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TRADERSWORLD
Mania Blooms
Jul/Aug/Sep 2018 Issue #70
How to Construct a
‘Tunnel Thru the Air’ The Master Cycle
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Contents TradersWorld Magazine
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The Periodic Table & The Law of Vibration
by Eric Penicka 16
Kevin Harrington
Celebrity wealth expert and original “Shark”
on the hit TV show Shark Tank
“Sell in May and regret the day” or “Sell in May and go away”?
These are not only the two biggest questions of the current time,
but also could be the biggest questions of ALL TIME. This exact
dilemma also faced investors exactly 10 years ago, as the May
of 2008 rally created its own “failure to exceed the prior all-time
high (Oct. 2007). This time, in the current May just completed,
the Dow and Spx are again (so far, at least) failing to exceed the
prior all-time high (Jan. 2018), as well.
The strongest index since the February low is now the S&P Small Cap 600, which just made
a new all-time high, followed by the Russell 2000 a few days later. This “reach” for the
lowest capitalization, least financially stable companies, after a decade long bull market, is
the manifestation of the crowd’s extreme complacency. That is, as a group, investors do not
fear market risk here, so they’re willing to assume the increased risk of smaller and riskier
companies to achieve more growth potential than more stable companies offer. As Newton’s
third law of motion states, “for every action, there is an equal and opposite reaction”. The stock
market has risen off the March 2009 low for nine years, in one of the greatest rallies (actions)
ever seen. Once complete, if not already so, the greatest decline (reaction) should follow.
Typically, as history has demonstrated for nearly 300 years of stock price data (British prices
used prior to 1900), the reactions give back an average of 38% to 62% of the action’s price
increase, while taking an average of 23% to 50% of the amount of time that the action took.
The Dow just rose 20,000 points, in the past nine years, suggesting we prepare for at least a
10,000 point decline, which takes around 3 to 4 years. These “average” reactions point the Dow
toward 16,000 by around 2021. However, the past nine years of market action were far from
average, requiring us to be on guard for a greater than average reaction.
The media would like us to buy into the belief that it’s a “new paradigm”, and that “it’s different
this time”! However, this kind of rationalization and justification were also present at the last
two major peaks in the past twenty years; 2000 and 2007. Each of these prior peaks were
followed by dynamic market declines, which sliced as much as 80% from some market sectors
(technology), and 50% from the Blue Chips. Although the crowd is currently fearless, there
has never been a worse time for confidence and complacency, or better time for risk aversion.
Caution and protection should be the crowd’s focus here, not the smallest, riskiest companies in
the country, or even worse, the Emerging Markets.
So, why doesn’t everyone see what we see? Mostly because of greed. The average investor is
trying to get every last percent of the rally’s action, but unfortunately didn’t buy in at the 2009
low. Our work, based on our proprietary DSE (Decision Support Engine), not only sees the
potential percent that might come on the upside, but also the potential percent that might be
So, here we are in June, where two questions from the opening paragraph are yet to be
answered; to sell or not to sell. Or, protect or not? In addition to the Small Caps achieving new
highs, so far unconfirmed by any of the senior indices, valuations are at extremes, mutual fund
managers have never been so fully committed to the upside (record low in cash balances),
and rising non-prime mortgages, sub-prime auto loans, underfunded pension plans, and rising
interest rates all point to a manic inflection point being created right here! What we can’t be
sure of, yet, is whether there’s another thrust to a marginally higher high in the other indices,
which would align them with the Small Caps, before they all decline together. However, betting
on that has one of the worst risk vs. reward ratios ever seen.
Manias tend to end without notice, on good news, and decline (historically) 40% in the first 40
days after the peak. If that were to happen from here, the Dow would be in the 16,000 area
around mid- to late July. On the contrary, if the Dow were to rise to the mid-28,000s, that
would produce around 4,000 points of rally. Under these circumstances, the risk of 10,000 vs.
the reward of 4,000 calculates to approximately 2.5:1 against buying or holding stocks at the
24,500 level on the Dow. So, if you have too much exposure to stocks, if you are too close to
retirement age to be gambling with your retirement nest egg, or if you are just acknowledging
that for every action, there is an equal but opposite reaction, a prudent decision that has
historical precedent would be to take risk off the table, and be grateful that you participated in
the greatest bull market in a century.
While the above is a general market observation, there are always stocks and commodities
to buy and sell despite the overall environment. That’s why some stocks and commodities fall
when markets in general are rising and rise when markets are falling. The DSE can objectively
evaluate which opportunities are “traps”, and which ones are attractive. Let’s take a few of the
DSE’s component indicators and create a strategy for any market at any time in either direction.
Let’s use stochastics, standard deviation bands, and Elliott Wave Theory, and seek oversold
conditions to buy where stochastics are below 10% and the fast crosses up through the slow,
price is 2 to 3 standard deviations below the 200 day MA, and either a 5 wave impulsive
decline is visible, or a 3 wave corrective decline is visible. Requiring all three should reduce
the likelihood of a false signal. Especially in a mature bull market like this one, after nine years
without any significant declines, if the entry isn’t optimal, the outcome is likely to be painful.
The same is true for identifying the optimal time to exit long exposure and even go short. Our
DSE is tuned to identify situations of overbought extremes when stochastics are above 90%
and the fast crosses down through the slow, price is 2 to 3 standard deviations above the 200
day MA, and either a 5 wave impulsive rise is visible or a 3 wave corrective rise is visible. While
there is no certainty in the trading world, there are conditions (like the two we just defined) that
dramatically increase the odds of success.
Why didn’t the December 2016 low work as a buy signal? The strategy wasn’t complete,
as price hadn’t gone below the lower 2 sdb. Had you bought it anyway, you’d have made
some money, but wouldn’t have had the opposing sell signal to exit, and you’d have had to
subjectively assess what to do. What about the June 2017 low? It had all of the requirements,
but the pattern off that low turned out to be corrective (overlapping waves of up/sideways/
up). Therefore, labeled as bigger degree wave 4. That allowed the expectation to be made that
wave 5 would make new lower lows, and end the 5 wave sequence from the swing high in 2016.
April saw all three conditions met, and the pattern off that low has, so far at least, impulsive
characteristics. This suggests a major bottom is in place, as long as the low remains intact.
Therefore, corrections toward the green oval are for establishing or adding to long exposure.
Next, 17 +/-1 is the target for the coming rally, regardless of weather, crop news, China trade
issues, or any other influence. This is the objective analysis, and the conditions/news should
arrive soon to justify this forecast.
Next, let’s check cocoa. Here’s the daily bar chart, where we can find the opposite, and shorter
term, set up as seen in sugar. This is what the strategy creates for exiting longs and going
short.
From the mid-April low, cocoa formed 5 waves of impulsive rise, hinting that the rally was
mature. At the April high on the 18th, cocoa saw its stochs squeeze above 90% for a short
Since that sell long, enter short, signal was triggered, price has fallen sharply, and approaches
the 200 day MA as of the writing of this article. Short term, selling actions are no longer
indicated by the strategy, as the stochs are back below 10%. Using the strategy for risk
management, profitable shorts could now be protected by placing buy stop orders at 2330.
This will guarantee this nice winning trade never becomes a loser. Why not just cover and go
long? Well, that would be ignoring the strategy for objective buy signals, as only the stochastics
condition is now in place. The lower 2 sdb is way down near 1650, and there is no clear 5 wave
or 3 wave pattern visible.
While this strategy doesn’t always guarantee profits, it removes the subjective inputs to buying
and selling, and relies on objective, non-emotional inputs. These three conditions are a small
part of our proprietary DSE algorithm, but are very learnable and useable if you want to act
less emotionally and more mechanically. It’s not the only way, but it’s been my way for the past
couple decades. In fact, I used it to win the World Cup Championship in Q3 2007 in the stock
index category, with 121% net return.
Happy Trading!
Ken Goldberg: Founder and CEO of DSETrading.com, and TWWinc.com; market analysis and
financial coaching firms focusing on the needs of professional and active individual investors
and traders that want to anticipate where markets should go next, rather than where they
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W.D. G a n n I n c P r e s e n t s
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July 2018
Readers of TradersWorld
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WWW.TRADERSWORLD.COM July/August/September 2018 14
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Many of you, as I, have been down a very similar path in our efforts to understand the secrets of
the legendary trader W.D. Gann, and the other masters from the past.
What is learned is earned through the school of personal research and testing. Knowledge is
developed over years of study, reading both exoteric and esoteric material, and trying to meld
the two into an understanding of what Gann and the masters may have been doing, and where
they got it from.
This path of research has been a pursuit of mine for over 30 years. On and off over that period,
dead ends and roadblocks too numerous to mention lay along that path. Insights are gleaned
gradually, and small steps forward are made with the occasional epiphany helping to keep the
mind focused, therefore motivating oneself to continue to try to move forward to finding and
understanding more of this arcane wisdom.
As researchers into the ideas of Gann, I know many of you have developed an interest in
this study that goes far beyond trading. The deeper one explores, the more the secrets are
revealed, and the less important the market becomes, as you realize you have come into contact
with something far bigger, and far greater, than what you were originally looking for.
In my personal experience, whatever revelations, for lack of a better word, that I have had,
have not come from within, but have come from the source of all, the creative intelligence of the
universe, or call it God. No matter what religion, or spiritual process one uses, the source of all
knowledge comes from the creator. If I had not realized this, I could have never put this work
together.
In the introduction to my new book, Gann Science, I have two quotes. One from Paracelsus,
and one from Jesus in the New Testament, which strike me as something all Gann researchers
will appreciate as the essence of our work:
“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For
everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened.”
Matthew 7:7-8 New International Version (NIV)
My writing is the culmination of many years and many 1000’s of hours of research and testing.
Great minds of science or any other field were receivers of the ideas and concepts because
they had developed the ability to connect to the Source of creative power either consciously, or
subconsciously, for it to be given to them.
“All knowledge comes from the stars (the universal mind). Men do not invent or create ideas:
the ideas exist and men are able to grasp them.” Paracelsus
After much reading, research and contemplation, I have decided to release to the public my
interpretation of W.D. Gann’s famously quoted “Law of Vibration”. Gann Science is based on
what W. D. Gann said in The Ticker and Investment Digest interview with Richard Wyckoff in
1909. Gann researchers have been trying to sort out the market secret of the Law of Vibration
since that famous Ticker Interview in 1909.
The time elapsed since The Ticker is approaching 110 years, yet the world remains without
a clear solution available anywhere in the public domain. This cycle of Mammoth Building
proportion may now be at an end…
It is the author’s belief that this mystery known as Gann’s Law of Vibration, as discussed in that
original Ticker Interview is now solved in the publication Gann Science just released by the
Sacred Science Institute.
Gann really only speaks in depth on the Law of Vibration, hereafter referred to as the LOV, in
The Ticker and Investment Digest interview in 1909, and in his interview with The Morning
Telegraph in 1922.
In those two interviews he gives readers a basic description of what the LOV is about, and these
clues can be used to try to work out the solution. He made other interesting statements along
the way which are helpful to narrow things down. Some of these quotes are as follows:
From the Ticker Interview:
“If we wish to avert failure in speculation we must deal with causes. Everything in existence
is based on exact proportion and perfect relationship. There is no chance in nature, because
mathematical principles of the highest order lie at the foundation of all things. Faraday said,
“There is nothing in the universe but mathematical points of force.”
“Vibration is fundamental: nothing is exempt from this law. It is universal, therefore applicable
to every class of phenomena on the globe.”
“Through the law of vibration every stock in the market moves in its own distinctive sphere
“After years of patient study, I have proven to my entire satisfaction, as well as demonstrated to
others, that vibration explains every possible phase and condition of the market.”
This next statement is bound to ruffle some feathers, but Gann never equated the LOV to
astrology. The LOV is NOT an astrological or astronomical method. This author uses astrology/
astronomy as much as anyone else to analyze markets, but it is not a part of the LOV method of
Gann, and most particularly NOT the method Gann used in The Ticker.
Astronomical cycles often coincide with the LOV turning points, but those astronomical cycles are
not causal. Astrology is a reflection of the root cause of the LOV, but it is NOT the cause itself!
This has to do with harmony and resonance between varying components of our universe, and
the harmonious proportion of the many ways human beings look to view and interpret natural
law.
Gann indicates that vibration is causal and at the foundation of natural law. In order to
understand this cause, an in-depth study of the principles of vibration are a prerequisite to even
have a chance to understand how this LOV may apply to the markets.
Modern science of today is beginning to respect this line of thinking, after having lost it at the
So, as said, in reviewing Gann’s words from The Ticker, it is clear his market application was
based on math and science. No hocus pocus, no astrology, just math and science.
In order not to confuse the issue, the simplest thing to do is explore the science that was
available to Gann before 1908. This is a sound base that will allow us to know what he may have
known. We will also look at science from another angle, post 1909. That may help us with the
interpretation of the law from some later sources.
Gann Science is a book about science and the exploration of natural law and its application
to the financial markets. The definition of what constitutes natural law may not agree with the
definition of natural law we all learned in school. The research done for this work has changed
my current understanding of cosmogony in a very big way.
In order to understand what Gann was doing, his words in The Ticker point us to certain areas
of study. Those comments bring us to the work of Newlands, Mendeleev, Dobereiner, Gurdjieff,
Keely, and Russell. A sound basis of understanding of the theories of these men are necessary to
make the corresponding translation to the market.
This work contains a significant summary of the important parts of the science of the periodic
table, vibration, and music theory. The summation is necessary to allow a reader unfamiliar with
these topics, to have a rounded knowledge base of the science.
This base will then allow us to create and translate that science via the Law of Correspondence
into a market application which will allow a trader to trade with a high success rate on entries
and exits in the manner that I believe Gann did.
The science involved is very complex and I have tried to the best of my ability to consolidate it to
make it as easy as possible to understand. At least, as much as is necessary to have a grounded
base as we work into the application.
I will not pretend I am an expert, or a scientist, or say I have all the answers, or understand all
the facets of the science Gann understood. I will not pretend that I fully understand the totality
of the Law of Vibration. It is a complex phenomenon! In totality, it is fully beyond the grasp of
the finite intelligence of the conscious human mind.
Many readers will be seasoned traders, or Gann researchers. Many may be beginners in the field.
Hopefully, my summation and presentation will work to the understanding of all, no matter the
level of background or experience.
As Mathew quoted Jesus above, “Seek and you shall find, knock and the door will be
Nothing truer was ever said, as knocking enough will eventually bring the answer to you. The
universal mind of The One is very generous, and will grant that which we ask of It, once we
possess the key of knowing how to ask.
Jesus, Gann, and Walter Russell have told us how to ask God for what we want. To open the
door, we must learn how to ask, and it shall be given. Learning how to ask, is much more
important than anything we can do individually. Our small minds and large egos can get in the
way of receiving an important download from the greatest computer in the universe.
The term, Law of Vibration is a term that has many meanings to many different people. The
term is confusing as many will associate concepts that were outside of Gann’s words to fall
under the large umbrella of LOV.
In this particular work, I have only taken from Gann’s own words to form a hypothesis of what
LOV is. My goal when writing Gann Science was to not let anything outside of what Gann said
get in the way of the definition of LOV. Anything outside of what Gann said is not under my LOV
umbrella.
Since everything is related to everything else, the harmonics between various things like
astrology, astronomy, math, science, cycles, even traditional technical analysis like Fibonacci,
etc., all will work at some point. People take these correlations or harmonic relationships and
place them under the umbrella of LOV. This is what confuses the definition of what LOV really is.
In Gann Science, this scientific system behind the LOV is explored and explained in great
detail. The book is broken down into sections with the beginning chapters providing a course in
the science of Gann’s time. The scientific background is developed and explained clearly in the
early chapters to give the reader the foundation to understand the market application. A full
understanding of the science and theory is a necessary prerequisite to applying the information
correctly to the market and to recognize the truly important “mathematical points of force”.
The next section of the book goes on to explain music theory in detail, as music theory is the
simplest way for most of us to understand and relate to the principles of octave theory. It
illustrates what the foundation of vibration is, and lays out the basis of the law, along with the
key components of the science of Gurdjieff, John Keely, and Walter Russell, which are explored
in direct relationship to the market and the LOV. The concept of harmonics and periodicity, what
they are and how to use them, all have a concrete application.
There is a chapter devoted to Luo Clements, taking a look at his Ancient Science of Numbers
theory. Other chapters look at developing time cycles, composite cycles, and gravity centers are
dealt with in a new way, never before touched upon in this manner in a book available to the
public. The enneagram, and its associated pressure points and energy flow pattern must also be
clearly understood to apply it to the markets.
The latter part develops a theory on what Gann meant by Volume as the 3rd Dimension, and the
meaning of his mysterious references to the 4th Dimension. The book culminates with a chapter
on how to synthesize the material into a trading application.
Many correlations to The Bible and other books are given, and some of the mysteries that have
been pursued in the Gann Internet groups are explained. The Jonah Riddle, the 3 days and 3
nights in the belly of the whale the solution given showing how to use it in the markets. Other
concepts that have confounded Gann students such as Daniel’s time, times, and half-a-time will
no longer be a mystery.
To give a little more insight into a few of the topics covered, in the chapter on composite cycles,
there is a method to make a composite cycle for a stock or commodity without using any price
data at all. That may be difficult to grasp, but it is practical and is used to identify trend and
direction, and the key points where inversion will take place, if there is going to be an inversion
in the cycle.
The way this composite cycle is built gives insight into what the periodicity of the trend really is
and how the reader can derive it for any vehicle. Periodicity is the regular recurrence at a stated
interval. Those intervals can now be understood and calculated.
In summary, the book Gann Science explains the science of Gann’s time, and where he got it
from, with proof, and develops it from theory into a market application.
Two stocks are used as examples and are broken down from the monthly to the daily time
frame. The tools in this book can be also taken down to the intraday level as well. The initial
analysis begins with the monthly chart and allows the user to find what particular “group” a
stock is vibrating with, thereby determining the individual rate of vibration for that stock.
Once the stock or commodity’s rate of vibration has been established, a master number set is
created for that vehicle. The master number set is good for all time and is used to predict the
price and time points for that vehicle into the future.
The analyses can be done with nothing more than basic arithmetic, and almost any charting
platform has enough drawing tools to apply the principles to the chart.
When all is said and done, the reader will be able to take the principles illustrated and make
predictions like those Gann provided during the Ticker Interview, because the mathematical
points of force are known ahead of time and can be traded effectively.
The cycle turn dates predicted two months ago have performed remarkably well, coinciding in
their majority with important swing turning points. Since articles for the current issue of TW are
due before June 15, this is as good a time as any to offer a mid-quarter update and see how the
cycle turns and price projections have panned out so far.
In the last issue of TradersWorld we talked about our favorite tools for forecasting price and
time targets and for managing trades. As a reminder, we rely on a few original indicators for
accomplishing different tasks of the trading and analytical process. The following tools are used
in our analysis, forecasting and trade management: CIT Channels and CIT Angles for making
price projections for a specific future time period; CIT Cycles for mapping future cycle turns; CIT
Cloud, CIT Swing and CIT Pivot Line for entering, exiting and managing trades.
The current update is published on June 10th, exactly two months after the original analysis was
performed. Since some of the currency pairs share the same cycle turn dates, we have divided
them into four groups; and due to article length constraints, will offer one follow-up chart per
group.
EURUSD, GBPUSD and USDJPY shared the same Second Quarter Cycle turns which were mid-
April, early May and early June. As mentioned in the previous article, indicator users can see the
exact dates while for purposes of this publication the accuracy is narrowed down to early, mid
and late month level. In addition, it is always good practice to keep track of higher and lower
time frame cycles as well.
For EURUSD the cycle turns marked the top before the beginning of a two month correction
(mid-April), the mid-point of the first leg of that correction (early May), and the end of the first
corrective wave (early June).
For USDJPY the cycle turns marked the start of an upswing (mid-April) which lasted until the
next cycle turn date (early May), while early June marked the beginning of a new upswing.
For GBPUSD the cycle turns marked the top before the beginning of a two month correction
(mid-April), the end of the first leg of that correction (early May), and the end of the second
leg of the corrective wave (early June). The downside target for the end of June for GBPUSD
remains at 1.3, while the upside target has been adjusted to 1.375 (Chart 1):
The second group of currencies with similar Second Quarter Cycle turn dates (late April, mid-May
and early June) are USDCHF and USDCAD.
For USDCAD the cycle turns marked the end of two upswings (late April and early June), and the
mid-point of the sideways move in between (mid-May).
For USDCHF the cycle turns marked the first and only pause in the strong 17 day upswing (late
April), the start of the current downswing (mid-May), and the start of a sideways move which is
still in play (early June). The downside price target has been adjusted to 0.967 (Chart 2):
USDNOK and USDSEK had Second Quarter Cycle turn dates in mid-April, mid-May and mid-June.
The first two dates coincided with the beginning of new upswings, and the third date shows a
similar promise.
The last forex pair is AUDUSD with Second Quarter Cycle turn dates in early April, mid-May and
late June.
The first two dates marked the beginning of counter-trend swings of similar duration. The upside
and downside targets have been adjusted to 0.737 and 0.777 (Chart 3):
Chart 3
In conclusion, it should be noted that the cycle turn dates were forecasted using only daily
cycles. By adding cycles from different time frames, users of our cycle indicators can achieve
results more adapted to their trading styles.
The other point to remember is that, although there may not be a single Holy Grail indicator,
a few simple technical analysis tools used in the proper context may do wonders for your
forecasting and trade management needs.
For more information about our technical indicators please visit CIT for TradingView and NinjaTrader 8
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economy or of a corporate entity or the price movement of a stock or commodity. Everything
follows a predefined rhythm.
If today on 29th June of 2018 (at the time of writing this article) I tell you that :
Or if I say that crude oil will see one of the biggest rise between 22nd August -12th
September 2018
Or if I predict that First fifteen days of October 2018 will prove disaster for US 10yr
Yield,
Everything may sound irrational but people who understand the “sacred science of prediction,” it
is pure mathematics.
When I say everything is pre-decided and predictable, here everything indicates literally
everything. If you do not understand the science of prediction, let me explain it in very simple
way.
To understand the "science of prediction" we need to understand that future is nothing but the
repetition of the past, if we can study the past we can predict the future. More we see into the
past more we can see into the future. As written in the holy Bible "there is no new thing under
the sun" that simply means whatever today we are experiencing has already happened in the
past, today it is just the repetition. If we look at our day to day life events and judge them
minutely we will see everything is being repeated, starting from the sunrise-sunset-sunrise, the
time clock, it starts at 1 goes to 12 then again start from 1, the month starts from 1st ends on
30th/31st and again starts from 1st, the year starts from January ends in December and again
starts from January. The week starts on Monday ends on Sunday and again starts from Monday.
Let’s consider our life cycle, we are born, grow up, get old, we die and then again we are born.
Flowers, animals, all follow the same life cycle. The water converts into clouds, clouds convert
into water and the process goes on. The number system starts from 1 and ends at 9 and again
starts at 1. Examples are endless. All future events are predefined, there is nothing called
“accident". And by applying this science of prediction we can predict the future
Basically the “sacred science of prediction” is pure mathematics and all other related sciences
like astrology, cycles, numerology, geometry etc are part of it, and by applying them we can
identify the past cycles as well as the future cycles. I genuinely feel that even a lifetime is less to
understand this holy science of prediction & it cannot be explained in few paragraphs.
In any case, this issue needs more research and all our calculations may prove wrong. Please
read the disclaimer carefully.
Wishing you a happy and profitable trading.
Anoop Kumar Agarwal is the Founder and CEO of “SA” Market Forecaster,
an Indian company that specialises in forecasts of stocks,Indices,Commodities,Curencies,Bonds
& Interest Rates.
www.stock-commodity-forecasting.com
FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING FULL CONTENTS, AND SAMPLE SECTIONS SEE:
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FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING FULL CONTENTS, AND SAMPLE SECTIONS SEE:
HTTP://WWW.SACREDSCIENCE.COM/FERRERA/THE-ART-OF-THE-TRADE.HTM
The cornerstone of W.D. Gann’s Science rests upon the relationship between numbers, the
letters of the Hebrew and English alphabets, and THEIR vibration thru the Zodiac and Annual
Calendar, proving The Law of Vibration within cycles of Mass Human Behaviour.
Gann’s Key Secret to unlocking his veiled references, is a Holy Bible/Freemason style cipher
that he uses on Key Words {Magic Words} thru out his writings to give the reader cycle anchor
dates and cycle duration periods. A process I have named ‘Magic Words Thru The Zodiac’ as a
tribute to Mr Gann. This phenomenon really is Magic, and like Gann says ‘You would not believe
it anyway’.
Just like in The Bible, Gann uses simple wordplay, simple mathematics, simple astrology and
esoteric symbolism to hide the truth from fools. There are a few gems at simple face value for
every reader, but all the good stuff is deeply hidden, for which he rewards you well for your
efforts. Every number and every word, every character, and every place is carefully placed for
very good reasons. There are so many layers, so many wheels within wheels, I sincerely doubt if
we will ever really find them all. He really was a genius.
Everyone enters the Gann path as a trader, looking for a simple low risk, high profit trading
system to get rich quick. But once you understand what W.D. Gann is about you will see that
there is just so much more to Gann than that.
How to construct a ‘Tunnel Thru The Air’. Such an impressive tool, so simple and easy to use,
you will wonder why you have never seen it done before.
Simply draw lines connecting the
- Highest price recorded in each “AIR” Sign {Gemini, Libra, and Aquarius}.
- Lowest price recorded in each “AIR” Sign {Gemini, Libra, and Aquarius}.
- and then a ‘Midpoint Line’ of these results {the midpoint between the High and low of the
same Air Sign}.
Work thru this process yourself and get a feel for the nuances of this method as it is a key to
understanding Gann and Biblical concepts that are used in conjunction with the ‘Magic Words
Thru the Zodiac’ method. You will then see the importance why these two methods must be used
in conjunction with each other. Many of the resulting dates that initially gave you what appeared
All Gann based Cycles results need to be referenced to the properties within the Tunnel Thru The
Air as many are referencing ‘Air Tunnel’ Time and Price relationships rather than a High Vibration
day or short term change of trend as expected.
This is part of Robert Gordon’s discovery of Ezekiel’s flying machine. Study the properties of the
cycle turns in relationship to Price reaction intercepting the top or bottom Tunnel boundaries and
its gravitation back to the Mid-Point {Mean Reverting} on the cycle date. Price breakouts from
the Tunnel are proportional to the Tunnel:Mid-Point’s range {similar to a Pitchfork’s Action and
Reaction lines}.
There are many more nuances to these Tunnels Thru The Air Signs, but this brief introduction
does not permit me to continue in further detail.
Can you see now where some of Gann’s other Trading Rules may now become relevant?
As an example of the ‘Magic Words Thru the Zodiac’ word cipher, let us take W.D. Gann’s use of
Fides Intrepida as Pope number 266, as prophesized by Malachy in 1139, on page 82 of Gann’s
‘The Tunnel Thru The Air’:
(Note: the numeration of Popes and their Motto values can change from various sources. We are
currently on the 266th Pope with Pope Francis, so this is relevant for our times!)
The name ‘Fides+Intrepida’ using the word cipher equals 13°Aries, on 3rd April the Sun is at
13°Aries. Adding 266 days is Dec 25th, the Church’s date for the celebration of the birth of Jesus
Christ.
The enthusiastic Gann researcher will quickly discover that Fides Intrepida (aka Pius XI, Achille
Ratti, Intrepid Faith 1922 to 1939) was not Pope number 266, but in fact he was Pope number
261, improving the cycle vibration.
But in true Gann style there are many interconnecting numbers layered to give the researcher
extra conformation. Pope 266 was ‘De labore Solis’ John Paul II 1978 to 2005. So named
because he was born during a Solar Eclipse, 18th May 1920. OMG, what are the odds of that?
What the researcher initially misses is Gann’s reference to “the Papal succession by means
of mottoes and numbers”, indicating there is a 156 difference in the Number of the Pope’s
MOTTO Number and the Number of the Pope.
Was Gann trying to point us to Pope 266 ‘De labore Solis’ John Paul II’s Motto Number of 110? A
commonly themed number throughout his ‘The Tunnel Thru The Air’, it’s additionally confirmed
Very nicely done Mr Gann, without exposing the Catholic Church’s fascination for numbers, and
their knowledge of the Law of Vibration.
There is an Online Forum that comes with Volume 2 where these topics are discussed and
researched in detail! You can find full details at these links:
Volume 1:
http://www.sacredscience.com/Rundle/Magic-Words-Thru-Zodiac-Volume-1.htm
Volume 2:
http://www.sacredscience.com/Rundle/Magic-Words-Thru-Zodiac-Volume-2.htm
You can also email institute@sacredscience.com or call 800-756-6641 or 951-659-8181 for more
information.
Roger Babson based his theory upon Newtonian Physics. For readers unfamiliar with these
theories, suffice it to say that when something is moving in a specific direction, it will keep on
moving in that direction until other force(s) cause it to stop or go in the opposite direction. Then
we arrive at the third law of motion, which is a bit more complicated.
The third law states that all forces exist in pairs: if one object A exerts a force FA on a second object
B, then B simultaneously exerts a force FB on A, and the two forces are equal and opposite: FA = −FB.
The third law means that all forces are interactions between different bodies and, thus, that there is no
such thing as a unidirectional force or a force that acts on only one body. This law is sometimes referred to as
the action/reaction law, with FA termed the “action” and FB the “reaction.” The action and the reaction are
simultaneous, and it does not matter which is called the action and which is called reaction; both forces
are part of a single interaction, and neither force exists without the other
The two forces in Newton’s third law are of the same type (e.g., if the road exerts a forward
frictional force on an accelerating car’s tires, then it is also a frictional force that Newton’s third
law predicts for the tires pushing backward on the road).
From a conceptual standpoint, Newton’s third law is seen when a person walks: they push
against the floor, and the floor pushes against the person. Similarly, the tires of a car push
against the road while the road pushes back on the tires—the tires and road simultaneously
push against each other. In swimming, a person interacts with the water, pushing the water
backward, while the water simultaneously pushes the person forward—both the person and the
water push against each other. The reaction forces account for the motion in these examples.
These forces depend on friction; a person or car on ice, for example, may be unable to exert the
action force to produce the needed reaction force.
Roger Babson is well known for applying the laws of physics over one hundred years ago to
forecast future price movement in securities and indices. This brings some to wonder if Roger
Babson’s techniques could be used to prove the arrow of time concept. Physicists, like Elliott
wave theorists, differ in their opinion about the same thing. In the interest of simplicity, this
work will answer two questions that may be asked regarding the arrow of time.
According to Wikipedia
Psychological time is, in part, the cataloguing of ever increasing items of memory from
continuous changes in perception. In other words, things we remember make up the past,
while the future consists of those events that cannot be remembered. The ancient method of
comparing unique events to generalized repeating events such as the apparent movement of
the sun, moon, and stars provided a convenient grid work to accomplish this. The consistent
increase in memory volume creates a mental arrow of time. Storing a memory, from an
information theoretic perspective, requires an increase in entropy, thus the perceptual arrow
ultimately follows from the thermodynamic arrow.
A related mental arrow arises because one has the sense that one’s perception is a continuous
movement from the known (Past) to the unknown (Future). Anticipating the unknown forms
the psychological future which always seems to be something one is moving towards, but, like
a projection in a mirror, it makes what is actually already a part of memory, such as desires,
dreams, and hopes, seem ahead of the observer. The association of “behind = past” and “ahead
= future” is itself culturally determined. For example, the Chinese and the Aymara people both
associate “ahead = past” and “behind = future”.[8] In Chinese, for instance, the term “the day
after tomorrow” literally means “behind day” while “the day before yesterday” is referred to as
“front day” and in Hindi (an Indian language), the term used for “tomorrow” and “yesterday” is
the same.
As one considers the Arrow of Time theory, there are two straightforward questions. Can the
future be accurately predicted by the past and can the past be accurately predicted by the
Future? As you will see in the following chapters, the reaction in the future is equal and opposite
and, as a result, a future event can predict a past event.
The second question is, does an action create a reaction in the future? If actions and reactions
are equal and opposite, is it possible that actions and reactions, which are separated by time,
are actually created at the same moment?
In private discussions, Roger noted that during a long term upward move of a company stock,
the company often makes foolish investments. These are ignored at the time because of the
overwhelming increase in revenue and profits from other aspects of the company. There comes
a time when the company writes off these foolish investments or divests itself of them. These
are commonly known as write-offs. Write-offs typically occur when the stock of a company is in a
down trend.
Recent computer-based studies of this theory have led some to the conclusion that the area
above the normal line is very useful in forecasting the turning points in the area below the
normal line. Furthermore, as will be shown, the extremes of the areas above the normal line can
also be forecast successfully.
An example of the application to the FXI chart above took three steps. First, using a special
protocol, the normal line was selected and drawn.
Finally, the pivot area of the recession area below the normal line was forecasted by drawing
a reaction line. The reaction line is always drawn parallel to the action and normal line. The
reaction lines are located by drawing a line parallel to the normal line and the same distance
from the normal line as the action line.
1-800-288-4266
www.TradersWorld.com
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FOR A DETAILED WRITE-UP, SAMPLE TRADES & AUTHOR INTRODUCTION &SAMPLE TEXT SEE:
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GANN’S SYSTEM CRACKED WIDE OPEN! WHAT THIS NEW COURSE IS ABOUT….
T L
HE AW OF IBRATION V
Markets have patterns created by the motion of their
formative waves. How do you develop a template for
BY THE ATTERNS P the possible movement of such waves? This work
will teach you! 14 years of research into market
EXPOSING THE UNDERLYING SECRETS movements and the repeating patterns and models
that are created from every possible combination!
OF W.D. GANN & DR. BAUMRING
BY LORRIE V. BENNETT This course will teach readers to create tradable
forecasts using several wave based techniques...
In the early years of our educational experience, all will have experienced the question of “Which
of these does not belong?” It was a test of identifying a group by related characteristics and
then figuring out which of the group did not match a characteristic.
My favorite was always the Apple, Orange, Tomato, Strawberry. The first time I encountered it,
I chose tomato only to discover I was wrong. I figured it was the one that did not belong as I
knew tomatoes were veggies and the others were fruit.
That was when I learned that even the tomato was a fruit. Then I chose the Orange because
that was not red. Wrong again! At that point I learned that things could be classed by
characteristics that you could not usually see… like seeds.
That required knowing more about each of the group than what was evident such as it was red,
sweet or that Mom called them fruit and said I couldn’t eat the whole basket. Strawberries have
their seeds on the outside and all the others have them inside. So, 3 possible answers and only
one was correct. At least according to the teachers desired answer.
So why discuss this in an article for traders? Because even in adult life we need to be able to
discern differences based on facts that might not be evident. This article was to be on Hawaii
and it is, but it will also lead into a forecasting article for the next edition which will discuss why
forecasts fail or at least appear to fail.
Hawaii is up first. As anyone in the US knows, the Kilauea volcano in Hawaii has been making
the news due to a very powerful outburst. Now I am not really calling it an eruption as it has
been erupting since Jan 3, 1983 and has not fully quieted since then. So, we are going to
consider it an outburst. But let’s look at what triggered this child to having a temper tantrum
now.
To gain understanding required a technique call Geodetics. I touched upon it when discussing
the locale of Facebook in the last edition. Looking to the longitude and latitude of Kilauea at
19.4N, 155.28 W gives geodetic coordinates of 25 Libra on the Midheaven and 29 Cancer on the
Ascendant. It began its most recent outburst on Thursday, May 3, 2018. These two positions
on the zodiac wheel become critical when evaluating the “WHY” part of the question.
In Geodetics, the element of Earths gravity comes into play. Most events tie to strong
Due to the pull of the Sun and Moon on the Earth, the effects that are on one side of the Earth
also play out on the other, and 26 Aries is opposite to 26 Libra and less than 3 degrees from the
Midheaven of Kilauea.
Blended within the New Moon was also Uranus adding its gravitational effects to the pull. This
creates a significant upwards pull to the Earths crust as well as the magma below. These events
do not occur every day but about every 19 years for a new moon at that point, and about 42
years for Uranus, so it is possible to see that such a powerful outburst could take years to occur.
In 1975 there was a 7.4 earthquake that created a small, brief eruption. That was about 43
years ago just about time for Uranus to have an effect. But what is the difference now? Why
are we having such a powerful and longer lasting event now?
One reason is due to the presence of the New Moon drawing the magma up which creates
movement within the volcano of lava that needs releasing. But also, there is another event that
occurred in 1982. In 1982 there was a total lunar eclipse at 8 Cancer 27 or about 21 degrees
from the Ascendant of Kilauea. This event was on the horizontal axis of Kilauea’s location and
the April 16, 2018 was on the vertical axis of Kilauea’s location.
Most would shrug and say, so? But it is not as inconsequential as most would think, since
Kilauea is the one that does not belong in a list of volcanoes which would include Mt. St. Helens
in the Pacific Northwest, Fuego in Guatemala, Mt. Sinabung in Indonesia and Novarupta in
Alaska.
The question then becomes, how it is different than Fuego and Mt. Sinabung, which are also
currently erupting, or any of the others who have erupted within the past, such as St. Helens
and Novarupta? Kilauea is the only Hot Spot volcano. WHAT you might ask is a Hot Spot
volcano?
These volcanos are thought to be fed by underlying mantel that is very hot compared with
the surrounding mantle. Their position on the Earths surface is independent of tectonic plate
boundaries. The others in the above group are located on tectonic plate boundaries and are fed
by the dissolving plates as they undergo extreme pressure from subducting under another plate.
The actual volume of “lava” or “flow” is limited and once released takes time to rebuild pressure
for the next event. Kilauea is not that type of volcano. Its lava comes directly from the mantle
in a type of unlimited supply. But there is a feature that can be changed, and that is the position
of the plate over the “hot spot” itself.
The total lunar eclipse on Dec 30, 1982 created a shift in the Pacific plate. That is how the
Hawaiian island chain has formed. As the Pacific plate has slowly moved over the hot spot, the
But then why did it turn on in 1983 or about 4 days after the total lunar eclipse of 12/30/1982?
Because that eclipse caused the Pacific plate to shift just enough such that the vents and
opening to the Kilauea volcano came into better alignment over the hot spot allowing a strong
flow of lava up those same vents into the volcano proper.
What does that mean for Hawaii and if Kilauea is going to go quiet? Well the news is not good.
Due to the shift of the plate and the recent New Moon loading the vents with lava from the
mantle and the better alignment with the vents, the outlook appears to be that Kilauea will not
be quieting, but will be active for quite some time, or at least until the Pacific plate shifts far
enough away from the Kilauea vents to not allow the lava to flow up thru them. This will lead to
an enlargement of the Big Island and will likely bring a new vent system into being which will
eventually open on the surface.
But for those who worry about such things… Don’t! We will all be long gone and likely forgotten
before that event ever takes place. But we will also have the opportunity to watch Kilauea grow
and have many more outburst that will dazzle even the most skeptical about Mother Nature’s
power.
Kilauea might go quiet for a year, but as is common with all sleeping children, it will not be for
long, and will always present the risk of a shock to the parents as the sleeping child awakens.
So, how does this pertain to the markets? Well, first I don’t think buying any of those lots on
the slopes or fissure areas of Kilauea would be smart. But it also shows that there are often
underlying reasons for things not to be seen as they really are.
In my next column we will discuss the DOW and its recent January top and how it is like a
volcano on a tectonic plate edge.
For more information about my work and my 4 Volumes Series on the Law of Vibration, please
see the following link:
http://www.sacredscience.com/BENNETT/Law-of-Vibration-Series-Introduction.htm
You can also email institute@sacredscience.com or call 800-756-6641 or 951-659-8181 for more
information.
Stocks, Options, Tr a d i n g M e t h o d s a n d C o n c e p t s ;
Futures, FOREX traditionally reserved for big
SOFTWARE banks and hedge funds, now
See high probability trade set-
ups right at your charts.
available for you:
` Spot and follow institutional money moves.
EDUCATION
One-on-one training/coaching: Let the chart tell, when to buy or sell.
Trading Strategies Works for all asset classes and time frames:
Money Management
Risk Management
Day Trading
TRADE ALERTS Swing Trading
Find assets ready to trade. Long-Term Investing
Trading is a professional business and your decisions will meet somebody, most likely and
institutional investor, to take the other side of your trade or investment – and they are motivated
to make money.
If your main motivation ranks between one and four: read no further. You do not want to or
need to work for trading and investing success and we wish you fun and enjoyment.
In case you are still with us: Making money Trading and Investing long-term takes serious effort,
dedication and a composition of elements, working together for you.
In essence, it can be done: we are in the trading education business for 10 years and teach the
steps needed individually: one-on-one, focused on our specific wants and needs. What we share
is not for the masses, where 90% fail to make money.
To turn yourself into the trader and investor you want to be, it will need an investment in you:
learning systems, systematics, and building a guideline and process to follow. We will show you
the major elements of trading and investing success in the publication.
A quick hint: the term NeverLossTrading comes from us teaching the ability to not take a stop-
loss, instead you repair your trade; however, Never Stop Loss Trading was a bit lengthy.
Why do we claim that trading and investing takes effort?
Pretty easy: If you could make money long-term by focusing on a system and systematic that
lets you buy when two indicator averages cross to the upside and sell when they cross to the
downside – and most traders rely on such; how easy would money making be and why do 90%
of the private traders and investors then lose money?
Let us start with a diagram, listing the major elements of trading and investing success:
By our definition, trading and investing success derives from a composition of the above listed
elements, consisting of:
Nobody but you decides when your money goes into the market. Think of investing or trading an
asset like buying multiple condos for a rental return. In such case, you appraise:
We encourage you to build or follow clear-cut appraisal procedures; replicating what worked for
you, leaving behind, what did not.
In the following we go through the trading and investing components one-by-one with you:
1. System
Do you have a trading system that lets you predict the beginning of a future price move with a
probability ≥ 65%?
Statistical significance for a correlation for decoding signals repeatability starts at 62.8%.
Considering variance and standard deviation, we moved the requirement a notch up and
specify our minimum system performance at 65% predictability, from signal initiation to signal
conclusion; thus, predictability has three components:
- System specified entry condition, so you can operate with a buy-stop or sell-stop order without
the need for being in front of your computer, aside from day trading.
- At entry, calculated exit, where you expect price accumulation and a potential opposite price
movement.
- Stop, outside the statistical volatility to bring the trade to target without getting stopped.
The UNH-chart shows two trade situations with the following specifications:
Aside from a set price target, this system operates with a time-based target: The assumed
price target shall be reached in the matter of 3-bars, maximum 4-bars (when the third candle
has another same facing signal), else we close the trade.
Both trades had a positive outcome and reached the set target. As a swing trader, you were
able to enter the trade at pre-specified conditions and everything was fulfilling itself, without
the need for you to be in front of your computer for the trade entry or exit: how comfortable is
that?
Our aim is to make your trading decisions as mechanical as possible, giving you guidelines right
on the chart, shortening your appraisal and decision-making process:
In the top left corner of the chart, you see the dashboard for Trade Situation-2:
• SPU is our measure for the expected price move (newly calculated bar-by-bar)
• The 1.8% tells you that the trade gives you a 1.8% return on cash when it comes to
target in the next one to four days (this trade took two days).
• No Trend 20 in blue, tells you that the uptrend might conclude shortly.
• Up #:2 indicates, that the signal was at a second candle in an up-momentum move.
• Target and Stop are already explained; but how convenient is it having them spelled out
like this?
• Favorable 1.1 tells you that for $1 of risk you take, you get at the chosen setup a
$1.1 reward.
After we shared the first but not only component needed for trading success: Compare and see
if you already have these components in place or if you see a possibility for developing all this on
your own rather than trusting into a market-proven concept?
At this point, many surely ask if this works the same for day trading.
The answer to this is yes; however, you have less time for the appraisal of the situation.
At the end of the day, we encourage traders to use the same system, systematic, and appraisal,
regardless of the time frame, tick frame, or range you decide on.
Chart-6: Trading and Investing Requires the same System, Appraisal, and Systematics
Taking a day trading example right from the day we work on this publication:
We see one trade situation with a two-tier-target. System based, target-1 shall be reached in
1-5 bars and target-2 in 1-10 bars. Based on one contract, reaching target-1 resulted in a $250
income and reaching target-2 in a $500 income for that day.
In summary, every trading and investing decision shall follow the same principle. Day traders
just have less time on their hands to make the appropriate appraisal.
All NeverLossTrading systems are combinable. As a special offer for the magazine readers, we
will design for you a combined offer for you, increasing your participation rate in trading and
investing: mention TradersWold #70.
If you already have a system and you want to test if it is at or below the desired 65%
probability: take 20 trades with system-specified entries, exits, and stops; then check, if you
won at least 13 trades.
2. Risk Management
Risk management is the art and science of relating the expected reward compared to the risk to
take in a trade, combined with the probability of the setup.
• Expected Reward: calculated by the price pressure of the situation you enter.
• Assumed Risk: considering the statistical volatility of the asset, so you do not get
stopped, prior to getting to the target.
• Probability of the setup: system based appraisal.
In case you operate with a lower probability system, you need to constantly find high reward and
low-risk setups. However, this is easier said than done: Let us share our statistics, where we are
relating reward to risk per trade situation:
Chart-8 tells you that you have a 5% likelihood to find trade setups where you take a meaningful
pre-calculated risk to get to target without getting stopped; having a ≥ 2:1 reward to risk setup,
while 35% of the setup, when using a 65% system are above a risk level of $1.2 in relation to
$1 reward and thus unfavorable.
If you operate with a lower probability trading system, you need to aim for the two left bars
of chart-8 and thus only 25% of the potential trade setups are for you – and good luck finding
them.
In our systems and teachings, we combine those critical elements of trading success and
encourage you to do so too or come on board to learn how it is done!
When you want to get a flavor of how we find such trade situations at multiple time frames, we
encourage you to receive a free week of NLT Alerts, where we spell out trading opportunities for
the day to come… sign up here (no credit card needed).
The key of money management is to prevent drawdowns; thus, we encourage you to trade or
Invest Odds Based, relating the probability for success with the expected reward in relation to
the probability of failure, considering your account holdings and amount of investments you want
to manage.
Chart-9: NLT Odds Based Position Sizing Model for Stocks and Options
Chart-9 shows a trade situation for AAPL on May 8, 2018. The table compares the stock
investment to an option investment, based on a $100,000 account with assumed six positions to
hold and an options account with $10,000. The appraisal gives you an indication, to odds based,
either invest $37,229 for buying 200 shares or investing $334, buying two call option contracts.
There is more information as you can see on the table and we encourage you to have such
appraisal scheme to know you investment size based on the risk, reward, add odds appraisal of
the trade situation.
Often the word hedge is dismissed with hedge fund: Every year about 20% of the world’s
hedge funds vanish into thin air, because of mismanagement; thus, hedging commonly has the
connotation of high risk; however, it is the opposite: it shall protect your overall portfolio risk.
On the last black swan event, hundreds of shares traded all the way down to zero. Stops are
usually market stops and you will be filled at the first trading point, which might mean that there
are instances where you lose all you have invested when an overnight sell-off occurs.
The unfair thing is, markets gap and you have no way to buy or sell stocks or options at such
instance until it is too late.
You need to decide system-based, when a hedge goes into play: stop level for the overall
portfolio.
Imagine, you are an IRA holder and system-based, you specify, if in a day or overnight session,
that if the market moves outside your price level of tolerance, automatically a pre-defined
amount of Futures contracts will be sold.
If your portfolio is based on NASDAQ holding, you sell E-Mini NASDAQ futures contracts. For
DOW based portfolios the E-Mini-DOW and for overall balanced portfolios, the E-Mini S&P 500
futures contract.
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An Action Plan
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DeLorean
hitratio points
May 2017 80% + 43
June 87% + 29
July 89% + 47
predictions
How does DeLorean work? Want to know more? Check our website:
A thai Chi master with expert fighting skills was asked “what would you do if you encounter a
group of 5 strong guys attacking you?”
Firstly it can be used to profit from the opening of the future on the index the next day, by
aniticipating an up or down trend as well as certain points in time with short term high volatility.
This is called DeLorean OPEN Cycle. Traders can use derivatives on an index -options and
futures- to profit from a very short cycle.
Secondly, picturing the indicator for the next month with all its ups and downs it can be used for
trading short term options and futures. This is called DeLorean Monthly Cycle, to be used with
Thirdly it can be used for longer term predictions with a general forecast for an upcoming bear
and bull market, as well as volatility, which is DeLorean Long Cycle.
The cycle works the same for SPX. In short: 3 tops close together is a strong bull market,
like begin 2009 to begin 2010. Much smaller ones are visible in 2017 and 2018, which indicated
smaller Up trends but still strong ending January 2018. These are marked in green above the
“positive” indicator in the indicator pane beneath the chart. Rising green line is UP, declining
green DOWN.
The second indicator pane displays a red line. Near its maximum at 1 it indicates high volatility.
3 tops together is a longer period of high volatility such as 2008-2009. Now, in 2018 we will
experience a long period where red is at its high where volatility will increase (as it began in
January 2018). In combination with declining green, hectic markets are ahead.
There is more and detailed info available Years ahead. Ask us if it is of interest to you, at info@
aquilaesignal.com.
DeLorean Indicator
This indicator is the engine of DeLorean time cycles on stock indices, more specifically the SPX,
the HSI and the DAX or Eurostoxx50. Your trades and management are the brakes as well as the
acceleration while the steering wheel is the trading direction, up, down or nothing.
Below we will give you examples of how accurate it worked out in the past. Please be assured
that the indicator was already available before it happened, just like we will show the indicator
later on for the near future (see also 1st page for July).
(what does this title mean? Tell us your guess and earn 1 month DeLorean indicator for free)
In the previous article we forecasted - one month before it happened- the trends 23-24th of
April, which was Down as well as the Up trend that followed thereafter on 25-26th of April. By
default the trend changes when the black line of the indicator below crosses zero. So trend was
down until the very beginning of the 25th of April. Then the up trend began, which ended in the
morning of the 27th of April. This is no coincidence. Imagine the possibilities for your return
(and less risk).
You can compare the chart below with the chart below as well as depicted in our previous article
where future prices were not known yet. Below is the DAX, the SPX worked exactly on time as
well.
DeLorean indicator called ASPtrig (or MAPStrig) and it waves up and down predict the sentiment
of the herd of investors and traders. The indicator is built by short term and longer term time
cycles and waves which are fractal in nature. Some cycles are positive (Green line and area)
some are negative (Red line and area) and the sum of it determines if the black line is above
zero and declining or rising.
Underneath the surface of the DeLorean indicator there is still a treasure of information to map
in order to test individual time waves that build the cycles for significance and performance. Now
our software is able to analyze these individual waves and determine their average performance
as well as their Win Loss results in the past.
Actually, these specific time waves point out acceleration as well! Strong up or down trends
do accompany these cycles, so it is more easy to profit from trending markets using simple
techniques.
We show you positive as well as negative time waves and cycles below. Obviously, statistical
analysis confirms the positive and negative cycles significantly. More important even is that we
now can make a performance attribution exactly and determine which cycle brings the best
performance/ win loss and less risk.
There are many cycles that have a very good and significant performance, at least around 30.
The picture above shows a fine example of how a specific, strong positive cycle contributes to a
very good performance. From 2016 until now it occurred around 40 times and gave an average
performance of 0.41%, 16 % in total. Win loss ratio is 67.50 %, see also de list of cycles. We
can double click and go directly to the one selected.
Another very good cycle for an up trend. On average 0.87 % and win loss of 83%, which
happened 6 times from 2016 .
This cycle predicts very significant down turns - on average a decline of 1.2%- with a win loss
of around 70%. It already starts 1 day before it happens and continues its decline the day
thereafter.
To finish we will give some forecasts for future events. Firstly we are expecting volatile, mostly
negative markets in the months of July and August to begin with. Other sensitive dates for
negative markets are around:
August 16 and around August 30-31, 25-26th of September, The week of 23/24th of November
2018.
Also we have projected the time waves, the specific waves that build cycles, into the future for
positive events. We mention the following.
Facebook: Aquilaesignal
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You have a silent partner in your trading business. He’s so silent that he is easy to ignore and
pretend that he’s not even part of your mindset. Particularly if you don’t even know what to
look for. Out of sight, out of mind. Until things start heating up, you wouldn’t even notice him
lurking beneath your awareness. He’s just lying in the background, easy to ignore, with you
seemingly in rational control. It seems like such a great partnership. You believe that you are
reasoned and in control with your emotions hidden away. This is how traders want their mindset
to work when trading. It is so easy to ignore the presence of your silent partner. And, when
calm, your silent partner (your emotional brain) seems to play by your rules also. At calm
moments, the emotional beast seems very tame.
Then you find out suddenly and without explanation – not only is he a silent partner, he is the
majority partner and commands the mindset you bring to managing uncertainty under stress.
You don’t realize that until push comes to shove. It is in those moments that things inexplicably
shift for you from being in control to losing control of the mindset you bring to the management
of uncertainty. Now your silent partner has mutinied and has taken over. The rational mindset
that seemed so in control just moments ago is gone. And in its place is a raging bull. Where
on earth did the raging bull come from? Moments before, it looked like clear sailing. Now
emotional storm clouds crash the rational mindset and leave an emotional hijacking in their
wake.
That silent partner of yours can turn your mind into a mind rooted in fear, a mind rooted in
impulsive behavior, or a mind rooted in anger - seeking to make up for prior losses. The point
is that you never saw it coming BEFORE it blew away your rational mind. Your silent partner is
like a submarine. You don’t see it, though it is there – lurking in the depths. Then, suddenly
the emotional torpedoes are released and the damage is done. And until the trader learns to
deal with the submarine called his emotional brain, all the logic and reason needed for effective
trading is blown up just when you need it most.
Then the true nature of the relationship between the thinking brain and the emotional brain is
revealed. Emotion drives thinking. You are not a rational being who has emotions. Rather,
you are an emotional being who rationalizes what the emotional brain has already decided. You
don’t see the emotion behind the thinking, typically, because the emotion is calm BECAUSE IT
HAS NOT BEEN ACTIVATED BY CIRCUMSTANCE. Yet it is there. Your survival instincts act like
a trip switch, always on the lookout for danger or for opportunity to be exploited, depending
on the predisposition of the trader. It is poised to be activated in a moment’s notice. Yet it sits
beneath the threshold of the thinking brain’s awareness. It’s so easy to ignore.
What is the emotional brain on the lookout for? It is scanning the environment for threats to its
control. Your emotional brain has a hardwired need to be in control of outcome and to be able
to predict outcome. You, as a trader, experience this evolutionary bias as a threat when your
emotional brain perceives it cannot control outcome or as an impulse to act to take advantage
of a situation. As emotions interacting with the environment of the markets, you experience
this phenomenon as a fear of loss or as an impulse to take advantage of opportunity. Both
come from our distant past as hunter-gathers where fear of the unknown (uncertainty) and
the excitement of the chase (hunting big game with your wits) were survival adaptations in
an uncertain world. These are the survival instincts of your silent partner that you bring into
trading – ready or not.
And, as a trader, you carry them with you into every encounter with uncertainty you engage.
You are always on the edge between your silent partner appearing calm and transparent to
your awareness and having your silent partner activate the survival instincts of your emotional
brain. Any time you experience uncertainty, you also experience a biologically driven loss of
control. This is the fear of loss that takes over the thinking brain and causes you to freeze, as
your thinking brain wants to pull the trigger. To the survival instincts, this is a victory. By not
letting you get into the trade in the first place, you have minimized the potential of loss. This is
a victory to the short-term survival focus of the emotional brain – by not getting into the trade,
the threat of loss can be averted. The emotional brain is incapable of understanding that you
have also lost the potential for long term profit. Your silent partner has a completely different
agenda than the thinking brain – which has now been hijacked by the power of your survival
instincts.
The hunter in the trader experiences a different bias. There is an excitement that builds for
From that new-found understanding of what makes the emotional brain’s survival instincts
tick, the trader no longer steps ignorantly into harm’s way. The first skill that I encourage
you to learn is to observe your body and your mind so that you can catch emotional triggers
before they become dangerous to your trading mind. You do this by noticing the build-up of
muscle tension in your body. Muscle tension is always an indication of emotional arousal. As
the emotion gathers strength, the muscles of the body move from a relaxed state to a tense
state, poised for action. This is called emotional arousal. It is here that you first learn how
to work with your silent partner. Relaxing the muscles also calms the emotion down. As you
calm the emotion down, your silent partner does not seize control of thinking. People who learn
how to observe the arousal of an emotion as muscle tension have the advantage of not being
emotionally hijacked out of their ignorance.
Working with your breath is similar. As an emotion escalates, your breathing changes. Most
people notice that they hold their breath or start breathing shallowly as the survival instincts
take over their conscious mind. Yet, if traders train themselves to observe the change in
breathing BEFORE IT BECOMES A PROBLEM, they are able to use bellows breathing to re-
establish emotional calm. The management of muscle tension and breathing are necessary to
keep your silent partner calm so that it does not mutiny and take over the trading mind.
Right now, the emotional learning encoded into your brain views uncertainty as a threat to your
survival. When your brain experiences uncertainty, it automatically triggers to vulnerability.
What happens at the level of vulnerability is the difference between success and failure in
trading. The history you bring from evolution automatically triggers to fight/flight as a response
to vulnerability. That emotional learning will not change by force or wishful thinking.
It will change when the amygdala (seat of your emotional reactivity) learns to trust the thinking
brain (its necessary partner in managing probability) rather than the emotional brain. (Or using
our analogy, your silent partner.) That means that the neural circuit that connects uncertainty
to vulnerability learns that losing a trade does not mean death (fear of loss). Vulnerability
no longer means danger from the survival point of view of the emotional brain acting alone in
the world. Vulnerability means probability instead. This new learning overturns the survival
orientation that has guided the emotional brain’s adaptation to uncertainty. This is a major feat,
which few traders accomplish.
Why Is It So Hard?
As motivated and hard working as traders are, why do they stumble over the survival instincts
that drive the emotional brain? Mainly because all humans (including traders) have a deep need
to be in control. And as long as the trader identifies with the thinking brain as the important
part of the brain and mind for trading performance, the trader creates a narrative (a story) that
minimizes the impact that the emotional brain (your silent partner) has on engaging and dealing
with uncertainty. The thinking brain really wants to be in control (even though your trading
account tells a contradicting story). The truth is that the thinking brain and the emotional brain
have to give up the illusion of control over outcome and over being able to predict outcome.
It is at this point that true partnership between your emotional brain (your silent partner)
and your thinking brain becomes possible. All traders have a fear of loss from our hunter/
gatherer heritage that has to be modified from the mind you brought to trading, so that you can
function in the world of probability. Acknowledging the fear and then working with it effectively
(rather than attempting to ignore it) is the missing piece. It requires training, not platitudes.
Developing the probability mindset is literally going against the grain of your evolutionary
adaptation. There will be resistance to change on this level. Fortunately your brain is an
adaptive organism and can learn to shift from a survival orientation in response to uncertainty to
a probability based mindset that engages uncertainty. To do that, you must start talking to your
It is there, lurking in the background anyway. Learn to acknowledge its presence. Learn to
calm it as you engage uncertainty BEFORE you experience the inevitable vulnerability. Talk to
it calmly. Let it know what you are doing before it gets a head of steam worked up and plows
through your capacity to think under pressure. Allow yourself to feel the vulnerability as you
regulate its intensity. Then check out your deepest beliefs you hold about your capacity to
manage uncertainty. It is here where your implicit performance beliefs lie. It is these beliefs
that have to change. First by acknowledging them, then by proving that you can move through
uncertainty and vulnerability effectively by training yourself to have a probability based mindset.
Every trader, if he or she is to become successful, has to do this. You turn toward your fear
and master it. You do not conquer it. You master it so that you do not fear uncertainty, but
approach it from a calm and disciplined mindset. You become the designer of adaptation, rather
than being run over by your silent partner.
Trading becomes a journey into self-mastery. Where there is fear, there is opportunity to
redesign the way emotions interact with uncertainty. Uncertainty will always elicit a sense of
discomfort. But that discomfort can be retrained so that it does not activate the fight/flight
response to uncertainty and vulnerability. At this point your silent partner (the survival instincts
of your emotional brain) and your thinking brain become effective partners. And you operate out
of a probability based mindset rather than a survival based mindset when engaging uncertainty.
In this probability based mind, you seek neither to win nor to lose, which are out of your hands.
Instead, you seek to control what you can really control – the mind you bring to the engagement
of uncertainty. In the probability based mind you seek performance in the moment. This is the
missing edge required for success in trading.
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WWW.TRADERSWORLD.COM July/August/September 2018 73
THE FOUR-YEAR CYCLE IN U.S. STOCKS
Excerpted and revised from
“The Ultimate Book on Stock Market Timing
Volume 1: Cycles and Patterns in the Indexes”1
By Raymond Merriman, CTA ©
It seems that nearly every investor is aware of the "Presidential Election" cycle in the U.S. stock
market. It goes like this: during the U.S. presidential election campaign season, the incumbent
party wants to get re-elected. In order to do so, it is in this party's best interest to do everything
possible to make sure the economy is healthy. Conventional wisdom is that people vote primarily
by their pocketbooks. They will usually re-elect their leaders if the economy is strong and vote
them out of office if the economy is unstable or weak. One measurement of a healthy economy
is a strong stock market, which itself is influenced by stable and/or low interest rates. Because
favorable economic policies are employed just prior to an election, the stock market tends to
perform very well. However, in the middle of a President's term, the leadership is more likely
to adopt policies that are not so popular, particularly with regards to the economy, such as:
raise taxes and/or allow interest rates to rise (which the President doesn't really control,
but even the Federal Reserve Board wants to avoid the appearance of favoring one party over
another, so they may adopt policies of credit restriction during the mid-term of a President's
tenure rather than during the election campaign season). Thus, the stock market tends to
become weak prices fall and bottom - during the middle of the Presidential term.
Since the U.S. President is elected every four years, many market analysts have reported a four-
year cycle of troughs and crests in U.S. equities. The market tops out every four years, within
a few months of the actual election, and then bottoms every four years, usually in the middle
of the President's term. But does this really happen according to the characteristics of cycles
defined in our prior articles? In other words, is the four-year cycle trough really a dominant cycle
that occurs in middle of a presidential term? And does the crest of the four-year cycle tend to
happen consistently close to the actual election?
One of the finest works compiled on the 4-year stock market cycle is that of Walter Bressert.2 In
his seminal manual on Cycle Trader, he lists the dates of the 4-year cycle low in the Dow Jones
Industrial Average (DJIA) between 1917 and 1997, the price of that low, the dates and level of
the crest of each cycle, the duration of time between the troughs that make up the cycle, the
duration of time between the trough and the crest, the duration of time between the crest and
the ending trough, and the percentage of retracement for each trough. He then analyzes those
cases in which the DJIA exceeded the high of the previous four-year cycle crest, versus those
that did not. The results of those studies will be referred to in this article, and then as we will
compare them to our own studies.
Let's first of all provide a listing of the probable 4-year cycle troughs in the U.S. stock market
since 1893 from our own data. This list will provide the month, year, and the number of months
(in parentheses) that elapsed between these cycle troughs.
In all, there have been 32 instances of completed 4-year cycles since 1893 with a range of 31-
68 months. The average duration was 45.78 months, with a mean cycle length of 49.5 months
if all cases were used. In 26 of these 32 cases (81.25%), the four-year cycle occurred between
the 36 and 56-month interval, with an average duration of 46.46 months, almost the same as
the average of all cases. A “normal” cycle is defined as one where 80% of the occurrences take
place. Any occurrences outside of that 80% range are considered “distortions.” Three of these
4-year distortions coincided with the 54- or 72-year stock market cycle trough (1932, 1987, and
2009). Two of these occurred with the cycle that immediately followed the 72-year cycles (1938
and 2011). Distortions are most common when they coincide with greater (longer-term) cycles.
What else is interesting about this cycle? Does it bottom consistently in the middle of the
Presidential term? Is there a seasonal factor? The U.S. Presidential election happens in
November of every leap year. The middle of the election cycle would thus be November, two
years later. However, in studies of these troughs, the preponderance occurred before the two-
year mark (i.e. in the first two years following the election). In 25 of the 33 lows used in this
study (75.75%), the trough occurred before November of the two-year mark. In two cases
(three if we use November 1994), it occurred within one month of November, two years after
the election. In only five cases was it longer - and those were all in the first two decades of
both the 20th and 21st centuries, and in consecutive cycles (1903, 1907, and 1911, followed by
2011 and 2015). If we apply this study to all instances after 1911, there were no cases wherein
the 46-month cycle trough occurred after December of the mid-year of the Presidential term –
except in 2008 and 2012. In other words, all troughs occurred within 25 months following the
Presidential election between 1912 and 2004. Apparently, if there is a relationship between the
economy and power of the White House, the President would rather see hard times end early in
his/her term. At least that was the case before 2008. Something changed then. Either the White
House, or the Federal Reserve Bank did not want to risk any financial market decline at any time
after the Great Recession of 2009.
Of the 27 cases since 1911, 16 (59.25%) occurred between the 16-25 month period following
the election. That is not a very high correlation. However, this correlation was impressive
between the elections of 1960 and 2008. In the twelve elections during that time (1960-2008),
11 witnessed a 4-year cycle trough between 16 and 25 months after the election (91.7%).
However, that pattern did not occur after the elections of 2008 and 2012.
The seasonal distribution of these troughs is also noteworthy. In this regard, observe the total
absence of any 4-year cycle troughs unfolding in either January or February. However, in two-
thirds of the cases analyzed (22), the 4-year cycle occurred between August-December. In 27
cases (81.8%), the 4-year cycle trough occurred between June and December. Thus, there is
a greater likelihood that the 4-year cycle trough will unfold between June and December, and
especially August-December. If it happens in the first half of the year, the months of March and
April are the most likely candidates for the low, as January and February are out altogether.
Tables 2A and B shown on the next pages identify a wealth of high probability factors regarding
the 4-year cycle in U.S. stock indexes. And really, what is the major factor involved in successful
investing and trading? It involves analysis of information that yields high probabilities of
occurrence, and then investing or trading according to those high probability factors when they
arise. Tables 1A and B.
As a side note, one could argue that there was no 4-year cycle in July 2006, that the March 2009
cycle was an expanded 77-month period following the 4-year cycle trough of October 2002. It
would be the longest 4-year cycle on record. Supporting this interpretation is that the low of July
2006 was the most benign of all four-year cycle declines in history (less than 10%, when the
vast majority were declines of greater than 20%). If the July 2006 instance is taken out of the
study, then the 1987-2009 cycle contained five (not six) 4-year cycle phases, like all the prior
cases except the 1987 one.
In his excellent study referred to earlier, Walter Bressert further refined this analysis by dividing
the four-year cycle into those groups which exceeded the crest of the previous 4-year cycle, and
those that did not. His study only involved market cycles of 1917 through 1997 (cycles #8-26
shown in Tables 2A and B), and in his study he chose to use the actual high or low close of the
month, rather than the actual high or low price of the month, as we have done in this work, thus
resulting in some differences between months up, months down, high and low of the cycle, and
percentage of moves. Nevertheless, this separation of cycles by “higher highs” and “lower highs”
than the previous cycle provides very interesting results. As can be seen from our figures in
Table 2A, there were 22 of 32 cycles (68.75%) in which the crest exceeded the previous 4-year
cycles crest, starting with cycle #2 and including the current case, #33. These involved cycles #
2, 3, 4, 7, 8, 9, 10, 14, 16, 17, 18, 19, 21, 23, 24, 25, 26, 27, 28, 30, 32, and 33. There have
been only 10 cycles in which the crest failed to exceed the crest of the previous 4-year cycle
(31.25%). These involved cycles # 5, 6, 11, 12, 13, 15, 20, 22, 29 and 31.
Table 2A: The table above lists the dates of each 4-year cycle trough and its crest since
1893. All prices after 2002 are actual, and before 2002, theoretical. This table includes
the 2002-2006 instance.
Table 2B: The table above lists the dates of each 4-year cycle trough and its crest
since 1893, excluding the 2002-2006 (#29) and 10/1990-11/1994 (# 26B) instances
shown in Table 2A. All prices after 2002 are actual, and before 2002, they are
theoretical prices.
In Bressert's study, the average length of those cycles in which prices exceeded the crest of the
previous cycle was 51 months, with a range of 38-62 months. In our study, using 31 completed
cycles (not including cycle #1 and the incomplete current cycle #33), the average cycle length
was 47.8 months with a range of 31-62 months. That would have been considerably higher if
cycle #29 was eliminated, a reasonable possibility discussed before if just the cycle lasting from
2002-2009 (77 months) was used. In cases where the crest was lower, the average cycle length
in Bressert's study was only 44 months, with a range of 32-68 months. However, in five of his
six cases, the range was 32-49 months. In our study, the average length of the 10 cases was
42.2 months, and if we eliminate the 1932-1938 case, it was only 39.3 months, with a range of
It is also true that the duration of time between the beginning of the cycle and its crest is
considerably longer in those cases where the crest exceeds the previous 4-year cycle high. In
our studies, the interval of time from the trough to the crest in the 21 completed cases of higher
cycle crests was, on average, 35.33 months, with a range of 9-60 months. In Bressert's study
(covering only from 1917 to 1997), he found the average to be 43 months, with a range of 31-
60 months. In the five cases prior to 1917, the range was only 9-26 months, and in two cases
since 1994, the duration was only 15 and 16 months, hence the difference. In those 10 cases
of our study where the crest failed to exceed the crest of the prior 4-year cycle, the average
length of time between the trough (beginning of cycle) and the crest was only 23.9 months, with
a range of 5-56 months. If the 56-month instance was eliminated, the average would be 20.37
months, with a range of 5-43 months. Seven of the 9 cases had rallies lasting 26 months or
less. Bressert's study also showed an average of 24 months between beginning cycle trough and
cycle crest, very close to our findings. Thus, in cycles where the crest is higher than the previous
cycle, the duration of time going up averages 35.33 months. But in those cases where the crest
fails to exceed the prior cycle's crest, the interval of time going up only averages about 24
months, with 77.7% lasting 5-26 months. It will be interesting see how long the rally lasts in the
current 4-year cycle (as this is being written), which began in August 2015 (or February 2016 if
using the S&P index), and in which prices have already exceeded the crest of the prior cycle.
The amount of time the market spends declining in price is also much less in those cases where
the crest of the cycle exceeded the prior cycle crest. In these cases, the average time of decline
from crest to trough was 12.5 months, with a range of 1-29 months. Bressert's shorter study
showed the average decline lasting only 8 months after 1917. What is most interesting here is
that in the 9 cases since 1982 (starting with cycle 24), the length of decline was only 1-5 months
in 6 cases (and 1-3 months in five of those instances). Something dramatically changed in
1987, when declines to the 4-year cycle trough became noticeably sharper, but briefer than the
historical norm.
In the 10 cases where the crest failed to exceed the previous cycle crest, the average amount
of time in decline was 18.5 months, with a range of 2-41 months. However, if we eliminate the
2006 and 2011 instances, every case exhibited a decline of at least 12 months (from 1907-
1982). Again, something changed with the Crash of October 1987 (perhaps the creation of the
“Plunge Protection” Team, otherwise known as the “President’s Working Group on Financial
Markets,” created March 18, 1988 by President Ronald Reagan). Bressert's post-1917 study
showed an average decline in these cases of 19 months, with a range of 12-31 months (he
used a different month for the crest of the 1938-1942 cycle than we did - the high close was in
September, 1939, whereas the highest price - which we used - was in November, 1938).
To summarize our findings of time intervals from trough (beginning) to crest, and crest to trough
(ending) in those cases where cycle crests were higher versus lower than the previous four year-
cycle crests: in cases where the crest was higher than previous instances, the market rallied
on average 35.33 months, and declined an average of 12.5 months. In cases where the crest
Using the entire field of 4-year cycles since 1893 as illustrated in Tables 2A and 2B, we note
that the shortest rally from the start to the crest lasted only 5 months (November 1929-April
1930), and the second shortest was 8 months (March-November 1938). The longest rally lasted
60 months (August 1982-August 1987, and possibly October 2002-October 2007, if the 2006
case is not used as in Table 2B). In fact, if we remove the three longest and three shortest cases
of rallies, as shown in Table 2A, we would find 26 of the 32 completed cases witnessed rallies
lasting 12-49 months, or 1-4 years (81.25%). Also, we could say that it 29 of 32 cases (90.6%),
it took at least one year before the 4-year cycle topped out.
The time of decline from the crest to trough of the 4-year cycle has varied from as short as
one month (1926), to as long as 41 months (1942). There have been 8 cases (25% where the
decline lasted only 1-3 months, per Table 2A, so these declines are sometime fast and furious.
The amount of time the market spends in decline is therefore not consistent, except to say that
it usually last less than 2 years (84.3% frequency).
An analysis of the percentage increase in value from the start to the crest of each 4-year cycle,
and the percentage of decline in value from that crest to the end of the cycle, is also revealing.
The average percentage increase from trough to crest has been 100.76%, with a very wide
range of 21.2 - 381.8%. If we eliminated cycle #29 (2002-2006) in Table 2A, for reasons given
before, and considered cycles #29 and #30 as just one record long 77 months (shown as cycle
#29 in Table 2B), then the average gain would have been 103.94% in 32 cases.
However, a closer analysis yields more reliable probabilities. For instance, only 6 of the 32
(18.75%) cases in Table 2A showed an increase of less than 50%. In Table 2B, only 5 of 31
cases (16%) showed an increase less than 50%. So, there is an 80+% probability that the rally
in a 4-year cycle will result in a price appreciation greater than 50%. There were eleven cases
that were less than 70%, which means 21 of 32 (65.6%) cases appreciated over 70%. However,
if we eliminated cycle #29, as in Table 2B, there would have been 22 of 31 cases with gains of
more than 70% (71% frequency rate).
In only two cases was the increase over 200% (1932-37 and 1982-87). In only two of the cases,
was the increase less than 35% (1911-1915 and 1946-1949), or three cases if we include cycle
#29 in Table 2A. In other words, at least 84% of historical cases witnessed gains of 35-189%
from the trough that started the 4-year cycle to its crest. And in the majority of those cases
(20 of 31 in Table 2B), the increase in value was 70-189%, with an average increase in value of
109.8%.
In Table 2A, the range for the price declines in the 4-year cycle was 8.5 – 86.3% for 32
completed cycles. If we remove the three most benign declines (8.5, 12.0, and 13.8%) and
the most extreme rally (86% in 1929-1932), we will find 28 of these cycles (87.5%) declined
16.2 - 57.1%, In Table 2B, we find 28 of 31 cycles declined this amount (90.3%). The average
loss of value in these 28 cases was 35.2%. The conclusion is that there is approximately a 90%
probability that once the 4-year cycle tops out, a decline will commence in which the DJIA will
lose 16.2 - 57.1% of its value into the 4-year cycle trough, with an average loss of 35.2%
Studying these tables a little deeper, one can observe that 26 of these 31 or 32 cases declined
at least 19.2% in value. Only 3 cases witnessed declines exceeding 50.2%. Thus, the vast
majority of declines from the crest to the trough of the 4-year were between 19.2 and 50.1%, or
generally speaking, 20-50%, and in most cases, the decline lasted less than 18 months.
There is one other interesting feature about the four-year cycle, and this again pertains to
the Walter Bressert study. In analyzing those cases in which the market exceeded the crest
of the four-year cycle, he sought to determine if there was a relationship by how much higher
the market would go above that previous crest. He found that on average it would exceed the
previous four-year cycle crest by about 52%, with a range varying from 1-168%. Our studies
going back to 1893 show an average improvement in these 21 cycles of 45.5% or 45.6% above
the previous 4-year crest, depending on which table was used (it doesn’t matter that much). The
range of appreciation was from 0.5% - 166.4%. However, of those 21 cases, there were two
instances where the increase was very minimal, less than 1.5%. There were also three cases
that were very excessive- above 120% (the 1929, 1987, and 1998 crests), and only two more
were greater than 51.7% (the 1926 and 1956 crests). Thus 14 of the 21 cases (two-thirds) saw
the market continue to advance an additional 7.3-51.7% above the previous cycle crest, with an
average increase of 25.7%.
In only three cases (less than 10%) did the market exceeded the crest of the previous four-year
cycle by more than 75%.
• The 4-year cycle has a historical range of 31-68 months. The “norm” is a 36-56 month interval
(81.25%). Thus, it is actually a 46-month cycle with an orb of 10 months.
• The 4-year cycle in the Dow Jones Industrial Average tends to bottom between June and
December (81.25%). There have been no cases of 4-year cycles bottoming in January or
February, unless one uses the S&P index.
• There are usually five 4-year cycle phases within an 18-year cycle, although there has been
one case of only three and another with six phases (if Table 2B is used).
• In 90.6% cases of cycles analyzed, it took at least one year for the four-year cycle to make its
crest. In 81.25% of instances, the rally to the crest lasted 12-49 months.
• The amount of time it takes for the market to decline from its 4-year cycle crest to trough
varies greatly, but 25% of the time, it has completed this decline in only 1-3 months, and in
84.3% of cases, the decline will be completed within two years (24 months).
• There is an 80+% probability that the rally from the start of the 4-year cycle to its crest will
show a price appreciation of over 50%. The majority of rallies (64.5%) will show an appreciation
of 70-189%, with an average increase of 103.9%. The probability of a rally appreciating less
than 35% from start to crest is less than 10%.
• The price decline from crest to trough in the 4-year cycle has a normal range of 16.2-57.1%
(about 90% frequency). The decline is usually at least 19.2% (81.25% frequency rate). Most
declines (71.3%) show a loss of value in the 19-50% range.
References:
l. This article is a revised excerpt from the author’s book, titled The Ultimate Book on Stock Market Timing Volume
1: Cycles and Patterns in the Indexes, third edition, published September 2017 by Seek-It Publications, P.O. Box
14934, Scottsdale, AZ 85267, 1-800-MMA-3349, or 1-800-662-334, Web site: www.mmacycles.com E-mail:
CustomerService@mmacycles.com
2. Bressert, Walter, Cycle Trader Seminar Manual, Bressert Marketing Group, 135 LaSalle St., Suite 2006, Chicago, IL,
1997.
W.D.Gann thought the geometric angles were very important as a TIME and PRICE indicator. A lot of
people call them Gann angles, Gann fans etc. Gann never name them after himself. You will find that 99%
of software the Gann angles (lets call them that for this article) are wrong because the angles move. They
shouldn’t move, they should be fixed and square to TIME and PRICE. In other words 1 x 1 Gann angle
goes 1 box up and 1 box across on the chart paper or computer. What changes is the scale of the chart,
not the angles. I have presented before in previous articles the square of 144 overlay that I discovered
coded on the cover of TTTTA book. The square of 144 also has all the Gann angles on it. There’s two
things he talks about in his booklet called “MATHEMATICAL FORMULA FOR MARKET PREDICTIONS”
when he writes about “The Master Mathematical Price, Time and Trend indicator”. He states that it locates
a TRUE TREND LINE and a RELATIVELY TRUE TREND LINE.
The enclosed chart of Gann’s weekly November soybeans up to 1955 which shows the RELATIVELY
TRUE TREND LINE, you should be able to spot it and understand why he’s draw it there, what it means,
especially the so called Gann experts in the world. No one has ever written about this before except me,
there’s a reason for that and that’s because they don’t research properly.
Heres Gann angles up to 1 x 4s . Be careful using computers that don’t have the correct setting and
angles other wise you wont get the correct signals. If data is missing or gaps in it then the chart needs to
show time on the chart even though theres no data. The angles are based on TIME and PRICE.
The first and most important angles to draw are the 45º angles, or a moving trendline that moves up 1 cent
per day, week, or month. This is a 45º angle because it divides the space and time periods into two equal
For example, if we travel across in time 60 days, weeks, or months from zero, the 45º angle of zero for a low
or high would cross at 60 in price.
This shows time and price to be equal or squared. You can beat the market by trading against the 45º angle
alone, as long as you buy a stock or commodity on the 45º angle or wait to sell it against the 45º angle.
Apart from drawing 45º angles from the major low, high, and zero, you can also draw the other angles
explained in this book from the same points. Also draw the angles from the important first, second, and
third higher bottoms and lower tops. These angles are most important when drawn on the weekly and
monthly charts. The longer the duration of the time period since the angle has been broken, the greater the
importance and the bigger the move will be.
Draw a 45º angle starting down from any important top on a monthly or weekly chart down until it reaches
the zero line and then draw the 45 º angle back up again so it makes a square of 90º. After many years
between important tops and bottoms, this angle coming down and going up again is very important. Also
draw a 45º angle down from an important bottom on a weekly or monthly chart until it reaches the zero line.
Then draw the 45º angle going back up again. This will show the squaring of price with time from either top
or bottom.
The angle of 1x2, or the moving-average trend line, moves up from a low at the rate of 2 cents per day,
week, or month. It divides the space between the 45º angle and the vertical angle into 2 equal parts and
measures 63¾º. This can be drawn from zero or any other low price because it’s the next strongest and
most important angle. As long as a stock or commodity holds above this angle, it is in a stronger position
than when it is resting on a 45º angle because it is a more acute angle. When a stock or commodity breaks
under this angle of 1x2, or 1 time period across for every 2 points of space or price up, it indicates that it
will go lower and reach the 45º angle. The rule of all angles tells us that no matter what angle the stock or
commodity breaks under, it indicates a decline to the next angle below it.
The second angle you draw when in a bear market of the square is 2x1, or 2 time periods across for every
1 point of space or price up. This angle moves at the rate of ½ cent per day, week, or month and measures
26¼º. This is the first support angle the stock or commodity should reach after it breaks under the 45º angle.
As a general rule, when the price reaches this angle, it will receive support and rally. Sometimes it will rest
on it for a long period of time, holding on this angle and making higher bottoms. When this angle 2x1, or
moving trendline, of ½ cent per day, week, or month is broken, you must draw the next angle of 4x1.
When in a bull market with prices crossing the 45º line from a recent top, you must draw the 2x1 angle by
moving 2 time periods across for every 1 point of space or price down. After this angle is broken, it is likely
to move towards the next angle of 4x1. In a bear market, you draw the 1x2 angle coming down from a top,
WWW.TRADERSWORLD.COM July/August/September 2018 85
and while it is below this angle it is in a very weak position and is likely to go lower. Draw all 1x2 and 2x1
angles from lows, highs, and the zero line, and apply the same rules as the 1x1 angle.
The angle of 1x4, or the moving-average trend line, moves up from a low at the rate of 4 cents per day,
week, or month. It divides the space between the 63¾º angle and the vertical angle into 2 equal parts and
measures 76º. This can be drawn from zero or any other low price because it’s the next strongest and most
important angle. As long as a stock or commodity holds above this angle, it is in a stronger position than
when it is resting on a 63¾º angle because it is a more acute angle. When a stock or commodity breaks
under this angle of 1x4, or 1 time period across for every 4 points of space or price up, it indicates that it will
go lower and reach the 63¾º angle.
The rule of all angles tells us that no matter what angle the stock or commodity breaks under, it indicates a
decline to the next angle below it.
The next angle you draw when in a bear market of the square is the 4x1, or 4 time periods across for every
1 point of space or price up. This angle moves at the rate of ¼ cents per day, week, or month and measures
14º. This is the first support angle the stock or commodity should reach after it breaks under the 26¼º angle.
As a general rule, when the price reaches this angle, it will receive support and rally. Sometimes it will rest
on it for a long period of time, holding on this angle and making higher bottoms. When this angle of 4x1,
or moving trend line, of ¼ cents per day, week, or month is broken, you must draw the next angle of 8x1.
When in a bull market with prices crossing the 26¼º line from a recent top, you must draw the 4x1 angle by
moving 4 time periods across for every 1 point of space or price down. After this angle is broken, it is likely
to head towards the next angle of 8x1. In a bear market, you draw the 1x4 angle coming down from a top,
and while it is below this angle, it is in a very weak position and is likely to go lower. Draw all 1x4 and 4x1
angles from lows, highs, and the zero line, and apply the same rules as the 1x1 angle.
Here is the Gann angles from my new software which is available from www.wdganntrader.com The is the
only pure Gann software in the world with only Gann indicators. The Gann angles don’t move as they are
perfectly scaled to the chart, next to no programs do this correctly and that’s why I developed my own.
Its also going to be the cheapest in the world so people can learn with out paying outrageous prices from
companies that have never studied Gann in any great detail.
The cost for stage one is only $180 US a year plus CSI data. More will be added to stage one, stage two,
three and four to come later. Plus Horse racing and Weather software.
If look at what Gann said looking back from 1940 we have the conjunction of Jupiter/Saturn, which the first
one happened on 8th August 1940 at 14 degrees Taurus, this also gives you some dates in TTTTA. The
previous one was on 10th September 1921, add half the square of 144, 72 months is 10th September 1927,
and close to the date Gann predicted the high in cotton in the book. The Sun on that date in 1921 was at 17
degrees Virgo, both Mercury and Venus conjunct this degree at the top. He bought cotton on 24th January
1924 when Mars made a trine to this point.
Because Gann used 1/8th and 3rds you would break up the cycles into these parts which is measured in
the square of 144 overlay. Therefore you need to break up the Jupiter/Saturn cycle into these parts to find
other degrees of interest.
Marie disappeared on 5th June 1917 when transiting Venus squared the Jupiter/Saturn conjunction of
1921. That’s enough secrets for one article; you can find the rest by hard study
David has been using and studying the methods of W.D.Gann since 1983. Also studying
weather cycles and sunspot cycles of Inigo Jones for the last 20 years. Currently getting
developed a W.D.Gann trader program that’s pure Gann, which should have stage one ready
by end of February 2018. It has taken 36 years of study to understand how this program
should be developed. It won’t be expensive like all the others. Watch my face books for
update.
WDGann Trader software is ready now. The purest and cheapest Gann software in the world at $180 US
a year. More is to be added to stage one, then another 3 or 4 stages, but most will never have to go past
stage one as it covers all you need. Then next year develop Gann horse racing and weather software.
Website : www.wdganntrader.com
Facebook
www.facebook.com/wdgann360/
www.facebook.com/inigo360/
www.facebook/hedge360/
Hot Months
Square of 60 months
July /Aug is next 7/8th price @52 to 54 Square of 100 or 10 x 2003 low
Mars 45 degree from 2015 July top, Mars retro, next 45 is week of November 19 Gio
Jupiter 7.5 Degree from 2015 top Helio, Next set June 25 to July 19, and Sept 24 to October 29
CVS Monthly, Proper price scale after research is .35 cents. 2-1, 1-1, and 1-2 angles from 2002 low tagged all
trends. Angles from top show resistance on downtrend, 50% of high price from 0 is $56
Pivot Point Research Inc. will be publishing a 2 volume work titled “COMBINED VIEWS OF THE
MASTERS” in 2018
This work includes multiple research applications found within the works of WD Gann, Dewey, Elliot,
Bayer, Gillen and many others. All applications can be found within our Gann Grids Ultra 8.0 software in both
our end of day version and soon to be released real time version
Gann Grids Ultra RT
Gann Grids Ultra software include not just an END OF DAY version, we will soon be offering a REAL
TIME version as well called “Gann Grids Ultra RT”
Robert Giordano
www.pvtpointmktres.com
While there are a number of continuation patterns in trading, the J-Hook Continuation Pattern
is one that is a very decisive and can be easily identified since it forms the letter J. If the chart
pattern is followed, entered at the right time and unfolds as expected, it can be very profitable.
J-Hooks may also called by other names like Thunderbolts and 123 formations.
There are three basic parts to the pattern 1) a strong upward move in price 2) a pullback and
3) an up move which should continue into a breakout above the previous pivot high in price to
complete the pattern and continue the uptrend. Figure 1 presents the three price movements
that take place as a J-Hook develops.
Valeant Pharmaceuticals (VRX) shows a relatively clear and easily identifiable J-Hook
chart pattern in Figure 2.
The following movements in a chart pattern are a must for it to be called a J-Hook.
In the Red Hat Inc. (RHT) chart below, Figure 3, it is in an uptrend, but will pullback or
reverse the trend when sellers enter the scenario.
Figure 3: J-Hook Pattern and Price Movement into the High Profit Zone.
The key to recognizing a J-Hook Continuation Pattern is not just the initial upward move
in price, but also the patterns that preceded the move. The greater the number of
positive signals prior to the J-Hook formation, the stronger the probability of an upward
swing. The pattern becomes more forceful if the initial move up appears after a Morning
Star or Bullish Engulfing Candlestick Pattern, a double bottom, and other positive signals
and patterns.
We all want charts to move up in a steady straight line, but that does not always happen and
price will pullback providing another buying opportunity. The back and forth movement can
compromise the clarity we expect to observe. Many times, on a daily chart, this price action will
make the underlying chart formation harder to recognize.
I have, personally, found it more successful to use the Daily Chart. However, a 2-day or 3-day
chart may offer a clearer picture by eliminating indecisive candles and providing a better under-
standing of the underlying price action. Your reason for looking at longer time frames may range
from being a longer-term trader or eliminating the noise on a lower time frame.
If used correctly, there are the advantages of using various time frames:
2. Support and resistance may be seen that is not evident on a daily chart.
3. Recognizing a pattern that may not be obvious at first glance on a daily chart.
Compare the Extended J-Hook daily chart on X in Figure 4 to a 3-day chart in Figure 5 and see
how it displays clarity and is easier to observe. A great reason for checking out multi-day charts
is to get a cleaner picture of price action that is easier to observe and understand.
The J-Hook Continuation Pattern is a move upward in price, a pullback and a continuation of the
movement in the original upward direction as described in the sections above.
There are four suggested areas for entering J-Hook trades. It is always important to know that
profit is not made while the pattern is in progress, but after it completes and signals that buyers
are stepping in and price resumes its upward movement. This does not mean that shorter term
trades within the pattern are not possible. Swing traders may prefer to enter the trade as the
pattern develops. The four entry areas are listed below. See Figure 6.
Area 1: Price reaches a low and consolidates with a higher low or a candlestick buy signal
Area 4: Price breaks out, moving toward a new high, continuing in the original upward direction.
All J-Hooks have an initial move up in price; however, it is unknown whether it will turn into a
J-Hook as it moves. At some point price it will start to pullback, bottom out, and turn up moving
toward the previous high. If it fails to do so and breaks a support line, it is no longer a J-Hook.
All charts can fail at any stage of the J-Hook formation before or right after the pattern
completes.
You may anticipate the development of a J-Hook on a chart that shows promise, but it
may not materialize and ends up with a failing reversal pattern. It can also reach the
previous high and form a double top or reverse at any point and no longer reach the
profit zone.
As traders we need to keep in mind that “patience is the name of the game.” Most of
the time we give up on a failed chart pattern if it pulls back more than what our plan
dictates, and we spend too much time regretting and dubbing it as a “failure.” There
are hundreds of charts that can be found even in a down trending market. If you are a
struggling trader, it is always best to trade with the trend of the market and not against
it.
In Summary
The J-Hook Continuation Pattern is one that I have personally traded for many years.
It takes time to become familiar with the pattern and understand the price movements
within the pattern that have proven to be most successful over the years. The details
of the J-Hook Continuation Pattern that are shared in this write up are what I have
found worked best for success. I wish you great success as you learn these details and
incorporate them into your own trading program.
If you would like the full J-Hook Continuation Pattern e-book, please click the link below
or copy and paste into your browser. The e-book contains additional chart examples
and topics such as the use of Fibonacci retracements in this pattern. Visit our website at
www.hitandruncandlesticks.com
In the last issue of Traders World we discussed the February high in the EUR/USD was in the
position for a multi-month high, the completion of a five-wave rally off the January 2017 low.
That is exactly what happened. Since the February high, the EUR/USD has been in a solid Bear
trend. Since the February high is a probable Wave Five high, the decline off the February high
should be a correction to the Bull trend off the January 2017 low and once the correction is
complete, the longer term Bull trend should resume. The question is: When and where should
the correction be complete?
In this article, we will answer this question as well as discuss the probable trend direction of
the EUR/USD over the next few months. We are going to look at pattern and momentum/
oscillator position to determine the trend direction and Fibonacci ratio time and price support
to determine a reversal price range and time range. While the bottom oscillator used in these
charts is a propriety oscillator to the Dynamic Trader software, any oscillator can be used in
which the bearish and bullish reversals of the oscillator (or highs and lows of the oscillator)
correlate relatively well with the swing highs and lows of the markets. The top oscillator is a
Slow Stochastic. This article was written mid-June 2018.
Going back to Chart 1, the low of the week ending June 1 is slightly above the 50% retracement
which is a strong support level and both oscillators are Bullish from the oversold zone. This
For education on practical trade strategies for every timeframe to take advantage of the
potential multi-month rally in the EUR/USD and for corrective declines during this rally, check
out my NoBSFX Trading course (info below).
Jaime Johnson is a full-time trader and the author of the NoBSFX Trading Workshop, the
NoBSFX Daily Reports, the NoBSFX Net Trend Video Reports and the new NoBSFX Trade Alerts
and Monthly Minor Currency Video Reports. For complete information and to download his free
e-book, go to www.nobsfx.com or send him an email at jaime@nobsfxtrading.com.
Introduction
Let me start by introducing myself. I am a full time trader, trainer and software developer in
the futures markets. I run a real time trading room two hours each trading day. I have traded
for over 20 years, and concentrate primarily on the currency (FOREX), crude oil, gold and stock
index futures markets, such as the S & P E-mini. In a previous career, I was a practicing C.P.A.
in the state of Florida.
I have developed a full suite of charts and indicators known as the Trendicators™ and a market
analyzer known as the TradeFinder™, as well as a number of automated trading systems and
automated buy, sell, and trade management systems.
What follows are the fundamental elements you need to be consistently profitable in the futures
markets. I have also included information below that is crucial to your overall success and in
managing your risk.
Preparation for trading profitably consists of market observation over a period of time so that the
trader can build confidence in knowing what usually happens in the market, and how to profit
from the recurring market behavior that repeats itself every day. To take advantage of cycles in
the markets, observe the typical move that a market moves after it moves up or down out of a
range contraction pattern.
The real objective is to build knowledge of probabilities of market behavior so as to take
consistent profits out of specific trading instruments. The following are observations of market
behavior that will help to put the probabilities in your favor.
Looking For Market Opportunities With the Best Risk to Reward Ratios
To put the probabilities in your favor, you must have an objective method or system for your
trading. Patterns repeat themselves over and over in all markets, so knowing these patterns can
help to put the probabilities in your favor. The more you can automate your trading signals, the
more objective you will be in your trade selection. You need to determine a set of technical
conditions for which you would take a long or short position in any market. You can use
technical indicators that are widely available, or you can develop your own indicators. Once you
have chosen the indicators you want to use, test them for validity in your trading. As in any
testing, the more data the more reliable the results will be.
Below is an example of a chart where we have developed an indicator determining price
behavior that will provide opportunities with favorable risk to reward ratios. The following chart
Below you will see the potential reward relative to the risk area indicated by the consolidation
price bars
On the chart.
Making money in the market is a matter of being on the right side of the market. Specific to
the futures markets, there are both up and down moves each day that provide many trading
opportunities. One approach to the markets is to look for evidence of major support and
resistance levels based on chart history. Many people ask me which time frame that I look at
for my trading, and by best answer is that I look at all of them. A good analogy would be that
if you were going to buy or short a stock, you would most likely start by looking at a weekly or
daily chart. Why would you approach the futures markets any differently? To put the odds in
your favor, you must find things that occur over and over and trade with this information.
Below you will see an example of a Renko based chart of the Dow Futures chart. This chart has
buy and sell signals. The buy signals are the Green arrows pointing up and the sell signals are
represented by magenta arrows pointing down.
The above chart and the system displayed by the chart is an example of a signal that will enable
you to objectively test a signal on any chart time frame or data series that you would like to
test. Other examples would be using indicators such as moving averages for buy and sell signals
One method of testing is to use a trade simulator. You can download market replay data and
test based on historical data taking trades based on your entry and exit criteria. You will be
able to test various stop and profit target levels over a series of trades. I would suggest that
you test during the time periods in which you plan to trade. An example would be to test the S
& P futures from 9:45 AM Eastern time through 11:00 AM Eastern time if that is the part of the
The top chart is the E-mini and the bottom chart is the Nasdaq 100 futures. The magenta arrow
on both charts represents a sell signal on both markets at the same time.
Risk Management
A primary downfall of beginning traders lies in not knowing how to manage risk. The use of
protective stop losses (known as stops); is one important tool in trading futures. An even more
important tool is known as position sizing. Position sizing answers the question of how many
contracts I should trade in the futures markets, and how many shares should I should buy or
To calculate position size you need to know some basic information such as the following:
Account Size
In this example, you would be able to trade 1 contract $10,000 x 1% = $100 maximum risk
Like any profession, you need to be prepared to take on the markets in a structured and
methodical manner. If you study the above principles, you will better understand overall market
behavior and you will be equipped to begin to consistently benefit from the great opportunities
that exist each day in the markets.
Platform:
As you develop your trading skills, I suggest that you use a professional trading platform that
will allow you to trade directly from the charts and will allow you to trade in simulation mode
as well as to execute trades in your live futures account. As with any skill, the more that you
practice, the better you get at it. It is important to develop your skills regarding the proper use
of your trading platform while in simulation mode so as to minimize trading errors after you are
trading your actual trading account.
Trading in simulation mode will help you to develop your confidence and an overall methodology
that fits your personality.
Contact Information:
Steve Wheeler steve@navitrader.com www.navitrader.com 800 987 6269
RISK WARNINGS: Trading futures and foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding
to trade, you should carefully consider your monetary objectives, level of experience, and risk tolerance. The possibility exists that you could sustain
a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware
of all the risks associated with trading and seek advice from an independent advisor if you have any doubts. Trading involves high risk and you can
lose a lot of money. Trading stocks, options, ETFs, futures and foreign exchange (FOREX) carries a high level of risk, and may not be suitable for all
investors. *HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.
NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE
SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL
RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. Past returns are not indicative of future results. NaviTrader,
Inc. and NaviTrader.com provide programs and services that are for educational purposes and not intended to be a recommendation to buy or sell any
futures, foreign exchange, stocks, ETFs and/or options market trades. Navitrader, Inc., navitrader.com assumes no responsibility for errors, inaccuracies
or omissions in any of these materials. Past performance does not guarantee or imply any future success. ALL CHARTS SHOWN ARE FOR
EDUCATIONAL PURPOSES ONLY AND NOT A RECOMMENDATION TO BUY OR SELL ANY FUTURES CONTRACT.
Find a Trade
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with sufficent risk capital should consider trading. Affiliate Disclosure - this ad contains links which are a means for this magazine to earn money.
Volume shows where the professionals are buying and selling: Professional traders
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You can ask the program to reveal the most powerful cycles for your financial instrument.
The program analyses all turning points, provides their statistical analysis and
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Charting Tools, Fibonacci levels, Pitchforks, Gann Angles and many other
traditional charting tools are available.
Testimonials:
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At Market Timing Report, our aim is to issue high probability, low risk trade Renowned Forecaster and New York Times Best
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Potentially enter a trading campaign earlier and stay in longer Peter Temple Futurist - Speaker - Cycles Expert,
World Cycles Institute
Avoid entering a campaign when the market could potentially reverse
direction I have subscribed to many newsletters over the
years and by far this is the best. The reasons are
Aid option traders who are seeking steady movement in the underlying the combination of these 3 factors. 1) Its concise.
prices Typically, under 18 to 25 pages covering many
markets with predictions cleanly laid out
segmented nicely so you can access and review
There are 3 elements required to enter a low-risk trading campaign: the information quickly. 2) Its accountable. In
Market hits price target; each issue, he goes over the last issues predic-
tions, to demonstrate the accuracy. It’s sort of a
A Key time cycle is present; “backtest” of the plan so you will become more
A trigger setup is in place;. confident and comfortable with his predictions
3) He tells you how he does it. He will show you
the trendlines, pivots, and other cycle concepts
Market Timing Report has developed proprietary systems based on 18 years as well as pitchforks, how they are drawn and
of research into market behaviour. Our research shows that markets do why they are drawn, so that you can understand
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confidence in his predictions. These 3 factors
Whilst regular seasonal cycles often reflect consistent change in price when combined offer a very unique value that is
direction, their accuracy is not always reliable. sincere and able to be applied by the trader.
Accuracy is important, of course, but building
your internal confidence every month is critical
By adding what we call as well. This is the reason why this newsletter is
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identify time cycles which act as triggers for moves and reversals. Jeff Rapaport
Trader
Stocks, Futures and options trading contains substantial risk and is not for every investor. Only risk capital should be used for trading and only those
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What sets these traders apart from other traders? Many think that beating the markets has
something to do with discovering and using some secret formula. The traders in this book
have the right attitude and many employ a combination of fundamental analysis, technical
analysis principles and formulas in their best trading strategies.
Trading is one of the best ways to make a lot of money in the world if one does it right. One
needs to find successful trading strategies and implement them in their own trading method.
The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading.
I wish to express my appreciation to all the writers in this book who made the book possible.
They have spent many hours of their time and hard work in writing their section of the book
and the putting together their video presentation for the online expo.
Finding out your trading method is extremely important to produce a profitable benchmark
that can be replicated in your live account. Perhaps the best way to find a successful
trading method is to listen to many expert traders to understand what they have done
to be successful. The best way to do that is to listen to the Traders World Online Expos
presentations. This book duplicates what these experts have said in their presentations,
WWW.TRADERSWORLD.COM July/August/September 2018 120
which explains what they have done to find their own trading method.
If you have a trading method that gives you a predictable profit, then that type of objectivity
contributes to your trading edge. The problem with most traders is that being inconsistent
will never allow them to have an edge. After you find your trading method that you feel
comfortable with, you must have the following:
By reviewing all the methods given in this book by the expert traders, it will give, you the
preliminary steps that you need to find your footing in finding your own trading method.
Reading this book and by seeing the actual recorded presentations on the Traders World
Online Expo site can act as a reference tool for selecting your method of trading, investment
strategies and tactics.
It took many of these expert traders in this book 15 – 30 years to finally come up and find
the answers to find their trading method to make consistent profit. Finding your trading
method could be then much easier when you read this book and incorporate the techniques
that best fit your personality and style from these traders. This book will enable you to that
fastest way to do that.
So if you want help to find your own trading method to be successful in the markets then
buy and read this book.
The book was written by a large group of 35 expert traders, with high qualifications, most
of who trade professionally and/or offer trading services and expensive courses to their
clients. Some of them charge thousands of dollars per day for personal trading! These
expert traders give generally 45-minute presentations covering the same topics given in
this book at the Traders World Online Expo #12. By combining their talents in this book,
they introduce a new dimension to finding a profitable trading edge in the market. You can
use ideas and techniques of this group of experts to leverage your ability to find an edge to
successfully trade. Using a group of experts in this manner to insure your trading success is
unprecedented.
You’ll never find a book like this anywhere! This unique trading book will help you uncover
the underlying reasons for your lack of consistency in trading and will help you overcome
poor habits that cost you money in trading. It will help you to expose the myths of the
market one by one teaching you the right way to trade and to understand the realities of
risk and to be comfortable with trading with market. The book is priceless!
Parallels to the Traders World Online Expo 12
It was written by over 30 expert traders. The book was designed to help you
develop your own trading edge in the markets to put you above others who
don’t have an edge and just trade by the seat of their pants. 90% of traders
actually lose in the markets and the main reason is simply that they don’t have an edge.
All of the writers in this book are very experienced and knowledgeable of different ways. Each
of them has their own expertise in trading the markets. What sets these traders apart from
other traders? Many think that beating the markets has something to do with discovering and
using some secret formula.
The traders in this book have the right attitude and many employ a combination of fundamental
analysis, technical analysis principles and formulas in their best trading strategies. This gives
The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading style. I wish to express my appreciation to all the writers in this book who made
the book possible. They have spent many hours of their time and hard work in writing their
section of the book and the putting together their video presentation for the online expo.
This is one of the finest trading books you’ll ever see about trading. The
reason is that it comes from a group of expert pro traders with multiple
years of experience.
The traders in this book have through experience the right attitude and employ a combination
of technical analysis principles and strategies to be successful. You can develop these also.
Trading is one of the best ways to make money. Apply the trading methods in this book and
treat it as a business. The purpose of this book is to help you be successful in trading.
From this book you will get all the strategies, Indicators and trading methods that you need
to make big profits in the markets.
• Seasonality
• MACD
• Stochastics
• Moving Averages
• Trailing Stops
• Fibonacci Retracements & Extensions
All of the charts in this book are produced using my favorite charting software Market-Analyst®.
I have also arranged for you to get a FREE trial so that you might have the chance to actually
work with these indicators with a real charting platform.
You will also be able to view the video presentations that I personally created so you can
see how these indicators can be setup and followed with clear and concise step-by-step
instructions. After you understand how these indicators work, I would then recommend that
you go to WorldCupAdvisor.com and consider following Craig Haugaard’s real-time trades.
This one-of-a-kind book teaches you how to identify the direction of the markets and trade
the markets by using popular trading indicators. This is done by concise instructions backed
by learning videos, hands on practice with real trading software and by following real-time
trades of a master trader.
This book is an enhanced Edition which means that the articles are backed with audio visual
presentation links. Most of the presentations are in HD quality and are put together by the
writers of the articles in the book and really help the learning process.
Successful trading is based on knowledge and having the right psychology to trade the markets.
This book will lift your trading to a much higher level and will save you an enormous amount
to time.
Rob Mitchell is the president of Axiom Research & Trading, Inc. and has
been a trading system developer for over 20 years and has developed a
number of commercially successful trading systems. He has at various
times been the largest eMini S&P trader in the world. Rob has also acted
as a Commodity Trading Adviser, has traded for hedge funds and has won
the Robbins World Cup eMini trading championship in the past. Rob is
a trading teacher and mentor and is the founder and head trader of Oil
Trading Room which is devoted to providing advanced educational resources to traders at all
levels.
In the rest of the book I will explain to you some of the trading ideas of Rob that he uses in
both his Oil Trading Room and in his World Cup Advisor Account. You can then actually see and
understand how some of his ideas work.
I am not going to tell you exactly how Rob used the ideas to make his return of 57% on a
$10,000 investment. That information is not public and belongs only to Rob.
I will tell you some of the trading ideas he uses and help you understand how these ideas work.
I would then recommend that you go to World Cup Advisor and consider following Rob’s trades.
You will be able to automatically mirror Rob’s trades in your own brokerage account with World
Cup Leader-Follower AutoTrade™ service. You will also be able to see what his trades look like
on your own charts and better understand why he made the trades.
In the rest of the book I will explain to you some of the trading ideas Takumaru said he used
I am not going to tell you exactly how Takumaru used the ideas to make his return of 122.6%
on a $10,000 investment. That information is not public and belongs only to Takumaru.
I will tell you which indicators he used and help you understand how these indicators work.
Michael Trading: Learn about some of the trading tools he used $4.99
Michael Cook, was the first-place finisher in the 2014 WORLD CUP
Championship of Futures Trading® with a 366% net profit. In this
book there is a detailed interview with Michael with questions and
answers of exactly what he used to win the championship. In this
book I will explain to you the indicators that he said he used in the
interview. You can then actually see and understand how they work.
Here are some the indicators and methods that he said he used: 1)
Moving Averages 2) Seasonality 3) Cycles 4) Seasonality 5) Price
Patterns 6) William’s %R 7) Long with Stops 8) Commitment of
Traders Report You will also be able to download a video presentation
that I personally created so you can see how these indicators can be
setup and followed in a step-by-step manner. After you understand
how these indicators work, I would then recommend that you go to WorldCupAdvisor.com and
consider following Michael Cook’s trades.