Rule

THE SAMNI NO DEN OF THE MARKET

1; equilibrium between price and time is crucial

-not be greedy
-do not try to obtain maximum possible
-win without becoming greedy
2. Learn to wait for best opportunities
-act at the right time
-avoid temptation to buy when its too late
-avoid anxiety and impatience

3-increase position direction of market(if continues to rise)

-
- Buy first 300 and then more if market continues to go way.DO NOT BUY EVERYTHING
SAME TIME
- Exercise patience = greater number of winning trades
-
4 in case we are wrong , we must close our positions and stay away from market for period of
40-50 days.

5
close 70 to 80% of positions as soon as you have minimum expected gain. Wait until end
of movement to close others.
-learn to wait and have courage to se our position develop according to the precise plan
that was prepared in the beginning.
-one MUST recognize that a plan that was prepared previously will tell us when to close
the first 70-80% of position and when to close rest
- once we know when to buy and sell, we must still learn how much to buy or sell.

-finally when engaged in trade, we must know when to exit and close positions(rules 4-5)

THE SAMNI NO DEN consists:

1- How to manage time and price
2- How to manage buying and selling points
3- How to decide what size of position to take
4- How to mange lossess
5- How to mange wins.
THE SAKATA STRATEGIES
-part of Sokyu Honma and focus on structures/phases of market

EACH OF THESE STRATEGIES OR METHODS ARE RELATED TO SPECIFI MARKET PHRASE OR

CONFIGURATION:
1-2= turning points, tops or bottoms,
3= gaps
4=trends
5= consolidations, or times when markets rest before continuing their trend.

****MARKET CAN BE IN ONLY ONE OF THESE 5 PHASES OR STRUCTURES AT A TIME****

-Each of these five market phases has a ternary structure, the foundation of which has
a precise meaning, minimum requirement to define a phase that is valid for trading.

-for trend to be exhausted, require minimum of three gaps,

-for trend to exist, must be at least three movements in same direction
-For consolidation to appear – we require at least 3 corrective units

THEY ARE 5 STRUCTURES (or Basic Configurations)

1.San Zan= three mountains and is the TRIPLE TOP
as head and shoulders can be considered to be a variety of triple top

2. San Sen= three rivers and the TRIPLE BOTTOM OR INVERTED HEAD AND SHOULDERS

3. San Ku= means triple gap and refers to empty intervals between prices. Also occurs within
a trend, - first gap is evidence of new buying or selling power and third gap often announces
end of actual trend
4.San Pei= three lines and refers to continuously ascending trend that is composed of the 3
time/price units. They Signal beginning of trend. The three lines can be in different time
frames.

5. San Poh= three rests and refers to corrective movement within a trend that is made up
three times/price units. The market will correct three time/price units before continuing in
the direction of the trend
 THE GREAT CYCLE OF THE TRADER SAMURAI

RULES FOR BUYING AND SELLING ACCORDING TO EACH OF 5 METHODS

Method for Selling Triple Top (San zan)
-rule here is to wait for a triple top and sell as soon as the market has a sudden
movement that takes it downward and away from the triple top. This applies to every time
window.

Method for Buying Triple Bottoms (san sen)

Wait for a strong upward impulsive movement with a long range (wide price
fluctuations) after the triple bottom is fully in place, as soon at it happens,buy.

Method for Buying or Selling Gaps ( San su)

-for the buying method, we wait for a third gap to appear in downward market. Then,
we wait as long as it takes for a market turnaround, so that it goes upward and closes the
previous downward gap. Then, we buy. Exit position third gap.

For selling, we wait for at least a third gap in an upward trend. Which means that the
trend is near its end. Then, wait for a turnaround of the market and the beginning of a
downward trend. Once the market has turned around and closed the former uptrend gap,
sell.

Method for buying or selling Trends ( Sans pei)

Buy or sell within a trend that already has three/time prince units (bars) in the same
direction.

Method for Buying or Selling correction Within a trend (San Poh)

RE