Dynamic Trader Software Example - Dec.

1997 - Page 1
Keep It Simple With Dynamic Trader

Keep It Simple With Dynamic Trader

As traders, we often make our analysis complex which sometimes
results in the "paralysis of analysis." Sometimes, very simple time, price
and trend analysis will provide us with all the information necessary to
make a low-risk trading decision.
Dynamic Trader provides an extensive range of analysis routines and
methods from the simple to the complex. Dynamic Trader is designed to
provide information quickly and often times in unique ways that other
programs are unable to do. Dynamic Trader is unique in that it was
designed by people who actually trade, not by software promoters or
academic number crunchers who do not know what information is
necessary to make a trading decision.
The example below shows simple time, price and trend analysis for the
recent position of June live cattle. It is a timely example that not only
demonstrates some of the routines of Dynamic Trader but will alert you to
a potential trading opportunity for December.
June cattle have a consistent bullish seasonal bias from Dec. into
March or later. A bullish bias means that June cattle usually rally from
Dec. into March, but it is by no means a foregone conclusion. That is why
we must look at the Dynamic Trading technical position to discover if,
when and where cattle are in a low-risk position to consider a long
position.
In late Nov. to early Dec. each year I always take a look at the position
of June cattle to see if they may be setting up for a bull trend of 2-3
months or so. June cattle recently made a low on Oct. 7 and have made
two higher minor lows through early Dec. It appears like they may be
setting up for a bull trend right in line with the seasonal bias.
Project The Recent Minor Cycles With Dynamic Trader
The agricultural commodities often make fairly regular cycle rhythms
counting from low-to-low. Dynamic Trader allows the user to quickly
mark any high or low bar and chose to show the date, price, time, change
in price and time and rate-of-change of each swing. In the daily chart for
June cattle below, I have marked off and show the trading day count of the
obvious swing lows that have been made since the June low. The four
lows were made 17-27 trading days (TD) apart with three of the four in the
22-27 TD range. If we project 17-27 trading days from the most recent
low on Oct. 30 with Dynamic Traders Time Count routine, we have a time
range of Nov. 24-Dec. 9 when the next minor low should be made. A low
has already been formed in this time period but is not confirmed as
 Dynamic Trader Software Example - Dec. 1997 - Page 2
Keep It Simple With Dynamic Trader

complete. We will go under the assumption that it should be complete by

Dec. 9 at a price above the Oct. 30 swing low.

Also notice on the daily chart above how both the recent lows have
formed at the 78.6% retracement level. .786 is the square root of .618 and
an important price retracement ratio dynamic traders are aware of. Also
notice that the very reliable Fib. StoRSI (13-8-5) indicator is in the same
position in early Dec. when past lows have been made.
The Smaller Degree Provides The Trade Set-Up
The daily data is signaling that June cattle are at or near an ideal position
to consider a long position with minimum risk to take advantage of the
bullish bias should it unfold again this year. We can lower our risk by
taking a look at the smaller degree cattle position on the intraday chart.
Dynamic Trader Version 2 which will be released by the end of 1997 is
designed to perform all of the routines and reports on intraday data.
The intraday data chart of June cattle below is made up of five-bars-
per day. I usually divide the trading day into an even number of bars. Lets
do the same simple time, price and trend analysis on the intraday data as
we did on the daily data.
 Dynamic Trader Software Example - Dec. 1997 - Page 3
Keep It Simple With Dynamic Trader

The recent minor cycles from low-to-low have been 13-17 bars. Again
we will use Dynamic Traders Time Count routine to project 13-17 bars
from the Dec. 3 low at 14:00. If this cycle rhythm continues, the next
minor low should be complete by late afternoon on Tuesday, Dec. 9.
Recall from the daily chart above that Dec. 9 should be the latest the larger
degree low should be made. Cattle are currently at the 78.6% retracement
of the recent minor swing. The Fib. StoRSI (13-8-5) is at the "oversold"
level from where recent minor lows have been made.
If we consider the position of cattle in both the daily and intraday
charts, we find that June cattle are in an ideal position for a very low risk
long position. Even if we wait for cattle to break above the minor swing
high of 70.07 on the intraday chart before entering a long position, the risk
will be less than one point to enter a long position that may last from
several weeks to several months. Those are the odds dyanmic traders look
for. Do you have the education and tools to uncover these low-risk, high-
profit potential trade? You will if you have the Dynamic Trader Software
and Trading Course or subscribe to the Dynamic Trader Weekly Report. A
three-month subscription to the weekly report is provided free to all
software purchasers.
Keep It Simple
Often times more of the comprehensive and complex Dynamic Trader
time, price, pattern and trend routines and reports are required to uncover
trade opportunities. The important factor is that each trader has all of the
 Dynamic Trader Software Example - Dec. 1997 - Page 4
Keep It Simple With Dynamic Trader

routines necessary and knows how to use them. That is why the Dynamic
Trader Trading Course is included with each Dynamic Trader Software
program. Sometimes simple time and price analysis will uncover the
opportunities.
As this page for our Web site is being completed on the morning of
Dec. 9, the next few days or weeks will demonstrate if a bull trend is
developing in cattle. Even if it does not develop and new lows follow, this
current trade set-up uncovered with Dynamic Trader with less than a one
point risk is an opportunity that traders should not ignore.
Follow-up (Jan. 9, 1998)
On Dec. 12, just three days after the above example was written and
placed on our Web site, cattle made a big down day taking out the price
and time support zones and voiding the immediate expectation of a low
and beginning of a bull trend. As described in the article above, the
objective is to identify high-probability and low capital exposure trade set-
ups. Using the analysis shown above, Dynamic Traders were quickly
alerted that the outlook for an immediate bull trend was voided.
The time, price and pattern analysis of Dynamic Trader has now
identified another potential opportunity. June cattle have declined into a
coincidence of time, price and pattern from where a low is probable. See
the chart on the next page.
 Dynamic Trader Software Example - Dec. 1997 - Page 5
Keep It Simple With Dynamic Trader

Do you have the patience and discipline to wait for the low-risk, high-
probability trade set-ups? Dynamic Traders do. Not only does the
Dynamic Trader software program provide the unique analysis routines to
project well in advance the time and price targets for support, resistance
and trend change, but the Dynamic Trader Trading Course provides the
user with the education necessary to make the trading decision and
manage the trade.
The Dynamic Trader Weekly report provides a thorough description of
the best trade set-ups each week. Check it out.