Sunteți pe pagina 1din 161

THE OFFICIAL MAGAZINE OF TECHNICAL ANALYSIS

TRADERSWORLD
www.tradersworld.com | Jul/Aug/Sep 2016

Issue #63

A Winning System
Fundamental Analysis
Objective Wave Analysis

Profitable Trading with Binary Options


W.D. Gann Has to be One of the Greatest
The Clash of Cycles III an Empire in Decline
Proper Techniques for Profitable Trading Making
Money Today in W.D. Ganns Way
WWW.TRADERSWORLD.COM

July/August/September 2016

Advertisers
Jul/Aug/Sept 2016 Issue #63
World Cup Trading Championships 03
World Cup Advisor 04
World Cup Advisor 05
The Gold and Oil Guy 07
Mikula Forecasting Service 08
Sacred Science 09
Sacred Science 17
Sacred Science 18
Dan Zangers Chart Pattern 19
Sacred Science 24
Kjtradingsystems.com 25
Trading on Target 38
The OddsTraderApps 48
NeverLossTrading 63

Editor-in-Chief
Larry Jacobs - Winner of the World Cup Trading Championship for stocks in 2001. BS, MS in Business and
author of 6 trading books.
Office - 2508 W. Grayrock Dr., Springfield, MO 65810
Contact Information - 417-882-9697,800-288-4266, publisher@
tradersworld.com
Copyright 2015 Hallikers, Inc. All rights reserved. Information in this publication must not
be reproduced in any form without written permission from the publisher. Traders World
(ISSN 1045-7690) is published 2 to 3 times a year by Hallikers, Inc., 2508 W. Grayrock Dr.,
Springfield, MO 65810. The subscription to Traders World is $19.95 per year normally it it
$34.95. That gives you access to next issues plus all the past issues in flip page format. When
you subscribe it automatically renews through PayPal. You can terminate the automatic renewal of your subscription directly in your PayPal account. To do so long into your PalPay
account. In the overview, select the option show all transactions. Select the Hallikers, Inc.
Traders World transaction and click on Details. Click on the link Show recurring payments. To cancel automatic renewals, select the option Cancel and confirm the cancellation of the subscription in the subsequent dialog. PayPal will then confirm that your cancellation was successful.
Created in the U.S.A. is prepared from information believed to be reliable but not guaranteed us
without further verification and does not purport to be complete. Futures and options trading are
speculative and involves risk of loss. Opinions expressed are subject to revision without further
notification. We are not offering to buy or sell securities or commodities discussed. Hallikers Inc.,
one or more of its officers, and/or authors may have a position in the securities or commodities discussed herein. Any article that shows hypothetical or stimulated performance results have certain
inherent limitations, unlike an actual performance record, simulated results do not represent actual
trading. Also, since the trades have not already been executed, the results may have under - or over
compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated
trading programs in general are also subject to the fact that they are designated with the benefits
of hindsight. No representation is being made that any account will or is likely to achieve profits
or losses similar to those shown. The names of products and services presented in this magazine
are used only in editorial fashion and to the benefit of the trademark owner with no intention of
infringing on trademark rights. Products and services in the Traders World Catalog are subject to
availability and prices are subject to change without notice. Although Hallikers, Inc. is interested
in presenting you with advertisements for quality products and services, Hallikers, Inc. cannot
spend the time to do the due diligence it takes to ensure that only reliable services and products
are advertised with us. Also Hallikers, Inc. dba Tradersworld may be an affilate with some of our
writers and advertisers.

U.S. Government Required Disclaimer - Commodity Futures Trading Commissions


Futures and Options trading has large potential rewards, but also large potential risk. You
must be aware of the risks and be willing to accept them in order to invest in the futures
and options markets. Do not trade with money you cannot afford to lose. This is neither a
solicitation nor an offer to Buy/Sell futures, options or ANY sort of chartable instrument.
No representation is being made that any account will or is likely to achieve profits or losses
similar to those discussed on this web site. The past performance of any trading system or
methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE
RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE
RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING.
ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS
MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF
CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED
TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT
THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY
TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Use of any of this information is entirely at your own risk, for which Hallikers, Inc. dba
Traders World its affiliates, employees or owners will not be liable. Neither we nor any third
parties provide any warranty or guarantee as to the accuracy, timeliness, performance,
completeness, or suitability of the information and content found or offered in the material
for any particular purpose. You acknowledge that such information and materials may
contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies
or errors to the fullest extent permitted by law. All information exists for nothing other than
entertainment and general educational purposes. We are not registered trading advisors.

WWW.TRADERSWORLD.COM

July/August/September 2016

33RD ANNUAL
World Cup Trading Championships
Futures and Forex Divisions for 2016

Compete for trophies, prizes, notoriety


and new career opportunities.

Top nishers receive coveted Bull & Bear trophies

ENTER NOW!
Call (312) 454-5000 - WorldCupChampionships.com
Futures and Forex trading is not suitable for all investors, and involves risk of loss.
WWW.TRADERSWORLD.COM

July/August/September 2016

Gi
veust
womi
nut
est
ochange
t
hewayyout
hi
nkabout
t
r
adi
ngandi
nvest
i
ng!

Wat
chNow!
Wor
l
dCupAdvi
sor
.
com Aut
oTr
ade Ser
vi
ce
Ourvi
deoshowshowyoucanaut
omat
i
cal
l
ymaket
hesamet
r
adesasexper
i
encedf
ut
ur
es
pr
of
essi
onal
s,i
ncl
udi
ngwi
nner
soft
heWor
l
dCupTr
adi
ngChampi
onshi
ps.
Wi
t
hWor
l
dCupAdvi
sorf
ol
l
owt
hel
eaderpr
ogr
ams,i
fyourf
i
l
lpr
i
cei
snotequalt
oor
bet
t
ert
hant
headvi
sor
'
sf
i
l
lpr
i
ce,t
het
r
adei
scommi
ssi
onf
r
eef
r
om youraut
hor
i
zed
Aut
oTr
ade br
oker
.

Cal
lusat13124545000or187745671
1
1
Tr
adi
ngf
ut
ur
esi
nvol
vessi
gni
f
i
cantr
i
skofl
ossandi
snotsui
t
abl
ef
orever
yone.Pastper
f
or
mancei
s
notnecessar
i
l
yi
ndi
cat
i
veoff
ut
ur
er
esul
t
s.

Contents

Jul/Aug/Sep 2016 Issue #63


Proper Techniques for Profitable Trading Making
Money Today in W. D. Ganns Way By Gordon
Roberts 10
W.D. Ganns Mechanical Method And Trend
Indicator By Daniel T. Ferrera 20
How to Trade Market Volatility Selling Options
for Profits & Hedging A 6 Step Plan Larry
Gaines 26
TRUST: THE HEART OF DISCIPLINE By
Adrienne Toghraie 41
OBJECTIVE WAVE ANALYSIS by George Krum
by George Krum 45
Profitable Trading with Binary Options by Gail
Mercer 51
The EUR/USD: The Big Picture by Jaime
Johnson 53
FUNDAMENTAL ANALYSIS. By Jacob Singer 58
Gold Buy Signals by Stephen Kalayjain 62
High Probability Price Prediction for Trading and
Investing by Thomas Barmann 66
THE NEWS & INFORMATION: HOW IT EFFECTS
THE GLOBAL FINANCIAL MARKETS by Samuel
Bassey 78
Elliott Wave Analysis
Case Study + Fibonacci of United Technologies
by Peter Goodburn 81

The Power of Ensemble Forecasting by Rob


Hanna 85
SQUARING TIME AND PRICE WITH PLANETS by
D. K. Burton 90
W.D.GANN HAS TO BE ONE OF THE GREATEST
by D.K. Burton 99
Profiting From Planetary Pairs in Astro-Trading
by Tim Bost 105
The Clash of Cycles III an Empire in Decline by
Eric Hadik 111
Getting Past the Fallacy of Almost There: What
It Really Takes to Create Success in Trading
Two Worlds Collide When Trading by Rande
Howell 118
Trading range psychology and the Great
Malaise by Clif Droke 122
How to Automate Your Trade Signals by Steve
Wheeler 126
SIZE MATTERS by Al McWhirr 131
Pattern Trading Tools by Duri Duddella 135
What The Professionals Know and You Dont
-- One of the Best Kept Secrets In the Financial
Trading by Andrew Pancholi 144
Trade Chart Patterns Poster 148
Master Trader Course Review by Larry Jacobs
150
Amazon Kindle Books 152

A Winning System by Ron Jenisch 83

WWW.TRADERSWORLD.COM

July/August/September 2016

WWW.TRADERSWORLD.COM

July/August/September 2016

WWW.TRADERSWORLD.COM

July/August/September 2016

HOW TO TURN SMALL ACCOUNTS INTO


BIG PROFITS LIKE W. D. GANN...

MARKET VIBRATIONS
W.D. GANNS HOW TO MAKE
PROFITS IN MODERN MARKETS
BY GORDON ROBERTS

REPRODUCE GANNS LEGENDARY RETURNS THROUGH LEVERAGED POSITION TRADING


WHAT YOU WILL LEARN

INTENT OF THIS COURSE


The intent of this course is to provide a trading strategy that
allows for large returns from low risk investments. Trades
have an average risk:reward ratio of 1:10, with a
minimum return of 500% per trade to maximum returns
exceeding 5000%. The strategy employs powerful, straight
forward analytical techniques explained in Ganns How to
Make Profits in Commodities to identify high value trade
setups which can be employed using highly leveraged
options strategies to generate large but safe returns.

The analytical techniques and strategy taught in this course


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

Low risk, high reward trades averaging


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

463 Pages - Online Student Trading Forum

FOR A DETAILED WRITE-UP, SAMPLE

TRADES & AUTHOR INTRODUCTION &SAMPLE TEXT SEE:


WWW.SACREDSCIENCE.COM/ROBERTS/MARKET_VIBRATIONS.HTM

HOW TO TRADE LIKE


W. D. GANN
An Exploration of the Mechanical
Trading Lesson on U. S. Steel
BY TIMOTHY WALKER

2 VOLUMES - TEXT & CHARTS


SUEDE HARDCOVERS - ONLY $595.00
GANNS MECHANICAL METHOD TRADING
SYSTEM APPLIED TO THE MODERN S&P500
IN 2014 PRODUCED 570% ON A $5000 EMINI POSITION IN ONLY 3 MONTHS!
SACRED SCIENCE INSTITUTE

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

GANNS FAMOUS SWING TRADING SYSTEM!

WWW.SACREDSCIENCE.COM

EMAIL: INSTITUTE@SACREDSCIENCE.COM US TOLL FREE: 800-756-6141


INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!

Proper Techniques for


Profitable Trading
By Gordon Roberts
Once upon a time a man uttered a phrase that went something like, May you live in interesting
times. He didnt define what is and isnt interesting. His wish was probably a curse but it is
interesting all the same. I propose that all times are interesting in some way and to someone.
For traders, however, some times are very much more interesting than others.
Another man said, Practice makes perfect. He didnt tell the whole story either. Surely he realized
only perfect practice makes perfect. If a trader practices with poor methods or techniques, they
end up with a mastery of poor methods and techniques. They probably end up poorer for the
experience too.
As traders, we get to make choices regarding which methods and techniques we study. We get to
decide if we keep a method as being valuable or we get to cast it aside as worthless. For example,
not many people will choose the trading methodologies of Bernie Madoff for their thesis. However,
we can practice things the great masters of the past instructed us to practice.
Many of us become students of W.D. Gann (he was/is a fascinating man). But there is a problem
that comes with proper study of Mr. Ganns many works. It literally takes decades to study his
decades of study. Thats logical I suppose. He almost requires it of his students. But we can boil
his teachings down into less time consuming studies.
Mr. Gann told us he used natural laws. I believe he showed us that markets tend to vibrate. In
my book Market Vibrations, I show modern-day examples of his teachings at work. 60 years past
his death, his teachings still echo into new reality as time passes. He said they would. Ive proven
him to be correct. He spoke of a Law of Vibration. The fact is that most everything vibrates. From
violin strings to cellphone communications, from magnets to bean prices to atomic hydrogen,
from rocks to galaxies vibrations are EVERYWHERE/EVERYTHING. Any true law should cover
everything.
Last March, my new book was released and it included a number of market setups that I was
watching and preparing to trade, all of which were shared with the first purchasers of my book,
since they were included in the book. Since then a number of these trades have taken off and
earned us some profits, enough profits, in fact, to have paid for the entry cost of my book for
those who played along and followed these clear signals. In the Online Forum for the book, we
discussed each of these trades and their setups, so that people can learn, hands on, how to
evaluate potential trades.

WWW.TRADERSWORLD.COM

July/August/September 2016

10

At the time, I included a trading signal for Soy Beans. Below, I resubmit that Soy Bean chart from
the initial sample marketing materials posted online in March. I provided this Bean setup in realtime because Im a swell guy and I had a purpose.
It was my hope that we could circle back to this at some future date and show you that Im not
making this stuff up on the fly. This was a public domain trading setup posted online that coincided
with the books release. All the following charts can be verified to have been posted in March at:
www.sacredscience.com/Roberts/Market_Vibrations_Author_Samples.htm.
Beans were basing and allowing accumulation to occur. They were also at buying points per my
research into Mr. Ganns work. Mr. Gann tells us how to think about these things. We need to be
patient sorts for these types of long-term trading thoughts.

WWW.TRADERSWORLD.COM

July/August/September 2016

11

I never know what the markets will do. However, per Mr. Ganns teachings, I had pretty decent
odds to make a nice profit versus the risk Id take for embarking upon a long Soybean trade.
Thats all explained in the book. Its simple stuff that you might consider using for yourself. I
concentrate a very few of Mr. Ganns simplest teachings into a stew for you to consume.
Heres the updated bean chart as of 6/9/2016. Weve just passed Mr. Ganns Birthday. I try to
honor Mr. Gann throughout the year but his birthday is special. It was also D-Day of World War II.
But thats beside the point here. For Beans, from the low I identified to the recent high has been
around $14,800 (34%) per contract, if you were trading the commodity contracts.
I generally advocate attempting to avoid trading the commodity contracts while attempting to
grow my trading leverage a bit with other vehicles like options. Options also help me control my
risks but they can be illiquid markets.
In those same marketing materials, we also posted a recent buy candidate for Chipotle Mexican
Grill (CMG). Here is that original chart posted on the same page online in March

The next chart is from 6/10/2016. CMG has run up nicely and youd have needed to manage your
trade to protect profits. From the low to the high, the market advanced almost 36%. Thats not a
WWW.TRADERSWORLD.COM

July/August/September 2016

12

bad return for 8 weeks, and using options as I do, the leverage provided a nice profit.

Another decision point is almost upon us. We could have a double bottom here. Honestly, Mr.
Ganns teachings have me happy to end up either long or short in this situation. Whatever the
direction, odds favor a nicely tradable move. My book explains how to approach such a trading
point and to read it as a specific setup, providing a clear strategy to take advantage of the next
move whichever way it goes.
In the same initial marketing materials, we also included an Apache Corporation (APA) chart. It
didnt elaborate publicly that we should have already been thinking about long trades, but it has
been further discussed in our Online Web Forum. However, anybody who has read my book should
have been thinking about the trading setup at the lows.

WWW.TRADERSWORLD.COM

July/August/September 2016

13

In the book, we actually discussed Crude Oil in detail. APA is a proxy whereby we could hunt an
equity market versus the commodity market. You get to be your own decision-maker to hunt your
own opportunities. Heres the updated chart with an 85% increase from low price to high price
(thus far)

I also spoke of BABA. Thats the Chinese ALIBABA. On that chart I also didnt provide the specifics
publicly. But I was providing hints. BABA was interesting or it wouldnt have been in the marketing
materials.

WWW.TRADERSWORLD.COM

July/August/September 2016

14

Heres the updated chart.

From bottom price to top price (thus far), thats around a 45% increase. If this one convincingly
breaks upward, it might present another interesting point to enter a long trade.
Heres is what has been happening with Crude Oil. I was long Crude from near the bottom, though
this was before the book was released. Finally, it has reacted in accordance with Mr. Ganns
teachings. From low to high is a 52% increase so far. This setup was also covered in pretty good
detail in the book for a few reasons.

WWW.TRADERSWORLD.COM

July/August/September 2016

15

Those are a few examples that demonstrate that the market is ripe with opportunity to make
profits for the aware trader who knows what to look for. All of these trades (and more) were
clearly on my radar a few months back, and have added profits to my account. Someone who had
purchased my book a few months back could have already paid for its full cost, potentially many
times over by now.
Please note that some trades will lose. Thats part of reality. You need to approach losses like they
are a business expense. First, you have to define your business properly. Expenses are a lesser
part of profits. Losses are needed to help you understand gains.
Dont try to kick your way through a dark room filled with bedposts and ottomans. Markets are
designed to break toes that way. Television and news and subscription services probably dont
serve you well. They make their money off you trying to trade rather than them trading. Think
about it. You need to learn to make your own decisions.
You can learn some very simple things. You can then try to build them into your psyche. Its up
to you. It really is your choice. I cannot guaranty your success. Mr. Gann said that these proper
techniques and strategies pretty much ensure success. However, reality says that it really is up to
you and your ability to play the game.
I should note that my presentation above used the absolute top and bottom prices. Those are
THEORETICAL values for trades. Youll have to make your own entries and exits for whatever
market you choose to trade. Your returns and my returns will be lower than those values if were
following the rules.
I struggle to find the best trade for each trading situation. I can hunt home run trades. They are
out there to be found all the time. However, they arent what I consider to be the wiser trades.
After all, we can also hunt the types of market vibrations that Ive highlighted here. If you ponder
the potential, it really can be pretty hard to lose money if you catch 25%-85% market moves a
few times per year The charts above demonstrate that such returns can be found in only a few
months, if one knows where and how to look.
We will continue to post further updates of these trades and others that we have given in the book
or the Online Forum as they progress, since many of them are still in progress, being longer term
trades.
Gordon Roberts
Web: www.sacredscience.com/Roberts/Market_Vibrations.htm
Email: institute@sacredscience.com

WWW.TRADERSWORLD.COM

July/August/September 2016

16

THE MOST ADVANCED WORK ON FINANCIAL ASTROLOGY!

SECRETS OF THE CHRONOCRATORS


BY DR. ALEXANDER GOULDEN
A DISTILLATION OF THE ASTROLOGICAL SYSTEMS OF THE
ANCIENTS APPLIED TO MAREKT FORECASTING & TRADING
PROJECT KEY TURNING POINTS & TREND LENGTHS!

FOR A DETAILED WRITE-UP ON

GOULDENS

COURSE INCLUDING

FAQ & CUSTOMER FEEDBACK

WWW.SACREDSCIENCE.COM/GOULDEN/SECRETSOFTHECHRONOCRATORS.HTM

STATEMENT OF INTENT

SEE:

ESSENTIAL TOPICS COVERED IN THIS COURSE

The Septenary division of significators.


The relationship between the lunar cycle, the
ASTROLOGICAL PRINCIPLES WHICH UNDERPIN THE
moment of birth and the timing of major events.
MOVEMENT OF FINANCIAL MARKETS.
The pre-natal Syzygy chart and how to use it.
IT OFFERS A CONTEMPORARY PRESENTATION OF THE
SUPERIOR ASTROLOGICAL TECHNIQUES DERIVED BY THE
The nature of the biquintile aspect.
MASTERS OF ANTIQUITY.
The significance of the rotary interaction between
A CORE COMPONENT OF THIS ADVANCED SYSTEM IS THE
the Moon, the North Node and the lunar
SCIENCE OF CHRONOCRATORS (TIME LORDS), WITHOUT
counterparts by progression and direction.
WHICH FORECASTING BECOMES INEFFECTIVE.
Metaphysics of Part of Fortune & Arabic Parts.
THOSE WITH A SERIOUS INTEREST IN HEAVYWEIGHT
An Arabic Part of great power and utility which is
ASTROLOGY & MARKET SCIENCE WILL GAIN IMPORTANT
little known and little used today.
INSIGHTS AVAILABLE FROM NO OTHER SOURCE!
Secrets concerning the rotary coordinates of price.
THE COURSE INCLUDES UNIQUE REVISIONS OF AN ANCIENT Ancient Chronocrator (Time Lords) systems,
METHOD BY WHICH TO RECTIFY A NATIVITY.
revealing the inner and outer holograms of trend.
IT EXPLAINS THE ASTROLOGICAL FACTORS WHICH
Chronocrators & astrological dynamics of trend.
REGULATE THE TIMING OF PIVOTS & DIRECTION OF TREND.
IT ALSO REVEALS CERTAIN ASTROLOGICAL SECRETS WHICH The convergence of Chronocrators as a signal for
culmination of trend. Forecasting trend lengths!
DETERMINE PRICE.

Time
keys and simplified directions.
MOST IMPORTANTLY IT EXPLAINS HOW TO ISOLATE THE

The
Science
of Rectification - based on ancient
ASTROLOGICAL SIGNALS WHICH ARE "LIVE" AT ANY GIVEN
techniques,
including
a rectification of S&P500!
POINT, AND WHICH WILL HAVE AN EFFECT UPON A MARKET.

- THE INTENT OF THIS COURSE IS TO DEMONSTRATE THE


-

FOR A DETAILED WRITEUP ON

GOULDENS

COURSE INCLUDING CONTENTS, SAMPLE TEXT

WWW.SACREDSCIENCE.COM/GOULDEN/BEHINDTHEVEIL.HTM

TECHNICAL ANALYSIS REVISED!

BEHIND THE VEIL

AN APPLIED TRADING COURSE USING


ADVANCED PRICE/TIME TECHNIQUES TO
PROJECT FUTURE TURNING POINTS...

BY DR. ALEXANDER GOULDEN


FORECASTING RECORDS

DR. GOULDEN PRODUCED 7 FORECASTS


IN 7 DIFFERENT MARKETS. HIS RESULTS
WERE IMPRESSIVE, 7 OUT OF 7,
YIELDING 3,161 POINTS IN 7 DAYS, WITH
7 TRADES, IN 7 DIFFERENT MARKETS!

&

FEEDBACK SEE:

Dr. Gouldens advanced technical trading course Behind The Veil


presents powerful trading techniques based upon the deepest
scientific and metaphysical principles applied in a different way
than courses in the past. It unveils many mysterious and difficult
theories and applications similar in approach to those of W.D.
Gann and shows a tr ader how to use these pr inciples to
successfully analyze and trade the any market on any time frame.
The techniques developed by Dr. Goulden will teach traders how to
identify future pivot points following which profitable market
moves ensue. All of the timing tools needed to forecast these pivot
points and the geometric tools used to identify price entry and exit
points, and to determine the nature of the ensuing trend are
demonstrated in the Course. Based upon a deep level of
metaphysical and cosmological insight, these techniques identify
PRICE LEVELS, TIME TURNING POINTS, AND TRENDS,
though
proprietary HARMONIC,
ASTRONOMICAL
&
GEOMETRICAL techniques developed by a Cambridge scholar.

SACRED SCIENCE INSTITUTE

WWW.SACREDSCIENCE.COM

EMAIL: INSTITUTE@SACREDSCIENCE.COM US TOLL FREE: 800-756-6141


INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!
WWW.TRADERSWORLD.COM

July/August/September 2016

17

DDD

NOW AVAILABLE FOR 2016


PRANDELLI 2016 FORECAST BULLETINS

AN ANNUAL TIME & PRICE FORECAST FOR THE


S&P & GOLD OR SOYBEANS, CORN & WHEAT
INCLUDING UPADATES OF KEY PRICE LEVELS

BY DANIELE PRANDELLI

Prandellis 2014 & 2015 Soybean & Corn Forecasts were PERFECT! 95% Accuracy!
Each Bulletin includes a PFS TIME Forecasting Model giving the swing turning points & push impulses
for the year, combined with specific Key Price Levels determined by his proprietary Planetary Longitude
Lines. Subscription includes ongoing updates of analysis and Key Price Levels thru the year! $250.00
For Details & 2014-15 Results see: www.sacredscience.com/Prandelli/PFS-Forecast-Bulletin.htm

THE LAW

OF

CAUSE & EFFECT

CREATING A PLANETARY PRICE-TIME MAP OF MARKET ACTION


THROUGH SYMPATHETIC RESONANACE BY DANIELE PRANDELLI
The Law of Cause & Effect unravels the correct application of
WD Ganns Planetary Longitude Lines. This cour se explains
why most analysts have failed to use these lines! There is a
missing conversion factor or calibration rate which must be
used to adjust the planetary relationships to the scale and
vibration of the market at any particular price level. This
book CRACKS the conversion factor and makes Planetary
Lines one of the most valuable tools youll have in your
toolbox.
These lines determine both price and time movements! They are
one of the easiest but most powerful of all Gann tools. Once
you see them, you will NEVER stop using these lines for
trading!
ONE OF OUR MOST POPULAR TRADING
COURSES! CORRECT USE OF PLANETARY LINES!

Know In Advance!

Explains Missing Calibration Factor Which


Fits Planetary Lines to Any Chart!

Determine Important Energy Levels Using


Precise Mathematical Rules

Key Prices to Take Trading Positions


Forecast Clear Target Exit Levels

Know Important Time Turning Points Thru


Confluence of Planetary Lines

Determine the Slope of the Expected Trend


Through Planetary Angles

FOR A DETAILED WRITEUP INCLUDING CONTENTS, SAMPLE TEXT

& CHARTS, FEEDBACK &

WWW.SACREDSCIENCE.COM/PRANDELLI/LAWOFCAUSEANDEFFECT.HTM

MORE SEE:

Prandellis Polarity Factor System forecasting


model is based upon the power ful insights of the
great market master, W. D. Gann, and particularly
upon his Master Time Factor, presented in one of his
AN INTEGRATED FORECASTING & TRADING STRATEGY rarest and most secret courses. Prandelli has
INSPIRED BY W. D. GANNS MASTER TIME FACTOR
redeveloped Ganns Master Time Factor and
created proprietary software to create yearly forecasts
BY DANIELE PRANDELLI
of the market with an accuracy similar to that
Black Suede Hardcover 242 Pages & Software
produced by Gann in his Supply and Demand Letter,
almost 100 years ago. This PFS timing technique
CREATE DIRECTIONAL TIME FORECASTS
forecasts market tops and bottoms with a high degree
of accuracy, giving clear directional indications. It
LIKE WD GANNS IN MULTIPLE MARKETS
also includes a sophisticated risk management system
S&P, CORN, WHEAT
and strategy to trade the forecast, which Prandelli
FOR A DETAILED WRITEUP & EXAMPLES SEE:
uses for his own trading. Integrates seamlessly with
WWW.SACREDSCIENCE.COM/PRANDELLI/PRANDELLIthe Planetary Longitude lines from his first course.
POLARITY-FACTOR-SYSTEM.HTM

PRANDELLIS NEW TRADING COURSE!


THE POLARITY FACTOR SYSTEM

SACRED SCIENCE INSTITUTE WWW.SACREDSCIENCE.COM

EMAIL: INSTITUTE@SACREDSCIENCE.COM US TOLL FREE: 800-756-6141


INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!
WWW.TRADERSWORLD.COM

July/August/September 2016

18

10

www.tradersworld.com Jan/Feb/Mar 2013

WWW.TRADERSWORLD.COM

July/August/September 2016

19

W.D. Ganns Mechanical Method And


Trend Indicator
By Daniel T. Ferrera
Over his 50-year trading and advising career, W.D. Gann developed approximately 40
different trading tools, calculators and/or mechanical methods to trade the various stock,
options and commodities markets. Gann was a prolific writer and published six market related
books beginning in 1923 with The Truth of the Stock Tape, 1927s The Tunnel Thru The Air,
1930 Wall Street Stock Selector, 1936 New Stock Trend Detector, 1937 How to Make Profits
Trading in Puts and Calls, 1941 How To Make Profits Trading in Commodities and 1949s 45
Years in Wall Street. In addition, Gann published and released several very expensive private
courses ranging from $1500 to $5000 that sold from the early 1920s to 1950. Several of the
private courses pertained to a specific trading approach based upon a swing indicator and
chart formations that Mr. Gann considered to be low risk, high reward opportunities.
Todays technical analysis has a large variety of recognized chart patterns. Some have
colorful names like the cup & handle and black swan formations. Most of the simple patterns
Gann highlighted were useful for identifying relatively low risk entry points on his mechanical
swing style charts. Over his career, Gann sold a number of these courses under different titles
that each used the same Mechanical Method and Trend Indicator, which in essence was a
simple swing charting approach. He sold a version for Wheat-Corn-Rye and Oats, a version
for Cotton, one for Stocks, Soybeans, etc., but each course is essentially identical other than
the title marketing to a specific market audience.
The swing indicator is used on multiple time frames to determine the trend of the market
and aid with stop loss placement and pattern recognition. This indicator is used primarily on a
1-day chart for the minor indications and a 3-day chart as the higher time frame for the main
trend. That said, Gann also recommended to chart the swings on a weekly chart and monthly
chart. The monthly chart should go back 15 to 20-years so that all of the important tops and
bottoms can be easily seen as well as the old levels of support and resistance. Gann taught
that chart formations that developed over several weeks, months or even years where of
much greater significance that those registered by the 1-day or 3-day swing charts.

WWW.TRADERSWORLD.COM

July/August/September 2016

20

Ganns Mechanical Method or swing indicator is based on the definition of trend. An up trend
has a series of higher highs and higher lows. A down trend has a series of lower highs and
lower lows. As long as the particular price movement is making higher highs and higher lows,
the trend indicator continues to move up to the highest level reached. The instant that the
market has both a lower high and a lower low, the trend indicator changes to down direction
to follow the duration of the declining price movement. It continues to follow the downtrend
as long as the market continues to make both lower highs and lower lows and moves down
to the lowest price level reached. As soon as the market has both a higher high and a higher
low, the trend indicator changes direction again to follow the new upward movement. In this
way, the trend indicator identifies the termination levels of up and down swings in the market
for both entry and stop loss placement. This can be expressed as a basic If, Then statement:
(1)
If todays high is greater than yesterdays high and todays low is greater
than yesterdays low, move the Trend Line up to the highest high.
(2)
If todays low is less than yesterdays low and todays high is less than
yesterdays high, move the Trend Line down to the lowest low.
Many software programs and trading platforms have several swing indicators that allow for
this specific type of charting or something comparable. The example below illustrates Ganns
Mechanical Swings from Market Analysts charting tools. The indicator is green for up mode
and red for down.

WWW.TRADERSWORLD.COM

July/August/September 2016

21

A very basic understanding of this mechanical method is useful for identifying price levels
where protective stop loss orders should be placed. Here is what Gann himself published on
this topic:
WHERE TO PLACE STOP LOSS ORDERS: You must place STOP LOSS orders below the
lows of swings and not just below the lows on the daily chart. STOPS must be above old tops
or below old bottoms on a weekly or monthly chart. STOP LOSS orders placed below closing
prices on the daily or weekly chart are much safer and less likely to be caught because you
are moving your STOPS according to the trend. STOPS placed above closing prices on the
daily or weekly chart are caught a smaller number of times than if you place them below a
daily bottom or a daily top. The swings or reversals in a market are the prices to place STOP
LOSS orders one way or the other. It is of great importance to know where to place a STOP
LOSS order properly.
In terms of trade entry on either the long or short side of the market, Double Top & Bottom
formations, Triple Top & Bottom formations as well as The Fourth Time at the Same Level,
represent the main chart patterns for the swing indicator that were presented in the various
course versions of Ganns Mechanical Method. These patterns typically allow for smaller risk
exposure as the protective stop loss order can be placed fairly close to the entry level. The
following illustrations graphically demonstrate these specific trading patterns presented in
W.D. Ganns Mechanical Method.

WWW.TRADERSWORLD.COM

July/August/September 2016

22

Pay close attention to these types of formations, especially when they occur on the weekly
and monthly charts and have taken considerable time to develop. Ganns market advice is
very straight forward in this regard. (1) Sell Short when price tops at or near the same price
level a second time (Double Top), use a tight stop loss order just above the prior high level.
In other words, keep the financial level of risk on the trade small. (2) Sell Short when price
tops at or near the same price level a third time (Triple Top), use a tight stop loss order for
protection. The inverse applies to the buying signals. (1) Buy Long when price bottoms at or
near the same price level a second time (Double Bottom). (2) Buy Long when price bottoms
at or near the same price level a third time (Triple Bottom). Always use a protective stop loss
order to keep financial risk at a minimum. These are the basics of Ganns so called: Mechanical
Method and Trend Indicator.
There are other tools such as geometric angles, support and resistance levels and timing
methods that can be incorporated as well, but because this particular subject requires more
space that a magazine article can accommodate, interested readers for a limited time can
obtain a FREE electronic copy of my book on Gann Analysis, Gann for The Active Trader
by simply sending an email to institute@cosmoeconomics.com with Free Book in the subject
line. In addition, Gann frequently talked about market cycles, history repeating and periodicity.
Those interested in this topic can also view a recent blog post article at danieltferrera.com.

WWW.TRADERSWORLD.COM

July/August/September 2016

23

THE TEXTBOOK OF GANN ANALYSIS...

The Path of Least Resistance


THE UNDERLYING WISDOM & PHILOSOPHY OF W. D.
GANN ELEGANTLY ENCODED IN THE MASTER CHARTS

BY DANIEL T. FERRERA

MOST DETAILED COURSE

ON

GANNS MATHMATICAL & GEOMETRICAL TOOLS!

"We use the square of odd and even numbers to

get not only the proof of market movements,


but the cause." - - - W.D. Gann

How to square the natural whole numbers (odd and


even), along with their midpoints.
How to define prices scales by "The Basis of Money
How to set the proper scale, and use the 1x1 angle to
square or balance price with time.
How the natural squares (even & odd) sub-cycle
would not be possible without understanding the
Spiral chart (Square of 9).... expressing the square
root as an "inner square" time period.
How to assimilate all of these elements together as a
sequential methodology once the "basis of Gann's
forecasting method" has been worked out.
How Ganns price squaring techniques and master
charts are NOT completely separate and independent
methods, but are tied together thru geometric angles.
How the inner square root sub cycle & natural
squares of numbers reveals unique market turns.

Intent of This Gann Course


The intent of Ferreras new course is to provide the most
comprehensive elaboration of W.D. Gann's most powerful technical
trading tools. It presents, with great precision, all of Ganns
foundational mathematical and geometrical techniques expressed in his
master calculators, angles, trend channels, squaring processes, pattern
formations, spiral charts and much more, leading to the clear
identification of profitable Trade Setups, important trend indications,
and critical price/time culminations.
The material further elaborates for the first time ever, a
number of Ganns most advanced geometrical tools and applications,
such as the natural squares (even & odd) sub-cycle and the square root
as an "inner square" time period, which were well hidden within Ganns
different courses, but never explained, showing how to properly unify
disparate tools into an integrated methodology according to Ganns very
specific rules.
There has never been a Gann course that so clearly
developed every detail of this element of his trading technology so as to
be both easily comprehensible to newer Gann students and highly
informative to the most seasoned Gann analysts, providing new insights
that most will have never seen. It provides both practical and actionable
trading signals and a valuable structural perspective to any market on
any time frame.
With 300 pages of detailed text, over 150 charts and
diagrams, and 190 pages of the rarest Ganns supplementary material,
we consider this 500 page treatise to be THE TEXTBOOK on Ganns
geometrical techniques that no serious Gann analyst can be without!

FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING FULL CONTENTS, AND SAMPLE SECTIONS SEE:
WWW.SACREDSCIENCE.COM/FERRERA/THE_PATH_OF_LEAST_RESISTANCE.HTM

FERRERA CALLED THIS BEAR MARKET!

FERRERA OUTLOOK FOR 2016

Topping Formation In Process

HE CALLED THE AUGUST 2015 CRASH SAYING


THAT AUGUST WAS THE ULTIMATE TIME LIMIT
FOR THE BULL MARKET!
HE CALLED THE MAY TOP PRICE OF 2135!
9 YEAR HISTORY OF HIS OUTLOOKS
HES WRITTEN OVER 10 BOOKS ON ANALYSIS

OUTLOOKS FOR 2008 - 2015 EACH ONLY- 50.00!

HTTP://WWW.SACREDSCIENCE.COM/FERRERA/
OUTLOOK2016.HTM

THE FERRERA OUTLLOK FOR 2016 IS $360.00


FOR DETAILS OF LAST YEARS FORECAST RESULTS:
WWW.SACREDSCIENCE.COM/FERRERA/FERRERAFORECAST-RESULTS.HTM

SACRED SCIENCE INSTITUTE

WWW.SACREDSCIENCE.COM

EMAIL: INSTITUTE@SACREDSCIENCE.COM US TOLL FREE: 800-756-6141


INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!
WWW.TRADERSWORLD.COM

July/August/September 2016

24

www.kjtradingsystems.com

Full time trader and best selling author Kevin Davey can improve your
trading 2 ways:
Strategy Factory Workshop: Learn to build trading strategies the correct
way, by following the step by step process Kevin used to win the world's
premier futures trading contest:

1 day live online workshop


3 strategies you can immediately trade
4 months one-on-one e-mail support

Plus, through a special program with Kevin's preferred broker, the


course can actually not cost you a penny!
KJ Diversified Trading Signals: Auto-trade a 5 market futures portfolio
Kevin developed. >100% return since its inception in August 2015. Past
performance is not indicative of future results.

Don't let your trading fall behind - get Kevin's help today

www.kjtradingsystems.com
DISCLAIMER: THERE IS A SUBSTANTIAL RISK OF LOSS IN TRADING. IT IS THE
NATURE OF COMMODITY TRADING THAT WHERE THERE IS OPPORTUNITY
FOR PROFIT, THERE IS ALSO RISK OF LOSS. COMMODITY TRADING
INVOLVES A CERTAIN DEGREE OF RISK, AND MAY NOT BE SUITABLE FOR
ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF
FUTURE RESULTS.

WWW.TRADERSWORLD.COM

July/August/September 2016

25

How to Trade Market Volatility Selling


Options for Profits & Hedging
A 6 Step Plan
Presented by Larry Gaines
A 6 Step Plan for Option Trading Success
Step 1. Avoiding the #1 Option Trading Mistake
Step 2. Most Important Option Factor
Step 3. How Option Pricing Works
Step 4. Knowing & Using the Market Makers Secrets
Step 5. Highest Probability Option Strategies for Every Market
Step 6. Risk-to-reward

Step 1.
Avoiding the #1 Option Trading Mistake
Option trading has many more advantages than trading stock, but, as you probably know, it is a
bit more complicated, as well.
And, for the individual trader, options can be a little intimidating. Thats why many investors
trade options by purchasing Out-of-the-money options (often short-term options), since they
cost less than long-term options, and its a simple strategy.
For example, Out-of-the-money calls are especially popular because they are cheap and seem to
follow the old Warrant Buffet paradigm we all love: buy low, sell high.

But is this always the best option strategy?


Imagine youre bullish on Facebook (FB) trading at $100.
As a beginning option trader, you might be tempted to buy calls 30 days from expiration with a
strike price of $120 at a cost of $0.15, or $15 per contract.
Why? Because you can buy a lot of them.
Lets do the math.
Purchasing 100 shares of FB at $100 would cost $10,000. But, for the same $10,000, you could
WWW.TRADERSWORLD.COM

July/August/September 2016

26

buy 666 contracts of $120 calls and control 66,660 shares.


WOW.
Imagine FB hits $121 within the next 30 days, and the $120 calls are trading at $1.05 or $105
per option contract just prior to expiration.
Youd make $59,940 in a month!
At first glance, this kind of leverage is awesome!

But dont let this glitter FOOL YOU . . . because not losing money is just
as important as making money!
One problem with short-term, Out-of-the-money options is that you not only have to be right
about the direction the stock moves, but you also have to be right about the timing.
That ratchets up the degree of difficulty.
To make a profit, the stock doesnt just need to go past the strike price but also must do this
within a defined period of time.
In the case of the $120 calls on FB, youd need the stock to reach $120 within 30 days to make a
profit.
This dual objective of having to be right on direction plus on timing really lessens the probability
of an option trade being a winning trade when buying options.
And everything that I teach my clients is based on managing risk and increasing the probability
of winning trades.
In the Facebook option trade, you are wanting the stock to move more than 20% in less than a
month. This would be like a 2 Standard Deviation move!
How many stocks are likely to do that?
Not many. In all probability the stock would not reach the strike price, and the options would
expire completely worthless.
Based on probability, using Standard Deviation, there is only about a 5% chance of this stock
reaching $120 to $121 by expiration.

So in order to make money on an Out-of-the-money call, you either need


to outwit the market or get plain lucky.
WWW.TRADERSWORLD.COM

July/August/September 2016

27

Being close means no cigar.


Imagine that FB rose to $110 during the 30 days of your options lifetime.
You were right about the direction the stock moved.
But, since you were wrong about how far it would go within a specific time frame, youd lose
your entire investment.

And this is outright painful!


So, based on this trade example, a better goal for every trader would be to select trades based
on what provides the most consistent, positive returns, not a one-time big winner.
And consistency is derived from making HIGH PROBABILITY trades based on reliable data and
facts.
Where theres a big disadvantage, such as the one you saw in the option buying scenario, you
can usually just look at the flip side of the coin and see an equal and opposite advantage.
In this case, being a SELLER of options gives you a huge advantage over being a buyer of
options.
All of the pros know this and take advantage of it, and so can you.

So as a Seller, all of the things in this example are the same, but in your
favor, instead of against you.
This is why a lot of people take advantage of Selling Options for Profit
Generation & Hedging . . .
By selling options, we are, in essence, selling time.
What a powerful dynamic . . .
And its a strategy thats yours for the taking . . .
An option is like a coupon that must be redeemed by an expiration date or else it is no longer
valid.

But how is this done & what is involved?


Step 2.
The most important option factor for income generation is understanding the concept of TIME,
and thats pretty simple, as you just saw . . .
WWW.TRADERSWORLD.COM

July/August/September 2016

28

Time Value ~ is used for trading strategies that take advantage of the accelerated Time Decay of
an option into its Expiration.
Option Income Strategies are very tied to Time Value and the impact it has on the price of an
option.

What exactly is Time Value?


Time value (TV) (extrinsic) of an option is the premium a rational investor would pay over
its current exercise value (intrinsic value), based on its potential to increase in value before
expiring.
This probability is always greater than zero, thus an option is always worth more than its
current exercise value.

Take a look at the following chart to see just how predictable and
powerful this option paradigm is! And answer the question that follows:

So if the underlying security price was to go sideways, having no directional trend, would you
have wanted to have BOUGHT an option 120 to 90 days out, or would you have rather SOLD an
option?
This is the common natural time value progression for all options.
And its seriously like falling off a cliff . . . blindfolded!
WWW.TRADERSWORLD.COM

July/August/September 2016

29

Step 3.
How Option Pricing Works
How to value an option
Time Value (x) Implied Volatility (x) Intrinsic/Extrinsic Value . . .
Note: Once you know these variables, then you are ready to price an
option & know what its option premium should be.

Step 4.
The Market Makers Secret
What they dont want you to know . . .
WWW.TRADERSWORLD.COM

July/August/September 2016

30

Broad markets tend to have 2 to 3 week cycles and will trade in sideways channels 70% to 80%
of the time.
Based on this sideways price movement Out-of-the-money (OTM) option buyers will lose
approximately 70% of the time.
Market makers know these statistics and, therefore, tend to trade from the sell side.
This is the professional money, so you need to think like a market maker.

Its all based on the Math!


Market Makers use mathematical market probability statistics for pricing the movement of an
option to its expiration.
Knowing the probability of an underlying security finishing within a certain range at expiration is
key when determining what options to buy or sell and what option strategies to implement.
These statistics forecast how likely it is that an option will fall within a certain price, up or down,
by its expiration.
This statistical forecast is referred to as the Implied Move of the Stock.
The Implied move is an estimate of a +/- standard deviation move of the underlying security by
its expiration.
Based on these probability statistics, Selling options & option spreads, when used correctly,
provides the highest probability trade set-ups for generating consistent profits and is also a
great way to hedge risk . . .
And its all based on the math of probabilities . . .
GOOGL Implied Move: +/- 4

Option Expiration 10 days

WWW.TRADERSWORLD.COM

July/August/September 2016

31

Trading Probabilities
Trading is a business of probabilities, and to be successful a trader needs
to focus on controlling risk. One important step is to know the winning
probabilities of any trade taken . . .
One simple & free tool for measuring probabilities is:
The Option Delta
It will tell you the value of an option based on the underlying move.
It is also used to measure the probability of a price move on the underlying move itself.
An Option Delta of 68/70 equates that the strike has a 68%/70% probability of being ITM at expiration.
An Option Delta of approximately +/- 16 is equivalent to the outside point of a 1 STD Implied move at
expiration.

This equates that the 16 Delta strike has only a 16% theoretical
probability of being ITM at expiration.

GOOGL: A 1 Standard Deviation Implied Move using the ThinkorSwim


(TOS) Option Analyzer & showing the call option delta.

WWW.TRADERSWORLD.COM

July/August/September 2016

32

Using this probability analysis provides traders with a very useful tool for determining price
targets to trade against and its also very useful for setting hedges.
So, based on the math of probability, you can see that approximately 68.2% of options
bought expire worthless, and, based on this, its a good idea for all traders or investors to
consider selling options as well as simply buying them.
This added option strategy for profits and hedging will make a dramatic and positive difference
in ones trading performance when used correctly.

And this is why professional money takes advantage of Selling Options


for Profit Generation & Risk Management.
Step 5.
Selecting the Right Income Option Strategy
The goal of every trader should be to select trades based on what provides the most consistent
positive return and not always the greatest return.
And one of the best ways to achieve this is by knowing the income option strategies that are
available and then selecting the one that is best for your trading style and trading plan.

Income Strategies
Covered Calls
Calendar Spreads
Diagonal Spread
Long Iron Condors
Credit Spreads

My favorite income option strategy is the Credit Spread for 4 reasons:


It can work regardless of market direction
It almost always works even if youre wrong!
The winning probability of profit is over 68% even without adding technical analysis, which
then increases the profit probability even more
Perfect for HEDGING. . .

There are 3 types of Credit Spreads:


1. Bear Call Credit Spread
2. Bull Put Credit Spread
3. Long Iron Condor

WWW.TRADERSWORLD.COM

July/August/September 2016

33

1. Bear Call Credit Spread is best if you think the market is probably
going to go down.
Strategy: Selling one call with a lower strike while simultaneously buying
one call with a higher strike in the same month.
Selling a Bear Call Credit Spread 25% Return on Margin
Credit Spread/Max Profit: $100/Ct. Return on Margin: $100/$400 = 25%

2. Bull Put Credit Spread is best when you think the market will probably
go up
Strategy: Sell one put while simultaneously buying one put with a lower
strike in the same month.
Selling Bull Put Credit Spread
Credit Spread/Max Profit: $130/Ct. Return on Margin: $130/$370 = 35%

WWW.TRADERSWORLD.COM

July/August/September 2016

34

3. Long Iron Condor Known for being a non-directional, low-risk


trading strategy
Strategy: Combine Bull Put Credit Spread and a Bear Call Credit Spread
Step 6.
Comparing the Risk vs. Reward
2 Long Directional Options Strategies
Strategy 1. Buying Directional Calls
Strategy 2. Selling an Out-of-the-Money Bull Put Credit Spread
Wynn Resorts: Bullish Option Strategies
(1) Buying Directional Calls Vs (2) Selling Bull Put Credit Spread
Entry: May 1 Wynn Trading at $207
Strategy 1: Bought the ATM June $207 Call Strike for $11.40 or $1,140
per option contract
Strategy 2: Sold the $187/$182 OTM Bull Put Credit Spread. Spread sold
below Wynns prior low of $189 which was 9.50% below its trading price
of $207 on May 1st.
Strategy 1:

Buying Long June $207 Calls

Entry: May 1
Trading at: $207
WWW.TRADERSWORLD.COM

July/August/September 2016

35

Debit & Capital at Risk: $1,140 per option contract


Return potential = Infinite

Open position P/L May 8


June Monthly $207 call original cost:

$1,140 per option contract

WYNN trading at $196

P/L: - $583 per option CT.

Open position P/L May 21


June Monthly $207 call original cost:

$1,140 per option contract

WYNN trading at $205

P/L: - $518 per option CT.

WWW.TRADERSWORLD.COM

July/August/September 2016

36

Strategy 2:
Entry: May 1

Selling Bull Put Credit Spread

Trading at: $207


Credit Spread/Max Profit: $130/Ct. Return on Margin: $130/$370 = 35%

Strategy 2: June $187/$182 Bull Put Credit Spread: $130/Ct.


Open position P/L May 8:
WYNN trading at $196 Credit Spread: -$38.50/Ct. Vs Long Call -$583

Strategy 2: June $187/$182 Bull Put Credit Spread: $130/Ct.


Open position P/L May 21
WYNN trading at $205 Credit Spread: $78.50/Ct. Vs Long Call -$518/Ct.
WWW.TRADERSWORLD.COM

July/August/September 2016

37

Based on this example which option strategy would you prefer?


CONCLUSION
Whether trading a small account or large account selling options and option spreads will have
a major positive impact on your trading bottom line while reducing your trading risk. These low
risk trading strategies offer income and profit while also providing the perfect hedging strategy.
The single trader can easily execute these option strategies that can turn that small trading
account into a large trading account and with much lower risk than the traditional buy only
option strategy.

About Larry Gaines


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

WWW.TRADERSWORLD.COM

July/August/September 2016

38

Disclaimer

TradersWorld Magazine

The following is purely for educational


purposes. Any stocks mentioned DO NOT
constitute advice and should NOT be construed
as recommendations.
U.S. Government Required Disclaimer

Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

Commodity Futures Trading Commission.


Futures and options trading has large potential
rewards, but also large potential risk. You
must be aware of the risks and be willing to
accept them in order to invest in the futures
and options markets. Dont trade with money
you cant afford to lose. No representation
is being made that any account will or is
likely to achieve profits or losses similar
QUARTERLY MAGAZINE SUBSCRIPTION
Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.

to those discussed on this website. The


past performance of any trading system or
methodology is not necessarily indicative of
future results.
CFTC

RULE

SIMULATED

4.41

HYPOTHETICAL

PERFORMANCE

RESULTS

OR

HAVE

CERTAIN LIMITATIONS. UNLIKE AN ACTUAL


PERFORMANCE RECORD, SIMULATED RESULTS
DO NOT REPRESENT ACTUAL TRADING. ALSO,
SINCE THE TRADES HAVE NOT BEEN EXECUTED,
THE

RESULTS MAY HAVE UNDER-OR-OVER

COMPENSATED FOR THE IMPACT, IF ANY, OF


CERTAIN MARKET FACTORS, SUCH AS LACK OF
LIQUIDITY. SIMULATED TRADING PROGRAMS
IN GENERAL ARE ALSO SUBJECT TO THE FACT
THAT THEY ARE DESIGNED WITH THE BENEFIT
OF HINDSIGHT. NO REPRESENTATION IS BEING

COMPLETE BACK ISSUES OF TRADERS


WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

MADE THAT ANY ACCOUNT WILL OR IS LIKELY


TO ACHIEVE PROFIT OR LOSSES SIMILAR TO
THOSE SHOWN.

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

39

Trading on Target
Free Newsletter

Adrienne Toghraie, Traders Success Coach

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

Visit TradingOnTarget.com to receive a free newsletter


on Discipline for Traders.
WWW.TRADERSWORLD.COM

July/August/September 2016

40

TRUST: THE HEART OF


DISCIPLINE
By Adrienne Toghraie
Traders Coach
TradingOnTarget.com

Your ability to trust yourself will determine your ability to be disciplined in trading.

Without trust there is no dependable relationship between you and yourself, between you and
another person, or between you and your faith in your ability to follow your own trading rules.
All of these relationships exist, whether you are consciously aware of them or not, because your
conscious and unconscious mind divide up into parts, which have different and often competing
roles and belief systems.
The Four Elements of Trust
In order to gain long-term trust, four elements must be present. The first element is inner
security. The foundation of inner security starts when you are in the womb. Infants must know
that their basic needs are being met: they must feel that they are safe in their environment,
that their need for nourishment and comforts will be met, and that they are loved, wanted and
accepted.
Too many of the traders with whom I have worked did not feel loved as a child even though they
recognize the fact now that their parents loved them. But, being aware that they were loved
does not change the insecurity in their inner child.
The Second Element
The second element in creating self-trust is knowledge. Many people call me and say, Im ready
to trade because I just finished reading a couple of books about trading. Unfortunately, there
are many people who enter trading believing that they dont have to have an extremely good
education to become a successful trader. I know that a person is ready, educationally, to trade
when he says, Ive read almost everything in trading that is out there. I have a business plan
and a system that is back-tested which I believe will be profitable. Assuming what he says
is true, the only thing needed for his success is whether he has the inner security to trade.
Education builds trust in your ability.
The Third Element
The third element necessary to build trust is evidence. For a trader, the evidence he needs is
WWW.TRADERSWORLD.COM

July/August/September 2016

41

evidence that he:


1. Has successfully developed skills and abilities in the past.
2. Has carried through on goals he has set for himself.
3. Has created the probability of making money by back-testing.
4. Will make money, when he develops a system or methodology as a trader
5. through study and training.
Successful back-testing gives a trader the confidence to believe that the probabilities of making
money are in his favor.
The Fourth Element
The fourth element in building trust is the experience of repeated success in real-time trading. I
enjoy working with traders who experience a setback because of personal issues or because they
have not adjusted their system to changing markets. It is easy to direct them to even greater
success because they have already experienced success through their own study and selfdiscipline.
If you would like to measure the level of trust you have for yourself and for others, all you have
to do is look at your day-to-day behaviors. They will also indicate whether or not you have the
discipline necessary to become a good trader. Here is a quiz that will give you an idea of the level
of trust you have in yourself and others through your daily behaviors.
The Self-Trust Quiz:
Do you have a pattern of always being late (15 minutes, half an hour, etc?)
Do you break or miss many of your appointments?
Do you make commitments to yourself and break them such as:
starting diets and exercise regimes and breaking?
promising to stop a negative behavior and then breaking the promise as soon as you are
tempted?
6. Do you fail to follow through with plans and promises to yourself and others?
7. Do you borrow money and then not pay it back?
8. Do you break the promises you make with your children?
9. Have you betrayed your marriage vows?
10. Do you break serious traffic laws without thinking about it?
11. Do you justify breaking rules at work or in other settings in your life?
12. Do you believe that, Rules are meant to be broken?

WWW.TRADERSWORLD.COM

July/August/September 2016

42

If you can truthfully answer NO to these questions, you are well on the way to becoming a
disciplined trader or investor. However, if you give your unconscious mind the message that it is
okay to break the rules, it will be okay with your unconscious mind to support you in breaking
trading rules.
Breaking trading rules is like trading without a system.
Making Rules that You Can Live by
Is it ever okay to break your trading rules? The answer is No, Never! If you have anticipated
all contingencies, you will have a rule for everything, so you wont be breaking rules. Youll be
following the contingencies. For example, if you say, Im going on a diet and Im never going to
eat anything fattening, suddenly you will have an overwhelming urge to eat a piece of chocolate
cake. However, if you will make the rule about going on a diet to include a periodic slice of
chocolate cake as part of the diet, then you will not be breaking your rules. The result is that
you will stay on your diet.
The same principle of creating rules you can live by applies to your trading. Your rules must
cover special conditions and exceptions. When they are part of your rules, you will find it not
only possible, but easy to stay within your rules at all times. The message that you then send to
your unconscious mind is that you can be trusted.
What Do You Do if Youre Not Trustworthy?
Basically, you start by keeping your agreements. This may sound easy, but it is not. If you
are unable to trust yourself to keep even small agreements because of a pattern of broken
agreements, this could present a challenge. It is essential that you must keep all your
agreements. For that reason, if you want to send your unconscious the right message, you need
to make only those agreements which are very easy to keep and which you have a strong desire
to keep. They may be things which you want to do so that you know you wont break them. You
may develop back-up systems so that you cant forget. The important thing is to do this one
step at a time. Dont overwhelm yourself with agreements. The danger would be that you would
slip up and then fall off the wagon as soon as you fail once.
Each time you keep an agreement, acknowledge your achievement and reward yourself. Give
yourself a verbal pat on the back. You may even have a special treat you give yourself each day
for keeping all of your promises, agreements and rules. After a month of keeping each and every
agreement and then rewarding yourself, you will have established a strong pattern of self-trust.
From that point, trading discipline is no longer a problem.

WWW.TRADERSWORLD.COM

July/August/September 2016

43

Conclusion
Self-trust is the backbone of trading discipline.
If you can trust yourself to do what you say
you are going to do, you can follow your own
trading rules. However, if you have been raised

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

in an environment which neither nurtures and


supports you nor provides you with a model
for keeping agreements, you will develop trust
issues that will continually undermine your
ability to trust yourself and those around you.
You will find it difficult to keep agreements with
yourself and others. This problem will spill over
to your trading so that you will not be able
to follow your trading rules. The slow, steady
process of making small agreements which are
easy to keep and then forcing yourself to keep
each one, one after another, is an effective
strategy for building self-trust and a successful
trading career.

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

44

OBJECTIVE WAVE
ANALYSIS
By George Krum
In the realm of technical analysis few theories have captured the investment publics
imagination in the same way as the Elliott Wave Theory. After all, who would not get excited
about a theory that, in the modest words of its creator, claims to be based on Natures Law,
and to have revealed the Secret of the Universe?
When it comes to its practical application to trading, one must agree however with its key
proponent, Robert Prechter, who wrote that despite the basic simplicity of the concept itself,
Elliott wave analysis is not easy to do it is one thing to recognize that the Wave principle
governs stock prices, while it is quite another to predict the next wave and still another to
profit from the exercise. If that is not enough to pour cold water on your wave enthusiasm,
consider the well-known fact that no two self-respecting Elliott wave practitioners will agree
upon not only a future, but also a past wave count.
While none of this should detract from the major achievement of wave theory which
is that it gives investors a general framework for market and human society observation -the problems associated with its successful application to trading still remain and must be
addressed. The key problem stems from the complex wave count rules which open the door to
subjective wave identification and interpretation in order to fit the requisite number of waves
into a larger degree wave. Therefore, we sought to introduce an objective way for visualizing
waves or swings, which is immune to subjective definition and implementation, and can serve
as a basis for an unbiased and improved analysis.
The Swing Price indicator (Chart 1) is a swing/wave recognition overlay which marks the
beginning and end of price swings detected by the indicators algorithm. Up swings are painted
green, down swings are painted red. By overlay we mean that the indicator has no relation to
price levels but solely to pattern, and is overlaid over the price chart to merely highlight price
swings, not actual price levels. What sets it apart from traditional wave definition methods is
that the analysis is done automatically, in real time, based on precise mathematical rules, and
not on a forced, ex post facto 12345, ABC, xyz, etc. count. In addition, it incorporates a time
element, a subject which will be discussed briefly below:

WWW.TRADERSWORLD.COM

July/August/September 2016

45

Chart 1
It doesnt take a fortune teller to predict that after glancing at the chart above, some wave
practitioners will not agree with the definition of the waves. We have no objection whatsoever
to them sneaking in or ignoring a wave in order to fit their count quota. They should remember,
however, that price is the ultimate indicator, and when they subjectively alter the waves, they
are finding fault with price, not with the indicator itself.
We are leaving the swings/waves unlabeled on purpose, to allow even those who are not
Elliott wave (EW) practitioners to incorporate them into their analysis. For those who use the
EW nomenclature, it will be easy to discern between motive and corrective waves, between
waves of equal duration and waves of different degrees, and they can feel free to apply any
count and labeling they see fit.
Besides objectivity, there are several other benefits to using this type of wave/swing
detection. First is the speed and ease of use, as the indicator will display automatically for any
instrument in any time frame. Second, you can display the indicator in its current and higher
time frame on the same chart (e.g. daily and weekly [thicker line], Chart 2):

WWW.TRADERSWORLD.COM

July/August/September 2016

46

Chart 2
Third, you can use the data supplied by the indicator to extract information about the current,
maximum and average swing/wave duration of a particular instrument. The incorporation of
a time element into the visual depiction of the waves adds a new dimension to the analysis.
The SwingTime indicator (bottom panel, Chart 3) takes care of this task, and displays the
duration information for the respective time frame. It should be noted that waves which fall
short of the average wave length are usually of the corrective variety:

Chart 3
WWW.TRADERSWORLD.COM

July/August/September 2016

47

Insight into the swing duration of a particular instrument can be invaluable for fine tuning
many other indicators. There are entire books devoted to the topic of adapting the default
settings of the most popular TA indicators, so we will not delve into the subject. Suffice it
to say that armed with the information from the SwingTime indicator, you no longer will be
confined to the default settings club, but will be able to adapt many indicators (think MAs,
MACD, RSI, Stochastic, etc.) to the requirements of a particular instrument in a specific time
frame. In addition, the indicator makes it very easy to figure out when to be more liberal or
conservative with your stop/loss levels.
We have used this insight to fine tune our Hurst channels, which helps us to identify price
targets months in advance to within a few cents, as documented here. And we also use this
information, among other things, to calibrate our market breadth studies, which have a good track
record of signaling price turns (Chart 4):

Chart 4
If a price overlay looks too abstract to some, we have also developed an indicator which
combines price pattern and pivot point recognition into one simple but very effective tool
(chart 5):

WWW.TRADERSWORLD.COM

July/August/September 2016

48

Chart 5
The SwingPivot indicator gives you the added benefit of highlighting pivot levels directly
on the chart, making it very easy to use them as long/short, support/resistance levels, and as
price targets above/below which to place stop/loss orders. For options traders, they provide a
convenient tool for choosing strike prices for executing their favorite option strategies. Most
importantly, they help tremendously with identifying higher highs and higher lows, or lower
highs and lower lows, which is indispensable for an accurate definition of trend.
In summary, the indicators discussed above have one goal in mind: to make your technical
analysis objective, easier and more relevant. You can use them as a stand-alone tool or for
a variety of other purposes, such as helping you with placing your stop/loss levels, with your
wave identification and count, with fine-tuning the default settings of the many other traditional
indicators included in most charting packages, and as a stimulant for further research.

WWW.TRADERSWORLD.COM

July/August/September 2016

49

www.OddsTraderApps.com

WWW.TRADERSWORLD.COM

July/August/September 2016

50

Profitable Trading with Binary Options


By Gail Mercer
While there are many rumors that suggest binary options are not profitable, with the right
mindset and indicators traders can make money with the Nadex Binary Options.
Today, June 15th, is a great example of just how easy it is to make money with the Nadex
Binary Options, even when the market is not moving because of impending news announcements.
The U.S. indices were barely moving. Yet, there were two signals issued. One signal said to
buy the 2-hour binary option for the e-mini Dow Jones at 17615 with a minimum expiration of
48 minutes (or the equivalent of a 2-hour binary option). The other signal was for the e-mini
S&P 500 to buy at or near 2070.50 with a minimum expiration of 48 minutes.
The chart below shows where price was on entry. Basically price was at the TradersHelpDesk
Trend Average True Range indicator (plus sign on the chart below).
The beauty of binary options is that price doesnt need to move. It just needs to stay above
the strike price. In this case, binaries were entered to the long side for the following strike
prices with and expiration at 1pm New York time:
US 500 (underlying instrument is the e-min S&P 500) > 2069.8. Risk of $55 per contract
was paid on entry.
Wall St 30 (underlying instrument is the e-mini Dow Jones) > 17614. Risk of $58 per
contract was paid on entry.
Typical behavior would be for the ATR to offer support for price to go up or at least bounce
thus the charts indicated that price would stay above the ATR for the duration.
Although the trader can allow the binary to expire, in this case, a profit target was set at
$80 for both binaries. Of course, at any time during the trade, the trader can exit the position
with Nadex Binary Options, which is very useful if conditions change (ie price closes below the
ATR level).
Within one hour the profit target was achieved.
The profit (excluding exchange fees) were:
S&P 500, $25 per contract traded or $50 trading two contracts
Wall St 30 (uses the YM as the underlying), $22 per contract traded or $44 trading two
contracts
Total profit on trading 2 contracts on each instrument was $94. The return on investment
was 41.59%. Considering price is hardly moving (less than 10 points on the e-mini Dow and
12 ticks on the e-mini S&P 500), making a return on investment of 41.59% in less than an
hour is not bad.
Of course, if the market is trending, then binary options give the additional advantage
of allowing the trader to build on a great signal, as well (sort of like adding to positions in
futures and forex without the unlimited risk exposure). For example, a trader with a bias to
the upside, can build long positions using the 2-hour expiration in combination with the daily
expiration. Since a new 2-hour expiration is offered every hour on the indices between 8am
2pm New York time and one daily expirations, one setup can actually generate eight setups.
TradersHelpDesk offers state-of-the-art indicators for trading binary options, as well as
WWW.TRADERSWORLD.COM

July/August/September 2016

51

a binary option signal service for only $99 per month. Simply visit our website at www.
tradershelpdesk.com or www.gailmercerbinarysignals.com to find out more information.

WWW.TRADERSWORLD.COM

July/August/September 2016

52

The EUR/USD: The Big Picture


By Jaime Johnson
NoBSFXTrading.com
The EUR/USD has, for the most part, traded sideways for the past year and a half with very
small net trend change. It has also traded within the same March 2015-August 2015 range.
In other words, it has been in a consolidation for the past 16 plus months. The questions
are, when will the consolidation end, if not already complete, and what will be the breakout
direction?
In this article, we will discuss the probable answers to these questions and my reasoning
and analysis behind them. We are going to look at pattern and momentum/oscillator position
to determine the trend direction and the probable breakout direction from the current
consolidation 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 2016.

The Bear Trend from the May 2014 High is Probably Not Complete
Chart 1 is a EUR/USD monthly chart. Lets first look at the facts. The May 2014 high
completed a corrective high off the July 2012 low and resulted in a very strong bear trend to

WWW.TRADERSWORLD.COM

July/August/September 2016

53

the March 2015 low. Since the Jan. 2015 close, the EUR/USD has had a very small net change
as of the time of this writing (mid-June), characteristic of a consolidation. While there may be
a breakout up from the consolidation range (in this case, the March 2015 Aug. 2015 range),
a consolidation may also be a correction. The pattern off the March 2015 low has strong
corrective characteristics (better seen in Chart 2, weekly EUR/USD data). Corrections usually
have overlapping wave patterns just like the pattern from the March 2015 low. If the rally off
the March 2015 low is corrective, once the correction is complete, if not already complete, the
bear trend off the May 2014 high should continue to eventually below the March 2015 low.
Lets now take a look at the monthly momentum or oscillator position. Chart 1 has two
oscillators in which their settings have highs and lows that correlate relatively well with the
swing highs and lows of the monthly EUR/USD. Both oscillators are currently Bear, a strong
momentum signal the outside reversal month of May is very likely a multi-month high. So
regardless if a corrective high off the March 2015 low is complete or not, the net trend of the
EUR/USD should be down for at least a few, if not several months. Lets now talk about the
possibility a corrective high off the March 2015 low may not be complete.

EUR/USD Weekly Data


Chart 2 is weekly EUR/USD data from the March 2015 low. The overall wave pattern off the
March 2015 low is overlapping, characteristic of a correction. However, it is characteristic of a
complex correction and when and where a complex correction completes is often difficult to

WWW.TRADERSWORLD.COM

July/August/September 2016

54

determine. The main factor that makes the probable corrective rally off the March 2015 low
complex is there are Bullish and Bearish corrective patterns. The March 2015 Aug. 2015
rally unfolded in an ABC corrective pattern, the Aug. 2015 Dec. 2015 decline also unfolded
in an ABC corrective pattern and the May 2016 high has potentially completed an ABCDE
corrective pattern off the Dec. 2015 low. Here is where it gets tricky and confusing. If the May
2016 high is a corrective high, then Dec. 2015 low should eventually be taken out. However, if
the Dec. 2016 low is a corrective low, then the Aug. 2015 high should eventually be exceeded
and it has not yet been exceeded. This is a warning that a corrective rally off the March 2015
low may not yet be complete. Lets take a look at weekly closing data to see if it helps clear
this up.

EUR/USD Weekly Closing Data


Chart 3 is weekly closing data of the EUR/USD off the March 2015 low. Closing data often
cleans up the noise caused by intraweek volatility so we can see a clearer pattern. However,
since the Forex market is a 24-hour market, it is not a good idea to use closing data in the
daily timeframe or lower. However, the Forex market does close every week, so closing data
may be used in the weekly timeframe.
Looking at the closing data, it looks like there is a clear ABC corrective rally off the March
2015 low. If this is the case and a W.C high is already complete, it could very likely be the
completion of the corrective rally off the March 2015 low. If this is the case, the EUR/USD

WWW.TRADERSWORLD.COM

July/August/September 2016

55

should be in a bear trend for several months to below the March 2015 low, if not further.
The ABC corrective pattern in weekly closing data and the Bear monthly oscillators suggest
an ABC corrective high or at least a multi-month high should be complete. Lets discuss what
other signals may suggest this may be the case.

Signals at least a Multi-Month High Should Be Complete


Looking back at the Chart 2, the EUR/USD weekly chart, the swing low of the week ending
April 22, 2016 is circled. The trade and weekly close below this low is the initial signal a
multi-month high should be complete and any multi-month high in this market could be the
completion of a corrective rally off the March 2015 low.
Lets take a look at the weekly oscillators. We already know the monthly oscillators are
Bear, but the weeklies are Bull which signal the net trend of the EUR/USD should be sideways
to up for the next 2-3 weeks. However, if there is weekly oscillator Bear Reversal (the fast
line crosses below the slow line) without the May high exceeded, this would be another strong
signal a multi-month high is complete, the May high is very likely an ABCDE corrective high
off the Dec. 2015 low and another signal a potential corrective high off the March 2015 low
may be complete. Please recall, this article was written mid-June, so this Bear Reversal may
have already been made or the May high may have been exceeded voiding the completion of
the corrective highs. It is always important to have signals that support or void your analysis
in order to make good trading decisions.

Our Outlook is Bearish


With a probable overload of information just given, I will simply state the probable direction
of the EUR/USD over the next several months: DOWN, BEAR! With the monthly oscillator
Bear, the next weekly oscillator Bear Reversal will very likely be followed by the continuation
of the Bear trend off the May high for several trading months and if the corrective highs are
complete, the Dec. 2015 low, if not the March 2015 low should be taken out.

So, What Side of the Market Should You Be On?


While there are many global ramifications caused by the long term trend directions of the
EUR/USD and its inverse Dollar, you may not have much interest in this if you are a shorter
term trader of the EUR/USD or Dollar. So, please keep in mind, during a multi- month Bear
trend, there should be multi-day to multi-week corrective rallies to the Bear trend which
can also be taken advantage of in the lower degree time frames. So regardless the direction
or time frame you choose to trade, always use objective trade entry strategies, always use
stop-losses, trade more than one unit and have exit strategies for each unit, use stop-loss
adjustment strategies, use a money management plan and most importantly, be disciplined
enough to stick to these trade strategies.
For education on practical trade strategies for every timeframe to take advantage of the
potential multi-month decline in the EUR/USD and for corrective rallies during this decline,
check out my NoBSFX Trading course (info below).

WWW.TRADERSWORLD.COM

July/August/September 2016

56

More Information as the Market


Unfolds
With the EUR/USD, as well as any other
market, more information is revealed on
whether the longer term outlook is correct
or not as the market unfolds. For continued
analysis of the EUR/USD as well as many
more top Forex markets as they unfold and for
further education on the analysis used in this
article, check out the NoBSFX Daily Reports
and the NoBSFX Net Trend Video Reports (info
below).
Jaime Johnson is a full time trader and the
author of the NoBSFX Trading Workshop,
the NoBSFX Daily Reports and the NoBSFX
Net Trend Video Reports. For complete
information, go to www.nobsfx.com or send
him an email at jaime@nobsfxtrading.com.

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

57

FUNDAMENTAL ANALYSIS.
By Jacobs Singer

Long term analysts are calling for a correction in the stock market that should last
approximately five years. Elliott Wave charts are suggesting that the present wave is major
WAVE V up, with an ABC correction to follow. This can be seen in the chart in Figure 1, where
the Elliott Wave count is suggesting a WAVE V failure, a very bearish indicator.
With computer trading gradually taking over market trading, a wave five failure is becoming
more and more common. In the book, Elliott Wave Principle, by Frost and Prechter, published
November 1978, they show charts in the initial pages, where WAVE 5 is equal to WAVE 1. For
the most part, five-wave formations have clear-cut wavelike characteristics with infrequent
irregularities except for what are known as extensions.
The book further explains Failures. (page 32) Elliott used the word failure to describe a
five-wave pattern of movement in which the fifth impulse wave fails to move above the end
of the third. Failures give warning of underlying weakness or strength in the market and tell
us more about the reality of stock market life than most of us care to hear.
In all my years of stock market trading (I started in 1969), I have found that a WAVE 5
failure leads to a long term Bear market. In recent years, with computer trading becoming
more and more active, I have noticed that WAVE 5 failures are becoming more and more
common. Is this because of the algorithms used in the computer programs or is it because
computers are becoming more and more intelligent in analyzing the market? Time alone will
tell.
My chart in Figure 1 is a monthly chart of the S&P500 index with an Elliott Wave count
suggesting a WAVE V failure. This is confirmed by both the RSI 14 and MACD indicators which
are both in SELL mode.
Figure 1.

WWW.TRADERSWORLD.COM

July/August/September 2016

58

The other charts I watch that are suggesting that the market could be moving into a
recession, are the Presidential cycle (Figure 2) and the Kondratieff Wave (Figure 3).
Figure 2.

Figure 3.

The Presidential cycle in Figure 2 shows how the share market always tends to correct in
the final year of a Presidents term of office, and only starts correcting upwards when a newly
elected President starts exerting his influence on the financial market. With President Bush,
the chart shows that it took two years before the market started recovering. With President
Obama, recovery was immediate. What for the year 2017? Whoever the next President will be,
WWW.TRADERSWORLD.COM

July/August/September 2016

59

one can only guess how long it will take for the Index to start recovering. Of course this will
depend on the financial policy of that President.
The Kondratieff Wave shown in Figure 3, was developed by the Soviet economist Nikolai
Kondratieff and brought to international attention in his book The Major Economic Cycles, in
1925. The K-Wave is calling for a minor correction in 2016 with a major correction in 2019.
This does tie in with an Elliot Wave ABC correction, Wave A being a down wave, Wave B an
up wave and Wave C a major long term down correction. As we can see from the chart, the
corrections down never occurred exactly as called for by the K-wave, and the recovery always
occurred before the recovery date predicted by the K-Wave. This is because the Kondratieff
Wave is an analysis of the economic cycle, and the S&P500 index is a measure of the stock
market cycle. However, the K-Wave does give us an indication of what to expect for the future.
Combined with the Presidential cycle, it is something that should not be ignored.
So, what is the strategy one should follow when the market goes BEAR? Sell everything
and hide the money under the mattress, or are there other strategies one could follow?
Many investors buy conservative dividend or interest paying stocks. Their strategy being
that as the market falls, hopefully the cash they receive as the dividend/interest, will cover
the loss of the share price. Other investors go for gold, believing that price of gold will rise
as the market corrects. Still others however follow the strategy of a very successful market
investor. His name? WARREN BUFFETT.
Warren Buffet looks for solid companies; companies he knows will survive a major market
correction, and recover strongly. His BUY and HOLD strategy is well known, but many smaller
investors find it emotionally difficult to handle. Buying shares that Warren Buffett owns can
be expensive.
So, following the Buy and Hold strategy, and looking for little known companies that have
a solid financial position can be difficult. However, below is a strategy I developed to analyze a
company fundamentally and tell one whether the company is one that can be bought without
fear of a major collapse as the market corrects.
In 1986, I worked for a stock broking company in South Africa as a technical analyst. In
the office, next to me, was a fundamental analyst. We would often sit and chat over a cup
of coffee and he taught me a great deal about how to analyze a company fundamentally.
With his assistance, I developed an excel spreadsheet strategy that would tell me whether a
company was a sound company that should be invested in. The strategy worked so well when
combined with Technical Analysis, that the South African Securities Commission accused
me of insider trading after I advised investors on what to buy. I spent a nervous morning
explaining to their committee the method I used to analyze a company.
Figure 4.

WWW.TRADERSWORLD.COM

July/August/September 2016

60

The chart in Figure 4 is a copy of a portion of my spreadsheet that shows the values I would
look for.
I adopted four targets for investing.
If the Buy If = 5, then I would analyze the company technically looking for a possible entry
point.
If the Buy if = 6, I would look for that entry point and advise investors to raise an overdraft
at the bank to buy the share.
If the Buy if = 7, I would advise investors to raise an overdraft, put their house in mortgage
and buy the share.
If the Buy if = 8, I would advise investors to raise an overdraft, mortgage their house, sell
their motorcar and golf clubs and buy the share.
In all my years of analyzing companies, I had only one Buy if = 8, and that was when the
South African Securities Commission accused me of insider trading after I had advised clients
to buy the shares of the company.
If you, the Reader, are interested in using the spreadsheet, you may contact me at jaxxinn@
gmail.com, and I will send it to you. There is a charge for it, however. You have to place $1 in
the tin cup of a female beggar sitting on a street corner. I must add that one shareholder in
Spain did so well using the strategy, that he put $1000.00 in the tin cup of a female beggar,
then had to call an ambulance because she fainted.
So, to conclude. With a major market collapse in the offing, looking for a share to buy
following the Warren Buffett strategy of Buy and Hold, use the Fundamental Analysis strategy
shown in Figure 4. Identify a company you would like to own shares of and then use technical
analysis to determine the entry point to buy the share.
WWW.TRADERSWORLD.COM

July/August/September 2016

61

Gold Buy Signals


By Stephen Kalayjian
Gold prices declined in October and November of 2015, falling to the 1,046 level in early
December. Gold had significant support at the 1,040 level. This was the level at which the
International Monetary Fund sold 200 metric tons of gold to Indias central bank in 2009,
prompting a move in gold prices up to the 1,100 level. The U.S. dollar was gaining strength
with the expectation that the Federal Reserve was going to be more hawkish than dovish. This
rally in the U.S. dollar put heavy pressure on the gold commodity. When the Federal Open
Market Committee (FOMC) decided to raise the federal funds rate by 0.25% at their December
meeting they were optimistic that the U.S. economy was going to gain strength and that their
2% inflation target would be met in 2016. The Federal Reserve also forecast four rate hikes in
2016. Everyone was bearish gold with the thought that the Federal Reserve would maintain
a very hawkish tone. The selloff in gold ended once the Federal Reserve was done with their
comments for 2015.
I started to see some significant buy divergences on the daily chart for gold. There were
two great buy divergences in gold that I caught below the 1,100 level. Gold investors did not
seem to believe the Federal Reserve in any way. Typically when the Federal Reserve has a
significantly hawkish tone it will put downward pressure on commodity prices. Gold continued
making higher highs. Gold investors respectfully disagreed with the Federal Reserves 2016
rate hike forecast, providing underlying support of the commodity.
In late January I stated that if gold took out the 1131.30 level on the weekly chart it would
test the 1,300 level within the next six months. Gold closed above this level in the week
ending February 5th, providing a significant buy signal on the weekly chart for gold. With this
significant buy signal gold continued to trend higher in the months ahead.

WWW.TRADERSWORLD.COM

July/August/September 2016

62

After their March meeting the FOMC stated that they were now only forecasting two rate
hikes in 2016 and that their inflation target may not be met in 2016. In addition European
Central Bank (ECB) President Mario Draghi stated that he expected inflation in the Eurozone
to remain low for quite some time. These statements helped push gold even higher.
Using my proprietary software one can see the double buy divergence on the weekly chart
for gold. The first buy divergence is the stochastic getting oversold with a positive MACD. The
second buy divergence is the stochastic getting oversold with a rising ADX. With this double
buy divergence gold rallied almost 100 dollars from a low of 1207.70 in the week ending
April 1st up to a high of 1306.00 in the week ending May 6th. In addition the KnowVera
Trend Channel was very strong during this pullback into my 10-bar weighted moving average,
setting up a beautiful pattern.
Currently the central banks of Denmark, Sweden, Switzerland, Japan, and the Eurozone
have negative interest rates. Denmarks central bank has been experimenting with negative

interest rates for the longest period of time, setting their interest rate below zero for the first
time in 2012. The experiment of negative interest rates has not been effective in stimulating
economies.
Gold is in a perfect scenario for a move to higher levels. The technicals are significantly
bullish for gold on the daily, weekly, and monthly charts. With the worldwide economic
slowdown and weak U.S. economic data expectations for hikes in the federal funds rate during
2016 are low. Central banks are attempting to be as dovish as possible in both their language
and approach. Gold traders do not believe that the Federal Reserve will be raising the federal
funds rate with the current worldwide economic slowdown. I do not believe that the FOMC
will choose to raise the federal funds rate at any meeting before the November presidential
election. I believe there is a 50-50 chance that they will choose to raise the federal funds rate
during 2016 after the election is over.
WWW.TRADERSWORLD.COM

July/August/September 2016

63

In the last 8-9 years the Federal Reserve has spent over 4.5 trillion dollars on quantitative
easing. After all of this spending the second estimate of U.S. 2016 first-quarter GDP was
reported at a mere 0.8%. In addition durable goods and retail sales are significantly sluggish
and the U.S. manufacturing sector is weakening. Investors are losing faith in the Federal
Reserve. The Federal Reserve is under significant pressure to kick start the economy; however
its mandate is to maintain price stability and monitor employment. The employment was the
bright hope for the U.S. economy but is now pulling back. In April nonfarm payrolls increased
by 160,000, less than the expected increase of 200,000. In May nonfarm payrolls increased
by 38,000, much less than the expected increase of 158,000.
Now is not the time for the Federal Reserve to even be thinking about raising the federal
funds rate. In 2012 when the unemployment rate was above 8.5% the Federal Reserve stated
that they would look to start raising the federal funds rate once the unemployment rate fell
below 6.5%. If they had done so the federal funds rate would now be around 1.0%, providing
the Federal Reserve the option to cut the federal funds rate. The unemployment rate was at
5.1% when the FOMC decided to raise the federal funds rate by 0.25% at their December 2015
meeting. The Federal Reserve waited until too late in the recovery cycle to begin raising the
federal funds rate.
A hike of the federal funds rate would be bearish for gold. If the FOMC does choose to raise
the federal funds rate at any meeting before the presidential election it would be for political
reasons. It would be done with the goal of strengthening the U.S. dollar to help the Bank of
Japan and the ECB by devaluing the yen and the euro. A devaluation of their currency would
make their exports more attractive, giving a boost to their economies. I believe there is only
a 15% chance of the FOMC choosing to act for these reasons.
-Stephen Kalayjian is the Chief Market Strategist of KnowVera and the creator of Pattern
Recognition 101. More information on Pattern Recognition 101 can be found at www.
patternrecogition101.com. Sign up for his daily newsletter, The Kalayjian Report, at www.
kalayjianreport.com. Follow Steve on Twitter at @stevekalayjian.

WWW.TRADERSWORLD.COM

July/August/September 2016

64

Algorithmic Trading;

Stocks, Options,
Futures, FOREX
SOFTWARE
Real-time charts with no annual
fees.
EDUCATION
Highly efficient one-on-one
training and coaching.
TRADE ALERTS
Assets ready for a price move.
DOCUMENTATION
Photo sharp documentation.
Individual session recordings.

traditionally reserved for big


banks and hedge funds, now
available for you:
`

Spot and follow institutional money moves.


Let our software provide you with trading opportunities.
Stay in control of the final decisions with concepts for:

Day Trading
Swing Trading
Long-Term Investing

Schedule your personal consulting hour and find out


which concept fits your trading or investing needs.

contact@NeverLossTrading.com

Call: +1 866 455 4520

WWW.TRADERSWORLD.COM

July/August/September 2016

65

High Probability Price Prediction for


Trading and Investing
By Thomas Barmann of NeverLossTrading
Today, you are invited for interpreting the actual chart situation with the help of mathematical
models to specify the future happening with high predictability.
Price moves of all underlying assets show a cyclic nature, with at times radical directional price
moves in the one or other direction. Simple math models will not allow predicting such dynamic
happenings; however, pre-stages of stronger price moves can be measured and their outcome
predicted in a Markov chain, where the measuring of the happening of NOW helps us to predict
the future.
Chart-1: Seismic Reading and Predicting of the Price Motion

Markov chains are mathematical systems that hop from one state (a situation or set of values)
to another. For example, if you made a Markov chain model of price behavior, you might include
upwards moving, sideways moving, and down moves as states, which together with other
behaviors could form a state space: a list of all possible states. In addition, on top of the state
space, a Markov chain tells you the probability of hopping, or transitioning, from one state to any
other state---e.g., the chance for a price move from currently being sideways will move up in a
defined time period, without moving down first.
You might see now, why simple moving-average-based systems like MACD, Stochastic, CCI, RSI,
and Bollinger Band do only consider one dimension of trading, relating the happening of the
past to portray the future. Ask yourself, what does the price move from the last 50 and 200 days
have to do with the price action of now? If trading or investing was manageable with such simple
math: one moving average crossing over the other is giving an indication to go long or short in
an asset; everybody would be rich already.
WWW.TRADERSWORLD.COM

July/August/September 2016

66

However, considering a Markov chain alone is not good enough for a high predictive system;
hence, additional help was found in the chaos theory, where a disorder is detectable: a disorder
is a happening that can be measured and extrapolated by filtering and portraying an underlying
pattern to describe the actual- and future happening and how to react.
Using this knowledge and combining chaos theory and Markov chain with filtering mechanisms
from the signal transmission theory: Hamming distance and analogue digital conversion,
NeverLossTrading was developed into a high probability trading system, where mathematical
relations are used to predict the future by the happening of NOW.
Chart-2: How Filtering Models Help to Find Price Turning Points

Chart-2 shows our newest development: NeverLossTrading TurnPoint trading, where multiple
algorithms help you to determine new price directions, price limiting and price breakout lines
(horizontal lines: NLT Box Lines).
Why does signal theory help to determine future price moves?
You take the help of a computer to analyze the underlying price pattern, filtering patterns which
more likely lead to a directional price move from others that do not.
In technical terms: you are filtering the signal from noise, determining instances that have the
underlying pattern that might lead to a price action from those that do not produce a predictable
future happening.
Math is the science we use to translate the natural model of changes in supply and demand
into something predictable: Institutional investments stand for more than 85% of all market
happening and help us to make the price action predictable.
When institutional leaders take action, other market participants notice this and act. When a new
price direction develops and is confirmed by the price action of other institutional investors, it is
time to participate in a directional trade:
WWW.TRADERSWORLD.COM

July/August/September 2016

67

The action of one, leads to the action of another. This is why we call our model activity based
trading. It follows a natural model, using computers to determine and follow underlying price
action.
Our models are not auto trading systems: the final decision is yours and we share with you
how to balance the power of the human mind with the power of data analysis by real time
computers, which you can operate from the comfort of your home or any place with internet
connection.
Chart-3: NeverLossTrading Price Move Model

NeverLossTrading is using a fractal based math:


A fractal is a never-ending pattern with the following characteristics:
Fractals are infinitely repeating patterns that are self-similar across different scales: various time
frames, tick charts, range bars.
They are created by repeating a simple process over and over in an ongoing feedback loop: an
initiation of a price change causes a reaction.
Driven by recursion, fractals portray dynamic systems and thus, give an ability to predict the
future happening with a high probability.
Chart-4: Fractal Diagram, Based on the Mandelbrot Theory

WWW.TRADERSWORLD.COM

July/August/September 2016

68

Chart-4 demonstrates how to spot those repetitive patterns, allowing you to act on all
considerable times, ticks, or ranges; however, we also share in our mentorships preferred and
meaningful considerations.
Based on this knowledge, NeverLossTrading and TradeColors.com were developed and are shared
as mentorship programs; working together one-on-one with experienced- and new traders over
longer periods of time to ensure the learned is applied accordingly.
In summary: there are four dimensions to measure and extrapolate a pre-price-move
happening:
Price Momentum Change measured as acceleration in the price move of the underlying.
Statistical Volatility Change: price moves per observed time frame.
Price Move Constellation over time.
Volume Momentum Change in the observed time frames, similar but measured differently to
price momentum change.
In a simple summary: with the help of multiple algorithms, pre-stages of a change in supply and
demand are detected and dissected that might lead to a directional price move; however, trades
are not immediately accepted, other market participants have to confirm the new price direction
and only when this is given, a trade or an investment is accepted: see chart-3.
Using real time data, NeverLossTrading algorithms paint the happening with the help of modern
vector graphics on your chart, helping you to easily spot and follow supply and demand patterns
that repeat themselves based on the happening of NOW for all asset classes and all considerable
time-, tick- or range-frames and is applied by day traders, swing traders and long-term
investors.
NeverLossTrading is not a promise that you never lose a trade, the brand name comes from
teaching trade repair concepts: when a trade goes against you, you have the ability for a trade
repair, with the potential that you can even turn a loser into a winner: Never Stop Loss Trading
was a bit lengthy.
After a lot of theory, let us give you some practical examples:
Many traders rather prefer short- to long-term engagements.
If this is the case, how can you benefit from long-term price happenings that are for example
expressed in the NLT Long-Term Investor Alert?
In our teaching, we share the relation of weekly- and 4-hour charts; however, the question is:
How to put this into action?
WWW.TRADERSWORLD.COM

July/August/September 2016

69

Here are the action steps to take:


Carry the symbols with weekly NLT Top-Line Signals (Power Tower, Early Up, Early Down) onto
your watch list for the entire week.
Use the NLT TurnPoint lower study signal and trade the buy- or sell signals, preferred at NLT Box
breakouts (this study indicates assumed institutional buy-/sell-programs).
Either trade very short-term after signal confirmation, for 1-candle; or hold overnight on a
stronger directional price-move: up to 4-candles. When trading for a 4-candle-price-move,
please consider that after a 2-SPU price expansion, we assume an 85% risk of the price-move
for haltering or reversing and thus you better take profits. The dot target on the charts is set at
1-SPU. In case you have a stock symbol with a last hour NLT TurnPoint signal that is confirmed
on at the opening of the new week, trade this instance for two candles and exit your trade.
Swing-/Day Trading Example
In the week of April 11, 2016, JPM had a weekly NLT Top-Line PowerTower signal (Buy>62.91)
to the upside (blue). Unfortunately a NLT Box Line cut the potential price-move-to-target short,
which limits the trading opportunity; however you can capitalize in this trade situation by using a
4-hour chart and the NLT TurnPoint signal from the lower study.
Chart-5: JPM Weekly Signal

At the above chart, the chosen trade was with the direction of the PowerTower candle; however,
if you find a confirmed NLT TurnPoint signal that points in the opposite direction, it is valid too.
We report symbols with the referring chart setups on multiple time frames.
When you are using NLT Top-Line, you are even in possession of a scanner that helps you to find
symbols with a desired strong individual price move setup.
WWW.TRADERSWORLD.COM

July/August/September 2016

70

To help the beginning trader, our basic system: TradeColors.com has a watch list indicator that
helps you to filter up to 50 symbols for the desired trade setup, at the click of your mouse.
From the NLT Alert, JPM came on the 4-hour watch list and is traded with one of the NLT
TurnPoint signals that was developed to identify assumed institutional buy- and sell programs: a
strong price happening with high predictability.
Chart-6: JPM 4-Hour Chart

On the JPM chart, the lower study signal is moved to the price chart for demonstration purposes,
indicating that an institutional buy program was confirmed and followed through for 4-candles.
The stop is set 2%-of-1-SPU below the low of the trade initiation candle and produced a very
favorable reward/risk constellation on a one- or four-bar trade.
Let us continue to validate the JPM signals, moving to the left, looking at the orange earlyup signal (scroll up and see the JPM Weekly Signal Chart) on the weekly chart on 01-25-2016
candle at the price action of the 4-hour chart.
Chart-7: JPM 4-Hour Chart 2/1-2/5/2016 with two confirmed signals on 2/2 and
2/8/2016

WWW.TRADERSWORLD.COM

July/August/September 2016

71

The JPMs signal confirmation in this case was opposite to the original NLT Early Up signal and
good for a solid directional price move with favorable reward/risk setup.
If you are not yet subscribed to the NLT Long-Term Investor Alert, you can subscribe online:
http://neverlosstrading.com/Alerts.html
In case you are not yet familiar with NLT TurnPoint trading, our latest development, please feel
free to email us: contact@NeverLossTrading.com
Another alternative to participate with a limited risk in weekly NLT Top-Line setups is to engage
into specifically defined option trades, with the following imperatives:
Assumed 2-week duration.
Favorable SPU-based price-offer to buy put or call options inexpensive; allowing for high
leverage, as demonstrated below in our SPU-related calculation table: Option trades carry a high
risk; hence, you want to trade for solid returns.

This type trading is explained in the NLT-mentorships and we also show you how to repair trades
that do not work in the desired direction.
SPU is an NLT-in-house development to calculate the expected price move after institutional
engagement is detected and confirmed: SPU stands for speed unit, a statistical volatility
measure specific to NeverLossTrading.
Please take a look at our offeringclick.
Let us know if there is a system that catches your attention and feel free to receive a personal,
live demonstration: contact@NeverLossTrading.com
If you are not yet part of our free trading tips, reports, and webinars, you can sign up hereclick.
WWW.TRADERSWORLD.COM

July/August/September 2016

72

In the next example, we are sharing a US stock market opening trade with you:
Many of the US-stocks trade at other exchanges around the globe and thus, new price points
are established prior to the US-market opening and investors will quickly catch up to those. Our
scanners use an algorithm to find stocks, which have institutional pre-market attention and we
can take trades on various time-bases to follow the anticipated directional price moves.
In this publication, we focus on what we call the NLT Speed Trade, which is showing the
following repetitive chart setup:
A price-move signal on the selected stocks, initiated in the first five minutes of the market
opening; closing the trade the latest by 9:46 a.m. EST.
From our NLT Pre-Market Movers Alert, we also accept trades initiated at or after 10 a.m. EST, for
day trading the selected stocks, which we will not further explain here.
The NLT Pre-Market-Movers-Alert is sent out on a daily basis prior to 9 a.m. EST, highlighting
stocks, futures and FOREX pairs, where our scanners found institutional activity and trade
potentials.
Chart-9: NLT Pre Market Movers Alert
Pre-Market P/E Ratio
Movers

BHI
APA
CAT
CL
BIIB
TEVA
C
COF
MET
BABA
QIHU
ADSK

Sector

(8) Energy Equipment & Services


(1) Oil, Gas & Consumable Fuels
38 Machinery
47 Household Products
16 Biotechnology
26 Pharmaceuticals
9 Banks
10 Consumer Finance
9 Insurance
3 Internet Software & Services
30 Internet Software & Services
(40) Software

NASDAQ Stock

Yes

Yes

Last

$
$
$
$
$
$
$
$
$
$
$
$

44.82
54.01
72.43
71.98
267.25
50.92
44.47
69.95
43.42
79.80
70.43
59.03

Expected Expected 20- 20-Min.


20-Min. Min. Return Option
Price
Potential
Move

Expected Expected
Gap
Potential Opening Price Opening Yesterday's Yesterday's NLT
Yesterday's Yesterday's Yesterday's Pre- Weekly
Opening Opening Announcer
Point
Price Move Momentum Trend Reference Purple Zone NLT NLT Volume Market Options
Move Move (careful)
Indicator
Volatility
Volume
Return
(mill.)

$
$
$
$
$
$
$
$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$

1.29
1.55
1.19
0.63
3.91
1.15
0.63
1.05
0.66
0.98
1.16
0.88

2.9% Potential
2.9% Potential
1.6% Potential
0.9%
1.5% Potential
2.3% Potential
1.4%
1.5% Potential
1.5%
1.2% Potential
1.7% Potential
1.6% Potential

0.45
0.54
0.42
0.22
1.37
0.41
0.22
0.37
0.23
0.34
0.41
0.31

1.0%
1.0%
0.6%
0.3%
0.5%
0.8%
0.5%
0.5%
0.5%
0.4%
0.6%
0.5%

higher @
higher @
higher @
higher @
higher @
higher @
higher @
higher @
higher @
higher @
lower @
lower @

$ 44.80
$ 54.06
$ 72.95
$ 71.98
$ 268.01
$ 51.00
$ 44.73
$ 67.70
$ 43.46
$ 80.11
$ 67.75
$ 56.00

0.0% down
0.1% HF up
0.7% up
0.0% up
0.3% HF down
0.2% down
0.6% down
-3.2% down
0.1% down
0.4% up
-3.8% up
-5.1% down

up
new up
down
up
down
down
up
up
down
up
down
up

Breakout

Change

Strong Down
Breakout
Diff. Down

HF Down
Power Tower
Strong Down
Strong Down
Strong Down

Strong Down
Strong Down
Strong Down
Strong Down
Strong Down

Trend
Strong Down

Trend Diff. Down


Strong Down

0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.2
0.1

Yes

Yes

The NLT Pre-Market Movers Alert indicates:

Symbols highlighted in: red and green preferred stocks with less expectancy for an intraday
gap. Yellow symbols might show an intraday gap, based on spotty volumes.
P/E-ration (not important for this trade).
Sector: helping you to not select multiple stocks from one industry sector.
NASDAQ stock, highlighting preferred assets.
Last: yesterdays closing price.
Expected 20-minute price move, when the opening NLT Box is surpassed.
WWW.TRADERSWORLD.COM

July/August/September 2016

73

Expected return on the 20-minute price move (speaks for itself).


20-Min. Option Potential: Highlighted are stocks with a price move above the minimum price
threshold, while we prefer red and green highlighted stocks for option trades.
Expected Opening Price Move: This is important to set your initial target and stop for the Speed
Trade.
Expected Opening Return: Calculation of your return on cash for the Speed Trade at the
expected target.
Gap Announcer: highlighting symbols with what we call a strong opening gap and you learn how
to handle those in a separate teaching.
Potential Opening Price: Indication of the stock being expected to open higher or lower
compared to the closing price, with an estimated opening price. By calculating this price point
about 1-hour prior to market opening, you can expect some variance.
Opening Price Move (%): Indication of the percentage-move: last price to opening price.
Yesterdays Momentum and Trend, telling you on a daily chart basis how the prices progressed.
NLT Reference indicator shows where and which strongest daily signal was reported by the end
of the prior day.
NLT Purple Zone highlights stocks with an ambiguous price development and expected higher
volatility.
NLT Volatility is a measure of price fluctuation per time unit, indicating a pre-stage of
institutional activity.
NLT Volume, indicates volume changes over time.
Pre-Market volume tells you how many stocks were exchanged by the time we took the premarket measure.
Weekly options, highlights stocks with weekly options.
We teach you the meaning of above variables and how to integrate them into your trading.
With such alert on hand, you can daily operate with clear cut mechanical rules, trading the
markets in you favor, by utilizing high predictability of continued happenings.
Day Trading Example: NLT Speed Trade Execution

WWW.TRADERSWORLD.COM

July/August/September 2016

74

Put your trading candidates on a four- or six-grid chart.


Best: select one share per industry sector only.
Find your potential chart setup, only when a new NLT Box is drawn at the opening candle of
the observed stock. On a box-width > opening price move, take the candle off the considered
symbol list.
When the second candle breaks the box, it indicates a buy- or sell opportunity and you can find
your entry multiple ways:
Conservative: Set a buy-stop-order, 2-cents above the NLT Box Line; a sell stop, 2-cents below
the box line. Another alternative is a market order, given the fact that we are operating with
penny-wide bid/ask spreads.
Progressive: Enter with a limit order on a potential pull back price level, which is giving you a
favorable entry price, but you are risking that the trade might run away from you.
Order type: Prepare a bracket order, using the expected opening price move as target and stop;
then adjust your stop after your order is filled, setting it 2-cents below the opposite box line
On an intraday gap, try to catch it by using the Conservative rule above:

Chart-10: AFL from May


11, 2016
At the second candle, the
price gapped up and validated the
entry; hence, you place your buystop-order two cents above the
NLT Box line.
In the continuation of this
candle, the target price was
reached and got you in the trade.

AFL is one of the stocks we


highlight in yellow/orange and
thus they are more prone to a potential intraday gap than red or
green highlighted stocks.

Time Based Exit: If the target is not reached by 9:46 a.m. EST, close your position.
Odds Evaluation: When a very big first candle is drawn, never risk more than the expected price
move. When our stop price level violates this rule, do not take the trade. The idea of the trade is
WWW.TRADERSWORLD.COM

July/August/September 2016

75

to rather trade for a bigger distance than the risk you take.
Chart-11: BP on May 10, 2016

Chart Summary:
The stock was on the list of highlighted symbols on the NLT Pre-Market Movers Alert and opened
higher.
The first candle drew a NLT Box, meeting the pre-conditions for the trade.
The second candle highlighted the breakout and gave the buying opportunity, with a buy stop
order at the NLT Box Line or a market order below.
The expected price move from the NLT Box-Line was18-cents (blue line).
The initial stop was 18-cents wide, however was adjusted to 15-cents by the Box Line.
The setup fulfilled the minimum conditions that we do not accept a risk higher than the reward.
The time based exit was triggered prior to a target being reached.
Had you stayed for further 2-minutes in the trade, you would have harvested at the original
target.
We also operate with clear cut rules for Futures- and FOREX trading. You experience in our
mentorships how we work one-on-one with you, focusing on your personal wants and needs,
developing a business plan for you: Financial plan and action plan.

WWW.TRADERSWORLD.COM

July/August/September 2016

76

If you want to be part of our NeverLossTrading


network, please check our offeringclick.
Let us know if there is a system that catches
your attention and feel free to receive a

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

personal, live demonstration: contact@


NeverLossTrading.com
If you are not yet part of our free trading tips,
reports, and webinars, you can sign up here
click.
We are looking forward to hearing back from
you.
Good trading,
Thomas
Disclaimer
This publication is designed to provide accurate and
authoritative

information

in

regards

to

the

subject

matter covered. It is sold with the understanding that


the publisher is not engaged in rendering legal, financial
advice, accounting, or other professional service. If legal
advice or other expert assistance is required, the services
of a competent professional person should be sought.
Following the rules of the SEC (Security Exchange
Commission), we advise all readers that it should not be
assumed that present or future performance of applying
NeverLossTrading (a division of Nobel Living, LLC) would be
profitable or equal the performance of our examples. The

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

reader should recognize that the risk of trading securities,


stocks, options, futures can be substantial. Customers

60-Day Money Back Guarantee

must consider all relevant risk factors, including their own


personal financial situation before trading. In our teaching of
NeverLossTrading, in our books, newsletters, webinars and
our involvement in the Investment Clubs, neither NOBEL

CLICK TO SUBSCRIBE

Living, LLC, the parent company of NeverLossTrading, nor


any of the speakers, staff or members act as stockbrokers,
broker dealers, or registered investment advisers. We
worked out trading concepts we use on a daily basis and
share them through education with our readers, members,

www.TradersWorld.com
www.TradersWorldOnlineExpo.com

and clients.
WWW.TRADERSWORLD.COM

July/August/September 2016

77

THE NEWS & INFORMATION: HOW IT EFFECTS THE


GLOBAL FINANCIAL MARKETS
By: Samuel Bassey, MBA

The news has always had a trying effect on the financial markets. Stock markets,
commodity markets, stock markets, futures and forex markets all can be attributed by how
the news is projected within certain world events. News and information that deal with the
economy, finance and politics tend to be leading indicators on how global markets may react,
in most cases. Corruption in governments, financial and political policies, Federal Reserve
statements and economic policies have impacted or somehow subjected a certain role on
how the markets distribute certain outcomes, because of how information and the news are
portrayed to the public invariably.
When global uncertainty is are on the horizon, stocks tend to be more negative and begin
to falter downward or drop. When good information or news is brought about, for example a
companys earnings beat expectations or analysts predicate the economy with a good bill of
health the stock market tends to make drastic progress and raise higher. Federal Reserve
policies have enormous effects on the global markets. When the Fed increase or decreases
the interest rates, the market reacts and the reaction may be good, subtle or bad. This is
all relative to the trader and the position he/she has on their trading techniques. In trading
(depending on the side that you may be on); there is a massive inclination that either you will
profit or you will lose money. Your stop losses minimize your losses and assist you to maximize
your gains. The Feds policies have an effect on the financial markets and the position one may
take, because when the news and information if forthcoming; enlists how the global markets
will move entirely.
Information is important when coming to the global markets, when new information is
presented the markets have a field day, no one quite knows which direction the financial
markets will tend to lean toward but news presented on certain information can sway market
directions instantly and probably decisively in some occassions, either up or down, sideway
movements, directly or indirectly, this can all be approached because of the how the markets
decipher information and relevant news sources, along with price action and other indicating
variables.
All news and information may not be credible and rumors can play a major role on how the
markets take in the information and news that is relayed upon. Rumors of false information
can mislead investors and traders, which then can leads to false returns for the investor,
speculator or trader. Traders, analysts, speculators and Investors seek information and news
sources to anticipate the trend of the markets they are dealing with. Information and news
for the day approaches, then the speculators, traders and investors along with analysts can
take an educated and systematic approach on their trades to get the best and highest returns.
The news perceived to them has a huge effect because they want to foresee if they are in the
WWW.TRADERSWORLD.COM

July/August/September 2016

78

money or out the money and know how to proceed if they are in the wrong side of the
trade. All these factors can bring about how the movements of the global markets are swayed
and which angle or direction the markets will move in. The news detail how and if the markets
will respond accordingly or spontaneously, given certain responses.
World views inclination of the markets and the news that is issued is important to monitor
in all cases because this shows how information or world views can shape policy; which
then shapes how the markets should scale the information that is coming to it. Once news
andinformation comes about and is out there for the public, the trajectory is wide and clear
and the outcome is totally dependent on what the markets want to do with that information
that has come about. A person cant predict the direction or trend of the market even if he/she
is a fortune teller; they still would get the prediction wrong. The market has its own mind; it
decides if it wants to be choppy or if it wants to be trend like and most times it will both factors
in one. The portrayal by the investor, trader, and/or analyst is to monetize from the market s,
and to scope out what direction the markets may or may not want to go in, in hindsight the
choice is entirely up to the global financial markets.
The big news story and credible information that being perceived lately as of the spring of
2016 has been the BREXIT, Great Britain instituting a referendum vote to leave the European
Union. The global markets have been carefully treading the outcome of the decision by the
citizens of Great Britain, and seeing how the outcome can affect the markets significantly. Great
Britain leaving the EU would have a serious effect on the currency markets, and possibly every
other market associated with the economic and financial stability of the global community. The
domino effect on the euro currency as well as the British pound may have serious implications
as well, or it may not, no one truly knows yet. No one can really know what the outcome
may be until it actually happens. There will be strong volatility because the markets had
anticipated being friction with the outcome, if and when Great Britain was to leave.
Analysts, spectators and observers are watching how the outcome may affect the European
region and the markets, when one sees financial reporting on the subject no one or news
entity has a clear indication on how the markets will respond to it, but one thing is for sure
that strong volatile and fluctuations of the markets; will continue to occur and the outcome
may not be what most expect to happen, it really comes down to how an individual will trade
the market when the vote is announced at the end of it all.
The news and the information relayed have an effect on the global financial markets in
many ways, whether one looks at it objectively or subjectively; the implications could not
be clearer. The trend that the markets portray are fundamental and technical in nature, but
major political, financial and economical information that is released to the public masses
tend to reflect the state of emotion; that can presented by the markets anticipation and trend
settings. Does one use his and her emotion to trade most of the time? Absolutely, in fact the
majority of people who invest or trade use their emotions to relay on their unique trading
styles, this may come from information and/or a news sources they read, heard about, and
rely on; now whether the information or news sources they attain are credible; in retrospect
that is a different issue. SB
INFO ABOUT THE WRITER: Samuel Bassey has an MBA degree, he is an avid and loyal
WWW.TRADERSWORLD.COM

July/August/September 2016

79

trader, as well as real estate investor. He


is an entrepreneur, investor, trader, writer,
columnist, consultant and all around talented
guy. He is founder and writer for his own &
websites
www.EconomicandFinanceReport.com,
which has a Youtube Channel (EFR.TV) and
an acclaimed podcast show on www.soundcloud.
com/economic-financereport entitled EFR Podcast
(Economic & Finance Report Podcast).
Sammy has a real estate investment website,
which covers all aspects of real estate buying,
selling and investing, his website can be seen
at www.SammyBuysHomes.com.
Check more from Samuel Bassey,
MBA
aka
Businessman
Bassey
&
Financier
Sammy
Bassey@
EconomicandFinanceReport.com
&
SammyBuysHomes.com.
You
can
hear his economic, finance and business
show
@
Soundcloud.com/EconomicFinanceReport. He can be reached via email
@ SamuelBassey@msn.com.

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

80

Elliott Wave Analysis


Case Study + Fibonacci
of United Technologies
By Peter Goodburn

The United Aircraft Corporation was an American aircraft manufacturer formed in 1934 at the break-up of
United Aircraft and Transport Corporation. In 1975, the company became the United Technologies Corporation. Our historical data begins tracking this equity from January 1972 it incorporates the major low
traded in Dec,73 at 0.64 which also defined the end of major declines for benchmark indices such as the
Dow Jones Industrial Average (570.00 Dec.74).
The Dec.73 low synchronises with cycle wave 4 in all major U.S. indices. The following medium-term uptrend is labelled cycle wave 5 so far this remains incomplete. Original upside targets to 240.18 have now
been raised to 392.81-410.74+/-. An attempt to this area is consistent with our prolonged cycle degree uptrend for major indices.
Cycle wave 5 must ultimately unfold into a five wave expanding-impulse pattern, in primary degree. Primary wave 5 began this final advance from the financial-crisis low of 37.40 with ultimate targets to 392.81410.74+/-, it is considered an attempt will still take several more years, ending into the end of this decade,
perhaps extending into the first few years of the next.
Shorter-term, we consider the Feb.16 low at 83.39 as ending a counter-trend phase of declines that began
from the all-time-high of 124.45, traded exactly one-year earlier, in Feb.15. Even though there remains
an outside risk of a break below 83.39 to 73.56+/-, this would only occur if major indices break below the
equivalent Feb.16 lows and even if it does, it would not change the implications of continuing the mediumterm uptrend unless the Oct.11 low is breached below 66.87.
Elliott Wave Analysis
The medium-term uptrend updated in our last report remains intact with UTX building higher from the
financial-crisis lows as primary wave 5 see fig #1. It must be said however that the depth of its decline during
the last year, from all-time-high of 124.45 has been deeper by comparison to the major indices, the Dow Jones
(DJIA) and the S&P 500. This means its relative wave count changes too, although the implications for the next
several years remains bullish, within its dominant uptrend.
Medium-term upside targets for cycle wave 5 that began from the Dec.73 low of 0.64 are raised to
392.81-410.74+/- as a direct result of the depth of more recent declines over the last 12-month period.
Cycle wave 5 must ultimately subdivide into a primary degree five wave pattern, labelled 1-2-3-4-5. Wave
3 can be seen undergoing price-expansion, is the longest impulse wave sequence beginning from the March
82 low of 1.95. Furthermore, it resonates to perfect Fibonacci-Price-Ratio measurements that coalesce into its
high at 82.50 of Oct.07. This is derived where intermediate waves (1)-(4) are extended by a fib. 61.8% ratio.
This validates the authenticity of primary wave 3s completion. This is corroborated where primary wave 1 is
extended by a fib. 161.8% ratio (0.64-4.11) measuring to close proximity, at 83.30!
Primary wave 4s decline during the financial-crisis collapse ended into the March 09 date, the same as
all major U.S. indices. Primary wave 5 has since begun a final advance as part of this medium-term uptrend
that is already 36-years of age. Its ultimate targets are derived as follows - by extending the beginning of the
medium-term uptrend, the initial 1-2-1 sequence that incorporates primary wave 1 to intermediate wave (1)s
high (0.64-7.56) by a fib. 161.8% ratio, projecting 410.74+/-.
Primary wave 5 is subdividing into a five wave expanding-impulse pattern, labelled in in intermediate
WWW.TRADERSWORLD.COM

July/August/September 2016

81

degree, (1)-(2)-(3)-(4)-(5). Extending intermediate wave (1) to 91.83 by a fib. 161.8% ratio projects a final high
at 392.81+/-.
Final Remarks
Note that the overlap of the July 11 high of 91.83 with the Feb.16 low at 83.39 necessitates labeling
primary wave 5 as beginning a 1-2-1-2 sequence, i.e. (1)-(2)-i.-ii. There is a short-term risk that minor wave ii.
two could break the 83.39 level and seek lower support at 73.56+/-, but this is considered unlikely given major
lows for indices. The medium-term uptrend will only be negated below the Oct.11 low of 66.87.
Peter Goodburn is the senior Elliott Wave analyst at WaveTrack International and is the author of the
monthly institutional Elliott Wave-Navigator report and the bi-weekly private client Elliott Wave-Compass
report. Details at www.wavetrack.com

WWW.TRADERSWORLD.COM

July/August/September 2016

82

A Winning System
by Ron Jaenisch

When using the Andrews techniques, Professor Alan Andrews suggested that one should make
well over one hundred percent per year. When he demonstrated the techniques, he was known
for easily performing at that level in a three month period, trading leveraged futures.
Technical Analysis takes study and historical testing, to find what actually works. Many part time
traders have careers that take up considerable time. Is there a technique that one can verify

WWW.TRADERSWORLD.COM

July/August/September 2016

83

historically that has proved to be useful, and can be easily improved upon?
Lets start with a technique that has shown positive results in the S&P Index. One that has
resulted in a substantial gains over the last 80 plus years. The test showed a net result of 2000
S&P points by going long only and 2057 by taking longs and shorts.
The results are from using the fifty week and one hundred week moving average cross over.

Now its time for you, the reader to come up with ways to improve upon this and test it out.
To see Ron Jaenisch live with Alan Andrews go to:
https://www.youtube.com/watch?v=wgRkVFb3iLU

WWW.TRADERSWORLD.COM

July/August/September 2016

84

The Power of Ensemble


Forecasting
By Rob Hanna

A common question discussed among traders is What is your favorite


indicator?. Often I believe the person that asks this question may be a bit
misguided. Certainly an indicator that offers good delineation can be used
to create a winning trading strategy. But more important than finding the
one-best indicator, traders should be focused on examining multiple lowlycorrelated indicators and examining what they might suggest in combination.
This is referred to as ensemble forecasting and it is at the heart of much of the strategy
creation I have done over the years.
To demonstrate, I will first explain two concepts that were used in the InvestiQuant Swing
Edges guides to help generate statistical odds of a short-term, multi-day move. I will then
show how they could be combined for some real horsepower. The two concepts I will cover
are Acceleration and Seasonality.
When we look to measure Acceleration, we examine how fast the market is moving and
where that movement is occurring within the greater trend. Lets look at some studies to see
why speed and positioning are important.
For the studies below, which use SPY, an S&P 500 tracking ETF, I will use a 1% down day
as a crude way to define a sharp decline. I will then show how the impact of a 1% decline
may vary based on where that sharp movement is occurring. For simplicity, I grouped the
1% decline into 3 categories: 1) 1% declines following a 50-day closing high, 2) 1% declines
following a 50-day closing low, and 3) 1% declines when the market had closed at neither a
50-day high nor low the day before. Here are the results for each of the categories.

Returns here are generally not much better than breakeven. It does not appear there is
a strong directional edge following a 1% drop from 50-day high. Now lets look at times the
1% drop followed a 50-day low.

WWW.TRADERSWORLD.COM

July/August/September 2016

85

Here there appears to be a strong bullish edge based on many of the metrics shown. The
% Profitable, Win/Loss Ratio, and Profit Factor are all impressive, as is the Average Trade.
Next, lets look at instances that initiated between a 50-day high and a 50-day low.

Results here come in between the two extremes better than coming off a 50-day high,
but not as compelling as following a 50-day low. Overall, there appears to be a slight bullish
edge in these situations.
So we see here that market position matters. The 50-day low results were by far the best.
But lets also make sure that the strong drop was a factor in creating the edge as well. To do
this, I created a study looks at times SPY closed down from a 50-day low, but it did not suffer
a 1% drop on the day.

WWW.TRADERSWORLD.COM

July/August/September 2016

86

As you can see, without the 1% drop, the edge just isnt there.
These studies suggest that both the magnitude of the move and the place that the move
is occurring from make a difference in future price action. In our Acceleration measures at
InvestiQuant we do not use crude measurements like 1% drops, but the general concept is
similar. We are looking to see how fast the market is moving and where it is moving from.
Because as we saw in the examples shown, both of these things matter.
Next lets look at Seasonality. Seasonality indicators will often take into account things like
long-term cycles, day of month, time of year, holidays, and more. I have found great use in
Seasonality studies over the years. I especially like them because they utilize different data
than price-based indicators.
One seasonal influence I have studied in-depth and found great value from is Fed Days.
Fed Days are the 8 days each year in which the Fed concludes a policy meeting and then
announces any policy or interest rate changes. While there tends to be a lot of build-up and
anxiety leading into many Fed Days, they have performed very well over the years. The study
here shows results of buying the close before every Fed Day and the selling at the close on
the Fed Day.

As you can see, these days have generated strong gains over the years. They have been
profitable 60% of the time. Gross gains have more than doubled gross losses. The average
Fed Day netted a profit of about 0.32%. And total profits reached over $58k. Lets keep
these numbers in mind as we look and see how the market has done since 1993 on all days
excluding Fed Days.

WWW.TRADERSWORLD.COM

July/August/September 2016

87

The difference here is striking. On the 5700 days that were not Fed Days the market
did not make a whole lot of headway. Despite there being more than 30x as many non-Fed
Days, these days only generated 2.3x the amount of total profits. The average Fed Day
outperformed the average non-Fed Day by 13-fold. This certainly seems to make a case that
traders should pay attention to Fed Days.
So a trader could take either of these concepts and create a winning trading system.
Acceleration can stand on its own, and Seasonality can stand on its own. But the real power
comes when concepts like these are combined. So as a last study, lets look at what happens
if we combine the 1% drop (not from a 50-day high) and the Fed Day edge above.

There are not a whole lot of instances, but the returns are very powerful. The average
instance posted a gain of over 1% the next day. That is substantially better than either a Fed
Day or a 1% drop strategy would have produced on their own.
Groups of indicators or ensembles of systems will almost always outperform a system based
on a single indicator or concept. At InvestiQuant, our Swing Edges guides also utilize a 3rd
concept called Momentum. Momentum looks at the persistency of a move. I am often asked
which group of systems I favor - our Acceleration, Momentum, or Seasonality systems. The
WWW.TRADERSWORLD.COM

July/August/September 2016

88

answer is none of the above. While they can


all generate solid results on their own, it is
the combination that is most powerful. Using
the average readings of the 3 will most often
produce better results than the single best
system.
This is important to grasp, so I will restate
it. An average forecast of multiple independent
systems (or indicators) will often be more
accurate than a forecast from the single best
among them.
Traders should not concern themselves
too much with any one indicator or system.
Rather, they should find ways to measure
what the indicators are saying in combination.
By doing this, they have a great chance of
improving their strategies.

About Rob
Rob Hanna is InvestiQuants Co-Founder and Vice
President of Research. Rob graduated with aBS from Boston
College in 1992 and has been a full-time market professional
since 2001. He has served as president of Hanna Capital
Management, LLC since that time. He first began publishing
his market views and research in 2003. From 2003 to 2007
his column Rob Hannas Putting It All Together could be
found twice a week on TradingMarkets. In January of
2008 Rob began Quantifiable Edges. In 2012 Rob opened
his 2nd website, Overnight Edges, which is now part of
InvestiQuant. Both sites use historical analysis to assess
current market action and odds. His work has been widely
referenced and quoted over the years, and is often linked
to in blogs, tweets, Stocktwits messages, magazine articles
and more.

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

89

SQUARING TIME AND PRICE WITH


PLANETS
By D.K.Burton
There are many parts to the W.D.Gann method; one is squaring TIME and PRICE. He talks
about squaring the high, low and range. This is basically converting the PRICE to TIME. If the high
is 90 then you would add 90 days, which is close to 90 degrees of the circle, as 90 x 4 = 360, but
theres 365.25 days to 360 degrees based on the earth going around the sun. But what if hes talking
about Mercury squaring the high or Venus or any other planet? Dont get me wrong I havent seen
this in his writings or charts, this is my idea, and he may have done it he may have not, not sure. Wait
I could make it up, like so many others and say I found his secret. If it was Mercury it would be 22
days to equal 90 degrees, if Venus it would be every 56 days. If we take the high of May soybeans
on 15th January 1948 of 436.75 we could start counting 436.75 days to that date or 436.75 degrees
of Mercury, Mercury rules grains. Gann had a non-disclosure document, which he had people sign on
the Average of Planets. You would have seen a number he wrote about that the planets (the letters
everyone has) but I have discovered he had a number he did write about, but hes never written
how to use them, I guess that was passed on verbally or in code as all secrets were and are today
especially in India where Gann visited. He wrote about Mean of 5 -. M.O.F Mars out. This could
mean a number of things, average from Jupiter to Pluto, which is 5 planets from Mars or dont use
Mars at all then use all the combinations of 5 planets, which would give more than 125 combinations.
This is the sort of things I study eight hours a day, six days a week, because I only look for trades
that set up every six weeks and last for six weeks or so, therefore have plenty of time for research.
When people have money, no debt, no needs, its not that interesting to them any more, as Gann says
money is only a means to an end, it wasnt his goal, money is a product of knowledge this is why,
Gann, me and other people seek the knowledge as its way more interesting than money. If you dont
even spend $120,000 a year and you live say another 30 years its only $3.6 million, not much at all.
You always only trade with funds that never affect you life style or living. Also when not trading keep
your money in the bank, dont leave funds with a broker, many have gone broke over the last few
years and more to come.
He also wrote about C.E Calculation of eight and Circle of eight, these are two different
systems. If we convert the high in soybeans to the C.E we end up with 14 degrees Sagittarius or 254
degrees of a circle. This is covered in this article of the secret soybean scale. There are many things
you can start studying here, Jupiter rules Sagittarius so look for all aspects to 14 degrees. So using
sidereal astrology, not the housewife astrology, you would look to study when Jupiter hits 1/8ths and
1/3rds. To that degree. So you just add 45 to get the 8ths to 254, which is 299,344,29,74,119,164
and 209 degrees of a circle. For example it hits 164 degrees or 14 degrees Virgo on 18th October
2016, its easy to do just look up manually in your ephemeris and see if that works or not from 1948 to
present, if it doesnt you move on to something different.
The 3rds is 14 and 134 degrees, Jupiter was at 14 degree Aries on 23rd July 2011. 134 degrees
got hit on 18th September 2015.
Now Mercury rules Gemini opposite sign to Sagittarius, Mercury hits 14 degrees Sagittarius on
these dates: 23/12/1948 a top in Soybeans
16/12/1949 a top in Soybeans
WWW.TRADERSWORLD.COM

July/August/September 2016

90

WWW.TRADERSWORLD.COM

July/August/September 2016

91

10/12/1950 a low in middle of bull market


19/1/1952 minor low 2 days later
11/1/1953 minor low 2 days before
4/1/1954 a low in middle of bull market
Then you can look at Venus: 19/1/1949 top 2 days later then collapse
13/11/1949 major low 3 days before
21/12/1950 low half way in bull market
2/2/1952 high 2 days before a collapse
4/1/1954 good low for bull market
13/1/1955 low 2 days later for a two-week rally.
Or do you take Mercury/Jupiter conjunctions and oppositions and do the averages only on that
day. I have done this below and done the average of 6 planets and left out Mercury/Jupiter. The
average of 6 was one that he had written on his ephemeris from Lambert-Gann.
Conj 15/12/1947 = 166
Opp 25/5/1948 = 99
Conj 24/12/1948 = 185
Opp 24/7/ 1949 = 135
Conj 2/3/1950 = 180
Opp 5/8/1950 = 151
Conj 11/3/1951 = 106
Opp 7/10/1951 = 156
Conj 17/5/1952 = 148
Opp 23/10/1952 = 195
Conj 25/5/1953 = 124
Opp 24/12/1953 = 192
Conj 1/6/1954 = 174
Conj 11/7/1954 = 181
Conj 28/7/1954 = 184
Opp 8/1/1955 = 216
Squaring the high of 436.75 in days are: - 27/3/1949, 7/6/1950,18/8/1951,28/10/1952 and
8/1/1954. You can get more changes in trend by breaking this into 1/8ths and rds. Also do this with
lows and ranges.
From that letter Gann wrote on 24th January 1955, just six months before he died he gives what
happen in 1954 to May Soybeans.
May Beans Daily High and Low
1954
Nov. 4, High 299, a signal day. Then trend turned down.
Nov. 15, the price was on the angle of 2 x 1 from 265.75 a support level and the market rallied.
Nov. 30, High 292.25, closed below the 2 x 1 from 299. Minor trend still down.
Dec. 7, Low 277, on the 45-degree angle from 299 and the 4 x 1 from 265.75. Time and Price
had balanced and the market was due for a rally.
WWW.TRADERSWORLD.COM

July/August/September 2016

92

Dec. 10, High 283.5, a lower top and below the 45 degree angle from 292.5
Trend still down.
Dec. 14, Low 274.5 (is 36, as per previous Soybean article, July/August 2008 on secret
Soybean scale, 36 + 180 = 216), (Gann most likely wrote this small piece to show Mercury on this
day hit 14 Sagittarius). Had a wide-open gap. Never sold below the opening and closed at the top,
a Signal Day and an indication that the market was ready to rally. Note the low on that day was 274,
marking this a double bottom.
There are a number of documents that is in public domain; one is the price scale in degrees to
price and time in relationship to The Average of Planets.
There are: 1. 60 degrees = 1 point price or time
2. 12 degrees = 30 points price or time
3. 18 degrees = 20 points price or time
4. 24 degrees = 15 points price or time
5. 30 degrees = 12 points price or time
6. 36 degrees = 10 points price or time
7. 42 degrees = 8.5 points price or time
8. 48 degrees = 7.5 points price or time
9. 54 degrees = 6.5 points price or time
10. 60 degrees = 6 points price or time
11. 66 degrees = 5.5 points price or time
12. 72 degrees = 5 points price or time
13. 78 degrees = 4.5 points price or time
14. 84 degrees = 4.10 points price or time
15. 90 degrees = 4 points price or time
16. 96 degrees = 3.45 points price or time
17. 102 degrees = 3.5 points price or time
18. 108 degrees = 3.25 points price or time
19. 114 degrees = 3.10 points price or time
20. 120 degrees = 3 points price or time
THE SECRET SOYBEAN SCALE
After a while I worked out his scale of converting price to degrees. This scale is lows and highs
swings from 1932 to 1950.
1.
2.
3.
4.
5.
6.
7.
8.
9.

44 = 22 Pisces
67 = 26 Virgo
68.5 = 8 Libra
69 = 12 Libra
170 = 11 Sagittarius
131.5 = 1 Pisces
154.5 = 1 Virgo
164 = 20 Scorpio
182.5 = 21 Aries

19. 276.75 = 24 Taurus


20. 265.75 = 27 Aquarius
21. 268.25 = 16 Pisces
22. 279.75 = 19 Gemini
23. 281 = 26 Gemini
24. 299 = 20 Scorpio
25. 306.75 = 5 Capricorn
26. 309 = 13 Aquarius
27. 309.75 = 17 Aquarius
WWW.TRADERSWORLD.COM

July/August/September 2016

93

10. 201.5 = 23 Virgo


28. 320.5 = 13 Taurus
11. 202 = 26 Virgo
29. 323.5 = 8 Gemini
12. 203 = 4 Libra
30. 334 = 1 Virgo
13. 210 = 1 Sagittarius
31. 334.5 = 27 Scorpio
14. 220.5 = 4 Libra
32. 361 = 7 Aries
15. 224 = 13 Pisces
33. 422 = 16 Leo
16. 232.5 1 Taurus
34. 425 = 8 Virgo
17. 239.5 = 25 Cancer
35. 436.75 = 14 Sagittarius
18. 239 = 22 Cancer
36. 405 = 30 Pisces
PRICE
The price in 1932 was 44 on the cash market (44 x 8 =352), 352 is 22 Pisces. But when the
number after you times by 8 you have to do the calculation this way:
EXAMPLE: the high of 436.75
436.75 x 8 = 3494, divide 3494 by 360 = 9.7056 (subtract the whole number 9) and multiply the
remainder by 360 (.7056 x 360 = 254).
254 = 14 degrees Sagittarius.
TIME PERIODS (24th January 1955, Ganns article)
May Soybeans started trading again after the war in October 1947. The most important Time
Periods up to date (24th January 1955) he says are: 15th February 1920, 28th December 1932, 27th July 1939, 15th January 1948, 14th February 1948
and 9th February 1949. Next most important are: 16th October 1950, 8th February 1951, 13th February
1953, 20th August 1953,
27th April 1954 and 27th July 1954. You look at the TIME PERIODS and see how many weeks
are up or down on the Weekly Chart Table (refer to Ganns table).
He didnt have the Average of Planets in this part, so I will add one of the Average of Planets
so you can study it, in this I will use the average of 6.
16th October 1950 = 199
8th February 1951 = 217
13th February 1953 = 117
20th August 1953 = 146
27th April 1954
= 172
27th July 1954 = 174
He may have been using different averages to the example I gave above; you will have to test
the others, not for me to give away secrets, its not being true to Gann, he believed in you doing the
work.
You can write things down like he did above, but never really know how or what he was doing
as you keep the Keys in your head, this is clearly what he was doing. All his work sheets were for
himself, they werent a manual for the public, and this is why no one has cracked the code to the
Holly Grail. You could spent a decade just on this above with commodity prices and averaging the
different planets and you still might not find how he was using them. He was in the above scale using
WWW.TRADERSWORLD.COM

July/August/September 2016

94

either 6-degree movement or 12-degree movements. Another scale he had was for commodities was
12 degrees for Jupiter, 30 degrees for Saturn and 84 degrees for Uranus going through the zodiac
therefore for example 30 degrees of Aries using Jupiter scale had a price ending at 360 (30 x 12), 720
at the end of Taurus (60 x 12) etc. Uranus would be 2520 (30 x 84) .I reproduced these scales about
20 years ago for myself, you can do the same. If you were looking for example for cotton a date say
25th January 2017, and just looking at Jupiter, Jupiter on that date is at nearly 23 degrees Libra, this is
203 degrees of a circle.
203 X 12 = 2436 or 24.36 cents/lb. The next major level would be 6036
(2436 + 3600). On the same day if we took Uranus at 21 degrees Aries, which is 21 x 84 = 1764.
1764 + 3600 = 5364, 1764 + 1800 = 3564, 1764 + 900 = 2664. Since the cycles are down you would
watch the price support levels. Enclosed Gann scale chart. You can see that he has 18,900 = 30
degrees Sagittarius at 30 points it equals this degree. When you use 18,900 at 84 points per degree it
equals 15 degrees Scorpio, at 12 points per degree it equals 15 degrees Leo. You would have never
seen this written before and if you look at the chart you should be able to see what commodity he is
using this on.
Some homework for you there fore sure, wait!! You could find it on a $60 DVD somewhere in the
world.
As you can see to study what Gann did, you need be working by yourself, have enough time
to put in 8 hours a day (full time in 1990 havent worked for anyone since then) and start doing
this in your 20s. I started when I was 23 years old and still learning more after 35 years (not like
others know it all now, after only 5 years), feels like Im just scratching the surface of what he was
doing. The reason Im covering these periods when Gann was trading was that he wrote booklet on
soybeans dated 24/1/1955 where he explains weekly time periods. Part of the article is below on May
Soybeans.
He has all the Time periods from 1920 to 1954 in his article.
1920 High 405 on 7.75 years
1932 low 44 down 361 on 7/8th year and 7 years
1933 High 104 up 60 on 2 years and 1-1/8th years
I wont list them all but there is another full page like this to November 1954.
What it means 104 High equals 2 years, because the is 52 weeks in a year time two equals 104.
th
1.1/8 years equals 60 weeks (60 weeks minus 52 weeks). If you were to go to say high in February
2016 from 1920 would be 4992 weeks. So in February we divide the price by 2,3,4,6 and 8 we get: 2496, 1664, 1248, 832 and 624. If May soybeans are below or above these numbers it will be
in a strong or weak position. To get another price you just keep adding 52 to 405, which is 457,509
,561,613,665,717,769,821,873,925, 977 etc. if say market is at 821 it would be up 416 cents from
405 which would be in the 8 year column. Therefore it would be in the 96-year column and the 8-year
column. So you do all highs and lows up to today in conjunction with his square of 52 overlay to
determine the position of a commodity of stock.
You have to make up the tables, hand draw charts of each commodity you wish to analyse. You
have to also do all the other highs and lows in this article written in 1955 and study the position of
May Soybeans. There would be very few people who have the time or want to do this Gann system
correctly; especially people teaching Gann, you just dont have time to teach. This is why I have done
one workshop in the last seven years, I never did workshop for money. I only write to show you the
amount of work Gann did which no one else is doing to his level, and its a level again way above
what Im writing.
Gann quoted Before you make a trade, analyse the position on the daily, weekly and monthly
high and low charts.
WWW.TRADERSWORLD.COM

July/August/September 2016

95

In the Hindu Tea Calculator article written in 2015, I said grains would be happy and fall in
price, wheat went to 5 year lows, so I shorted Wheat and Soybean on a rally and made great profits.
If it was just based on the Saturn line of 599 (239 + 360) wheat was in a bearish position below that
number on the high date of 30th June 2015 at $6.22.
625 is the square of 25 of course. The number 617 is opposite on square of nine chart as well.
On the wheel of 24 which I wrote an article about 10 years ago here, 15 x 26 = 624, Gann had the
Egg chart (this chart the public has seen) which was 45 days to a scale of 45 points, which is only the
a simple 15 degrees to 15 days x 3, or 3 hours on the wheel of 24 as the earth rotates 15 degrees
every hour. When wheat dropped below 576 it was below the square of itself of 24 and in a weak
position. Of course you would know that
30-degree movement of the Earth is only a two-week chart. Of course there many more things I
look at as well. Enclosed this chart of Ganns for the D.J.I.A
If you are a true Gann person you would do exactly do what he does, that is dont reveal
important information, so far thats covered, no one has got any good information from what I have
seen over my 35 years of study. Now the best way to study is buy all Gann books, read them once a
month for 12 months, draw hand charts that are in the book and follow what hes saying. Follow all his
rules. This would keep you busy alone for a five years full time. When I did teach workshops and told
people not to do astrology, they didnt listen, when and did House Wife Astrology and havent heard
from them since, I guess they a lost in the planets somewhere. Gann wasnt an astrologer; he never
said he was astrologer. This is all you need, doing what I do is way to hard for people (the harder the
better for me), but I enjoy it, so best not to start is my recommendation, you will only get confused
and lost, then drop out. 99% of people drop out of everything (straw man, this is why people want
handouts) in life and this is one of the hardest subjects in the world to understand. Theres no need to
do astrology to trade the Gann way and be successful. Economics 101, sell high, buy low, save and
have no debt. No need to go you university, its that simple.
The amount of work Gann did was remarkable; here is his work, which is a video of 200 pages
on the Lottery work alone. On his ephemeris he wrote won lottery, some $3,700 which in those days
was nearly a cost of a house, so maybe about $500,000 today.
https://www.facebook.com/113109448709650/videos/vb.113109448709650/899677126719541/
?type=2&theater
How many Gann experts are in the world again? Wouldnt be close to what he was doing as
you can see from the above video. Why do you think Gann never wrote books on financial astrology,
horse racing and lottery? Its simple its to valuable to him, and people just copy stuff and package it
up and resell it. He knew this, he didnt trust people until they proved they were worthy, this also a
Masonic philosophy. From what I have seen people doing financial astrology they just print out all the
aspects of planets and say these are the aspects of planets, any ape (Gann said humans come from
apes) could do that.
HOW TO KEEP SECRETS?
Three may keep a secret, if two of them are dead.
Benjamin Franklin, Poor Richards Almanac
If you want to keep a secret, you must also hide it from yourself.
George Orwell, 1984
The best way of keeping a secret is to pretend there isnt one.
Margaret Atwood, The Blind Assassin
WWW.TRADERSWORLD.COM

July/August/September 2016

96

Once exposed, a secret loses all its power.


Ann Aguirre, Grimspace
Now you can see that people giving away secrets ($60 DVDs) they dont have secrets. Gann
himself said They arent for sale. You are looking for two things in my articles, you study what I write
(some have mistakes so a fool copying them will show them as a fool), and then you look for what Im
not writing in articles for the Key secrets. See knowledge screens out the weak people as Gann said
(knowledge is power). They will not last teaching Gann, as they have very little knowledge especially
when the markets collapse as people wont have money to waste on useless information. Yet many
people in the world have his secrets, how does that happen? It cant can it? To be pure Gann person,
you dont do Elliot Wave, indictors or mix other things he never did. It just shows you they have never
studied pure Gann; it shows you need support from other things, as you havent worked Gann out,
thats all. You also, if you had a secret you would never sell it as Gann said. If its in public domain, its
not a secret, Gann knew this as well. I have never found and secrets in Housewife astrology books. If
fact I have thrown them in the rubbish bin as George Bayer suggested.
I will show you how bad astrology is here and doesnt work. The two greatest golfers of all time
are Jack Nicholas and Tiger Woods, Jack has Sun square Saturn, Tiger Woods has Sun square
Pluto, Greg Norman who won over 90 tournaments and world number one for 10 years has Sun
square Saturn. Richie McCaw has Sun square Saturn, the greatest All Black captain ever with a two
world cups, world record test played of 148. I have Sun square Mars. I have won two NZ senior golf
tournaments and played for NZ. All these people are Capricorns, me as well, except Greg Norman
who is Aquarian, but ruled by Saturn. One astrology told me that a disaster was going to happen
when my transiting Saturn squares my moon, this person still looking for the MH 370 plane, I double
my money being short grains as predicted in the Hindu Tea Calculator article. Astrology is just
rubbish. Lets look at the D.J.I.A we have had seven Uranus square Pluto (bad aspects) from June
2012 to March 2015, D.J.I.A hit record highs in May 2015. But if you go to a housewife astrologer they
say bad aspects are bad, it just proves what they say is rubbish, I have had plenty of bad aspects,
and made money. They have no idea. Anyway no one cares if a straw man has bad or good aspects.
Shows you how little they know about normal astrology and they are trying to emulate Gann
doing financial astrology, what a joke. Gann wasnt doing that kind of cycle work. Every Astrologer in
the world has been talking about Blood Moons what happened? nothing as per usual in the markets.
I guarantee you will go broke following normal astrology, just as CHART WELL did. I have never been
to an astrologer to fine out what Gann was doing, thats the dumbest thing you can do. You would
notice, Bayer, Gann and Livermore made more money than people today without a computer or
software, doesnt that tell you something? Theres no one in the world teaching pure and true Gann
Astronomy, Astrology, Geometry the way Gann was using it.
David Burton has been using the Gann methods since 1983 for predicting weather, markets
and more recently for horse racing for his own personal use. He doesnt teach as it takes up to much
time and the time he wants to continue to research into deep secrets of Gann. He writes only to keep
Ganns name a live in a pure form.
Website www.schoolofgann.com and www.commhedge.com.au

WWW.TRADERSWORLD.COM

July/August/September 2016

97

WWW.TRADERSWORLD.COM

July/August/September 2016

98

W.D.GANN HAS TO BE ONE OF THE GREATEST


By D.K.Burton
W.D.Gann from what I found on the internet (looks like relievable source) used Trade
Marked name OROLO for some reason in his adds. These adds written in 1909 clearly
states the he didnt believe in astrology and was basically rubbish, until he found the Law of
Vibration as applied to the Wireless Telegraphy (see his booklist that suggest he use more
astronomy of the ancients than anything else and this is what the wireless is based off). Its
most likely because the earth has more than 10 different motions and astrologers work on
one motion. These ideas are in some of the book on his reading list below. He said he made
his greatest discovery on August 8th 1908 so these ads would seem to be true. Some how
Gann use sound waves, radio waves as part of his market forecasts and hes says hes the
only man alive using these method by using knowledge of the ancients on the markets, wait
we must have about 100 Gann experts who all think they are way better than Gann today.
Of course they are, yep sure, they have worked out his Horse racing system, his lottery
system and his Stocks and Commodity system all under 12 months, way smarter the Gann
dont you think? Then why are they selling books, seminars and all his secrets of $49, funny
dont you think? He clearly didnt get his knowledge from the Masons, as he wasnt a Mason
until 1923 as everyone claimed and only a completed the third degree (people claim hes 33
degree, he wasnt , I have had his papers from the New York Lodge 1992). Gann was clearly
on a same level like Einstein, Tesla and others, wait! I forgot and the same as House Wife
astrologers. If you think you will trade markets using astrology, you will lose all your capital
fore sure, we have seen many astrologers forecasts, and if you did 100% opposite you would
make a fortune. Most astrologers are as poor as church mouses to boot.
Ganns interview in 1909 also supports he had discovered the Law of Vibration.
One of the most astonishing calculations made by Mr. Gann was during last summer [1909] when he
predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the
end of the month of September. At twelve oclock, Chicago time, on September 30th (the last day) the
option was selling below $1.08, and it looked as though his prediction would not be fulfilled. Mr. Gann said,
If it does not touch $1.20 by the close of the market it will prove that there is something wrong with my
whole method of calculation. I do not care what the price is now, it must go there. It is common history that
September Wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of
trading, closing at that figure.
The birth chart of W.D.Gann could have been made by Luke Broughton, Gann would have been 21
years old chart. There is a chart with the exact time published by Robert Zoller. Broughton predicted his
own death in the newspaper a month in advance, theres not one House Wife astrologer in the world that
can do that. Gann wasnt doing what I call House Wife astrology. The great Hindu astrologers call them
three book astrologers, read three books and they are astrologers.
Broughton had over 300 hundred very rare astrology books; maybe he lent some to Gann. Or Gann
bought some after his death.
Heres his ad:

WWW.TRADERSWORLD.COM

July/August/September 2016

99

Text reads:
I shall die September 22 at 4 oclock in the morning. The sun, Saturn and Mars will be in such positions
at that time that I cannot possibly survive. I give warning, as there is no possible hope of my surviving that
date. Let us be prepared for the end and meet it calmly. -- Statement made to his family August 22 by Dr.
Luke D. Broughton, astrologer, who died on the day and at the hour he had set.

PREDICTED THE TIME OF HIS DEMISE


Dr. Luke D. Broughton,
Famous Astrologer, Dies Nearly at the Time He Had Foretold.
NEW YORK, Sept. 23.1899 Dr. Luke D. Broughton, president of the Astrological Society of America,
died to-day. He cast his horoscope many years ago and predicted that the critical periods of his life were
the fifteenth, sixteenth and twenty-first days of the present month and present year. His death he predicted
would occur on September 22. Dr. Broughton was born at 10 a. m. April 20, 1828. In Leeds, Yorkshire,
Kaplan. He came from a family of astrologers and early began the study of astrology. Dr. Broughton has
made many successful predictions. On his advice his eldest son did not marry, as his father had predicted
the exact time of his death in 1885. Mrs. Broughton also died as predicted in 1891. He wrote many pamphlets
and one book on astrology.

WWW.TRADERSWORLD.COM

July/August/September 2016

100

You would also notice


that the above address
of 120 x room No.1206
= 144,720 the square of
12 and two circles of 360,
hes telling you something
there. Only three adds
had the room number,
3 x 120 = 360. 144,720

You would also notice that the above address of 120 x room No.1206 = 144,720 the square of 12 and
two circles of 360, hes telling you something there. Only three adds had the room number, 3 x 120 = 360.
144,720 adds up to 18, which what hes charging a monthly subscription of $18. (18 X 12 = 216)
144 + 72 = 216.

WWW.TRADERSWORLD.COM

July/August/September 2016

101

In the above ad he talk about an author which is on his book list called Popular Astronomy by Flammarion,
this is 686 pages and of course I have this book. There is what Gann mostly study was astronomy of the
ancients. So how can any Gann expert be a astrologer? They have to be astronomers, he said astrology
didnt work, I agree with him. He made two great statements I will never reveal my secrets or sell them.
Why would you? Just because you cant work out what Gann was doing (Larry Williams calls Gann a fraud)
theres no need to call him a fraud.
WWW.TRADERSWORLD.COM

July/August/September 2016

102

Example of one of my many prediction on weather, also used for horse racing and markets.
Below I sent an email to India on 28th November 2015, I found some thing on the Law of vibration on
weather not in any books. They had the worst floods in 100 years, with 490 mls in a day, on 1st December
2015. 400 hundred died. Of course I didnt tell him how I did it, or sell it. Gann said My secrets arent for
sale, his secrets went to the grave, except his coding in his books like TTTTA which I have decoded.
Hello Mr. Burton,
Your predictions were spot on !!! See this web site. It is the number one private meteorological
web site in Indiahttp://www.skymetweather.com/
How did you make it? Kindly explain astrologically.
Sincerely,
Sachin
On Sat, Nov 28, 2015 at 8:26 AM,
Hi
Im looking at something on the weather, see if theres heavy rain after the 1st Dec in India
Regards
David
Most of you would have one of the last articles Gann wrote which was a nine-page article called Cash
and May Soybean futures dated 24th January 1955. All his dates seemed to be coded, firstly you would
notice that was the date that Robert Gordon made his first trade in TTTTA on 24th January 1927, which is 28
years or 4 x 7 years. This date also points to date in 1940, remember the book is called TTTTA or looking
back from 1940, what dated in 1940 is related to 24th January 1955? This a very simple one, good one to
ask those Gann experts dont you think? He is using coded dates, which point to astrological timing; bible
chronology and this is why its so hard to decode his stuff for 99.9% of the Gann students.
This is Ganns reading list for students I believe:
Most people wouldnt even have bought or read these books that claim to be Gann experts let alone
studied them. You couldnt study his book list in under 20 years. Gann was in a class of his own. Gann also
would have had Sepharials private Key books which you will having trouble getting them today:
London bullion Exchange (private subscription only)
Key to market operations
Key to successful market operations
Key to market trading
Key to successful trading
Secret progression
WWW.TRADERSWORLD.COM

July/August/September 2016

103

As you can see what people provide to


the public and what they had privately is two
different things. What about all the books he
had that he didnt list? It really shows how
little everyone knows about Gann, I really
dont think theres anyone remotely close to
what hes doing. Im still finding new stuff
after 35 years full time working on his ideas.
If you read books on his reading list, you will
find books by Johndro who talks about Tesla,
and Flammarion, reading these books you will
understand a bit more on radio waves/sound
waves and how Gann was applying them to
markets, horse racing and lottery. Theres not
one astrologer in the world doing what Gann
was studying in full, some are doing about
5%. Remember all old books are only the
basis for you to search for the hidden KEYS,
the secret stuff was passed on verbally if at
all.
David Burton has been using the Gann
methods since 1983 for predicting weather,
markets and more recently for horse racing for
his own personal use. He doesnt teach as it
takes up to much time and the time he wants
to continue to research into deep secrets of
Gann. He writes only to keep Ganns name a
live in a pure form.
Website www.schoolofgann.com and www.
commhedge.com.au

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

104

Profiting From Planetary Pairs in Astro-Trading


by Tim Bost
Market movements, and the trading opportunities that accompany them, are always a byproduct of the dynamic interactions of contrasting forces.
We can observe these critical contrasts in many ways: Buyers vs. Sellers. Bulls vs. Bears. Supply
vs. Demand. Optimism vs. Pessimism. Hope vs. Fear. Expansion vs. Contraction.
But no matter what terminology we choose or which specific factors we track, we typically spot
the highest-probability trading opportunities when the contrasts are the strongest, at the points
of the most extreme dynamics, at the peaks and troughs of cyclical waves.
When we consider that essential contrasting duality as we look for trading opportunities, we can
do a much better job of developing and refining profitable strategies that offer us consistent
advantages. When we can define both support and resistance, for example, or when we can
track two moving averages and watch for signals generated by their cross-overs, we can trade
with much higher confidence.

Big Mistakes in Astro-Trading


The same basic principle applies to the use of planetary dynamics in market timing and analysis.
Oddly enough, however, many would-be astro-traders overlook this important concept, and their
trading returns suffer as a result.
This oversight is sometimes due to the sheer excitement that novice traders experience when
they first realize that planetary cycles actually provide a genuine advantage in the markets.
After all, once we observe some kind of correlation between an event in the solar system and
changes in market trend, its natural to feel a burst of enthusiasm! Our feelings become even
more positive if we can observe that correlation being repeated a time or two in fact, it usually
doesnt take much reinforcement for us to start convincing ourselves that we have stumbled
upon the Holy Grail of trading. We begin to nurture an unconscious bias in favor of our newlydiscovered astro-trading timing signal, and start searching for fresh opportunities to time our
trades accordingly.
Thats often a big mistake, especially when we believe that we have found a simple one-onone correlation between planetary actions and price behaviors in the markets. We run the risk
of succumbing to magical thinking, believing that if we just wait for that particularly potent
planetary phenomenon to repeat itself, and then use that occasion to jump into the market, we
will be guaranteed success.
WWW.TRADERSWORLD.COM

July/August/September 2016

105

It doesnt take much trading experience (or many losses in the markets) for us to understand
just how foolish that kind of assumption can be. But sometimes our ability to shoot ourselves in
the foot doesnt stop there. We compound our problems if we are oblivious to the true nature of
planetary cycles.
For example, we may observe planetary correlations with the markets just enough to conclude
that there is a direct correspondence between the movement of Jupiter through the degrees of
the tropical zodiac and the price cycles in the equities markets. That was certainly true in the
early decades of the 20th century, and its a correlation that still has some merit today. On that
basis, we may conclude that trading tops in the stock market are likely to coincide with Jupiters
passage over 15 degrees of Gemini.
But even if that conclusion proves correct when Jupiter next hits that point in the zodiac, its
actually of little practical use to us as active astro-traders. Thats because Jupiter takes 11.875
years to complete a full circuit of the zodiac, so this correspondence will only offer us trading
opportunities every 12 years, no matter how reliable the correlation of Jupiters position in the
zodiac to stock market trends may actually be.

Paying Attention to Planetary Speed


Its far more useful to look at planetary cycles that reoccur more frequently if we are going
to use them as a basis for taking positions in the markets. The key distinction here is one of
relative speed. Planets that complete their orbits through the zodiac more rapidly will provide us
with more frequent cyclic repetitions than those with slower orbits.
As a convenient reference, here is a listing of fast and slow planets. Note that weve included
some minor orbital factors in our list, but our purpose here is not to engage in a discussion
of what is or is not a planet in terms of strict astronomical definitions, but rather to provide
a characterization of relative speeds of zodiacal orbits. With that in mind, weve followed the
astrological tradition of listing the Sun and Moon as planets as well, based on their apparent
motion as seen from our perspective here on Earth.
FAST PLANETS
Moon
Sun
Mercury
Venus
Mars
Asteroids

WWW.TRADERSWORLD.COM

July/August/September 2016

106

SLOW PLANETS
Jupiter
Saturn
Uranus
Neptune
Pluto
Chiron
Eris
Transneptunian Factors
Kuiper Belt Objects
Simply looking at the correspondences between price fluctuations and the cycles of a fastmoving planet can often give us helpful information. For example, there is a fairly strong
correlation between the Suns passage over 8 degrees of Capricorn and trading lows in Gold.
As Figure 1 illustrates, this particular zodiacal phenomenon doesnt always coincide with the
exact bottom in the Gold market. Our back-testing shows that this solar alignment marks trend
reversals in Gold about 75% of the time, with those reversals evenly divided between trend
changes up and trend changes down. Considering those odds, we can certainly conclude that it is
useful in identifying potential entry points for profitable positions in the yellow metal.

[figure 1]
While it is certainly more useful to have a planetary trading signal that comes once a year
instead of one with a 12-year cycle, using this recurring position of the Sun can open the door
to even greater benefits. We can also use this planetary factor as a springboard for further
explorations of the relationship between solar dynamics and price trends in Gold.
WWW.TRADERSWORLD.COM

July/August/September 2016

107

The Power of Planetary Price Lines


By employing the kind of correlations between zodiacal positions and market prices that W.
D. Gann used in some of his work, we can generate planetary price lines which illustrate the
progression of price and time coordinates based on the passage of the Sun through the entire
360 degrees of the zodiac. In Figure 2 we have added those planetary price lines for the Sun to
our trading chart for Gold, projecting them in the sixth harmonic.

[figure 2]
The heavier diagonal lines moving through the chart indicate the first-harmonic positions of the
Sun which are direct correspondences in price to the Suns sequential positions in the zodiac.
The intervening diagonal lines divide these first-harmonic planetary dynamics into 60 spans,
giving us a sixth-harmonic projection.
Note that while these sixth-harmonic solar price lines do not define all the trading actions for
Gold, they do help us see some instances in which Gold has traded specifically within solar
channels as it has made significant price movements. Whenever the yellow metal has been
trading in a solar channel, and then breaks out of that planetary trading range, it is often a
powerful indicator of important price action just ahead. This is especially true if other technical
indicators provide a confirmation for a trend reversal.
As astro-traders we are offered a clear advantage through the use of planetary price line
dynamics like the one we have illustrated here for Gold. But those planetary dynamics become
even more effective as tools for forecasting and trading when we look at the impact of pairs of
WWW.TRADERSWORLD.COM

July/August/September 2016

108

planetary forces.

Contrasting Planetary Forces in Astro-Trading


When we use more than one planet in considering the cyclic phenomena that can correlate with
price and time in the markets, we have an opportunity to connect with the kind of essential
duality that typically offers us a genuine advantage in our trading. Thats where the distinctions
between fast and slow planets becomes important.
In looking for planetary pairs to use in identifying potential trading opportunities, the most
practical rule of thumb is to combine one faster-moving planet with one slower-moving one.
Since weve already observed the clear role that cycles of the Sun play in defining price
movements in Gold, we can use it as the fast planet in our charting for the precious metal.
For our slower-moving planet in this case, we have chosen the Transneptunian factor that was
designated as Kronos by the 20th-century German astrologer Alfred Witte. Kronos is much slower
than the Sun it has an orbital period through the zodiac of 521.834 years, giving it an annual
mean motion of 042.

[figure 3]
When we add sixth-harmonic projections of Kronos to our chart with the sixth-harmonic
planetary price lines for the Sun, we get the result shown in Figure 3. Because of its slower
movement, the planetary price lines for Kronos are more evenly horizontal than the Suns sixthWWW.TRADERSWORLD.COM

July/August/September 2016

109

harmonic lines.
The first thing that we notice after adding the
planetary price lines for Kronos is how often
they define key levels of support or resistance
for the trading action in Gold. This is especially

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

true of the first-harmonic Kronos line, which is


the heavier horizontal line about two-thirds of
the way down from the top of the chart. Note
that the trading lows on both December 30,
2013 and December 30, 2014 were anchored
on this first-harmonic Kronos line.
Each of the crossing points between the Sun
lines and the Kronos lines shown on the chart
represents a sixth-harmonic angular alignment
between the Sun and Kronos 0, 60, 120,
180, 240, or 300. In many cases these
sixth-harmonic meetings indicate important
inflection points in Gold trading. In tracking
Gold trading during the past quarter-century
we can back-test 142 of these sixth-harmonic
alignments, observing 42% of them have
corresponded with trend reversals up, 26%
have corresponded with trend reversals down,
and 32% have shown no correspondence to
trend reversals.
While using a pair of planetary factors in
analyzing a market doesnt guarantee accurate
forecasting or profitable trading, it does offer
us valuable insights into market behavior and
trading opportunities. It can help us set aside

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

the magical thinking that some novice astrotraders succumb to, so we can focus on getting
profitable results.

Tim Bost has been editor and publisher of


FinancialCyclesWeekly.com newsletter since
1988. He is the author of Mercury, Money &
The Markets; Profitable Trading with Planetary
Timing; and Gann Secrets Revealed. Contact
him directly at tim@timbost.com.

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

110

The Clash of Cycles III


An Empire in Decline
By Eric Hadik

2016 - The Golden Year Update


In January 2016 (Traders World Issue #62), this author wrote The Clash of Cycles II &
reiterated analysis from June--Dec. 2015 - concluding that 2016 would be The Golden Year and
would begin with an initial Gold surge into late-Feb./early-March and then a second surge in
April.
A third rally is forecast for the first half of June 2016, with important intermediate cycles
pinpointing when & where the next peak is most likely.
That analysis had been detailed in INSIIDE Track throughout 2015 and was emphasized when
Gold & Silver triggered 3--6 month buy signals in mid-Dec. 2015. Those signals reach (initial)
fruition in June 2016.
While the actual price action is very important, more noteworthy is what a move like this often
portends
Action like that is often a harbinger of instability & uncertainty in financial markets and/or a
waning faith in fiat currency (of which the Dollar is NOT the worst). It is also often an omen of
geopolitical upheaval. There are several cycles that are projecting all of the above - in the near
future

The 8-Year Cycle


One of the most recognized cycles in the stock market is the 8-Year Cycle (and its 2-year &
4-year divisions). A look at a longer-term chart reveals the 8-year span from 1966 peak to 1974
low to 1982 low to 1990 high & low to 1998 high & low.
A slightly offset 8-Year Cycle took hold in 2000 (and was linked to secondary turning points in
1992 & 1984) and ushered in the bursting of the dot.com bubble. The Nasdaq 100 led the way
lower, plummeting in 2000. That same Index led the bottoming formation of the next meltdown
- the 2007/2008 collapse - setting its low in Nov. 2008 - ~8 years from its greatest collapse.
The collapses of 2000 & 2008 focus attention on 2016 8 years later. However, since I view this
as an approximate 8.6 Year Cycle - about half of an uncanny 17-Year Cycle - that focus extends
into 2017 8+ years from the Aug.--Nov. 2008 meltdowns & 17 years from the 2000 peak &
collapse.

WWW.TRADERSWORLD.COM

July/August/September 2016

111

Another 8-Year Cycle


Throughout the past decade, I have described another 8-Year Cycle - the 8-Year Cycle of Attacks
against America. That cycle was again recounted in the April 2016 40-Year Cycle: Date of
Aggression Report - pinpointing 2017 as the time for a new shift in those attacks.
A brief recap of that cycle and its corresponding events is included in the accompanying table.
[See 40-Year Cycle: Date of Aggression Report for related analysis, poised to dramatically impact
stocks, gold & the Dollar.]

8-Year Cycle of Attacks Against America


Late-1952/early-1953 witnessed an escalation of the Mad Bomber - George Metesky - marking
the first time his bombs caused any injuries a pattern that would escalate in 1953--1956. His
overall reign of terror encompassed two 8-Year Cycles and dozens of bombings, culminating in
1957.
Late-1960 - 8 years later - timed the terror reign of the Sunday Bomber on the NYC Subway. 8
years (and a few months) later
Early-1969 ushered in an escalating phase of attacks, plane hijackings and hundreds of
bombings including NY-based attacks (370 bombings from Jan. 69--Oct. 70) on Dept of
Commerce, the Federal Building & Manhattan Criminal Court. 1969 witnessed the bulk of 8200
bombings, attempted bombings and bomb threats in the US between Jan. 1, 1969 and April 15,
1970 (Wikipedia.org).
8 years later (one 40-Year Cycle ago), an ideological shift took hold in March 1977 - with the
Hanafi Siege in Washington DC. 12 Muslim gunmen seized three buildings - taking 149 hostages
and killing a journalist. 8 years later, another shift took place
1985 timed an intensification of overseas attacks against Americans, including 2 bombings
and an assassination of American targets in Germany, attacks at Rome & Vienna airports (5
Americans killed), the hijacking of an Egypt Air flight with Americans and Israelis shot & killed
and the hijacking & killing of an American Naval diver in Lebanon.
In each case, Americans were singled out and executed - making clear the intent. 8 years later,
another shift, bringing the siege back stateside
1993 witnessed the (truck) bomb attack on the World Trade Center, ushering in an 8-year period
of truck (and boat) bombs - aimed at American targets, embassies (Africa) & a US Naval vessel
(Yemen).
As America would later discover, attackers used this 8-year period to train for a second, more
WWW.TRADERSWORLD.COM

July/August/September 2016

112

successful attack against American targets, in


2001 shifted the delivery means for attacks, from trucks & boats to airplanes - beginning with 4
airplane-based bombs/missiles aimed at American buildings & landmarks on 9/11 and related
airline-based attacks thwarted in the ensuing months & years. The shoe-bomb attack was one
of those that would have brought a jetliner down over the Atlantic Ocean. 8 years later
2009 timed another significant shift by attackers and another ideological shift. That is when
the all-out attack against Americas infrastructure took hold. Whereas a plane, truck or boat
bomb can only impact lives in a concentrated region, 2009 ushered in attempts to take down
large entities (corporations, government offices, utilities, etc.) with cyber-attacks that would
spread the damage far & wide.
That also ushered in a period of attacking American soft targets - like Boston & San Bernadino
- and attacking the power grid (Metcalf sniper attack). As discussed in 40-Year Cycle - Date
of Aggression, April 2016--April 2017 is a dangerous period in which those soft-target attacks
should continue/escalate. And that would lead into
2017 - the next phase of the 8-Year Cycle of Attacks and the time when, cyclically, these attacks
are likely to escalate and transition again.
2017 is also a complete 40-Year Cycle from the Hanafi Siege - one of the original Muslim-based
attacks against Americas government & citizens targeted at Americas capital.
As increasing evidence of Chinese, Russian & Iranian cyber-attacks emerge, the potential for the
next 8-Year Cycle is sobering.
2017 is also a precise 60-Year Cycle - the cycle of life (& Ganns Grand Cycle) - from the
satellite events of 1957. That is when the USSR shocked the US and the world by launching
Sputnik, the first Earth satellite, after which the US launched its Vanguard rocket - the precursor
to our satellite program.
30 years later (midpoint of 60-Year Cycle) - in 1987 - the Iridium constellation was conceived.
Could 2017 witness new shocks to the US satellite industry?
If that seems far-fetched, keep in mind that 2007 is when China demonstrated their capabilities
to the world (the result of Executive-authorized transfer of Americas highly technical military
applications to China in 1993--1997) - when they plucked one of their own weather satellites out
of orbit with a missile. Since then, the world knows what China can do if backed into a corner.
There is a consistent 10-year cycle related to satellite technology that recurs in 2017 along
WWW.TRADERSWORLD.COM

July/August/September 2016

113

with the 8-Year Cycle of Attacks Against America and the transition of a 40-Year Cycle of
Muslim-inspired attacks against America. Could any one of these cycles have an impact in
2017?

A Third 8-Year Cycle


There is another intriguing 8-Year Cycle with no obvious connection. This one involves Britain/
UK and is worth discussing in light of next months (June 23) vote on their continued inclusion in
the EU.
One of the intriguing aspects of this cycle is its larger-degree multiples - both an 80-Year Cycle
AND an 800-Year Cycle all pinpointing 2016/2017 for watershed events in the rise and fall of
the British Empire(s).
On a more contemporary basis, a good place to begin this cyclic discussion is 1960 - when
Britain was eclipsed by France & Germany as the economic powerhouses within Europe. It was
one of the most salient validations that the sun was indeed setting on the British Empire. In a
couple decades, the UK had gone from global power to (only) European power to third place (or
lower) in Europe.
This turning point came on the heels of the 1957 Treaty of Rome and the establishment of the
European Economic Community out with the old, in with the new.
In 1960, the UK (and others) launched the competing EFTA (European Free Trade Association)
but subsequently (in 1961) attempted to join the EEC, a bid that was ultimately rejected due
to the objection of Charles de Gaulle pounding another nail in the coffin of the once mighty
empire.
This seismic shift - in Britains economic standing & influence - set the stage for the ensuing
50+ years of economic & currency crisis, repeatedly pushing the Pound Sterling to the brink of
disaster.
In late-1967--1968, Britain went through a tumultuous period of economic upheaval that
included devaluing Sterling - resulting in a debilitating financial crisis in late-67/early- 68.
March 1968 - 8 years from 1960 - was the culmination of that financial crisis as investors
threatened to abandon their currency completely AND America asked Britain to shut down the
gold market.
8 years later, in Sept. 1976, the UK experienced another humiliating economic crisis - ultimately
being forced to go to the International Monetary Fund - hat in hand - for a bailout of their
currency. That immediately followed June 1976 - when the Pound reached a record low after
suffering a sharp drop in value in perfect sync with the Jamaica Accord in 1976.
8 years later, in Sept. 1984, the UK was experiencing record high unemployment during the
WWW.TRADERSWORLD.COM

July/August/September 2016

114

culmination of a 4-year period that saw their industrial output plummet by ~25%. As their
global clout plummeted, the once-expansionist Great Britain signed a deal to return Hong Kong
to China.
Economic & currency malaise returned 8 years later - in Sept. 1992 (many of these 8-Year
Cycle events occurred during the month of September) - when George Soros broke the Bank
of England on Black Wednesday forcing them out of the Exchange Rate Mechanism in Europe
while pummeling the value of Britains currency.
3 of the latest 4 phases (1968, 1976 & 1992) - of the 8-Year Cycle - involved Sterling-bashing.
8 years later, in Sept. 2000, it was an inflationary debacle - on the heels of the Pound declining
for 8 years (to its lowest low in 13+ years) - with Britain possessing the highest gas prices in
the developed world. That triggered fuel protests & blockades, resulting in ~90% of petrol
stations running dry. It also prompted the instituting of food rationing as a result. The
plummeting Pound created chaos as the 8-Year Cycle continued to wreak havoc!
8 years later, in Sept. 2008, the UK joined the rest of the world in a global economic meltdown
as the Pound was again pummeled, dropping about 35% in 14 months and to its lowest low
since 1985.
1960, 1968, 1976, 1984, 1992, 2000, 2008 an uncanny, 8-Year Cycle at work!
Could another UK financial crisis be about to emerge - in/around Sept. 2016? Could the Sterling
be in for another pummeling??
The actual price lows in the Pound have also come on a very consistent 8-Year Cycle, slightly
offset from these debacles. It has seen multi-year lows set in 1985, 1993, 2001 & 2009. So, it
is reasonable to conclude that another multi-year low could ultimately take hold in 2017.

2016/2017: A Crumbling Empire?


On a larger-degree basis, 2016/2017 is also the culmination of much larger-degree (8-year
related) cycles. 80 + 80 + 80 years ago, in 1776, Britain lost the American colonies - a
devastating blow to the British Empire.
So, she set out to build a Second British Empire - with India & Asia as primary components.
But that only worked for so long
After 80 years of development, that Empire was dealt its own serious blow - beginning with the
Indian Rebellion of 1857.

WWW.TRADERSWORLD.COM

July/August/September 2016

115

2016/2017 is 240 years & 160 years from two British Empires being dealt severe blows.
In the ensuing ~80 years, Britain suffered two massive depressions - with the first one (1873-1896) culminating at the 40-Year Cycle midpoint (1856--1896--1936) and the second one
unfolding throughout the 1930s.
The 1930s were also a time of great transition between the UK and Asia - another critical
component of the Second British Empire ...
Leading up to 1936/1937, Britain was redefining her relationship with both China & Japan - a
delicate balancing act. All that led to naught as the Second Sino-Japanese War broke out and
ultimately dealt a 3rd & final (knockout) blow against Britains global empire. The 80-Year Cycle
was recurring with great precision.
2016/2017 is 240 years, 160 years AND 80 years (higher-degree 8-Year Cycles) from the British
Empires being dealt severe & ultimately fatal blows.
2016/2017 is also an exact 800-Year Cycle (larger-degree 8-Year & 80-Year Cycle) from the
French invasion of England - under Prince Louis (later to be Louis VIII) - during the First Barons
War in 1216--1217.
The invasion - and the War - were a direct result of Englands King John refusing to abide by the
Magna Carta of 1215 (ultimately influencing the US Constitution in 1787).
Could 2016/2017 perpetuate this 8-Year AND 40- / 80-Year & 800-Year Cycle in the U.K.?

2016--2017: Food Crises Cycles


The first 4+ months of 2016 have provided powerful corroboration to ongoing projections
(since 2013) for a Major Food Crisis in 2016/2017 mirroring events surrounding 1976/1977,
1936/1937, 1896/1897, 1856/1857 & 1816/1817 and prompting surging food prices (grains &
softs) in 2016--2017.
Locust plagues - in Aug. 2015--Jan. 2016 (from S. Russia to S. America) - have been
exacerbated by El Nino-related drought AND flooding in South America and that is just the
beginning. While grain markets are poised for a culminating surge in late-May and into the first
half of June, another advance could soon follow.
See 40-Year Cycle: Food Crisis Reports & Traders World #62 for more details.
While these diverse cycles might appear unrelated on the surface, they are all part & parcel of
a MAJOR cyclical shift expected for 2016--2021 - impacting markets, currencies, commodities,
nations and empires not to mention geophysical & solar instability. Already, key markets
WWW.TRADERSWORLD.COM

July/August/September 2016

116

are providing unique trading opportunities in


preparation for this.

For more info & analysis on all these topics,


please go to www.40YearCycle.com.

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

Eric S. Hadik is President of INSIIDE Track


Trading and can be e-mailed at INSIIDE@
aol.com.
INSIIDE Tracks website is at
www.insiidetrack.com.
More information
on the 40-Year Cycle can be found at
www.40YearCycle.com and on the 17-Year
Cycle at www.17YearCycle.com.

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

117

Getting Past the Fallacy of Almost There:


What It Really Takes to Create Success in Trading
Two Worlds Collide When Trading
By Rande Howell

Trading makes so much sense and seems so do-able when looking at it from a distance.
After getting comfortable with the theory and assumptions, the student of trading can see
the rules that govern success in trading. Intellectually its really not that hard to grasp.
Everybody knows that trading is about managing Probability. Everybody knows that no one
trade is important. Everybody knows that success is found in a statistically large enough
sample size where you trust the edge you have developed in your methodology over time to
extract capital from the markets. No reason to get fluxed over a couple of trades that dont go
your way. At a distance, it is easy to understand. Everybody knows this. All traders know
this in theory until they are put to the test and discover they dont know how to apply their
knowledge in practice.
Then, in another part of your brain, a circuit is tripped, without your ever knowing it, and
all your knowledge becomes mush. This is where the two worlds of trading collide. You know
the drill. And youve experienced the gap between Logic and Emotion. Youve been there a
thousand times, day in and day out. You know this stuff at a distance. Then when you
actually trade, with capital at risk (not at a distance, but viscerally in the here and now) you
discover again and again that you dont know what you thought you knew. Not really. All
that understanding just flies out the door. If only you could force the markets to conform
to your beautiful mind.
Hordes of traders stay for years at this threshold until they burn out, only to be replaced
by scores of new dreamers starting afresh having no idea what they are getting into. All are
mesmerized by the possibility of success that trading offers and are sure they can learn how
to extract capital from the markets consistently.
As they mature, they stay stuck in almost there, running from one teacher to another
and buying stuff and more stuff to help them get the edge. They earnestly believe that the
answer (the Holy Grail) is out there. Then, all their troubles will be over! But no matter how
seductive the promises of trading may be, success remains right around the corner. Each
day, each week, each month, and each year they pick up the broken pieces and try again
the next day. This is how performance-challenged traders fritter their time and capital away.
This is the experience of trading for the vast amount of people who are striving to become
successful traders.

The Magical World of Being In Control


The two worlds that collide in trading are really rooted in your biology of survival, not in
your psychology. You come to trading with a hard-wired need to be in control of outcome and
to predict the future. It is called the Self Preservation Principle. This principle is wired into the
WWW.TRADERSWORLD.COM

July/August/September 2016

118

very fabric of your being, so, of course, you are bringing it to trading as part of your historical
baggage. And you come to trading with a hardwired need to deny Uncertainty, even at the
cost of irrationally believing something that is not supported by evidence. So, you come
equipped with an evolutionary bias bred into your genes for untold generations to believe
you can control outcome and avoid uncertainty despite evidence to the contrary. If you want
to see these principles in action, look no further than the Fallacy of Almost There. It is this
biologically rooted bias that keeps you hanging on to consistently under-performing ways and
customs in your trading while you maintain hope that things will turn around.
This is not trading psychology. This is trading biology, or what can be called the behavioral
or emotional finance embedded in your brain that creates flaws in your trading psychology. It
is primitive; therefore it is happening below the threshold of conscious awareness for those
who are not trained to look deeper. A psychology develops around these primitive drives.
Applied to other endeavors before trading, these drives led to the development of a psychology
of winning by taking control ( - alpha) or a psychology of not losing by virtue of being right
(perfectionist). These biases proved successful in other endeavors and were wired into the
psyche as personality traits. These new psychological biases, so successful in those other
endeavors before trading, quite naturally were brought into trading along with the biological
drives of Self-Preservation for short-term survival.
They feel right, so the trader acts as if they are true. This is the tragic mistake that traders
makethe assumption that the rules of success learned outside of trading will apply to trading.
They do not. They are different animals, but the brain (and then the traders mind) feels they
are the same. And out of that feeling, traders discount evidence to the contrary including
the evidence provided by their trading account balance.

The Illusion of Control is Busted


Because of the long time frames found in everyday life, people are lulled into a sense that
they are in control or that being right is almost a concrete probability. And because humans
have a brain that is short-term oriented and everything appears to go their way in the short
term, they assume (incorrectly) that they are in control in the long term.
If you have ever lived in an earthquake prone area, like the San Francisco Bay Area in
California where I once lived, you see this principle in action. People do not think and act in
the long term. If they did, life would be very different in that area. Though they know that
an earthquake is coming in the long term, they continue to plan and act in the short term
- because out of sight is out of mind. My wife and I lived through the catastrophic Loma
Prieta earthquake in the Bay Area in 1989 (and saw its massive destruction) and, knowing that
more were on the horizon, we chose to leave California. We left behind millions of people who
discounted the future because of the bias of short term focus. Out of sight, out of mind. The
difference in trading is that the earthquake (not being in control over outcome or engaging
Uncertainty) is made apparent in the short-term, rather than the far-off distant future. In
trading the short-term and the long-term are compressed together.
Trading outcomes happen so much faster than real life outcomes (in slow motion) that the
past, the present, and the future are much more jumbled together than in the slowness of
WWW.TRADERSWORLD.COM

July/August/September 2016

119

real life. The trader is forced to face consequences of his actions much faster than in real life.
Because of that, traders are faced with recognizing their real lack of control over outcome
much faster than people living in an earthquake prone area where an earthquake probably
will not happen in the near future. And one may not occur for another 20-30 years out of
sight, out of mind.
The almost there crowd in trading is only just beginning to become sensitive to the
near-term future. When they started, many traders began with good-sized capital at their
disposal. Over time, that capital dwindles until a short-term alert begins to go off. The end
is in sight. If you dont get your act together, you are going to run out of capital. Youve got
to do something. In trading, the short-term and the long-term come to have a mutual time
frame for evaluation, unlike an earthquake.
It is at this time that many traders wake up to the self-induced deception of Almost
There Success is just around the corner. They may feel that their perception is still right
almost there but the distance to danger is so close at hand that the belief can no longer
be maintained. Cognitive Dissonance has met its match in urgency to avoid financial disaster.

Bridging the Gap Between Short-Term Survival and Long-Term


Orientation
Everybody talks about a Probability-Based mind, but how do you actually develop one? A
mind that stays disciplined WHILE applying the knowledge under pressure of financial risk in
the face of Uncertainty.
It starts with acknowledging that your brain evolved to ensure short-term survival and with
no regard for long-term gain. In fact, if you were to create the antithesis of what the brain
was designed for, it would be trading where Uncertainty is actively being managed while
risking survival. There is nothing wrong with your brain. Solving this problem is more about
regulating emotional biases rooted in antiquity and using the neuroplasticity of the brain to
create the capacity to embrace Probability as the new normal.
Fortunately the brain, and therefore the mind you bring to manage Uncertainty, is an organ
of adaptation. As the potential designer of your brains engagement with the world, you
need to shift from random selection and past experience with your environment and shift to
become the active designer of how your brain and mind adapts to environmental pressures.
Fortunately, humans are capable of this if they take the blinders off that keep them from
seeing the long-term as well as the short-term.

First Steps First.


It starts with Emotional Regulation and Emotional Intelligence. Until you are able to manage
the triggering and intensity of emotions that were designed by nature for your survival in the
short-term, there is no getting to the door of the mind. Most traders never recognize that
their mind has been hijacked emotionally until after the fact. You have to train yourself to
spot the triggering of negative emotion in the face of Uncertainty before it becomes a runaway
freight train. Not only do you have to learn how to spot the emotional triggering, you also
have to learn how to regulate emotions and manage under pressure.
This takes retraining your emotional responses. And it takes practice. In my work it starts
WWW.TRADERSWORLD.COM

July/August/September 2016

120

out as a 2-3 week process to get started and evolves into a lifelong skill to be maintained.

Development of a Mindfulness Practice.


Nearly every human being has the facility of self-observation, though few grow the gift into
a skill. In Mindfulness the trader begins to recognize that he/she is not his/her thoughts and
beliefs they represent only one possible organization of a potential Self. It is in recognizing
that the structure of the Self is actually quite fluid (neuroplasticity) that the trader gains the
opportunity to redesign the mind that he brings to the management of Uncertainty. And he
realizes that he does not have to stay stuck in a construction of the Self that historically is
focused solely on short-term preservation for survivals sake. Instead, he can develop an
organization of the mind that embraces the Uncertainty and Probability found in trading. This
is not a magical change it takes time and guidance to handle effectively.

Applied Mindfulness.
Mindfulness is like a telescope that, when handled properly and focused correctly, can
allow you to discover new possibilities where, before, nothing could be perceived. You find
that you did have the raw talent all along, but you did not know where or how to look to find it.
Even discovering the empowering aspects of the hidden gold mine within you is not enough.
The talents have to be honed into usable skills.
Nearly everyone has the hidden talents, but few awaken the talents and develop them into
skills that are available when exposed to the trading environment where Uncertainty and
Probability are the norm to acclimate to. This is a much larger task than to stay stuck in the
fallacy of Almost There and the feeling of Certainty in your beliefs. But the difference is
competency as measured by equity growth.
In professional sports, such as golf, nearly all elite athletes have psychologists working with
them to achieve the mind that produces peak performance. All golfers on the PGA tour can
drive and put. But only a few become the elite money players. At this level of competition,
psychology of performance is what separates the leader from the pack.
It is no different in trading except that trading is probably a tougher mental game to
master than golf. Good enough is not good enough to get to the top. Being stuck in Almost
There is not going to help you become an elite trader. Almost There traders are the
pack trying to get better without understanding what they need to get better at. The jump
between the pack and the elite is found in the mind that the trader brings into the moment of
performance.
Getting from Almost There performances to elite performances requires change that is
scary to the brain of the pack trader. Why not stay in the Comfort Zone its, well, comfortable
there. But when you watch an elite trader consistently extracting capital out of the markets,
dont you wish you were there? You could be if you are willing to challenge the organization
of the Self that keeps you in the pack and re-order the mind that you bring to trading. Thats
the difference maker.

WWW.TRADERSWORLD.COM

July/August/September 2016

121

Trading range psychology and the


Great Malaise
By Clif Droke

The lateral trading range that has developed over the last year or so is a big reason why
investors are feeling so glum. Even though the SPX isnt far from its all-time high, to many
participants it feels almost like a bear market. If it feels like the doldrums to you, thats
because the market has made no net progress since this time last year. In fact, the SPX is
even a little below the year-ago high as the following graph testifies.

It has been observed that nothing spoils investors appetite for equities faster than a
sideways trend. Trading ranges can actually exert a devastating influence on mass psychology
sometimes even more so than even a market crash. Thats because humans are hardwired
for progress and trading ranges represent the opposite of progress, namely stagnation. Most
investors, if theyre honest, would rather experience a market crash than several months (or
years) of sideways equity prices. Thats because at least a crash brings excitement and the
sense of movement. Even if that movement is to the downside, anything is better than going
nowhere for a prolonged period (or so they reason).

WWW.TRADERSWORLD.COM

July/August/September 2016

122

Thats why investor participation tends to drop off dramatically once the major indices settle
into established sideways patterns. According to Gallup, for instance, only about 52 percent of
Americans say they own stock, which matches a record low set in 2013. By comparison, stock
ownership peaked just prior to the 2008 financial crisis, with nearly two-thirds of Americans
then investors in the stock market. This is quite extraordinary given that the economy isnt in
recession and the major indices, while range-bound, are closer to multi-year highs than lows.
One way of graphically describing the total lack of interest in equities right now is the latest
AAII investor sentiment poll. This week the percentage of bullish investors dropped to a mere
19 percent the lowest since the bottom of the 2008-09 credit crash. Its extremely rare to
see bullish sentiment this low given that the market hasnt actually experienced a significant
decline.
Yet the percentage of bearish investors isnt much higher, either. For much of this spring
the AAII bears have averaged 25-30 percent. On any given week the majority of respondents
have been neutral in their intermediate-term market outlook. Thats very typical of a rangebound market that is finally being recognized as trendless by the great masses of investors.
Sideways trading range markets have their own unique characteristics both technically
and psychologically. More than any other emotion trading ranges tend to elicit frustration
from investors. Nothing, after all, is more irritating to an investor than having to sit through
long periods where stocks are making little or no progress. The longer the trading range
persists, the more frustrated and impatient investors tend to become.
If the trading range is established in the midst of a longer-term uptrend its not uncommon
for investor sentiment to remain stubbornly bullish for an extended period. Investors have
become so conditioned to rising stock prices that it often takes several months of a grinding
lateral trend before they finally lose their enthusiasm. Its when investors finally become
more pessimistic on equities that the market commonly breaks out from the trading range.
In other words, investors normally have to be head faked before the market can proceed to
a higher level.
Whats happening now certainly cant be called a Great Depression (in terms of mass
psychology). But it could be called a Great Malaise. The dictionary definition for a malaise is
a general feeling of discomfort, illness or uneasiness whose exact cause is difficult to identify.
I think that pretty well describes what investors are experiencing right now. Theyre not
actually suffering, but to them it feels like something is wrong with the financial market and/
or economy. They just cant quite put their finger on whats bothering them.
Allow me to diagnose the root of their uneasiness: the trading range itself. The trading
range was first established in the NYSE Composite Index (NYA), which is the broadest measure
of the U.S. stock market, almost two years ago. The cause of this in my estimation was the
loss of financial stimulus after the Fed brought to a close its quantitative easing (QE) program
in late 2014. Since then the stock market has lost forward momentum with each year, as
reflected in the NYA chart shown below.
One of the problems with a trading range is that while stock prices appear to be going
sideways, if you look at the market from a rate of change (momentum) perspective, youll see
that its actually going lower. This is why it feels like a bear market to many investors; the
WWW.TRADERSWORLD.COM

July/August/September 2016

123

markets longer-term rate of change has declined since the heady days of 2013 even if prices
have more or less remained steady. Since investors are primarily governed by their feelings
instead of their intelligence, they have missed out on some of the worthwhile rallies that have
occurred within the boundaries of the 2014-2016 trading range. Theyve allowed the malaise
to undermine their confidence and enthusiasm, which in the long run has cost them.
Another aspect of trading range psychology is what I call trading range trepidation. I
coined this term back in 2005 and have long observed its repeated influence of investors
collective psyche. Trading range trepidation is a mental state which investors collectively feel
when the major indices have spent many weeks or months in the lower portion of a range,
then rally up to test the trading range ceiling. As the upper range is reached, investors become
apprehensive. Theyve long been conditioned to seeing stocks rally to the former price highs,
only to fall back and fail to pierce through the upper trading range boundary. Skepticism has
been thoroughly established at this point and scarcely anyone believes that the market will
break free from the confines of its upper limit. Trading range terror by contrast occurs when
prices decline to the lower boundary of an established trading range.
When prices reach the upper band of the range, participation even among active traders
tends to wane except among short sellers. Few traders are interested in buying along a
trading range ceiling. Only when a decisive breakout is made above the ceiling do investors
begin to show any interest.
Breakout shock is a term that describes the psychological state experienced by investors
once the major indices finally push out from a long established trading range. Investors
have become so numbed to the lack of action in the market that theyre simply unable to feel
WWW.TRADERSWORLD.COM

July/August/September 2016

124

optimistic about a breakout from a trading


range. It usually takes several weeks after
the breakout before enthusiasm returns for
equities.
The following provides a brief overview of
the stages that investor psychology passes
through during the lifespan of a trading range
in the major indices.
When equities get stuck in a sideways
trend for several months, investor psychology
goes through four basic stages of change: 1.)
initially they feel expectant that stock prices
will quickly breakout of the newly formed
range; 2.) when this fails to materialize
sentiment turns sour as stocks drop to the
lower boundary of the range; 3.) as stocks
continue bouncing from the top to the bottom
of the range investors begin to lose interest
and eventually quit participating altogether
with many selling their stock holdings. This is
what forms the basis of a bullish accumulation
pattern since smart money professional
investors eagerly snap up the disgorged supply
from disgruntled retail investors. 4.) Finally,
as the range is nearing its final resolution,
small investors who may, or may not, be
invested are thoroughly frustrated at the
lack of directional movement and capitulate
altogether, thus providing the stimulus for the
end of the trading range and the beginning of
the markets next breakout phase.
Clif Droke is a recognized authority on moving
averages, internal momentum and Kress
Cycles, three valuable tools as applied to
the equity market. He is the editor of the
Momentum Strategies Report newsletter,
published three times a week since 1997. He
has also authored several books on trading
and technical analysis, including his most
recent one, Mastering Moving Averages. For
more information visitwww.clifdroke.com

TradersWorld Magazine
Premium Subscription

Get everything we have for only $19.95 per year


Save 50% over our regular subscription of $39.95

QUARTERLY MAGAZINE SUBSCRIPTION


Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
astro-trading as well as modern technical
analysis explaining indicators in eSignal,
NinjaTraders, MetaStock & Market Analyst.
COMPLETE BACK ISSUES OF TRADERS
WORLD Magazine (ISSUES 1-63)
You also get our complete archive of 60 back
issues from 1986 to present. This, contains
articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
format, which you can read online anytime.
In every issue, you get the information
you need to trade the markets better with
charting, astro, cycles, oscillator tools.
Works for stocks, bonds, futures, options.

60-Day Money Back Guarantee

CLICK TO SUBSCRIBE

www.TradersWorld.com
www.TradersWorldOnlineExpo.com
WWW.TRADERSWORLD.COM

July/August/September 2016

125

How to Automate Your Trade Signals


By Steve Wheeler

Introduction
Let me start by introducing myself. I am a full time trader and trainer 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 a 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.
____________________

How to Automate Your Trade Signals


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 market analyzer where I have chosen a number of technical
indicators that need to match up for a long or short position. Tools, such as this, enable you
to scan multiple markets to determine the best instrument to trade at any given time. You will
be able to run the analyzer in a back or forward test to check for validity.
WWW.TRADERSWORLD.COM

July/August/September 2016

126

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 market is to look for evidence of major support and
resistance levels based on chart history. Many people ask me to identify which time frame I
look at for my trading. My 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 two examples of Navi-Renko charts for the S & P Futures E-mini. These
charts have buy and sell signals. The buy signals are the Green arrows pointing up and the
sell signals are the magenta arrows pointing down, as noted on the chart.

WWW.TRADERSWORLD.COM

July/August/September 2016

127

The above charts and the system displayed by the charts represents an example of signals
that will enable you to objectively test a signal on any chart time frame or data series that
you would like to test. Other examples would be using indicators such as moving averages
for buy and sell signals One method of testing is to use a trade simulator such as the Market
Replay function of the Ninjatrader platform. You can download market replay data and test
based on historical data taking trades based on your entry and exit criteria. You will be able
to test various stop and 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 day that you intend to trade.

How to Develop a System with a Positive Expectancy


To develop a plan that has a probability of success, you must test a sufficient amount of
data to get a statistically significant sample of trades. I suggest testing at least 75 trades
during the time period in which you plan to trade, taking the trades based on your plan and
managing the open positions according to your plan. This process will enable you to gather
data on your average winning trade, and your average losing trade in dollar terms. You will
also know the percentage of winners versus the percentage of losing trades.
From that data, perform a calculation as follows:
Probability of winning trade times Average Winning trade in dollars minus the probability
of a losing trade times the Average Losing trade.

WWW.TRADERSWORLD.COM

July/August/September 2016

128

Example:
(

.7 x

200 )

.3 x

100 )

110

When you have a positive value from this calculation, it means that you have a positive
expectancy based on your data. In other words, you have a system that has put the probabilities
in your favor of being profitable.
Probabilities favor the continuation of a trend, therefore you want to trade or invest in the
direction of the major trend.
For purposes of intra-day trading or even investing, a daily
chart is a very good place to start to analyze the major trend. To put the odds even further
in your favor, I recommend that you analyze whatever you want to trade to find out the
consistency of the trend. This can be done by measuring the trend in various time frames all
the way from short term trends such as a five minute chart all the way to daily, weekly and
monthly charts.

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 you should trade in the futures market as well as how many shares you should
buy or short in the stock market.
We know that trading is all about how to react to your successes as well as how to react when
trades dont go your way. No discussion of trading would be complete without a discussion of
risk management. For futures trading, risk management is established with a combination of
the use of stop orders combined with position sizing.
You need to pair a proven strategy
along with risk management. Risk management is accomplished, in general, by never taking
a big loss on any one trade. I suggest that you start by making sure that on any one trade,
you do not risk any more than one percent of your trading account. You will need to calculate
before you enter a trade whether you would be risking more than one percent of your trading
account.
To calculate position-size, you need to know some basic information such as the following:
Account Size
Risk Percentage that you are assuming
Tick value of contract you are trading
Number of ticks of your initial stop loss order

A Risk Management calculation example for the e-mini would be as


follows:
Entry price = 1438.25
Initial Stop level =
1436.25 = 8 ticks

on the S & P E-mini


WWW.TRADERSWORLD.COM

July/August/September 2016

129

8 ticks x tick value of $12.50


Account Size = $10,000

= $100

$100 x 1 contract =

$100 risk on this trade.

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. Be sure that the trading platform allows
you to trade in simulation mode as well as execute trades in your live futures account. In my
opinion, it only makes sense to utilize the very best that technology has to offer in todays
world. Using a professional trading platform will improve your odds of success and help to
eliminate trading errors. 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.

Developing a Belief in Your Approach and Overcoming Fear:


Most traders will develop fear as they trade due to a history of losses. Like any fear, the
way to overcome it is to continue to do what you fear the most. An advantage of having a
trading platform that provides for simulation is that you will be able to trade in simulation
mode to build a plan with a positive expectancy and thereby develop greater confidence in
your approach to trading. As you trade in simulation mode, develop a set of notes that will
act as the beginning of your trading plan. Trade in simulation mode until you have mastered
the use of the trading platform you have chosen. As you trade in simulation mode, practice
developing the discipline needed to execute your trading plan. Through repetition, you will
begin to develop into a polished and profitable trader.
Please let us know if you need any help in developing your approach to profitable trading.
Send an e-mail to support@navitrader.com with any questions and visit our website at www.
navitrader.com

Above charts use the NaviTrader Trendicator charts and Automator System
running in the NinjaTrader platform
If you have any questions on the material in this publication, please send an e-mail to support@
navitrader.com www.navitrader.com
Steve Wheeler
WWW.TRADERSWORLD.COM

July/August/September 2016

130

SIZE MATTERS
By Al McWhirr
www.eminiscalp.com

No, no, no, its not what you think, so lets get back to your trading screen.
It is a fact that many traders have a difficult time earning consistent profits trading. From
what I have read as well as what I have observed when I attend various webinars, it seems
as though many traders believe that the cause of their lack of success is due to the method or
methods they are using. To be honest, I do attend some of the webinars. Is it because I am
looking for a method? Absolutely not. My EminiScalp methods are just fine and there is no
reason to even attempt to use something else. I am just curious as to what is being offered
by others and I am more curious as to why, with the variety of methods that are available,
why the lack of trading success is still prevalent. This has been an ongoing issue for years
and unless something changes, it will continue. I have written about our EminiScalp methods
in previous articles. This article will offer my personal insight on trader account size and the
relation to trader confidence.
Many traders believe that their lack of success is due to the terrible method they are using.
When I visit a vendors website and read the testimonials on just how great the method is, I
have to wonder what is going on. Why is it that some traders seem to be doing very well with
a method while others are struggling. Are the testimonials false? In most cases, I would like
to believe they are true, although there may be those that are questionable.
No matter how many testimonials and great reviews a vendor receives, there seems to be
as many unhappy and frustrated traders who cant make heads nor tails from the particular
method, not to mention a profit. So, what gives? How is it that some can prosper but many
fail. Does it have to do with discipline? Or is it focus. How about determination. Ahh, could it
beemotions. Is it a combination of all of what was just mentioned, or is it something else?
One vendor says only $1000 is needed in the account to trade their method, and another
vendor says $2500 may be required for their method. I have seen some vendors who insist
that a trader have an account of at least $10,000 in order to trade their method
Experience has taught me that trading confidence can be attributed to account size. Traders
are more apt to take risks if their trading account has a substantial balance. The confidence
begins to erode as the trading account dwindles.
I believe that the rule of thumb is never to risk more than 2% of your trading account on
any one trade. Of course, this is not a hard and fast rule, but it is one that seems to be the
industry standard. For many traders, 2% is not a huge amount (taking in consideration the
average size of a trading account), but unfortunately, it can also be unrealistic. I am not sure
if many traders adhere to that rule, or if they are even aware of it. This 2% rule can work out
just great, or it can mean the temporary or permanent end to a trading endeavor.
WWW.TRADERSWORLD.COM

July/August/September 2016

131

I believe most day traders are far more focused on the stop amount for a particular trade
rather than a percentage amount. No matter how the risk is determined, the size of the
trading account must be considered.
I believe some brokers allow a trading account to be opened with as little as $500. Not
a good idea to trade live with this account size, but it is certainly a way to learn when using
it to SIM trade. Over a period of time, as a trader progresses, more funds can be added to
the account. When the trader feels he or she is ready to go live, there will be sufficient funds
available.
What amount is sufficient? What should an account size be? This may be difficult to
determine as there are many factors that may have to be considered. As we move on, hopefully
our readers can get some insight on this.
I would like to share an experience I had with one of our traders, who we will call James.
His situation was not very different from the many, many traders who have contacted and
joined our EminiScalp team. It all started with an email from James asking if I could call
him. We spoke on the phone at length, and this was his story. About 13 months prior to
him contacting me, James had purchased a method for $3000 that featured an 8 tick target
with a 5 tick stop. I asked him if this was the same management for all markets and he said
it was, although he was encourages by the vendor to focus on the ES. This meant that every
time a trade was entered, the trader was either going to hit the 8 tick target or be stopped
at 5. James was disciplined and stayed with the rules. To make a long story short, his trading
account was just about cleaned out by the time he contacted me. Unfortunately, the outcome
was not what he had expected.
Was there a flaw with the method he was using? Not necessarily. The issue may have been
with the management. There is no way that for every market, every trade, every time of day,
that there is a strict hard and fast stop and target rule. In trading, discipline is certainly a
necessary attribute, but so is logical flexibility. I asked James if he had taken profits at 3 or 4
ticks for each trade, would there be a possibility of a more positive result. Thinking about this,
he believed he would still have money in his account. But he commented, there would have
been an imbalance between risk and reward because the stop would have been more than his
target. As far as I am concerned, there is no relation between stops and targets. Commentary
regarding this will be reserved for a future article.
In any case, logical flexibility over discipline, for a method that really did not understand
risk and reward, could have possibly put James in the profit column. I am not saying that
the method was not working, as the method itself seemed to be fine. The risk and reward
just needed tweaking. Anyway, James began trading this method with an account size of
$3000. Since a 5 tick stop for the ES would be $62.50 per contract, this would have exceeded
the 2% rule by a small amount. If the method claimed an 80% success rate, then all should
have been fine, as long as this claim was true. But, even if this was the case, trading with
an account size of $3000 could be a problem. On a given day, if the first two trades were not
successful, then the account would have been down to $2875 not including commission. I am
not saying that the first couple of trades will not be a success, but this certainly does happen.
If it didnt, the success rate for trading may be different. Anyway, now that the account size
WWW.TRADERSWORLD.COM

July/August/September 2016

132

is less, there is a confidence issue. After losing a few trades, the fear takes over. Actually it
may not be so much that any subsequent trades will lose, it is the anxiety one feels when the
funds in the account begins to shrink. The mindset is different when there is $10,000 in the
account. Losing trades with an account of this size still enables the trader to continue because
there is a financial cushion that a smaller account does not offer. The fear is not so much that
a trade will not be successful, the fear is anticipating a loss of money. As the funds dwindle,
so does the confidence, and the anxiety builds.
There were many instances where James had at least 2 losses in a row. Hypothetically,
if you have 2 losses in a trading day, then the next eight should be successful, assuming the
vendor claims an 80% success rate. This can be misleading as well. Does this mean that if 10
trades are taken each day, 8 will show a profit? Or is it calculated over a period of time, such
as a month. If so, there could be considerable draw downs over a short period of time, to be
possibly made up in the near future. For the most part, small trading accounts are not able to
withstand this instability.
The chart below is an illustration of the type of trades James had encountered with his
method. This was not a trade James took, it is just an example. As shown, the method called
for a long at A. It was a good entry point, but not the best. With his account size of $3000,
the 5 tick stop, at B was not enough leeway to keep James in the trade. Unfortunately not
many methods make allowances for the way a market may trade, such as highs, lows, recent
activity, etc. The two blue arrows at the bottom of the chart show EminiScalp ABL auto trade
long entries. The ABL does take into account the various market conditions. In any case,
having the knowledge of where trade areas may occur, would have allowed for a very nice
trade. The EminiScalp ABL knew where to take this entry.

WWW.TRADERSWORLD.COM

July/August/September 2016

133

I believe that the rule of thumb is for every $500, one contract can be traded. With an
account size of $3000, that would be 6 contracts. Under those conditions, $375 would have
vanished from the account with this stop. That is over 10% of the account size. It would be
very difficult emotionally for a trader to continue trading if this happened to be the first trade
of the day. Of course, not all trades are stopped, there are certainly profitable trades. The
question is though, why is it so difficult for the majority of traders to be successful? Possibly
because of tight stops, unrealistic targets, human emotion, or account size. If James had
$10,000 in his account, his confidence may not have eroded as fast as his funds did.
What is my point with all of this? Working with aspiring traders through the past years, I
have found that adhering to specific rules as required by vendors, is very difficult, especially
when account size decreases. Trading is a very emotional business and the lack of funds
compound the anxiety.
After all my years of trading, I have come to the conclusion that auto trade methods are
probably a better solution for many traders. The rules are preset, there is no emotion involved
and stops and targets are set prior to an entry. There is no real reason for a day trader to
learn the internal workings of the market. If one wants to learn, it can be done while auto
trading and not when the trader is physically attempting to take entries and looking for exits.
If the opportunity presents itself, become profitable first, then take the time to learn the
market internals, assuming this is what is important to you.
Trades need room to breathe, so stops must be determined accordingly. If you know the
critical trade areas, then you should be fine. If not, consider an auto trade such as the ones
offered by EminiScalp.
Traders with deep pockets have the ability to let a trade go against them because , in many
cases, they recognize that there will be an eventual pullback or reversal. Knowing where
trade areas are is a big plus because a trader will have an indication where price may move
in her or his favor.
So, in conclusion, if James gave trades more breathing room and took a little less profit for
each trade, he is certain that he would not have had a need to contact me. In order for this
to have happened though, he agrees that a larger size trading account would have definitely
helped him. So, size matters.
Thanks for taking the time to read my article. If you have any questions, please do not
hesitate to contact me at info@eminiscalp.com.

WWW.TRADERSWORLD.COM

July/August/September 2016

134

Pattern Trading Tools


by Suri Duddella
In this article, I plan to discuss my pattern trading process and pattern trading tools. I trade
Harmonic/Geometric chart pattern setups like ABCs, Gartley/Butterfly with market context
both in automated and discretionary process using TradeStation platform. I trade Emini futures
intraday and trade Stocks/Options using End-Of-Day (EOD), weekly charts from swing trading
(Short to Medium term) perspective. I will discuss few of my trading tools and trade setups and
my psychological and emotional preparation for trading process.

Trading Plan
Here is my Intraday Futures trading plan. I have a similar plan for End-Of-Day equities/options
plans and I'll write about them in my future articles.
All the ideas and tools I use are well designed and tested in real time and end-of-ay analysis in
auto/discretionary trading styles for the past 20+ years of my full-time trading.
1. Trading decisions are made using "Trading tools" only, whereas "Support tools" are used to
validate/support the "Trade Tools." An example of "Trade Tools" are pattern recognition tools like
Auto ABC, Auto Gartley, Head & Shoulders etc. and an example of "Support tools" are part of
market context tools like moving averages, pivots, fib. bands and gaps etc.
2.Trade in the same direction of Market Internals direction. Current pattern or setup trade
direction must be same using Combined Market Internals indicator.
3. Trade pattern based and computed entry, stops, targets only, and never guess or overthink
non-computed price levels.
4. Current Volatility (VLTY) must be within the tradable condition.
6. Entry, Exit and Targets must fit my Trading Plan and risk profile.
7. Never trade micro chart patterns and never scalp counter-trend based chart patterns. Check
for the confluence of target levels or zones with other key support/resistance levels.
8. Must adhere to strict discipline for my entry and exit rules and money management rules.
9. If any point during the trade, if my trade decision is violated or becomes wrong, exit the trade
regardless of Profit or Loss.
10. Scale-In and Scale-Out must be planned before the trade started. Never add to a losing
trade.

List of tools I use in my trading


1. Auto Chart Pattern detection tools (like ABCs, Gartley, Butterfly, Double Bottoms/Tops, H&S
etc.)
2. Support tools like Market Structure, Pivots (Floor, Globex, Fib. Zone), MAs and Fib. Bands.
WWW.TRADERSWORLD.COM

July/August/September 2016

135

3. Market Internals indicator (for Intraday Trading only) -- Combined Market Internals (CMI)
4. Follow underlying trend detection tools (SuperBars, EVTrend)
5. Market Volatility (VLTY) tools.

Tools I use in Pattern Trading


Auto ABC Pattern with PRZ/Targets
Auto ABC pattern is the simplest but most unique and universal pattern in trading. ABC
chart patterns also embedded in many other chart patterns like Gartley, Butterfly, Head and
Shoulders, Double Top/Bottoms, Head and Shoulders, Elliott Waves, Dragons etc. The ABC
patterns forecast key market turning points and profit targets for traders. ABC patterns
pinpoint important pivot levels with high and low prices and identify key trading zones.
The key process in identifying an ABC is correctly finding the A, B, and C swing points in a
chart without any delays. Once A, B, and C pivots are identified, an Auto-levels algorithm
generates the Entry, Stop and Target levels. The C pivot in ABC patterns are determined by
the Fibonacci retracement of (38.2 to 61.8 percent) of AB swing. The projection from C level
is measured using fib-ratios of AB and BC swings. A Radar Screen component finds ABCs for
multiple instruments and multiple time-frames.
When price starts to trade above 'EL' level in ABC Bullish pattern, it signals pattern completion
and a trade entry signal. A long trade is entered above EL level and a Stop is placed below 'C'.
Targets are computed using the length of 'AB' (from C) using Fib. ratios. These projections are
automatically plotted to show 'ABC' pattern entry, stop and targets. Bearish ABCs will have
similar trade setups in reverse.

Fib. Bands

WWW.TRADERSWORLD.COM

July/August/September 2016

136

Fibonacci Bands are derived from Fibonacci ratios expansion from a derived key moving average
and standard deviation. These bands help traders find key areas of support and resistance.
Fibonacci bands are computed by adding a Fibonacci ratio distance (Up and Down) from a key
dynamically adjusted moving average.

Pivots (Floor, Globex and Fib. Zone Pivots)


Traders believe the Pivot levels acts as key support and resistance levels during market trends. I
use Pivot levels as part of "Support Tools" to determine the validity and strength of the pattern
but never trade Pivot levels by themselves. Analysis based Pivot levels are very crucial and I use
Floor, Globex, and Fib. Zone Pivots for my trading. A confluence of pivots increases the chance
of potential support/resistance compared to a single pivot level. Pivots are very efficient for both
day and swing trading. Pivot trading is quite profitable using these support/resistance levels in
the direction of the trend along with good money management techniques.

Combined Market Internals Indicator (CMI)


Market Internals use market breadth indicators and work as leading indicators. The key aspect
is to find a group of market breadth indicators and combine them to form a single Combined
Market Internals (CMI) Indicator and follow its direction. Combine Market Internals Indicator
shows a Combined Market Trend of Internals of $ADV, $DECL, $TICK, $TRIN, $ESINX, XLF, SPY
in real-time. CMI shows the underlying trend in a histogram. CMI Ribbon shows the detail of
internal trends.
I look for CMI direction in 3m and 5m charts to assist my pattern trade for entry. Any bullish
pattern setup must match the CMI direction (in GREEN) at the entry point and vice-versa for
bearish setups. CMI also assists me in finding divergences.

WWW.TRADERSWORLD.COM

July/August/September 2016

137

SuperBars (A Trend Indicator)


Most traders know the axiom -- Trend is your Friend. Traders who capture market trends
are most successful than traders who trade counter-trend methods. Counter-trend is also a
successful method but it is much harder

and unforgiving when a mistake is made compared

to Trend based methods. Super-Bars is a methodology to detect the underlying trend based
on multiple trend techniques to build a composite trend and project the super-trend on the
pricebars.
Superbars provide trend information at a quick glance using color scheme.
plotted in all markets and in all time-frames. Super-bars
underlying trend in the simple color scheme.

Superbars can be

are color coded and decipher the

Red:Bear, Green: Bull, LightRed: pre-Bearish,

LightGreen: pre-Bullish. Superbars is NOT a buy/sell indicator as it is part of "Support Tools". It


is used along with other pattern setups, technical indicators to spot trends and trend changes.

Market Volatility Zones (VLTY)


One of the most significant indicators for my trading analysis (part of Support Tools) is Market
Volatility (VLTY) Zones Indicator. Market Volatility (VLTY) provides a way to gauge the current
instrument volatility in its time-frame. It is plotted in a sub-graph for my trading instrument
(primarily Intraday). When VLTY range is above 25 and below 50, it is suggesting balanced and
calmer VLTY range trade. If VLTY is trading above 50 to 100, it may be signaling higher volatile
period and considered risky zone and I usually avoid taking new trades. VLTY above 100 is
considered to be extremely risky and signaling extreme volatile conditions to persist and I'll exit
all the trades from the markets and wait for it to return to normal condition (below 50). VLTY
below 25 signals choppy conditions and sideways/whipsaw trading.

WWW.TRADERSWORLD.COM

July/August/September 2016

138

Example Trade 1:
Confluence zones from multiple pattern or trade setups act as key areas for price-action.
Trading solely with these price levels may not be the best choice for any trader, but using these
confluence zones with pattern setups may result in profitable trades. Here I present a trade how
I anticipate these confluence price zones and trade ABC chart pattern with market context.
Following chart shows an ABC Bullish pattern in @ES 1220 tick chart with a C retracement of
58%. ABC Bullish trades are made when price trades above Entry Level (EL) level. Notice also
price closed above mid-Fib. band and 200 SMA. Now monitoring the market context elements,
the price is trading above Mid Fib. Band and VLTY are comfortably less than 50 (normal).
BarTime is showing about 60-90 seconds for ES 1220 Tick (my trade chart). CMI is also green
signaling potential ABC bullish setup.

Trade Info.
A long entry was taken at 1383 with an initial stop set 1381. Targets are computed from 'C'
using AB Length and Fibonacci numbers. I look for projected targets confluence with other pivot
levels, MAs or any other support or resistance levels. About 30mins after trade entry, ABC long
trade from 1383 level reached its first Target: 1386.5. I exited half of my position at 1386.5 (3.5
pts profit) and then I waited for my next target 1389 and raised stop from 1381 to 1385. Price
went up to 1387.5 (79%AB) to complete target zone.

WWW.TRADERSWORLD.COM

July/August/September 2016

139

Trade1_Fig2: ABC Bullish Pattern with Entry, Stop and Targets

Trade1_Fig. 3: All Pivots, BarTime and Volatility Chart

WWW.TRADERSWORLD.COM

July/August/September 2016

140

Trade1_Fig 6: Trade Chart showing Entry and Exits

Example2: Trade with the Trend


The following example shows how to trade patterns with trend confirmation. This example also
uses Auto ABC, SuperBars with Fib. Bands to identify a trade. The central idea behind the trade is
to wait for trend confirmation in the pattern trades.
This example chart shows an ABC Bullish pattern setup with entry level (EL) above 1376.5 with a
stop at 1375. The ABC is well set but the underlying trend (using SuperBars indicator) is showing
a bearish trend (RED). Superbars is signaling the continuation of bearish trend and price may
retrace further. CMI also was signaling a continuation of market internals bearish trend.

WWW.TRADERSWORLD.COM

July/August/September 2016

141

Trade2_Fig 1: ABC Pattern with SuperBars and double bottom formation.


After about 90 minutes later, ES completed a Double bottom pattern (ABC with C at 94%
retracement). Superbars signaled a potential trend change (with GREEN bars) and completion
of double bottom and ABC Bullish Trade setup. CMI started to market internals were turning
to green. A Long trade using ABC /Double Bottom pattern is entered at 1374.5 with a Stop at
1372.5 (below C) . Targets were placed at 1374.5 (+2), 1376.5 (+4) and 1378 (+5.5). Stop was
set at -2 points at 1372.5.

Trade2_Fig. 2: ABC/Double Bottom Trade Entry with Stop and Targets


WWW.TRADERSWORLD.COM

July/August/September 2016

142

Trade Exits

Trade2_Fig 3: Trade entry, Targets


Within 90 minutes of time, all my targets were hit as I trailed the stops. Patience and discipline

Trade2_Fig.4 : Trade Chart with Entry and Exits


WWW.TRADERSWORLD.COM

July/August/September 2016

143

What The Professionals Know and


You Dont -- One of the Best Kept
Secrets In the Financial Trading
by Andrew Pancholi

Making money investing and trading is a difficult business. Much is written about it and it is
made out to be simple accessible and even glamorous. The truth is that 94% of people who
open a trading account are out of business within nine months. They have either lost the entire
contents of their account or decided to give up. This means that 6% of traders, which include
all the professionals, are taking money from the 94% who are losing it or put another way one
person in twenty succeeds! The professionals have many secrets that they dont want the
public to know about and I am about to reveal one of them. Most private individuals do not take
the time to educate themselves so that they can be successful. However, once an individual
has mastered markets they are firmly on the path to untold wealth.
You may well have heard of the phrase Sell in May and Go Away referring to the stock
market and specifically the UK FTSE 100 index or the American Dow Jones Industrial Averages
or the S&P 500. This is a very broad statement that introduces us to the concept of seasonality
in markets. By the way, as our market chart below shows, this is not really true. Just as the
natural world has four seasons ranging from spring through summer, autumn to winter during
the course of which we experience cold weather, warmer times, as well as wet and windy times,
markets show similar tendencies. However these tendencies are somewhat veiled in as much
as they do not fall into four quarters. However markets do exhibit up moves, down moves and
sideways moves which can be likened to times of the market year.

Take a look at the chart below.

WWW.TRADERSWORLD.COM

July/August/September 2016

144

The curving thick Red Line shows the average movement of the S&P500 Index over the
course of the year. You can see that the lowest point is in January and typically the high falls at
the very end of the year at the end of December.
A significant high comes in around May 4th on average. It is not necessarily followed by a
large sell off. A major low comes in around October 5th from when some years see a major rally
into yearend. Students of W D Gann will recognize these dates!
What is not commonly known to the public is that commodity markets generally display even
stronger seasonal bias in trend with some very high probability opportunities. Historically, these
markets have not been so easy to trade but now with the advent of commodity ETFs (Exchange
Traded Funds) there is greater access for the general public to these markets. These are
in addition to the more complex instruments or futures contracts and options which are also
available.
Crude Oil shows definite seasonal trending.

WWW.TRADERSWORLD.COM

July/August/September 2016

145

Most noticeable is the big move down from October to December as shown on the charts
below.

The data from our system shows that since 1983, Crude Oil has closed lower on the 10th
December than it was trading on 17th October on 71.9% of occasions. This represents 23
occasions. This does not mean that the market went straight down. It merely shows that the
close was lower on the December date than the market was trading on the October date. In
some years the market may have traded in the opposite direction creating a drawdown for
some period of the duration. Hence money management is essential. However this information
is useful to us and does give us a potential edge. So what can we do to enhance this system?
At the Market Timing Report we are able to find high probability turning points using our
Profit Finding Oracle System. This gives seasonal trading a massive boost. We do this is
different time frames from super macro down to weekly and daily cycles. Using these latter two
types we can get confirmation of whether seasonality is likely to work this year.
Take a look at the following chart. There are several points to note. Firstly, this chart is
showing a medium term cycles histogram set underneath it. Looking at the bottom left you will
note that where the histograms spike, as shown by the vertical blue lines, the market usually
reverses direction. Returning to our seasonal set up above, we would be looking for a change
for the week of 17th October 2016. There is already a histogram spike coming into play at
that time point this year. Remember these histograms are derived from a completely separate
methodology. So this is already providing a degree of confirmation for the seasonal move. If the
oil market is heading up into the October time window then a reversal can be expected. As the
time approaches we would check our indicators and money management setups to see if the
trade can be entered safely and with good risk reward. If on the other hand the crude oil market
is selling off into that point then an up move is possible as an inversion may be taking place.
This would be counter to seasonality so a more risky set up. Future potential turning points are
making themselves evident to the bottom right of the chart.
WWW.TRADERSWORLD.COM

July/August/September 2016

146

The use of seasonal trading knowledge when combined with trading strategy and sensible
money management such as the use of stop losses can become a very effective tool for trading
and investment.
Exchange traded funds come in different forms and avoid the issues of contract rollovers etc
which occur in futures markets. Futures markets are traded by month for delivery. Additionally
some ETFs are geared so, for example, if you expect a market to rise in price, then you would
buy an ETF. If the ETF is geared then for every point or penny that the underlying market
moves, then the geared ETF will move up twice or even three times as much.
The Market Timing Report is published monthly and gives information on forthcoming
potential turning points and seasonality on the S&P500, Crude Oil, Gold, Dollar Index and
EURUSD.
Try it risk free with a 28 day no questions asked money back guarantee!

https://ws227.isrefer.com/go/mtratw/larry/
www.markettimingreport.com

WWW.TRADERSWORLD.COM

July/August/September 2016

147

Trade Chart Patterns Poster


Trade Chart Patterns Poster (24" x 36")
Chart Patterns is a Wall chart poster displays 30 Chart Patterns (color) for active market
traders and investors with illustrated Entries, Stops and Targets on a 24" x 36" (2 ft. x 3
ft.), glossy 100 lb. paper. Chart patterns are organized for bullish and bearish color mapped
columns. Each Chart pattern is marked with trade direction (Long, Short), Stop and Target
Levels and features trade types (reversal or continuous), trade conditions and trade rules. The
chart patterns are auto-detected and generated in TradeStation software for accurate depiction
and precision. This poster is digitally printed with glossy finish and features a water-resistant
coating. It is rolled and shipped in a rigid kraft mailing tube. For more information or to order
please go to: http://www.surinotes.com/tcp/poster.cfm?VCODE=220

WWW.TRADERSWORLD.COM

July/August/September 2016

148

Patterns List
1. ABC Bullish
2. ABC Bearish
3. AB=CD Bullish
4. AB=CD Bearish
5. Ascending Triangle
6. Butterfly Bullish
7. Butterfly Bearish
8. Cup & Handle
9.Descending Triangle
10. Diamond Top
11. Diamond Bottom
12. Double Bottom
13. Double Tops
14. Flags & Pennants
15. Gartley Bullish
16. Gartley Bearish
17. Head & Shoulders
18. Inverse Head & Shoulders
19. MegaPhone (Broadening)
20. Parabolic Arc
21. Rectangle Channel
22. Rising Wedge
23. Falling Wedge
24. Symmetric Triangle
25 V-Top
26. V-Bottom
27. 3-Drives Bullish
28. 3-Drives Bearish
29. 5-Wave Bullish
30. 5-Wave Bearish
Suri Duddella, is a 20+ year full-time Patterns based Algorithmic Trader. He trades Futures/
Equities/Options markets using his mathematical and algorithmic models. He is also the
author of Trade Chart Patterns Like The Pros book and many other markets related articles.
His website and blog for Automated Patterns/Research and Tools is: http://www.suriNotes.
com and his email: suriNotes@gmail.com

WWW.TRADERSWORLD.COM

July/August/September 2016

149

Master Trader Course


Review by Larry Jacobs
Dean Jenkins has the followmetrades.com
site. He allows you to follow his trades and
has some impressive yearly gains for his
track record. He has consistent profitability
because he follows strict risk management
rules, maintains a high win ratio on his trades
and also maintains a high payout ratio on his
trades.
Because his wanted his subscribers to be more
successful he created a Master Trader Course.
I took the course to see what it was all about.
Here is the course outline:

Module One:
Dow Theory
Trend Analysis
Trend Change Confirmation

Indicators

Module Two:
Simple Elliott Wave Theory
Wave Counts
Impulsivity Versus Correcting Waves
Using Dow And Elliott Together

Module Three:
Risk Management Theory
Risk Of Ruin
Trade Size Calculation
Scaling in Adding Two Positions

Module Four:
Trading Rules
Trade Setups
Risk Reward Analysis
Trade Entry Criteria
WWW.TRADERSWORLD.COM

July/August/September 2016

150

Trade Management
Trade Exit Criteria

Module Five:
Trading Business Plan
Tracking Results
Trading Psychology
Dealing With Losing Trades

Module Six:
Scanning Techniques
Scanning Tools
Sector Analysis
Instant Chart Pattern Recognition
The first module is really about trend analysis.
Are you in a trend and when did it start and
when did it change. He talks about the rules
and the data around that. He talks about Dow
Theory. He touches on a few indicators that can
help with that analysis.
In module two he jumps into a simple approach
to Elliott Wave Theory. He talks about wave
counts and impulsive vs corrective waves and
how to use Dow and Elliott together.

In modules six he talks about scanning


techniques with the tool to use. How to use
sector analysis and instant chart pattern
recognition? How to find really good trades and
narrow it down to the best?
Each module has both written study material
PDF in the course area, teaching videos,
quizzes and worksheets self-administered. It
has answer keys for quizzes and worksheets.
The couse also has webinars and teaching via
Q&A. Valid stock trades are reviewed in the
webinars.
If you read the study materials first and watch
the videos to reinforce the lessons and look
closely at the examples, take the quizzes,
grade them yourself, review the areas you
have trouble with and email Dean with any
questions you should learn a lot about trading
profitability.
I recommend the course. If you are interested
in taking the couse or if you have any question
please email dean@followmetrades.com

In module three he gets into risk management.


He talks about risk of ruin and how to avoid it
and how to get the right trade size and how to
scale in.
In module four he talks about getting into the
trade with trading rules with the exact setup
he uses in his trading. How he does reward to
risk analysis making sure the trade has enough
profitability. He talks about the entry, how to
manage it and get out.
In module five he talks about the business plan
and a method to track the results and trading
psychology. How to deal with losers?

WWW.TRADERSWORLD.COM

July/August/September 2016

151

Amazon Kindle Books


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

A Unique Approach to Forecasting by Ivan Sargent $32.95


This book is possibly one of most advanced books in technical analysis you will
read regarding price and time reversals. Knowing the Price and time of a stocks
reversal point is undeniably an important element for to successful trading.
Unlike most trading books which use indicators, oscillators, and basic geometry
to forecast the markets outcome; this technique uses a series of lines which
when accurately placed can deliver reversal points with amazing accuracy.
Trend lines, retracements lines, channels, fan lines, pivot points etc, all inspect a stock chart
from the outside, which is more or less the obvious point of view.

Patterns and Ellipses by Larry Jacobs $9.99


This book concerns itself with a highly technical subject, the subject of
technical analysis of the financial market. This book specifically deals with
ellipses and pattern formations used for trading the markets. It also covers
many other technical analysis tools that can be used effectively by the trader.

Ganns Master Charts Unveiled by Larry Jacobs $9.99


We know that Gann used the Pythagorean Square because he was found
carrying it with him into the trading pit all the time. This square was hidden in
the palm of his hand. How did he use this square? Why did he not discuss the
use of this square in his courses? There is only one page covering the Square
of Nine in all of his books and courses. Was this square his most valuable tool?
These and all the other squares Gann used will be discussed in detail in this book with many
illustns and examples to prove how they work.

Gann Trade Real Time by Larry Jacobs $9.99


When you opened this book you took the one step that will help you learn how
to be successful at the most desirable, but hardest profession in the world. That
profession is real time trading. This book is not going to give you an instant
secret to day trading. It is going to give you the basics so that you might start
the path to understanding how the markets work both short term and long
term. You need to know and fully understand the markets and develop successful trading
WWW.TRADERSWORLD.COM

July/August/September 2016

152

strategies to become successful at this endeavor.

Best Trading Strategies: Master Trading the Futures, Stocks,


ETFs, Forex and Option Markets $3.99
This is one of the most fascinating books that was ever written about trading
because it is written by over thirty expert traders. These traders have many
years of experience and they have learned how to turn technical analysis
into profits in the markets. This is extremely difficult to do and if you have
ever tried to trade the markets with technical analysis you would know what
I mean. These writers have some of the best trading strategies they use and
have the conviction and the discipline to act assertively and pull the buy or sell trigger
regardless of pressures they have against them. They have presented these strategies at the
Traders World Online Expo #14 in video presentations and in this book.
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 Your Trading Method $3.99


Finding your trading method is the main problem you need to solve if you
want to become a successful trader. You may be asking yourself, can I find
my own trading method that will reflect my own personality toward trading?
For example, do you have the patience to sit in front of a computer and trade
all day? Do you prefer to swing trade from 3-5 days or do you like to hold
positions for weeks and even months? Every trader is different. You need to
find your own trading method.
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 2016

153

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:
An overall plan to:
1) Set your rule set and plan and then stick with it in all of your trading.
2) To give you a trading plan for every day.
The trade plan then should:
1) Have an exact entry price
2) Have a stop price
3) Have a way to add positions
4) Tell you where to take profits
5) Have a way to protect your profits
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.

Learn the Secrets of Successful Trading $3.99


Learn specific trading strategies to improve your trading, learn trading
ideas and tactics to be more profitable, better optimize your trading
system, find the fatal flaws in your trading, understand and use Elliott
Wave to strengthen your trading, position using correct sizing to trade more
profitable, understand Mercury cycles in trading the S&P, get consistently
profitable trade setups, reduce risk and increase profits using volume,
detect and trade the hidden market cycles, short term trading by taking
the money and running, develop your mind for trading, overcoming Fear in
WWW.TRADERSWORLD.COM

July/August/September 2016

154

Trading, trade with the smart money following volume, understand and use the Ultimate
Oscillator, use high power trading with geometry, get better entries, understand the three
legs to trading, use technical analysis with NinjaTrader 7, use a breakout system with cycles
for greater returns with less risk, use TurnSignal for better entries and exits, trade with
an edge, use options profitably, learn to trade online, map supply and demand on charts,
quantify and execute portfolio rotation for auto trading.
Written by Many Expert Traders
The book was written by a large group of 35 expert traders, with high 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.
Youll 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

Trade the Markets with and Edge $3.99


This is an important book discussing the use of different strategies methods
about trading.
It was written by over 30 expert traders. The book was designed to help you
develop your own trading edge in the markets to put you above others who
dont 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 dont 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
WWW.TRADERSWORLD.COM

July/August/September 2016

155

them a trading edge over other traders. If you want to be successful at trading, you too must
have your edge. 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 style. I wish to express my appreciation to all the writers in this book who made
the book possible. They have spent many hours of their time and hard work in writing their
section of the book and the putting together their video presentation for the online expo.

Guide to Successful Online Trading - Secrets from the Pros


$3.99
This is one of the finest trading books youll ever see about trading. The
reason is that it comes from a group of expert pro traders with multiple
years of experience.
Trading as you know is extremely difficult. It is estimated that 90% of
traders lose money in the markets. To help you overcome this statistic, the
pro traders in this book give you their ideas on trading with some of the best trading methods
ever developed through their long time experience. By reading about these trading methods
and implementing them in the markets you will then have a chance to then join the ranks of
the 10% of the successful traders.
The traders in this book have through experience the right attitude and employ a combination
of technical analysis principles and strategies to be successful. You can develop these also.
Trading is one of the best ways to make money. Apply the trading methods in this book and
treat it as a business. The purpose of this book is to help you be successful in trading.
From this book you will get all the strategies, Indicators and trading methods that you need
to make big profits in the markets.
This book gives you:
1) Audio/Visual Links to presentations from pro traders
2) The best strategies that the professional traders are using now
3) The broad perspective you need in todays difficult markets
4) The Exact tools that you need to make profitable trading decisions
5) The finest trading education

WWW.TRADERSWORLD.COM

July/August/September 2016

156

CRAIG TRADING: Craig Haugaard made 300.9% in his World


Cup Trading Championships Account in 2014 - Want to
Know How? $3.99
This book contains an interview that I made with Craig Haugaard, third-place
finisher in the 2014 World Cup Championship of Futures Trading with a
300.9% net profit. I asked him many questions on exactly how he did it.
In the rest of the book I explain to you how to use the indicators that Craig
used to make his 300.9% return.
Here are the indicators that he used:





Seasonality
MACD
Stochastics
Moving Averages
Trailing Stops
Fibonacci Retracements & Extensions

All of the charts in this book are produced using my favorite charting software Market-Analyst.
I have also arranged for you to get a FREE trial so that you might have the chance to actually
work with these indicators with a real charting platform.
You will also be able to view the video presentations that I personally created so you can
see how these indicators can be setup and followed with clear and concise step-by-step
instructions. After you understand how these indicators work, I would then recommend that
you go to WorldCupAdvisor.com and consider following Craig Haugaards real-time trades.
This one-of-a-kind book teaches you how to identify the direction of the markets and trade
the markets by using popular trading indicators. This is done by concise instructions backed
by learning videos, hands on practice with real trading software and by following real-time
trades of a master trader.

Mastering Your Trading: Learn from Expert Trading Advisors


Mastering Your Trading is the perfect source for learning
various methods of trading the market from expert advisers.
$3.99
This book focuses on various methods of trading developed by many top
trading advisors. There are 17 well written articles and it is packed by insight
that can benefit the beginning to the expert trader. This is a must read. The
trading methods and strategies presented in this book can help to succeed
in todays volatile market environment. From preparing your psychology to the demands of
timing the market and managing the risk, this book tells it all.
The book provides you the tools that are necessary for making the right trades and when to
get in and out of the market. The book covers:
WWW.TRADERSWORLD.COM

July/August/September 2016

157

Price and Volume the only True Indicators


Uncovering Market Secrets
How to handle capital exposure
Secrets of Safe Profitable Day Trading
Using Social Media Sentiment Cycles
How to Dramatically Improve Your Trading Psychology
How to Handle Trading Losses
Using a Market Scanner to Save Time
How to Stop Guessing
How to Get the Right Trading Computer
Simple and Practical Trading Tips
And much more

This book is an enhanced Edition which means that the articles are backed with audio visual
presentation links. Most of the presentations are in HD quality and are put together by the
writers of the articles in the book and really help the learning process.
Successful trading is based on knowledge and having the right psychology to trade the markets.
This book will lift your trading to a much higher level and will save you an enormous amount
to time.

WWW.TRADERSWORLD.COM

July/August/September 2016

158

Trading with Success $4.99


This book contains an interview in Chapter 1 with Rob Mitchell, who
finished in 2nd place in the 2014 World Cup Championship of CME
E-mini Trading with a 57% net profit.
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 Robs trades.
You will be able to automatically mirror Robs trades in your own brokerage account with World
Cup Leader-Follower AutoTrade service. You will also be able to see what his trades look like
on your own charts and better understand why he made the trades.

Takumaru Forex Trading $4.99


This book contains an interview in Chapter 1 with Takumaru Sakakibara,
who finished in 2nd place in the 2014 World Cup Championship of Forex
Trading with a 122.6% net profit. Takumarus largest drawdown
(cumulative peak-to-valley percentage decline in month-end net equity
during the life of the account) was -21.5% from 6-30-15 to 10-31-15.
Please remember that past performance is not necessarily indicative
of future results.
Please remember that Forex trading involves substantial risk of loss,
and past performance is not necessarily indicative of future results.
In the rest of the book I will explain to you some of the trading ideas Takumaru said he used
WWW.TRADERSWORLD.COM

July/August/September 2016

159

in the championship. You can then actually see and understand how his ideas work.
I am not going to tell you exactly how Takumaru used the ideas to make his return of 122.6%
on a $10,000 investment. That information is not public and belongs only to Takumaru.
I will tell you which indicators he used and help you understand how these indicators work.

Michael Trading: Learn about some of the trading tools he used $4.99
Michael Cook, was the 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) Williams %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 Cooks trades.

WWW.TRADERSWORLD.COM

July/August/September 2016

160

Elliott Wave Techniques Simplified


How to Use the Probability Matrix to Profit on More Trades
By Bennett A. McDowell
One of the biggest complaints from Elliott wave traders is that many
of them feel it is too subjective making it unreliable.
When you use Elliott wave analysis correctly it is not overly
complex nor is it cumbersome, if you employ the techniques covered
in this book. Elliott wave analysis does become reliable when you
understand it because you know how to identify wave counts with the
highest probability. The author has designed this book to simplify the
process and make it easy for anyone to learn how to use the Elliott
wave count. If done according to this book it is possible to remove the
subjectivity many have experienced in the past.
It is the wave three that professional traders generate the most
of their profits with. With this book youll also see how to place a
numerical probability percentage on Elliott wave counts using the McDowell probability matrix
separating stronger wave counts from weaker ones. Plus, in this book youll also learn how to
apply what is known as the classical approach to Elliott wave analysis in conjunction with more
modern approaches that yield higher probability wave counts.
The methods youll learn in this book dont require any specialized software other than a
high-quality charting platform and the market data feed which you probably already are using.
Relying on Elliott wave can give you the roadmap of the markets on all markets and all
time frames. Elliott Wave has rewarded the author time and time again with profits analyzing
and trading the markets.
The concepts in this book are easy to learn and structured so that they can be applied to
any market you want to trade. Dont be concerned if youre completely new to Elliott wave
trading because this book is written with the assumption the reader is starting it at the
beginning and knows very little about the markets. Read this book and practice the principles
until they become second nature to you so you become proficient in the use of these Elliott
wave methods and then go on to develop a good solid track record by practice trading using
simulated paper trading while you learn.
You will find that this book will help you to take the guesswork out of your trading strategy,
help you to analyze mass psychological signals in the market, identify market wave counts
with higher then normal probabilities, anticpate and prepare for the future price action in the
markets and really sharpen your trading skills for both short-term and long-term success in
the markets.
If youre serious about trading with the Elliott wave theory I highly recommend this book.
For more information go here.
WWW.TRADERSWORLD.COM

July/August/September 2016

161