the
review manual and software and proceeded
to do testing with my own TradeStation
software over the last couple of months. My
conclusion is that the NI Trading Program
determines cycles through visual pattern
analysis in a completely different way
that I have ever seen before. It does have
predictive ability. NI is a language all to
itself, quite different from other technical
analysis systems; it requires a fair amount
of study to master. According to the author,
one must be prepared to study for 3-12
months before reaching a high degree of
mastery, although, after about 3 months,
one should be able to achieve 2/3 winning
trades with very low draw downs and only
small losses in the losing trades. He states
that at the 2/3 winning trade level, one
118
should achieve at least 5% net return per
day on one’s trading account.
Reviewers Comments:
I have interviewed several students using
the NI Trading Program as well as my own
testing of it. I believe that the NI Trading
Program is unique in that it teaches the
student to recognize the various Hurst
cycles through pattern recognition of
the actual cycles themselves in the
oscillator format. This course proves that
cycles actually have an oscillator pattern
formation. One must practice to recognize
the various patterns. I have never seen this
done before in this manner. It is unique by
and in itself. The program combines this
analysis with the use of various technical
analysis tools such as channel lines, trend
lines, consolidation areas and others that
are used with the actual price bars. Levels
of the actual cycle oscillators are also an
additional factor as well as momentum
and divergence. With considerable study
of the program, comparing screen shot
patterns in the manual with the actual
market, successfully implementing the
technical analysis tools in the manual,
and with careful money management, and
paper testing of the method, I believe that
one using the program can be successful
in the markets. Keep in mind that also
to be successful the student must have
visual recognition abilities. I have found
that there are different types of people.
Some have the visual pattern ability but
some don’t have it. Every person has his
or her unique abilities. That is why there
are successful and unsuccessful traders in
the market. If a trader does not have this
ability then he might need to use other
trading methods.
Super Timing Book
Gann's Astrological Method
Gann’s charts to prove that he really did
W D Gann was one of the most successful
traders of the twentieth century
. While many people relate to
gann swing trading, the gann
wheel, the gann square of nine,
the gann angle and the gann
line not many appreciate that
William Gann used Astrological methods for
his trading.W. D Gann was a trader primarily
in the first half of the twentieth century and
Gann theory and Gann trading are still widely
studied over fifty years later.Many of todays
traders of the dow, nasdaq and commodities
markets still rely on WD Gann Stock trading
methods. Myles Wilson Walker has made a
full and detailed study of WD Gann and his
trading success and has written a unique
work establishing the link to Astrology . This
link is as valid today as it was when Gann
was trading stocks and commodities. Gann
analysis and gann theory are a fundamental
part of Trading Technical Analysis and stock
market theory and Myles Wilson Walker’s
research stands at the forefront of Gann
books.
In Super Timing the formula is shown
in detail. All of Gann’s public predictions
were analysed to reveal the one common
factor. Super Timing explains all of Gann’s
predictions using the one formula.
It shows you which Planet will be
signalling the next trend turn and it works on
all markets.
As well as Gann’s timing method
there is the price target method which is
demonstrated by his predictions and from
real life examples in recent markets (this is
not a planets longitude converted to price)
On this Website I have used one of
use astrology because there are still a lot of
people who think he used only swing charts,
angles or fixed time periods. None of these
can be used to consistently explain all his
public predictions.
The real answer is in Super Timing where
you will learn the pattern combination that is
found in all of Gann’s predictions both long
and short term. You will see how this works
on a swing basis as we work through whole
sequences of short term trades that Gann
actually did. Nothing has been omitted.
You will see why he entered the market
when he did and the reason he took profits
only to re-enter at a better price the next day.
The markets covered are coffee soybeans
and cotton but the same method works on
any market and more importantly it is still
working today. When you take the time to
study Super Timing you will prove to yourself
that this really is the best timing method
available.
The method is quite easy to learn as there
is no complex Astrology (It is based only on
the positions of the planets as seen from
earth and their angular relationships)
There is a freeware program included that
will do all the calculations. This also contains
all the trades in the book plus nearly 100 years
of the Dow’s major highs and lows so you
can see how well it has worked for yourself.
You will learn Gann’s price target system that
solves the price part of the formula.
The book is spiral bound with a cellophane
protective front and black plastic laminated
back. The book is in colour and contains over
150 pages. Price is $250.00 Click to
order Super Timing Book Now
119
GANN GRID’S ULTRA 2009 DOW UPDATE
By Robert Giordano
n the later part of 2008 I put together
an article for the fall issue of Trader’s
World Magazine called “6 Reasons
for support at 7150-7225 on the Dow
Jones Industrial Averages!” Within
this article I gave several important key
periods, prices and unique chart patterns
for the Dow averages spanning the entire
period of 2009. And so far so good!! This
summer’s TWM article will be an updated
version of the one started in late 2008!
Included within this article are many never
before seen charting techniques unique to
the Gann Grids Ultra software making this
article a hopefully eye opening experience.
In the previous article I explained
when using the square of 144 on the
Dow monthly chart the proper price scale
must be found first, and once found this
unique overlay pattern seems to call many
monthly and yearly tops and bottoms
starting from the 2002 low to the present
as well as expanding into its future.
Dow monthly chart with overlay of 144
and below the 2002 Low OCt 2008
I
120
It was also mentioned that if the price range
broke below the 7200 number it would
then head lower into the second square of
144 until a support angle is reached.
Since the October 2008 copy date of
this article 8 months have past and its still
pointing to this chart as being an extremely
important roadmap for the Dow in 09!!
June 15 2009 monthly chart update!!
As you can see the Dow bottom at 6449
on March 9th 2009 was within a few points
of the exact bottom given by this chart.
Also once this angle was reached a multi
month rally began. This monthly rally is
also in direct line with another of its angle’s
heading higher.
An updated article was done in January
2009 for the online Traders World Expo
given by Larry Jacobs but unfortunately
I was un-able to attend and was forced to
just put it on my website for all to read….
However A brief summery is as follows:
This chart shows the same cycle with a
progression series into 2009.
“New” January 2009 addition to article
material is as follows >>>
Gann’s Master Cycle year tool showing
“Hot” month output for 2009
Highlighting Sept-Nov as being a major
monthly turning point.
The following chart shows a dominant 14
month cycle starting from the 1974 pivot.
This chart shows a 19 month cycle with a
+/- 1 variance starting from the Jan 2000
top and was found to be 5 for 5 to 2008.
The next cycle is due from May through
July 2009.
Save $144.00 on the Gann Grid Ultra for a
limited time only.
Reg. $729.00 Now only $585.00
For more information or to Buy Click Here
121
144 as well. If we also add a dissecting
angle from the 2002 bottom and continue
it through point 3 shown above we also
see several weaker price resistance levels
throughout 2009.
Starting the square of 144 on the October
2002 low show several potential support
and resistance levels throughout 2009.
This angle shows resistance again
depending on the month between 9500
starting in April and running to 9750 ending
in Oct-Nov.
If however the price dips bellow the
body of the square then it will be in the
second square heading down to much
lower prices
If the square of 144 is to continue
its impressive forecast throughout 2009
then first we see potential support for Jan
around 7775 and Feb between 7950 and
8050 (point 1). Second we see resistance
between 10100 and 9700 between MayOct. depending on the month (point 2).
And third we see Oct-Nov 2009 as being
a time of great importance for both price
and time resistance (point 3).
On the same note Gann grids will
also allow the user to add several other
dissecting angles throughout the square of
122
First support will start in Feb 2009
around 6100 (point 1) and steadily head
lower month by month until a support
angle is touched. Second we see a very
low price of 4600 in Oct through Nov 2009
is also a very real possibility (point 2 and
3).
Numerical squares in time starting from
the Oct 2002 low progressed throughout
2009 show several potential Pivot Points
when a +/- 1 bar variance is used. The
black lines represent full numerical squares
and the blue representing the half’s.
We also see that May and June 2009 is
81 months from the start of this cycle!!
market top to the 2007 market top colored
in yellow also show several major turns
throughout the years with several time
periods are forming in 2009
The first time range from 1987-2000 was
148 months of which almost every quarter
and third division called some type of
market monthly turn. However the exact
2007 top was formed extremely close to
the Fibonacci /golden mean number of
.618 of this 148 month master top to top
cycle. Starting the yellow cycle from the
2000 top to the 2007 top was 93 months
and its divisions for 2009 along with the
148 month cycle are as follows.
148 month cycle....75% gives March-May
93 month cycle…..25% gives Sept-Nov
The AB time range function starting from
the 1987 crash top to the 2000 major
top colored in blue along with the 2000
123
And our last chart is the January 25th 2009
addition to the 2008 yearly chart.
the prices of 9300-9750. Point 2 is the
months of Oct, Nov and Dec 2009 and is
also a very important cross point in time
and price and is also around a price of
9700. Point 3 is a mirror of point 2 just on
the second square of 144 heading lower.
This price is roughly around 4600.
So, to put it all together we SEE 2009
should be a very volatile year with several
monthly swings throughout.
However in my opinion we should NOT
look for market directions but should look
for extreme volatility within the prime
months of Feb and March, June and July
along with Sept through Nov. Reason being
several of our main Gann Grid tools are
indicating these will be the most important
months for major time and price swings to
commence.
“NEW” June 2009 Traders World
Magazine article update!!
Within this update I will also show several
unique to Gann Grids Ultra astronomical
projection charts used for Dow research.
But first let’s go over some important Dow
price and time monthly angles. As we can
see the March 9th rally which started at
6449 is in direct line with the square of 144
angle heading higher with no resistance
until line 1 and point 2
Line 1 is a dissection angle starting
from the 2002 low and progressed through
2050. Throughout 2009 this angle crosses
124
Using the above charts combined with
several new ones similar patterns are also
found.
This chart takes the division points
from the ultimate 2007 top and the March
2009 bottom in .25, .33, .382.50, .618,
.666…. 100%
We see 1/3 of the total range to be
9057, .382 to be 9447 and 50% to be
10385…..
Result using a Dow yearly chart divisions
of 8
This next chart is a culmination of Gann
angles from 1987 low, double square of
144 from 2002 low combined with Jupiter
Saturn aspects in orange starting from
1950 into 2015
.375 is also roughly around 9350-9450
Price and time angles using all Gann Angles
from 1970 low on a yearly chart
This chart is showing the 2009 bar to be
standing alone above and below important
angles
Yearly chart showing angles from several
major yearly lows and zero
In the above chart we see many monthly
time periods being forecasted using the
Jupiter, Saturn aspects drawn in orange. We
also see point 1, 2 and are the next aspect
time period between the two featuring
the months of June, July 2009 (point1)
November
(angle crossover point)
and February-April 2010. We find several
Gann angles are also crossing around the
price of 9050 and 9300
125
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126
So to put it all together in 2009 we see a
potential pivot point to be around June-July
2009 around the prices of 9050 and 9350….As
of today we are roughly around 8900. We may
see support at around 7600-7850 if it does dip…
However the main trend periods should be in
Oct-Nov 2009 and Feb March 2010 and around
the main pricing angles as shown above.
“New” Gann Grids Ultra 5.0 Click here for
more information.
If you are a broker, trader or someone who
just wants to learn more about the master’s
techniques as mentioned above, understand
this software is available for resale along with
personal training regarding its applications,
techniques and forecasting capabilities. Go
to www.pvtpoint.com. Research should not be
viewed as trading advice as Past performance
does not guarantee future results.
Online Trading
Academy
T
By Larry Jacobs
he Online Trading Academy
started in 1997 as a trading
floor in Irvine, California. They
had around 180 traders doing
millions of dollars of trading
transactions daily. This is one of the many
trading floors that sprung up around the
country at that time for two reasons. First,
we were in a wild bull market with great
opportunities. Second, the beginning of
online Internet trading started with the
problem that the phone modem used by
the public was not fast enough for effective
trading. Online trading rooms had the
advantage of a connection to the Internet
through T-1 lines which were too expensive
for the public. These online trading floors
gave these traders a computer with a big
monitor with a connection to a T-1 line and
usually direct access trading for the fastest
speed trading possible. Technical analysis
programs were also made available to
these traders. The problem was that
these traders did not really know how to
use these trading programs and therefore
generally lost their capital.
The Online Trading Academy recognized
this problem. They had a fantastic idea to
ask their successful traders if they would
help the inexperienced ones. They set up
classes so the newbie traders could learn
the different trading styles techniques and
habits from the successful traders. It was a
tremendous success. They knew they were
on the right path. They found that more
and more of their traders were making
money and unlike their competitors who
were continually loosing traders there
trading floor was bursting at the seams. As
time went on, the Online Trading Academy
refined their training techniques and set
up formal classrooms. These classrooms
OTA 1997 Trading Floor
John O’Donnel and Eyal Shahar
127
Kansas City All Star Trader Event
were taught by their best traders. They
were so popular that they had a waiting
list from people who wanted to improve
their trading.
In 2001, with the rapid expansion of the
high speed internet to the public with both
cable and DSL lines and with the availability
of direct access trading by the public in
their homes, the Online Trading Academy
felt that their strength was in training
rather than running a trading floor, so they
made to change
to education only
and sold their
trading
floor.
After that, they
developed several
educational
programs around
equities,
Forex,
options, futures
Ron Booth, KC Center Owner and
e-minis.
128
Some programs were made available by
CDs and DVDs for worldwide distribution.
More and more refinement was done to
their programs and that improved their
trading model even further. When they felt
their educational model was fully developed
they took the initiative to create the Online
Trading Academy Franchise Corporation.
This allowed franchisers to use their
intellectual properties to educate their
students in regional trading centers. The
first franchise center was in Dallas, Texas
Online Trading Academy Locations
and now there are around 30 franchises
both in the U.S. and even some in other
countries such Canada, England, Dubai and
Singapore. Australia and India franchises
are planned to open in 2010. Their goal
is to be the premier trading educator
to the world with the intent of opening
at least 100 franchises. Their franchise
center instructors are carefully selected
and must be a live trading professional
with the ability to teach students to trade.
Many of their teachers they hire are past
students who have become successful
traders. Instructors in each of the training
centers work together and continually
refine their trading material, which adds
to the credibility and collective intellectual
properties of the company.
Recently the company created their
XLT program (Extended Learning Track)
designed to continually educate their
students with live trading. Students can
watch their instructor trade online in realtime and interact with him in the comfort
of their home. Several XLT programs
are now available such as Broad Market
Analysis, Forex Trading, Futures Trading,
Momentum Intraday Trading and Option
Trading.
Many are introduced to the Online
Trading Academy through their All-Star
Trader Events which are held in the major
cities where their franchise trading centers
are located. I went to a recent one in Kansas
City where they had some of their master
instructors such as Sam Seiden, Brandon
Wendell, Eric Ochotnicki teach their trading
methods. Eyal Shahar, the president, and
John O’Donnell, chief knowledge officer,
additionally gave excellent presentations.
I felt that the event was worth going to.
There was a presentation given on support
and resistance trading. It was an interesting
technique, which helps one effectively find
prior support and resistance in a trading
chart. The technique gave an entry and
exit point. For example, when a market
explodes with a burst of strength, many
times it will come back to test that area.
That is your second chance to buy. There
were several examples given. I wanted to
go home and check out this technique to
see if I could find it on some charts.
John O’Donnell gave his presentation on
his forecast of the market in the next few
years. This was an excellent presentation.
No, John does not think the bear market is
over. The rally we have had over the last
several weeks he feels is just a correction
in a further downtrend.
Basically the Online Trading Academy
program is really designed to first protect
a student’s capital from loss and then after
that make money. Many baby boomers
are coming to the All-Star Trader Events,
because they have lost so much money
in the last couple of years from the nasty
bear market we have been in. They have
lost confidence in their brokers and funds
managers. These people want to learn
how to manage and trade and invest their
money themselves. As John O’Donnell
said, their 401Ks have turned into a 201Ks.
If you are interested in learning how to
trade in one of the Online Trading Academy
classrooms, then you need to definitely
check them out. You can possibly attend
one of their All-Star Trading Events or get a
free workshop at one of the local franchise
centers just to see if this really fit you. Go
to their site at www.tradingacademy.com
for more information.
129
Trading Book
Best Sellers
You can click these
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Understanding Gaps
Price: $24.95 Buy Now
By Scott Andrews Scott, a
West Point graduate and
Army veteran, shows the
same degree of discipline
in his relentless pursuit
of knowledge about gaps
as one might expect from
one of his background.
“Understanding Gaps” gives the benefit
of his painstaking and thorough research
into gaps and how they might be profitably
traded. He starts with an explanation of
gaps, what they are, and examples of
several types, all with illustrations. Most
existing literature on the subject stops
here….which is just the bare beginning
of the coverage in this valuable and
informative book. The results of extensive
research into gaps are presented, and
cover a myriad of approaches to analyzing
them…including seasonality, day of the
week, gap size, where the gap occurs
relative to the previous day’s range, and
many other aspects…with exact probability
studies for each approach.
The balance of the book deals with
Andrews’ own approach to trading gaps,
and is replete with numerous examples
and illustrations of trades he has
personally made. He offers useful counsel
and observations based both on personal
experience and on his research which
will provide solid guidance for traders
interested in learning a methodology based
130
on gaps. It should be noted that the entire
focus of the book is on trading the opening
gap in the S&P E-mini futures. Andrews
ignores the “night session” and considers
an opening gap as the difference between
the close at 4:15 PM EST and the opening
the next morning at 9:30 AM EST.
This book reads easily and flows
smoothly, is well written and will serve as
a valuable resource for serious traders.
Option Profits The Naked Truth
About Profiting From Options
By Mike Parnos. Trading
is an equal opportunity
vocation. It doesn’t matter
if you’re Shaquille O’Neal
or Mini Me, Fat Albert or
Twiggy, Jack Welch or Jack
Kevorkian. The point that
I’m making is that trading
is a skill that anyone (almost) can learn and
have for the rest of your life. All you need is
a computer, a little bankroll, a willingness
to learn - and, of course, a teaspoon of
common sense and a tablespoon of selfdiscipline.
I did it my way. I learned - by reading,
by listening and (unfortunately) by a lot of
expensive trial and error. But I persevered
and I made it. I’m not wealthy by financial
standards, though I’m not worried where
my next meal is coming from. Why?
Because I’ve learned how to consistently
take little chunks out of the market. Those
who have attended my two-day advanced
seminars, have an excellent grasp of these
concepts.
I’ve paid my dues. Hopefully, my dues
will cover some of the mistakes you would
otherwise make. Examine the strategies
in your arsenal. In this book, you’ll find
a variety of strategies - primarily nondirectional. Ask yourself: Which strategies
do you know thoroughly? Which strategies
do you know how to enter and monitor?
Do you know when and how to exit? Do
you know how to fix the trade if it goes
bad? Do you know when to cut your losses
and move on? Each strategy has its own
set of answers to the above questions. If
you’re confident that you can handle all of
the above in one or more strategies, you’re
probably ready to proceed.
Trade Chart Patterns Like the Pros
By
Suri
Duddella
A
comprehensive
trading
manual focusing on 65
specific chart patterns
and solely on price action.
Provides exact guidance
on how to trade each
pattern from a seasoned
trader. Has received rave reviews from
many sources. We have had a number
of our customers call us looking for this
hard-to-find book, which is available only
through the author or through Traders
Press. Check out the sampling of reader
reviews and our own review below and
you will see that this is an exceptionally
valuable new book for serious traders. Get
your copy today while available.
Precision Trading With Stevenson
Price and Time Targets Price:
$149.95 Buy Now
By J.R. Stevenson
JR was “legendary”
among the brokers
at ContiCommodity
and at Prudential
for his consistently
accurate price and time
projections. He has
decided, at the urging of his family, to
reveal his knowledge of this technique,
which is amazingly simple and easy to
use in any time frame and in any liquid
market. JR currently day trades the
S&P E-mini contracts actively using this
technique. Other than to a few members
of a chat room where JR has heretofore
been known as “Baldy”, it has never
before been revealed to anyone, over
all the years he used it. “The method
described in this valuable trading manual
is especially relevant to and useful to
those involved in day trading in the
E-mini stock index futures markets.”
-----J.R. Stevenson
Trade The Patterns
The Revolutionary Way of Trading
the CCI
By Ken Wood Woodie
Woodie is sharing his
time-tested
methods
with the world because
his personal philosophy
and the CCI Club motto
has always been, “Traders
Helping Traders.” More
than 30 years ago Ken Wood, also known
as “Woodie,” discovered a revolutionary
131
way of trading on the CCI, a little-known
moving average index. Woodie noticed
that patterns forming on the CCI reveal
how the market is moving. The CCI is a
leading indicator, and Woodie figured out
how it could help him get into a trade ahead
of standard trend lines. Over the years,
as Woodie perfected his techniques, he
quietly built an online following of millions
through Woodie’s CCI Club.
Understanding MACD
By
Gerald
Appel
MACD Moving Average
Convergence-Divergence
is a highly effective
and
practical
trendfollowing indicator which
is widely available on
most technical analysis
software programs. Traders and investors
with this indicator at their disposal would
be well advised to learn as much as they
can about it and how to use it to improve
their trade timing and selection. This
comprehensive guide to MACD is a one-ofa-kind one-stop reference that will prove
a valuable addition your trading library. It
includes a bullet point summary overview
of MACD, a detailed bibliography detailing
all known references and articles relating
to MACD, with annotation showing unique
points covered in each source, and a major
research report on MACD written by and
originally published by Gerald Appel (and
priced at $50 for this report alone). This
report, written by the originator of this
indicator, is the most definitive and indepth material available on MACD. It alone
is worth far more than the modest price of
this booklet.
132
ADXellence: Power Trend
Strategies Price: $149.00
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By Dr. Charles B. Schaap
Dr. Charles B. Schaap
is a full time traders
in stocks, options, and
futures. When not trading,
he
teaches
seminars
on
technical
analysis
and trading strategies. His Trading With
Xcellence seminar is given once a year
in Las Vegas. Dr. Schaap has written
numerous articles for magazines and
newsletter publications including Technical
Analysis of Stocks and Commodities, SFO,
and Working Money. Dr. Schaap is the
creator of “The 50-50 Strategy” a popular
trading strategy that emphasizes low risk
entries into emerging stock trends. He
has hosted the TraderDoc radio show in
Las Vegas. At Stockmarketstore.com, he
provides market analysis and writes on
trading topics. Dr. Schaap has a special
interest in the trading mind set and is
a sought after speaker on the subject
of personal trading psychology. He is a
regular speaker at various investment
groups such as the International Traders
Expo and the American Association of
Individual Investors
Popular Books
Patterns of Gann by
By Granville Cooley This
set of books [included
within this bound volume]
is not about pulling the
trigger. It is not a system
on how to make a million
dollars in the market in
the morning. It is about
certain mathematical and astronomical
relationships between numbers and their
possible application to the number of W.
D. Gann.
The Definitive Guide to
Forecasting Using
W.D. Gann’s Square of Nine
By Patrick Mikula It has
been almost ten years
since I wrote a book about
W.D. Gann’s forecasting
tools. I wanted to return
to this subject with a book
that would stand the test
of time. This book was
written with the intention of creating the
official book of record for all the Square of
Nine forecasting methods. I believe I have
achieved that goal. This book contains
virtually very Square of Nine forecasting
method.
Complete Stock Market Trading
and Forecasting Course Price:
$529.00 Buy Now
By Michael Jenkins The
author is a serious, highly
successful, professional
trader. In his two books,
Geometry of the Stock
Market and Chart Reading
For Professional Traders,
he shares some of his ideas
on how he trades. Hungry
for more of his ideas and direction, many
of his readers literally begged for more.
Jenkins has written this complete course in
response to these requests. In his books,
Jenkins explains, among other concepts,
how he uses some of Gann’s methods and
techniques, but he never mentions Gann.
In this course, by contrast, he specifically
states that many of the ideas are those
originally developed by Gann, and he goes
into great detail on how he personally uses
these ideas and techniques. If you want
a detailed, in depth course on how to use
Gann in your own trading, this may prove
to be what you have been seeking all this
time.
How To Make A Cycle Analysis
By Edward R. Dewey
Approx. 630 pages, with
charts. This how-to manual
on cycle analysis was
written by E.R. Dewey in
1955 as a correspondence
course. It provides stepby-step instructions on the
elements of cycle analysis, including how
to identify, measure, isolate and evaluate
cycles. The most elaborate cycle course
133
ever written, by the star of cycle analysis,
founder of the Foundation For The Study of
Cycles. This course had a limited release in
the 50’s at a price of $350.00. It has been
unavailable since then.
W.D. Gann in Real-Time Trading
By Larry Jacobs If you
feel that you would like
to do short term scalping
or swing trading in the
markets, then this book
might be for you. It
illustrates many shortterm Gann mathematical
trading techniques which have a high
tendency to work intraday. Various
intraday time frames are shown and how
they can be used together to keep you in
the direction of the market. 200 pages
Patterns & Ellipses
By Larry Jacobs Stocks and
futures move in elliptical
paths. When a market
makes a gap, its price
action usually passes into a
new sphere. All its activity
will remain in the current
sphere until it moves into
another new sphere. This new book tells you
how to use ellipses along with detailed chart
patterns to determine if a stock or futures
contract is bullish or bearish. 100 pages
134
Pyrapoint
By Don Hall Mr. Hall
discovered a secret from
one of Gann’s associates
“Reno” who shared a desk
with him on the floor of
the Chicago Board of
Trade. Apparently Gann
carried a piece of paper
with him to the floor every time he made
a successful recorded trade. Mr. Hall found
out what that paper was and developed
the Pyrapoint trading method around this.
An easy to understand trading software
program was fully developed. It creates
a natural trend channel and areas of both
support and resistance. It’s clearly tells
you when the trend changes. 300 pages.
The Structure of Stock Prices Using
Geometrical Angles
By Russell M. Sedlar “This
chart based book shows
how
the
Geometrical
Angles
described
by
W.D. Gann, when used
is this newly discovered
way, literally become the
controlling force of stock
price fluctuation, causing tops and bottoms
to form and trend lines to be determined.”
Gann Master Charts Unveiled
Chart Reading for
Professional Traders
By Larry Jacobs Complete Price: $75.00 Buy Now
100 page book explaining
how to use Gann’s Master
Square of Nine Chart, The
Gann Hexagon Chart and
the Gann Circle Chart.
Many articles on the square
of nine are also included
from past issues of Trades World Magazine
The Geometry of Stock Market
Profits Price: $45.00 Buy Now
By Michael Jenkins This
book is about Jenkins’
proprietary
techniques,
with
major
emphasis
on cycle analysis, how
he views and uses the
methods of W. D. Gann,
and the geometry of time
and price. You’ll hich angles are important
& how to draw them correctly and more.
Geometry of the Markets
By Bryce Gilmore Book
explains the theory behind
time in the markets, Ancient
Geometry and Numerology,
Squaring Price Levels, Time
Support and Resistance.
Heliocentric
Planetary
Cycles.
By Michael Jenkins This
book
is
a
complete,
comprehensive study on
reading charts, forecasting
the market, time cycles,
and trading strategies.
Explains reversal of trends,
when to expect them, and
how to know the trend has change. Shows
you how to forecast with great reliability
how long the new trend will last and its
price target.
The Secret Science of the Stock
Market Price: $149.00 Buy Now
By Michael Jenkins In this
book Mr. Jenkins gives a
start to finish ‘scientific’
examination
of
time
and
price
forecasting
techniques starting with
basic line vectors and
advances the concepts
to circles, squares, triangles, logarithms,
music structure and ratio analysis.
These concepts are developed into a
comprehensive method that allows you to
forecast any market with great accuracy.
Mr. Jenkins demonstrates how a few simple
calculations would have predicted many of
the greatest stock market swings of the
past seven years with accuracy down to
the day and price targets within one point
on the market averages. This new book
advances the work started in his other
books and course but goes much further
revealing little known secret methods only
a very small handful of professionals know
and in many cases he reveals proprietary
135
techniques never before revealed to
the public at any price. The chapter on
the Gann Square of Nine is much more
complete than 90% of courses available
selling for hundreds to thousands of
dollars more. This chapter alone is worth
several times the cost of the book but
the secret ratio analysis at the end of the
book will truly change your trading habits
forever. When you finish this book there is
little left to learn about advanced trading
and forecasting techniques with the rare
exception of astrological methods, which
are not covered in this work. This book
goes from beginning concepts to the
most advanced so anyone can greatly
benefit from reading it. All concepts are
demonstrated with actual chart histories.
It is not, however, for the casual investor
who does not want to take the time to
calculate a simple square root on a hand
held calculator. If you liked Mr. Jenkins’
previous books and/or his trading course,
then this one will easily surpass your
expectations.
Gann for the Active Trader New
Methods for Today’s Markets
By Dan Ferrera In this
ground
breaking
new
book, Gann expert Dan
Ferrera presents a number
of new techniques for
trading in today’s markets
which build on and expand
the trading methods of
the legendary trader of yesteryear, W.D.
Gann. It is exceptionally difficult to learn
how to use Gann’s methods effectively…
and this outstanding new book is a
treasure chest for those interested in
136
Gann’s work. Includes a bonus 80 page
Gann mini-course! In writing this book, I
wanted to pass on the fact that trading is
a profession, just like any other traditional
profession and as such should be run with
a strict set of business operation rules.
Simple Secrets of the Trading
Master Price: $90.00 Buy Now
By Jack Winkleman In the
ebb and flow of the markets
over a longer time such
as one year or more, it is
important to know what
the market has done in the
past. Certain years seem to
follow the patterns of previous years with
uncanny likeness. This is a book put together
by Mr. Winkleman and is a very valuable
tool. This book tells a trader how to used
past harmonic cycles for forecasting future
trends. This book is a picture of the markets
since 1920 in Soybeans. As an added bonus,
it has a track record of the Dow Jones Cash
Index from 1900 - 2006. Cycles are nothing
more than repeating patterns. Trends follow
cycles. This book gives you the key cycles
in the market. All you need to know is what
those repeating patterns are. That is why
the historical charts become so valuable and
this is why this book is so important. With
the content of the book along with charts, it
is nearly 200 pages in length.
Dan Ferrera Materials:
Wheels within Wheels
The Art of Forecasting Financial Market
Cycles Numerous Diagrams. Breaks
down the 16 primary component cycles
of the DOW Jones Averages, producing
an accurate map of the last 100 years of
history, and projecting the cycles ahead to
2108. Includes all Excel Spreadsheets with
all cycle calculations and charts, and the
100 year projection DFT Barometer.
Studies In Astro Bible
Interpretation - Price: $55.00 Buy
Now
An
interesting
exploration
of
the
process used in coding astrological
and astronomical cycles into literature.
Engages in a thorough analysis of the
book of Genesis, exploring coding systems
by which astrological symbolism is veiled.
Contents: Study of George Bayer’s Bible
Interpretation; A Study of Ludwig Larson’s
Key to the Bible & Heaven; A Study of
David Fideler’s Jesus Christ Sun of God;
Revelations Revisited; Bible Interpretation
Related to W. D. Gann; 666 The Number of
the Beast; A Study of the Book of Genesis;
The Number 12 and much more
The Gann Pyramid; Square of Nine
Essentials Price: $395.00 Buy Now
A course on the Square Of Nine, W. D. Gann’s
most mysterious calculator. This course is
full of never before seen principles and
techniques of analysis using Gann’s Square
of 9, with detailed explanations of their
applications to the markets. Introduction;
Navigating With the Square of Nine; Bible
Interpretations Related to W. D. Gann;
What Gann Said About the Square of Nine;
Six Squares of Nine; Square of Nine Time
Applications; Price Targets For Support &
Resistance; Using A Square of Nine Table;
Time As a Price & Price as a Time; Gann
Angle Projection.
Gann’s Mass Pressure
Forecasting Charts
Mr. Ferrera develops a theory of how
Gann most probably created his Mass
Pressure Forecasting Charts. “Of all the
Gann forecasting techniques known, the
Mass Pressure Formula has been one of
the most closely guarded secrets. In fact,
there are very few “Gann Experts” that
even know how to create a Mass Pressure
Chart or anything about the nature of
its construction. CycleDF Program This
unique spreadsheet program allows you
to experiment with a multitude of different
cycle lengths, phases and amplitudes
to generate a summation wave or cycle
composite for any market data.
Special Stock Market Report #1
Mr. Ferrera, has put together a unique
stock market report that clearly shows how
two dominant long-term cycle patterns
have predicted every major Bull era then
graphically projects this cyclic model 16
years into the future and then describes
how the stock market is likely to unfold
over the next 100-years!
Special Stock Market Report #2
Builds on a more sophisticated cyclic
model of market behavior by focusing in on
shorter cycle lengths. While the first report
focused on really long term stock market
cycles, the second report concentrates
mainly on cycles that are 5-years or less
in length to model the intermediate trends
that occur in between each Super Bull and
Super Bear market phase.
137
Special Interest Books
Trading with Wave59®
Volume 1: Price $39.95
Technicals This book illustrates
how to use the most popular
tools
found
under
the
"Technicals" menu. In depth
coverage of Exhaustion Bars,
UltraSmooth momentum, 9-5 Count, Lomb
Periodogram, SmartMoney Index, Fractal
Trend Index, Action Zones, Predict, and
Neural Networks. Check out the 9-5 Count
working on daily temperature fluctuations!
Many charts and trading setups presented.
152 pp.
The Fibonacci Vortex™
Handbook Price: $89.00
The Fibonacci Vortex™ is one
of the most complicated, yet
powerful tools in Wave59. This
book covers the theory behind
the pattern, how to construct it,
how to forecast with it, and most importantly,
how to trade with it. In-depth chapters on
chart scaling, sizing the vortex, time targets,
price targets, and time/price squares, plus
countless example charts. Includes vortex
techniques previously unavailable anywhere.
120 pp.
The Handbook of Market
Esoterica: Price $495.00
This trading book deals with
the true nature of price and
time, magic numbers in the
market, volume cycles, market
geometry, astro trading, numbered squares,
and unveils a secret Astronumerology system
which unifies astrolgogy and numerology
into a razor sharp forecasting methodology.
138
Not intended for casual readers or the closed
minded. After studying this manual, you
will be able to forecast turning points in the
distant future with a high degree of accuracy.
216 pp.
Key to the Secrets - A
Traders Primer Price:
$98.00
By Neall Concord-Cushing.
Key to the Secrets is the
latest book written by Neall
and reviews the first 4 books
with an in depth discussion of their interconnectedness. It tells the inner story of
why the first four were written and how they
work together. How it integrates forecasting,
trading and the Law of Vibration into a
complete trading system and introduces
new sections on Gravity Centers, 1st Trade
Harmonics, Cycles, Key Notes and Aligning
Interior Vibrations. Buyers of this book are
invited to join the Secrets Private Forum
Secrets of Forecasting using
Wave59™ Tools: Books 1 and 2
by Neall Concord-Cushing. Price
$149.75
Neall is an
experienced
t r a d e r
who
has
been using
Wa v e 5 9
since
the
beta testing days. In this comprehensive 2
book set, he explains his unique forecasting
techniques using Wave59 tools. Book 1
describes Static Time Counts, Bar Counts,
Cycles, Pitchforks, Gann Angles, and the
Vortex. Book 2 continues with Retracement
Levels, Channel harmonics, Mirror Images,
placing the Vortex using Rings of Price/Time,
Vortex grids, Zero point projections, plus
instructions on how to bring it all together
into a unified system of forecasting. Includes
a bonus chapter on Gann’s Tunnel Thru
the Air. All purchasers of the books will be
given access to a private forum moderated
by the author where they can discuss these
techniques and ask questions.
Secrets of Trading and
Making Money by Neall
Concord-Cushing Price:
$395.00
A step by step, in depth
book, on how to make money
trading with Wave59, with
specific plans for the S&P e-mini, US Bonds,
Gold, Wheat, GE, and 3M. Also includes a
chapter on how to profitably trade with any
entry system (even flipping a coin) by using
money management and a proprietary stops
system, demonstrated with real time DOW
charts. Purchasers of the book are invited to
join Neall’s private Secrets Forum.
Secrets of the Law of
Vibration for Traders by
Neall Concord-Cushing.
Price $395.00
Learn the secrets of the
esoteric traders, including
W.D. Gann, who used the Law
of Vibration to profitably trade and enjoy
supreme success. The book is very specific
in detailing how to use the Law of Vibration
in trading and with W59 charts showing its
elegance and simplicity. Purchasers of the
book are invited to join the Secrets private
forum.
The Art of The Trade by Jeff
Rickerson Price: $34.95 now
$24.95
In this book the author focuses on some of
his basic theories such as The Seven Golden
Keys to unlocking unlimited trading profits/
success. He introduces his UNIFIED THEORY
of Price/Time and THE POINT OF SINGULARITY. Also introduces to the reader Albert Einstein’s method of predicting price movement.
Reveals his Price/Time Quadrant Analysis and
why knowing these four quantrant’s are important to maximizing trading profits. Learn the
Anatomy of Picking a Top or Bottom and the
simple formula for Trend/Profit as well as the
Four Key principles to generating MILLIONS in
trading profits! He discusses the Cracking the
Code & Unlocking the Secrets of Trend/Profits. Finally learn “How to Accomplish your Investment Goals and the Secrets of The Riches
People.
The Art of The Trade II by Jeff
Rickerson Price: $34.95 now
$24.95
In his second book on trading the author reveals what Albert Einstein had to say about
predicting prices; (most traders never have
learned this valuable trading idea by the one of
the most profound thinkers of our time!) How
to apply a simple rule to generate 16 times
more profit and how to properly design and
develop trading systems and the three most
important aspects in trading. He also discusses his Market Timing Matrix. He also discusses
his Dynamic Trend Syntax and Delta Neural
Analysis. You will also learn a simple formula
for calculating buying/selling pressure within a
market and how to trade it and The Ten Laws/
Principles of Price Trend. Also covers Options
Trading Made Simple. Author also goes into
how to use volume and price when trading.
139
Sonata Trading Computer
T
By Larry Jacobs
here is a big difference in computers
and especially trading computers.
They are not all created equal. The
basic computer that is manufactured
by Dell, HP, etc. is what I would call a spec
computer. They are basically stripped down
to a minimum and sold for basically high
profit. The mother boards have only the
minimum components necessary to power
a computer. Many other small companies
design custom computers for specific
purposes such as accounting, gaming etc.
They are able to put in the right parts for the
job intended. In the trading industry there
are also several companies that custom build
trading computers. Some do a good job, and
some don’t. Some are completely overpriced.
Some use questionable components. They
really don’t check out the performance and
reliability of the parts or the backing through
the warranty of the manufacturer.
The Sonata Trading Computer is another
story. This is a computer that is designed to
be the perfect trading computer. It is designed
with the highest quality parts possible and is
tweaked specifically for trading.
Now lets go down and explain each
component and the
140
importance to the construction of the Sonata
Trading Computer.
The 1st important component is the
case. The Sonata uses a special case that
actually has 3 layers of material to sound
proof it. The two sides and front is composed
of this and it effectively helps to make the
computer nearly silent. The fans also in the
case are 120mm and are quiet. They output
only the minimum noise. It is amazing that
other computer manufactures are using
cases that use no sound proofing and have
noisy fans. I don't really understand it. I
guess it is that they are not knowledgable or
are out for profit only. I believe that quietness
is most important as a trader needs to have
his concentration.
The 2nd important component is the
motherboard. We always check this part
out, because it is the
brains of the computer.
We research it fully and
make sure it is the best
of the industry and has
excellent reports for
speed, ability to cool,
reliability,
warranty,
etc. The one we use
has a unique feature that allows it to be
overclocked with just a click of a button! No
programming necessary! That means you
can turn a 2.66 GHz processor into a 3.50
GHz. This dramatically increases the power
of the computer with no additional cost. By
the way a 3.5 GHz processor is $800 higher
than a 2.66 GHz processor. Additionally the
motherboard Sonata uses has 4 PCIE slots
for video cards and 8 USB ports and an
excellent sound card.
The 3rd important component is the
CPU. Intel came out with the I7 CPU which
has buried all other processors. This is a quad
core processor which has hyperthreading.
This means it has basically has 8 processors
in it for more power, able to use multiple
programs all the same time. This thing is
also so fast because it has eliminated the
front side bus. This means that its memory
now can run twice as fast as any computer
prior to this.
The 4th component is the memory. It
uses DDR3 the fastest ever created. It uses
3GB of RAM or up to 12GB in an 64bit system.
The fifth component is the CPU Cooler.
The Intel Stock cooler is OK,
but if you really want a quiet
computer that runs as fast
as possible, you need a CPU
heatpipe Cooler. We use one
that is big and quiet and
drops the CPU temperature
by 10 degrees. Most manufactures don’t put
these on just to save money.
The sixth component is the hard disk
drive. The Sonata uses one that is a 7200rpm
drive, 640GB. It has a built in
processor and 32GB of RAM.
It runs nearly as fast as a
10,000rpm drive but is more
reliable and inexpensive.
Also combine this with a
removable rack that allows
you to make a clone backup drives for safety and you have a winning
combination. As an option the Sonata also
can use the new Solid State Drives. These
new drives are great. They can run 25x to
100x faster I/O operations per second, for
multi-tasking trading and they should never
crash.
The seventh component is the network.
Most computers now use
the
standard
network
connection. The Sonata uses
the Killer NIC. It optimizes
the Sonata for online trading
and real-time communication
applications. It uses a 400MHz network
processor to offload all network operations.
It results in the computer being able to run
with a faster network connection for trading
than a standard computer.
The eight component is the video card.
The Sonata uses nearly silent GeForce
9600GT or the PNY financial cards. With
the motherboard that the Sonata uses it
easily supports up to 12 monitors. Most
other manufactures use video cards with
the horrid whinning small fans on them that
gives traders headaches.
Finally
the
ninth
component
is
optimization. The Sonata is optimized
for trading through software tweaking and
continuous background defragging which
allows the computer to run substantially
faster than any computer or trading computer
out there.
For more information go to:
www.SonataTradingComputers.com
141
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142
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ATM Machine Trading Plan

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