48 PDF

Tradersworld
January/February 2011 ISSUE #48 com

Introduction to Roger Babson’s
Action Reaction Trading Technique
Being Accountable
Dynamic Trading Workshop
Catching Significant Trends
Vantage Point Review
The Trading Strategies
Time Factor Points of Force
Notes on Day Trading from
Novy Principles of Market
Flow
Minimizing Financial Risk
The Gartley
What Really Matters Most
Trading About Markets
Book Review 17-Year Cycle & Interest

Rates
Calibrating Gann’s
Planetary Lines
WWW.TRADERSWORLD.COM January/February 2011 1
Letter From The Editor
TRADERSWORLD
Issue#48 has Editor-in-Chief
many excellent Larry Jacobs - Winner of 2001 World Cup Championship of
articles in it. Stock Trading
Office
2508 W. Grayrock Dr., Springfield, MO 65810
Contact Information
417-882-9697,800-288-4266
Email: publisher@tradersworld.com
Copyright ©2011 Halliker’s, Inc. dba Traders

World. All rights reserved. Information in this pub-
lication must not be reproduced in any form with-
Traders World Magazine out written permission from the publisher. Traders
World™ (ISSN 1045-7690) is published 4-6 times
Sonata Trading Computers
per year, (may run late due to content creation) for
Traders World Online Expos $19.95 per year. Created in the U.S.A. and is pre-
Traders World Magazine Digital Edition pared from information believed to be reliable but not
is now 100% digital. It can be read on guaranteed us without further verification and does
our computer, and Ipad or any device the not purport to be complete. Futures and options trad-
ing are speculative and involves risk of loss. Opinions
reads pdf files. The benefits of this the
expressed are subject to revision without further noti-
digital medium is already very clear. And fication. Halliker’s, Inc. dba Traders World may be an
those benefits will continue to multiply in affiliate of some of the writers, speakers or advertis-
the coming months as digital evolves. With ers in our magazine, website or online expos. We are
Traders World Digital Magazine, subscribers not offering to buy or sell securities or commodities
discussed. Halliker’s Inc., one or more of its officers,
will continue to receive the same quality
and/or authors may have a position in the securities
reviews and articles from expert traders or commodities discussed herein. Any article that
that you have come to expect from us in shows hypothetical or stimulated performance results
the last 20 years. Our coverage will not have certain inherent limitations, unlike an actual per-
formance record, simulated results do not represent
alter, only the format, which offers these
actual trading. Also, since the trades have not already
benefits: been executed, the results may have under - or over
1) It arrives in your e-mail when it is compensated for the impact, if any, of certain market
released automatically. factors, such as lack of liquidity. Simulated trading
2) It’s in a completely portable pdf programs in general are also subject to the fact that
they are designated with the benefits of hindsight. No
document. Once you’ve downloaded the
representation is being made that any account will or
issue (which takes a matter of seconds) you is likely to achieve profits or losses similar to those
can view it anywhere on your computer. shown. The names of products and services present-
3) It looks like the Traders World ed in this magazine are used only in editorial fashion
Magazine you’ve known. The format is and to the benefit of the trademark owner with no in-
tention of infringing on trademark rights. Products and
the same, only tweaked for the digital
services in the Traders World Catalog are subject to
experience. availability and prices are subject to change without
I think you will enjoy this issue. notice. To Subscribe Click Here.
Larry Jacobs - Editor
2 WWW.TRADERSWORLD.COM January/February 2011

Contents
Jan - Feb 2011 Issue #48
7 Being Accountable 57 Minimizing Financial Risk in a

By Adrienne Toghraie Changing Enviornment
By Steve Selengut
11 Dynamic Trading Multimedia
E-Learning Workshop Review 67 Harmonic Elliott Wave
By Larry Jacobs By Ian Copsey
18 VantagePoint Intermarket 74 Position Manager from CSI

Analysis Software Review
78 Gann and Murrey
25 Calibrating Gann’s Planetary By T.H. Murrey
Lines
By William Bradstreet Stewart 81 What Really Matters Most About
Markets
32 The Trading Strategies to By Jeff Rickerson
Employ in Today’s Challenging
Markets 85 The Law of Cause and Effect:
By Glenn Neely Creating a Planetary Price-Time
Map of Market Action Book Review
40 Time Factor in Points of Force
By Oleksandr Salivon 87 Gartley Trading Method Book
Review
42 Notes on Day Trading from Novy
Principles of Market Flow 90 17-Year Cycle and Interest Rates
By Leonard Novy November 1010 Ushers in Major
Transition Period
47 Introduction to Roger Babson’s By Eric S. Hadik
By Ron Jaenisch 96 Sync Yourself into the Market
By Larry Jacobs

Advertisers
03 World Cup Championships 44 Jack Winkleman
06 eSignal 45 Tim Bost
08 Traders World Subscription 46 Specialist Trading
09 Trading On Target 50 NoBSFX
10 Mikula Forecasting 56 Traders World Online Expo #9
13 Dynamic Trading Multimedia 60 Market Investment Management

E-Learning Workshop
63 Tsunami Trading
15 Traders Coach
65 Super Timing
19 Selfish investing
66 Merriman Market Analyst
20 Vantage Point Software
73 Traders World Back Issues
23 SFO Magazine
75 CSI Commodity Systems Inc.
26 Sacred Science
79 Murrey Math Trading Supplies
28 Sacred Science
83 Market Optimizer
30 Sacred Science
89 Market Analyst
33 Neo Wave Institute
95 Know Yourself Astrology
35 Jan Arps
97 Best Selling Books
37 Gann Numbers Newsletter
38 Traders World Online Expo DVDs
39 ELWAVE
43 Training for Traders

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Being
Accountable By Adrienne Toghraie, Trader’s Coach
help
• Realize that they do not have what it
takes
If you are committed to doing whatever
it takes to follow your rules to reach a
higher level of profit, you should consider
asking someone to help you with this task if
you are not doing a good job of it yourself.
Who could take on the role of a trader’s

accountability?
• A significant other
F
• A friend
rom the time we are born, most • A trading buddy
of us learn that we must be • A teacher
accountable for our actions. First it
is to our families and then later to • A coach
our teachers, preachers, coaches,
and society. Since traders are already What would a person need to help you
conditioned to be accountable, they should be more accountable?
make use of this tool in reaching for trading • A clearly defined set of rules from you
mastery.
• Your commitment to telling the truth to
them
Sweeping it under the carpet
• An accounting of the trades you took
Traders like to think that they only need to
• Why you think the trades you took were
be accountable to themselves in order to
good opportunities
get the best out of their trading. But it has
• The risk/reward ratios before the trade
been my experience that most traders fail
• The money management procedure
miserably at this task. So why are traders
you followed
not able to do this?
• Whether or not you followed your rules
• The lessons you learned
They do not want to:
• And at the four month periodical review,
• Be wrong
the changes you would make and why
• Admit that they are changing their rules
• Face up to the fact that they do not
have good rules Reward or punishment
• Realize that they need psychological There should be a clearly defined

predetermined punishment or reward that
both of you agree upon for not following
SUBSCRIPTION your rules. Here are some examples of

punishments or rewards to consider.
TRADERS WORLD Punishment

MAGAZINE Digital • No trading the rest of the day
• Walk around the block before taking
the next trade
• Twenty push ups
• Limit the size of your trades for the rest
of the week
Rewards
• Ten percent of every good trade will go
into a rewards account for you
• A food or entertainment treat
• Time with a special friend
• Any - my favorite, a massage
Conclusion
When you make yourself accountable
in trading to someone else, you activate
that part of you that has already been
programmed for accountability. In doing
this you will be more accountable to
yourself.
ADRIENNE TOGHRAIE, a Trader’s Coach,
is an internationally recognized authority
in the field of human development for
Click to the financial community. Her 11 books on
get the the psychology of trading including, The

Winning Edge1-4 and Traders’ Secrets
48 issues on have been highly praised by financial
CD magazines. Adrienne’s public seminars and
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919-851-8288
Adrienne@TradingOnTarget.com

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Review: Dynamic Trading
Multimedia E-Learning
Workshop
By Larry Jacobs
I
n the past few years, trading courses
have proliferated for almost any
type of trading. Some have taken
advantage of new technologies to
deliver their educational material,
others have been little more than Power
Point presentations with voice over. The
Dynamic Trading Multimedia E-Learning
Workshop takes advantage of E-learning
techniques to deliver a comprehensive
learning experience unlike most other self-
study trading courses.
Robert Miner has been educating
traders since the mid-1980’s. He was one
of the presenters at our first conferences
in 1989 sponsored by Gann-Elliott Trader the trading conferences for over 20 years
Magazine, the predecessor to Traders World beginning with the Computrac conferences
Magazine. At that conference over twenty over 20 years ago and more.
years ago, he presented his W. D. Gann Miner calls his latest self-study
Home Study Trading Course which was the workshop the culmination of over twenty
first independent study course for traders years of real world trading experience
that we are aware of. So, Miner does have and trading education. He has taken
a long and successful history producing advantage of contemporary, self-study
educational materials for traders. learning techniques with the Dynamic
Miner’s credentials include publishing Trading Multimedia E-Learning Workshop.
an advisory service since the mid-1980’s, Following the introduction sections where
writing two of the best selling trading Miner discusses trading as a business,
books of all time (Dynamic Trading and trading verses forecasting and more,
High Probability Trading Strategies), he begins to focus on each of the three
winning first place in the Robbins World primary areas of technical analysis that
Cup Championship of Futures Trading, are a part of a complete trading plan
being named Guru of the Year by the Super he teaches including pattern, price and
Traders Almanac, speaking at many of indicator strategies.

Miner describes that his trading experience that is possible.
approach is to identify conditions with a Each section is divided into 5-10
high probability outcome and acceptable relatively short modules. Each module
capital exposure. He teaches three technical includes background instruction, step-by-
areas to identify the trade setups including step and bar-by-bar details of the specific
simple pattern recognition, price reversal technical or trading strategy followed by
zones and multiple time frame momentum a summary and short quiz. Each module
strategies. None of these technical areas also includes a PDF file of the summary of
should be foreign to traders but Miner does the key strategies taught in the module so
approach them from unique and more the student will compile a complete quick
simplified perspectives than we usually reference guide of the entire workshop
are taught in other trading courses. and trading plan.
As one of the leading Gann, Elliott and The Dynamic Trading Multimedia
Fibonacci traders and trading educations for E-Learning Workshop is not a quick study.
more than twenty years, we would expect Miner states it should take a student about
the course to include complete price and 30 hours to complete the course including
pattern analysis strategies. Miner delivers all of the study materials and the quizzes.
with a quick and simplified trend and We don’t believe this is too much time to
counter trend pattern approach derived learn a comprehensive trading plan from
from Elliott wave and price reversal zone a 20+ year veteran. Miner warns the
strategies, as he describes, go beyond students to study the workshop in the order
simple Fibonacci retracements. the sections were designed because each
A unique feature of his trading plan that module builds on the strategies taught in
we have not seen implemented in other the prior modules. After the entire course
trading courses is the Multiple-Time-Frame- is complete, the student can then go back
Momentum-Reversal strategy which is to specific sections to review at any time.
the primary filter taught to identify which I think The Dynamic Trading Multimedia
markets have the best trading opportunity E-Learning Workshop is an exceptional
regardless of the time frame traded. course for any trader and any time frame.
But, the heart and soul of the workshop
are the last two major sections, Practical To view a video of the trade strategies
Trade Strategies and Trading The Plan. taught in the Dynamic Trading Multimedia
In these major sections, The Dynamic E-Learning Workshop and a special offer
Trading Multimedia E-Learning Workshop for Traders World Magazine, CLICK HERE.
teaches the student a complete trading (goes to (http://www.dynamictraders.
plan from objective entry strategies to com/dtw-tw-1201.html)
how to manage the trade to the exit. This
is where the bar-by-bar screen recordings
are put to good use as Miner challenges the
student to identify what to do (or not do)
as each new bar is added to the chart. This
is as close to a live trading and educational

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• A true multimedia learning experience.

• Video, bar-by-bar screen recordings, support material and quizzes.
• Incorporates the latest in accelerated learning techniques for total comprehensive.
• A far more comprehensive learning experience than possible with any live trading workshop.
• Learn a complete trading plan from entry to exit for any market and any time frame.
Act now for your $400 Traders World discount (through January only)
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Catching Significant Trends
Equals Big Profits!
By Bennett McDowell, President, TradersCoach.com
Most money in trading is made from a market consolidation is one where the
catching a significant trend. Most money competition between buyers and sellers
lost in trading occurs by missing or being unite to form a compact mass. A trader’s
on the wrong side of trends. So the definition of a market consolidation is one
real question is “How do we protect and where prices have remained range bound
preserve our trading capital as we position within a narrow price channel.
ourselves to catch the next profitable Is market consolidation an area
trend? where little or no new information has
Significant trends are known to emerge come into the market to cause a greater
from market consolidations and it is disagreement of value or perceived value
during these consolidations that traders which would move prices? And do trends
experience “whip-sawing” leading to occur because the value or perceived
psychological trauma that can cause havoc value is changing so much that the price
with a trader’s life, which can cause the must change to represent the new value?
trader to miss the trend altogether! Answering yes to these questions leads to
It is said that markets trend the conclusion that market consolidations
approximately 35% of the time, meaning are areas where no new value perceptions
that 65% of the time they are trend-less. are being generated. Thus, prices remain
Consolidations are known to occur before “tight” or range bound.
many significant market trends and to be
a profitable trader you must learn how to The Nature or Psychology Of
exploit these trends while not losing your Market Consolidations
money when the market is trend-less. Consolidations by their very nature can not
last too long since they become increasingly
Consolidations: A Textbook unstable with time. Most traders view
Definition consolidations as a stabilization of price,
Let’s define a market consolidation. A but consolidations actually become
dictionary definition of a market is “the increasing unstable with time. In fact the
world of commercial activity where goods longer a market remains consolidated, the
and services are bought and sold; without more unstable it becomes.
competition there would be no market”. Market consolidations have their own
A dictionary definition of a consolidation cycles. During their initial formation
is “something that has consolidated into traders are undecided as to value and the
a compact mass; combining into a solid price oscillates. If this condition continues,
mass; an occurrence that results in things traders’ perceptions of this asset’s value
being united”. Reading these two text remain the same until new information
book definitions leads one to believe that enters the market to change perceptions.

!NEXPERTINTHEFIELD
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Ass a trading coach and financial advisor, Bennett McDowell has used his
w proprietary trading system--Applied Reality Trading or ART to enhance
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h performance of his clients’ portfolios. Now McDowell outlines the
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simplicity in a trading approach; how to develop “The Trader’s Mindset;”
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how to use ART(r) technical analysis software; and much more. The ART
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financial portfolio and their own financial psychology.
s(ARDCOVERsPAGES

53s#!.s5+a
.OTADHERINGTOASOUNDMONEYMANAGEMENTPROGRAMCANEXPOSEA
trader to unnecessary risk, and possibly destroy their account. A few
essential money management techniques can make a big difference
to the bottom line. In A Trader’s Money Management System, author
Bennett McDowell introduces readers to the most important elements
of money management in trading. Topics covered throughout this
BOOKINCLUDEHOWTODESIGNAPROGRAMTOGETMAXIMUMPROlTFROM
a trading system; how to calculate the best trade size on every trade;
how to analyze profit/loss results and identify weaknesses in a
strategy; plus much more. Along the way, McDowell also addresses
THEIMPORTANCEOFRISKCONTROLANDSTOPLOSSEXITS4HEBOOKALSO
INCLUDESAONE MONTHFREETRIALOFTHE4RADE3IZE#ALCULATORSOFTWARE
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Bennett A. McDowell3AN$IEGO#! FOUNDED4RADERS#OACHCOMINANDISANEXPERTINTECHNICALANALYSIS

ANDCOMPLEXTRADINGPLATFORMS(ELECTURESNATIONALLYANDWRITESARTICLESFORMANYPROMINENTTRADINGPUBLICATIONS
McDowell is also a recognized leader in trading education.
1 (800) 695-6188 www.TradersCoach.com

TRADERSWORLD.COM Fall 2008 / Early Winter 2009 5
Until new information arrives, the your trading approach not react to every
consolidation becomes narrower and “whisper” of information that the market
narrower to a point where the consolidation ultimately finds meaningless.
is now very unstable and this is where new By bracketing your trade entries above
trends are born. and below the consolidation channel, you
The longer or more mature the automatically eliminate unnecessary losing
consolidation is, the larger the trend usually trades. If you are an aggressive trader
is as well. Lengthy or mature consolidated who welcomes the additional risk of a few
markets are so unstable that even just a losing trades within the channel to achieve
whisper of new information coming into a a superior trade entry price, then you
consolidated market can make it move, should wait for the mature consolidation
but a shout of information can make it to get very tight and thus very unstable.
trend fast! This will increase your odds of
Once you spot a mature consolidation, successfully timing the next significant
your trading approach should be to trend and therefore reward your aggressive
bracket the upper and lower part of entry approach. Just as important as the
the consolidation. This helps to avoid length or time of the consolidation is the
unprofitable “whip-sawing” trades within low Average True Range or volatility of
the consolidation channel caused by prices in recognizing the mature end of
insignificant trading reactions from minor the consolidation before a significant new
market information. It is important that tend emerges. It is important to note
that not all significant trends emerge only

from market consolidations. But if you Where To Place Your Stops
recognize a consolidation in the market, Once the market breaks and begins to
the potential is great for a significant trend trend, stops can be adjusted according to
to emerge if the consolidation has become market activity, with the initial stop-loss
so consolidated it is now also become being placed on the opposite side of the
unstable. consolidation channel in relation to which
way the market started to trend.
Finding & Monitoring Market
Consolidations
The first step is to find markets that are Trade Example Combining
in consolidation so you can be ready to Bracketing
trade the breakout when it occurs. To The stock chart below illustrates a market
find these consolidated markets, it will be consolidation in the Nortel’s stock with
best to scan for markets will low volatility upper and lower lines drawn in that bracket
and narrow price movement. Look for a the consolidation. Trade entries are
consolidation with at least 20 price bars placed above and below the consolidation.
before considering it for a potential trade Also note how prices become even more
based on “bracketing the high and low of compressed towards the end of the
the channel. consolidation just before this market
Since markets can consolidate for begins to trend. This occurs often since
weeks and even months, you will want to markets usually spring from compressed
monitor several markets simultaneously price consolidation.
while they are in consolidation, this way When the market finally breaks above
you do not have to wait a long time before the channel you should enter your trade
entering a trade. one-tick above the upper green colored
Active traders can use this technique to band or line drawn on the chart above.
scan for trade setups, and with 9,000 + Your initial stop-loss is placed one-tick
stocks the trader can be quite active! If under the lower band and adjusted upward
you are a day trader, you can scan intraday as market activity warrants.
charts looking for consolidations as well.
Conclusion
Trading Market Consolidations Sometimes one good technique is all we
Once you have identified the consolidation need to be profitable traders. Trading from
of at least 20 price bars, the next thing market consolidations may just be the
to do is to draw a line on the top and trading technique you have been looking
the bottom of the consolidation channel for.
effectively “bracketing” the consolidation Whether you’re a futures trader, stock
Then place your long trade entries one- traders, day trader or position trader,
tick above the upper consolidation band, adding these trading concepts to your
and your short trade entry one-tick below trading toolbox should prove worthwhile.
the lower consolidation band. www.TradersCoach.com

VantagePoint
Intermarket Analysis
Software
T
rading is hard work normally, technical analysis. In 1983, he was the first
but in these tumultuous times of person in the world to introduce strategy
algorithmic trading, hedge fund backtesting in commercially available
dominance, and global, macro trading software for personal computers.
forces driving markets, traders need Market Technologies has continued
a sharp edge to compete successfully to increase VantagePoint’s predictive
and come out on the winning side. accuracy over the past two decades by
VantagePoint Intermarket Analysis refining its application of neural networks
Software from Market Technologies gives to global intermarket data, while adding
individual traders that needed edge. more leading indicators, expanding the
To be clear, VantagePoint does not markets covered, and generally improving
produce buy or sell signals, nor is it an the software’s functionality and user-
automated trading system. Instead, friendliness. Even newcomers to trading
VantagePoint uses proprietary, patent- can easily benefit from its forecasting
pending technologies involving neural capabilities without having to “look under
networks applied to global intermarket the hood.”
analysis to analyze how related markets
influence each other. These technologies Product Overview
produce unique predictive, technical VantagePoint software provides leading
indicators that make short-term, highly indicators for more than 600 markets in
accurate trend forecasts. four major categories: forex, futures,
In the trading world, the trend is truly stocks, and exchange-traded funds
your friend, and having a tool that can (ETFs). The forex category includes
identify trends – particularly impending the eight major currency pairs and 13
changes in trend direction -- reliably and important cross rate pairs. The futures
consistently is a big step toward trading category covers all of the major financial
success. and commodity markets.
VantagePoint has been serving traders In prior versions, VantagePoint
since 1991 when Louis Mendelsohn first forecasted only U.S. Stocks comprised
introduced trading software that utilized of 12 popular U.S. Stock Sectors. The
what, at the time, was his revolutionary newest version has added even more U.S.
intermarket-analysis approach using the stocks in response to customer demand.
pattern recognition features of neural Even more exciting to VantagePoint’s
networks. Mendelsohn is no stranger to customer base in over 125 countries is the

Virtue of Selfish Investing
Dr. Chris Kacher Gil Morales
Market pros Dr. Chris Kacher and Gil Morales provide stock set-ups and ETF recommenda-
tions in real-time via email so you can immediately act on their alerts (for both beginning
and advanced investors):
• Dr. Chris Kacher used his timing model to help generate a long term return
of +18,241.2% in the stock market as verified by KPMG.
• Gil Morales achieved a return of +10,904.25% as audited by Rothstein Kass.
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• 2010 market timing results: +83.8% (unaudited results using 3x ETF TYH).
• 2009 market timing results: +118.3% (unaudited results using 3x ETF TYH).
• CONSERVATIVE APPROACH: using market timing model: June 9, 2009 - June 9

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The VantagePoint charts also provide of 70.2% for Adobe, to a high of 87.0% for
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Calibrating Gann’s
Planetary Lines
By William Bradstreet Stewart
T
hrough the autumn and winter of We can see here that Gann is drawing
1948, W. D. Gann hand charted the trendlines and price level lines based
May 1949 Soybean futures contract upon planetary longitude on this famous
traded on the Chicago Board of Trade. Unlike chart, and these lines perfectly define the
much of Gann’s work, this chart survived trend as well as the top in the Soybean
and is publicly available from numerous market. Gann never spoke or wrote in
sources. Many analysts have commented any detail about this technique, and the
on this chart and a number of them have few references we have to it appear only
cited Gann’s use of planetary longitude. on some of his most complex and messy
I have reproduced it here with certain charts, having to be deciphered and
planetary lines highlighted, as defined by reverse engineered by the astute Gann
the color key below, showing exactly what analyst in order to determine what he was
each of these lines represents. actually doing.
Many people have experimented
W. D. Gann’s 1949 May Soybean Chart – with using this technique, and a number
Planetary Lines Colored of software programs have functions
Red Line = Mars Longitude – Blue Line = which produce variations on this
Jupiter Longitude application. However, often after years
Green Line Jupiter 255° Horizontal – of experimentation, researchers are still
Dashed Blue = Jupiter 270° Horizontal unable to discover the true potential of
Figure 1
A COMPENDIUM OF ASTRO-ECONOMIC
INFLUENCES PRACTICALLY APPLIED!
TO 110 YEAR ANALYSIS OF THE DOW JONES INDUSTRIAL AVERAGES
BY RICHARD SCOTT
TWO NEW FINANCIAL ASTROLOGY COURSES & TIME PROJECTION TOOLS!

This new course provides a direct and accessible doorway into the practical application of astro-economic theory for
trading. The difficulty that confronts most astro researchers is that there is too much contradictory material available,
which takes years to organize into a tradable methodology.
Richard Scott spent 8 years doing this research, by hand, watching the markets day after day, studying each change,
and then tracking down every influence and lead that he could find which would demonstrate to him the cause behind
market movements. He compiled 110 years of Dow Jones Industrial Average data, and, with his ephemeris in hand,
tracked down every instance of every influence. This course presents the results of that labor, summarized,
simplified, and clearly explained so that any trader can begin tracking and trading planetary influences in the markets
in a matter of weeks rather than years.
It further teaches how to determine the ongoing energetic background environment that the market is traveling
through at all times. This environment is defined by the summation of the underlying planetary energies at any time.
Any projection you have from any system can now be cross-checked with the Planetary Energy Background, and you
can affirm whether a turn will likely be a top or a bottom, or a trend will go up or down. This is very simple to
understand and to apply to your future charts, giving you an ongoing read on the energetic forces behind the market!
VOLUME 1 TEXT 240P. - VOLUME 2 CHARTS 90P. 170 IMAGES - BLACK SUEDE HARDCOVERS
TECHNICAL ANALYSIS & TIME PROJECTION

THE HARMONY OF MATHEMATICS & NATURE
BY CATALIN PLAPCIANU
ONE OF THE MOST POWERFUL & ACCURATE ASTRO-TIME PROJECTION TOOLS EVER DEVELOPED!
The Time Projection Technique presented in this course develops a new type of planetary time projection,
through the projecting of pairs or groups of planetary relationships into the future. The result of these
combinations is the projection of highly accurate future turning points with a false signal ratio of only 2
out of 10, or better. The time projections are highly accurate, generally occurring within a day of the actual
signal, even from points 30 years in the past. Specics of the projections can dene major turns, vs.
intermediate turns, vs. minor turns, and some combinations give very accurate projections of polarity,
whether a turn will be a bottom or a top. Using overlapping projections of multiple planetary
congurations serve as conrmations of important turning points, ltering out errors to less than even one
false signal in ten. The course also presents a detailed introduction to astrology, two different systems to
project price, and a means to mathematically determine the SPEED of the market. There are numerous
trading examples given for long, intermediate and intraday trading. See our website for more details!
BLACK SUEDE HARDCOVER 264 PAGES WITH 200 CHARTS & DIAGRAMS & PROGRAMED TIME TOOL
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INTERNATIONAL 951-659-8181 Ө MAIL: P.O. BOX 3617, IDYLLWILD, CA 92549-3617

this powerful tool, because there is just price scales, so that the planetary lines
too much variation in planets, harmonics, can be usefully plotted on modern day
settings, and markets to easily make markets.
sense of this phenomenon. But it turns I have come across only one person
out that it is not only due to the range of who has resolved this problem, Daniele
factors that leave most people incapable Prandelli, who in his new trading course,
of applying this technique effectively, but The Law of Cause and Effect, solves
also due to a price and scaling issue. the puzzle of Gann’s Planetary Price Line
When Gann drew his May Beans chart, technique, by developing a mathematical
Soybeans was trading below 360 on the offset factor, or calibration rate, through
price scale, so his planetary longitudes which powerful and effective planetary
could easily be drawn right on his chart lines can be laid out on any chart, in any
using their exact longitudinal values. But market, showing important price and time
in many of our modern markets, prices trigger points and support/resistance
have gone through many multiples of a levels, which the market moves between as
$360 price scale, and when trying to apply if it were pushed and pulled by some kind
planetary lines to these new scales, the of magnetic force. Without the use of this
lines skew and do not provide the effective conversion factor one can put planetary
insight that they did for Gann above. This lines on charts all day long, but they do
has been the issue that has led so many not give accurate or consistent results that
analysts to fail in finding a real use for this one can count on. The endless variations
tool. What is needed is a calibration factor between the aspect harmonics can overload
which realigns these Key natural planetary a trader with so much information that it
forces to different markets with different all becomes essentially useless, unless
Figure 2
THE LAW OF CAUSE & EFFECT
CREATING A PLANETARY PRICE-TIME MAP OF MARKET
ACTION THROUGH SYMPATHETIC RESONANACE
BREAKTHROUGHS IN GANN’S PRICE/TIME RELATIONSHIPS
BY DANIELE PRANDELLI
W. D. GANN’S PLANETARY LINES CRACKED USING CALIBRATION FACTOR!
This new course unravels the correct application of WD
Gann’s Planetary Longitude Lines. Gann used these
KNOW IN ADVANCE!
lines on his famous May Soybeans chart, but most
people have never been able to figure out how to apply  EXPLAINS MISSING CALIBRATION FACTOR
WHICH FITS LINES TO ANY CHART!
them as effectively as Gann did. Until now!
 DETERMINE IMPORTANT ENERGY LEVELS
This new course explains why most analysts have failed
USING PRECISE MATHEMATICAL RULES
here! There is a missing conversion factor or calibration
rate which must be used to adjust the planetary
 KEY PRICES TO TAKE TRADING POSITIONS
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
 FORECAST CLEAR TARGET EXIT LEVELS
most valuable tools you’ll have in your toolbox.
 KNOW IMPORTANT TURNING POINTS THRU
CONFLUENCE OF PLANETARY LINES
Simple to apply with the proper software, which is easily
available, this powerful technique will give an added
 DETERMINE THE SLOPE OF THE EXPECTED
dimensional perspective to market action. These lines
TREND THROUGH PLANETARY ANGLES
call both price and time, and are one of the easiest but
most powerful of all Gann tools. Once you know them,
 LONG-TERM, INTERMEDIATE AND INTRADAY
you will NEVER stop using these lines to trade from!
FOR A DETAILED WRITEUP INCLUDING CONTENTS, SAMPLE TEXT & CHARTS, FEEDBACK & MORE SEE:
WWW.SACREDSCIENCE.COM/PRANDELLI/LAWOFCAUSEANDEFFECT.HTM
SEE HOW LINES ON CHART CALL MOVES!

Notice how the market just bounces along
from one line to the next, and particularly
how it often turns exactly upon these lines.
Planetary price lines are Magnetic Attractor

Fields which draw the market to them, then
push them away again, giving a trader a map
of the geometric, electro-magnetic lattice that
the market is influenced by. In the same way
that electrons jump between orbital levels,
the market will vibrate between these zones
defined by planetary resonance.
BLACK SUEDE HARDCOVER 240 PAGES


one understands how to mathematically between these zones defined by planetary
calibrate these lines with each particular resonance.
market. When this is properly done, the The prior example showed only one
planetary lines serve as a kind of lattice or planetary influence overlaid on the chart,
grid work through which the market moves but there are other important planets which
in a predictable and tradable manner. will determine other important levels,
The following example shows the providing confluence points between the
S&P500 Index from 2007 to 2010 with lines for stronger indications. For example,
only one planetary influence, shown by on the following chart we are zooming in
the blue lines. Notice how the market just on the same chart and adding some other
bounces between these blue planetary planetary lines, in order to observe how
lines, and particularly how the extreme a confluence of multiple lines can give us
tops and bottoms find their reversal points an even clearer indication of an important
exactly upon, or very close to these pre- bottom in the market. This low is the same
determined price levels. major bottom from the last chart.
This is because planetary price lines Notice that with the addition of other
act as Magnetic Attractor Fields which resonant planetary lines at this March
draw the market to them, then push 2009 Low, there was not just one line that
them away again, giving a trader a map confirmed this Key turning point, but a
of the geometric, electro-magnetic lattice huge confluence of multiple lines, the first
that the market is influenced by. In the lines creating the initial resistance from the
same way that electrons jump between precipitous drop, with the final Low falling
orbital levels, the market will vibrate EXACTLY upon the resonant confluence of
Figure 3
BEHIND THE VEIL
A NEW APPLIED TRADING COURSE USING
ADVANCED PRICE/TIME TECHNIQUES TO
PROJECT FUTURE TURNING POINTS...
BY DR. ALEXANDER GOULDEN
PRESENTING POWERFUL GANN STYLE FORECASTING & TRADING TOOLS!
We are extremely happy to announce the release of a new and
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trading techniques based upon the deepest scientific and In August of 2009, Dr. Goulden produced 7
metaphysical principles. It unveils many mysterious and difficult forecasts in 7 different markets. His results were
theories and applications similar in approach to those of W.D. impressive, 7 out of 7, yielding 3,161 points in 7
Gann and shows a trader how to use these principles to days, with 7 trades, in 7 different markets!
successfully forecast and trade the markets. DON’T MISS THIS Wouldn’t you like to forecast like this?
VALUABLE COURSE!
Dr. Goulden, a Cambridge educated scholar, penetrated many of  T-Notes 20-22 August. Result - a pivot low on 21
the hidden techniques used by Gann, and has developed August, followed by a rally of 241 points to 2 Sept.
numerous new and original trading applications based upon  Soybeans 17-20 August. Result - a pivot low on 17
similar principles, leading him to the forecasting results in seen August, followed by a 710 point rally in 6 days.
here.  Gold 17- 20 August. Result - a pivot low on 17 August,
The techniques developed by Dr. Goulden will teach traders how followed by a 780 point rally to 8 Sept.
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moves ensue. All of the timing tools needed to forecast these August, followed by a 607 point drop in 7 days.
pivot points and the geometric tools used to identify price entry
and exit points, and to determine the nature of the ensuing trend
 NY Cocoa 21-24 August. Result - a pivot high on 25
August, followed by a 257 point drop in 4 days.
are demonstrated in the Course. Based upon a deep level of
metaphysical and cosmological insight, these techniques are  NY Cotton 21- 24 August. Result - a pivot low on 26
easily applicable, clearly presented and shown through numerous August, followed by a 426 point rally in 7 days.
chart examples in multiple markets, including stocks,  German Bund 21-24 August. Result - a spike low on
commodities & Forex, in all time frames, monthly to minute. 24 August, followed by a 140 point rally in 7 days.
FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING CONTENTS, SAMPLE TEXT & FEEDBACK SEE:
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Figure 4
3 different planetary lines! such seemingly chaotic events!
Another fascinating element of this It is a simple fact that the overlay of
technique is that it will demonstrate that these powerful planetary price techniques
the markets are controlled by natural order, upon any chart adds an extra dimension
even at times where people think there to one’s market vision and trading
was random error. The following chart indications, giving a profound insight
illustrates the influence of the planetary into the forces behind real market action.
lines on a move that was considered by Whatever trading tools you may use, the
main-stream media to have been caused addition of the Gann’s planetary lines will
by a “trader” or “computer” error, causing provide a significantly deeper insight into
the S&P 500 to plummet 100 points the true cause of market reversals! We
during the day’s trading session (with the have no doubt that, once understood, no
Dow falling about 1000 points that day in trader will ever again place a trade without
intraday trading). consideration of these essential planetary
As can be seen above, the low of that price lines.
day touched EXACTLY upon the confluence
of two overlapping planetary lines! After William Bradstreet Stewart
seeing this, how can anyone believe that the Sacred Science Institute
markets are merely random? Traders who Institute of CosmoEconomics
understand these techniques KNOW there 800-756-6141 - 951-659-8181
is no random movement in the markets, www.sacredscience.com
and are well poised to take advantage of institute@sacredscience.com

The Trading Strategies to Employ in
Today’s Challenging Markets
By Glenn Neely, Founder, NEoWave Institute
N
o matter what trading technique
or methodology you employ,
ultimately, there are only three
zones you can enter a market:
near the bottom, near the top or near the
middle. If you enter a market near the
bottom of its range, you could be called a
Bottom-fisher (if you bought) or a Trend-
follower (if you sold). If you entered near
the top of the range, you can be called a
Trend-follower (if you bought) or a Top-
picker (if you sold). When you enter after
a market’s high or low, on a pull-back
toward the center of its range, you might the three phases of market activity
be called a Bargain hunter (which breaks – Bottoming/Topping, Accumulation/
down into two categories - an Accumulator, Distribution, and Trending (up or down) –
if you bought, or a Distributor, if you sold). and the best trading strategies for each,
Despite the incredible universe of including Elliott Wave/NEoWave and other
market systems available to the financial techniques. At the end, I provide specific
industry, ALL trading techniques fall into trading recommendations for today’s
only one of three categories (i.e., Top/ difficult trading environment.
Bottom-fishing, Trend-following or Bargain
hunting). By definition, a market will Bottoming/Topping phase of
spend about 1/3 of its time in each portion market activity
of a market’s 3 ranges; so, each approach A major market top or bottom is rare, which
to trading works about 1/3 the time. As means it holds for a long time. Therefore,
a result, if you do what most do (i.e., you can’t have a major top or bottom
stick to one trading style) you will make every week. Recognizing a market top
money about 1/3 the time and lose money or bottom can be difficult, yet extremely
the other two-thirds. If you want to trade profitable if you’re right. Unfortunately,
successfully 3/3’s of the time, you must this phase of market activity is one of the
understand all three phases of market most dangerous times to trade, because
activity, learn to determine which phase is it can produce repetitive losses if you
unfolding, then adjust your trading style to continually guess incorrectly. For example,
fit that environment. in an expanding environment, a market
In this article – second in my “Stock can be in a topping phase, yet make minor
Market Predictions” series – I outline new highs over and over without changing

the fact that a top is forming. The biggest their way. During Accumulation, wealthy
mistake I see when teaching others how to traders capture nearly all supply in the
trade is that they expect or forecast major hope future demand will make their long-
market turns all the time (by definition, term commitment worthwhile. This sets
that can’t be true), which is why they end the stage for the Trending phase of market
up losing so often. activity. As the economy improves – as
it always does – the public realizes the
Accumulation/Distribution “end of the world” did not occur; so, their
phase of market activity willingness and ability to invest increases.
For this section, let’s focus on Accumulation Over time, growing public demand forces
first. After bottoming, a market may prices upward. (Remember Economics
bounce off its low and experience a period 101: increasing demand coupled with
of back-and-forth consolidation. This limited supply creates higher prices.)
occurs because financially powerful traders In comparison to the prior two phases,
are accumulating positions, preparing the Trending phase lasts the shortest
for the future market advance. While period. Generally, it’s the most difficult
wealthy traders accumulate positions, less phase to profit from because most traders
experienced, under-capitalized traders are uncomfortable entering a market well
might panic (thinking the market will go after the bottom (they realize they are no
lower), or be forced out (due to lack of longer getting a bargain).
capital) as the market retests its bottom.
. While a majority of traders are selling Which trading strategy should
into the market’s decline, that “public you employ during each
activity” makes Accumulation possible for phase?
a minority of wealthy traders. In other Bottoming/Topping – At market
words, when the majority of traders are extremes, NEoWave or Elliott Wave trumps
selling, the wealthy understand this is an all other techniques, leaving little doubt
excellent time to buy (hoard positions), and what will happen next and what to do. During
they have the “financial patience” to wait this phase, Wave theory clearly portends
for the demand environment to change, market potential, allowing you to catch
forcing prices higher. Distribution phase major turns. Ironically, at such times, the
is the exact opposite of the Accumulation public (and your friends!) will have the exact
phase. opposite market perspective, leaving you
a “lone voice in the woods.” Consequently,
Trending phase of market profiting from Wave theory requires the
activity ability to identify patterns and enter when
Continuing our discussion from above, multiple patterns simultaneously end.
once nearly all positions that can be bought Identifying and entering at major market
have been purchased, the Accumulation tops or bottoms makes most traders
phase is complete. Most traders are extremely uncomfortable. As a result,
committed – they’ve laid their claim – and placing your trust in Wave theory at this
are now waiting for the market to move time requires mental fortitude and the

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personal confidence necessary to buck the Trending (up or down) – As I
majority and take an unpopular position. discussed in my previous interview,
Though it often appears contrary to “logic this market phase can be random and
or reason,” following NEoWave (or Elliott unpredictable. Here, Wave theory is least
Wave) during this phase of a market’s useful. During the Trending phase, it’s best
development generally offers the greatest to do what most people are afraid to do:
possible reward. buy into market strength. Keep in mind,
Accumulation/Distribution – After strong market trends are not common,
a major top or bottom, a market will especially those in which you can buy into
transition into a choppy period (above its a new high or sell into a new low. When
low or below its high). Wave theory can still strong market trends happen, they can
be useful at such times, but its usefulness yield tremendous return in a very short
begins to diminish. Instead, oversold and period, far outweighing results you might
overbought indicators tend to be more get from other market phases.
useful, allowing you to “trade the range,” While it’s clear when a market is
getting in or out at each market oscillation. trending, a safe, low-risk entry may be
The longer the consolidation, the longer difficult to identify. So, what do you do?
you should institute this strategy. To explain, let’s continue our Gold market
For example, let’s say you have interest example: Gold bottomed at $900, rallied
in the Gold market. In this scenario we’ll to $1,000, then sold off to $950. If the
assume Gold recently began rallying from Accumulation phase has ended, Gold will
the $900 level. As one who desires to next move into an uptrend. This is when
accumulate Gold, you patiently watch it the “scary” buying-into-highs strategy
rally to $1,000, which in hindsight enables actually works. In our example, you would
you to see the market created an important place an order to buy Gold at $1,001; if
and obvious low at $900. That observation activated, your stop would be just below
allows you to objectively implement $950 (say $949). This way, you are “going
your accumulation strategy. When Gold with the flow” of the market, letting it
begins to pull-back from the $1,000 level identify your specific entry and stop points
(noting this level), carefully watch your as it progresses. When implemented at
indicators for an oversold condition similar the right time, this strategy produces the
to what occurred near the $900 low. If greatest profit in the shortest period.
that oversold condition occurs when Gold
is around $950, it’s time to buy. If Gold Today’s challenging U.S. stock
later exceeds $1,000, you can decide to market: What phase is it in?
liquidate some of your position OR simply Which trading strategy should
wait for the next “oversold” condition to you use?
pick up even more Gold. This process can After rallying for nearly 2 years off 2009’s
be repeated over and over each time the low, the U.S. stock market is now (mid
market exceeds it prior noted high. January 2011) in the top 1/3 of its price
range from the 2007 high. As a result, your
focus should be on “Top-picking.” During

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Chart 2.png
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Expo #4 About the author

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certify, endorse, approve, disapprove or recommend, 2011 39
any trading
Time Factor
in Points
of Force by Oleksandr Salivon
P
oint of Force is an trend will finally reverse?
area on the chart, Here we find importance
where strong of Time Factor. If time for
price levels and the move elapsed – price
significant time will start moving in the 2010 price movement was
periods intersect. There is opposite direction from the weak, i.e. price slid to the
a great number of tools, nearest significant level. new low and than returned
which help to identify higher that low, while if
levels, where price can Price methods in it remained below - this
meet resistance or support. action would be an indication of a
Congestions of price levels Today we will work with strong structure. Only this
are much stronger than a November Wheat chart and would tell us that Wheat
single level, but there are reveal reasons for the price price is about to change
always few congestions. soar in July. First we find medium-term trend for at
How do you know where the out that in January-June least few months rebound.
To find where the final
bottom might take place -
add 50% of the previous
range (Figure 1).
Considering the date

of reversal we can take 5
months from January 11
top and one year from June
2, 2009 top. If you take
some time to investigate
reversal dates, you will
find more confirmations of
the early June importance.
Dividing 633 top by 6 you
get 105.5 and final bottom
appeared exactly on 105th
trading day. Buying on June

11th or even on June 30th that congestions around extremely important as
after classical confirmation, 675, 870 and 960 will be we had synodic Jupiter-
one should hold until daily important. Two of them Saturn cycle traveled 45
swings showed strength, worked precisely, should degrees from Feb 27, 2008
consequently moving we wait for 960? and Saturn proceeded 108
trailing stop under the degrees from Apr 29, 2002.
swing low or low of the Time is initial factor Following only price
second day back. for change in trend levels we would close
To find where Wheat But how we would know positions on 574, 675 or
will find resistance on the that June 9 is a final 770, but understanding
way up - take 1284 to 473 bottom and that price will that this is a major change
price range and divide it in not stop at 533 or 574. This for few months you would
8 parts, adding 1/8th to 473 question can be answered hold until see 870, and then
low we get 574, 676, 777, only by studying cycles. added after rebound.
879, 980, 1081. Also take No matter how good price We see how beautiful
633-473 range and extend levels and indicators signify markets are, how amazing
it adding 1, 1.5, 2, 2.5, 3 a reversal, if the cycle is and precise results you can
extensions (Figure 2). In calling for a higher top achieve after researching
the Square of 9 - 47 (473) or lower bottom - it will market’s own individuality.
is 90 degrees from 88 eventually take place in
(876) and 473 is 4 cycles predetermined time. Oleksandr Salivon has been
minus 45 degrees from Final higher low in the studying the markets for 7
869. Playing with these first week of July before years. He learned all known
tools you will understand price skyrocketed was methods of market analysis
but was not satisfied
with their accuracy until
discovered precise tools in
the works of W.D. Gann.
He did his own research
in Astronomy and applied
it to the soybean and
wheat markets. He may be
reached at soyb@asalivon.
com.
Suggested reading:
W.D. Gann, Master
Commodities Course
W.D. Gann, Tunnel Thru
The Air

NOTES ON DAY TRADING from
“Novy Principles Of Market Flow”
by Leonard Novy
S
ince the advent of electronic
trading, day trading has become
the most sought after and the
most elusive of trading regimens.
There are thousands of systems and
methods that try to capture consistency
of market action only to find that markets
display a wide array of personalities
that defy coincidental meeting points While there is not enough space in this
designated as “the buy” or “the sell” within brief article to cover the many aspects of
the system or method. this large body of work there are some
This article will attempt to shed some concepts that I would like to share with
light on organizing short term trading as the readers in hopes of adding clarity to
it is viewed from the standpoint of “Novy what it is that traders do irrespective of
Principles of Market Flow.” the design of the method or system that

you are using. “scalping” as trading an impulse or energy
In “Novy Principles of Market Flow” day pocket in the direction of the market
trades fall into one of two categories. flow. For those kinds of trades there
should generally be no draw down. The
Scalping and Position Day Trading. expectation should be that the trade is
elected and it moves as planned with very
SCALPING little hesitation.
Most methods and systems attempt to In order to arrive at that condition,
use very short term intraday time frames short term timing signals should be
for entries and exits while using longer moving from the center of the scale (ZMZ
term intraday time frames as a directional = Zero Momentum Zone) outwards to the
guide. extremes.
Here are some concepts you might Scalping is a technique applied to a
want to consider. I hear traders say that condition in the market flow where energy
they want to be scalpers….. “I just want to and momentum are about to surge. Once
catch a few ticks”. There is nothing wrong in the trade, the trader can money manage
with that as long as the term “scalping” is the flow to clip off quick profits or to turn
better defined to a condition in the market a short term trade into longer term winner.
that will allow that to happen.
We at Training For Traders define POSITION DAY TRADING
www.TrainingForTraders.com
Leonard Novy
Sign up for Free Critical Interim Updates at www.TrainingForTraders.com
Go to www.GatesOfConfirmation.com for Up Coming Free Webinars
Novy Principles of Market Flow are not a Method or a System.

Use the Natural Flow of the Market to your Advantage
Contact: Leonard Novy at info@trainingfortraders.com.......Ph 760 841 1522 Calls returned Promptly

Position day trading is typically for traders to trade areas of support and resistance
who use Fibonacci Retracements or Pivot rather than energy pockets
Point Support and Resistance or Line In Summary: The idea with Scalping is
Drawings, Bollinger Bands or Moving to find a repeatable and consistent action
Average Support and Resistance etc, who that moves the market instantly in the
are waiting for the market to hit a target intended direction with no draw down. It’s
for an entry in the opposite direction. Most a performance trade and it must perform.
of the time, these targets will be over run That is the condition.
with emotion. The idea with Position Day Trading is
This means there will be draw down. This that it is developmental in nature and
is a developmental area where the market requires patience along with acceptance
is running into opposing forces that cause of draw down. The expectation is that
for a lot of back and forth movement. If targets will be over run before the turn
your expectations are that you will need to comes and one must measure risk relative
place a stop loss that adjusts to the current to the current volatility. The condition for
volatility to allow for the trade to develop Position Day Trading is different than for
then you are in the right frame of mind. Scalping.
If you try to scalp under these conditions
you are likely to lose most of your money. For more information on Novy Principles
Scalpers don’t like using big stop losses of Market Flow please contact me at info@
and shouldn’t be playing in this arena. trainingfortraders.com or 760 841 1522
Position day trading is for players who like or go to www.trainingfortraders.com
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What every trader needs to know
about the astro-trading advantage.
The old man’s advice wasn't given “And maybe then you will stumble Along the way, I’ve exposed key
lightly. upon the most valuable trading tool market factors most astrologers
of all, the one that not many traders ignore and most ordinary traders
As a veteran trader, he had decades are even willing to talk about. That’s have never even heard about—
of experience under his belt. financial astrology. You may hear it Transneptunian dynamics, planetary
being ridiculed, but you should price indicators, and heliocentric
He was doing his best to counsel a definitely take it seriously. relationships, among other things.
young man who had decided to
become a trader too. “Actually, most of the biggest banks Rapid Astro-Trading Mastery
around the world have astrologers
“When you first start out,” the they confidentially consult with More recently, I’ve had a major
mentor said, “you’ll learn a lot about about trading opportunities and breakthrough in speeding up astro-
the companies behind the stocks. market trends. But of course those trading mastery, and I’ve been
You’ll read balance sheets and banks never publicize that fact. helping seasoned traders and
earnings statements, and look for newcomers alike find more
undervalued equities. But as you “When you use astrology in your confidence, more profitability, and
begin to trade, you will discover that trading, you’ll start to understand the more money-making insights. . . all
the fundamental approach has a lot way the markets really work. And more rapidly, and perhaps much
of limitations. then you won’t need to get any more sooner than you would expect.
advice from old fools like me.”
“Then you'll start to explore The results have been phenomenal.
technical analysis. You’ll try I Was Excited To Hear It And I was just wondering if you
different kinds of oscillators, would be as surprised as I’ve been in
stochastics, and moving averages, I can’t personally vouch for that discovering what it’s like to enjoy
and in every case, you'll eventually story. I wasn’t on the scene when the and profit from an outcome like that.
discover that they don't give you the original conversation took place.
trading edge you need. But whether or not you’re an
But that’s the way it was told to me, experienced trader, if you’re now
“If you stick with trading after that, and I have to admit I was really thinking about using astrology at all
you’ll probably get to the point pleased when I heard it. there are a few absolutely critical
where you take a look at cycles things you need to understand.
analysis and Elliott Wave theory, You see, astrology is vital for me
and you'll start to see patterns in and my own trading and analysis. In fact, if you don’t consider them,
price charts that you hadn't noticed the markets will eat you alive.
before. But after a while, you will As you may or may not know, I
understand that those wave counts focus most of my time on applying A Gift for You
are pretty subjective, and you won't new and proven astro-trading tools
trust them so much as indicators for to forecasting and profiting from You’ll find the details in my new
your trading, either. trends in the stock market. book on “Eight Billionaire
Strategies for Breakthrough Stock
“If you’re lucky, and if you don’t I started using astrology more than Market Success”.
lose your trading capital, you’ll hang 40 years ago, and have perfected
around long enough to encounter astro-trading techniques for the past It has just gone to press, and I’d like
Fibonacci ratios, and if you work 23 years—and I still spend at least to send you a copy with my
with them persistently you will be 10 to 12 hours each week, doing compliments. There’s no cost or
amazed at how well they connect detailed astrological research and obligation, but you do need to let me
with key market movements. There market back-testing. I also publish know where to send your copy by
is a lot of value in those Fibonacci Financial Cycles Weekly newsletter, logging on to the book sign-up page
numbers, and if you learn to use create professional astro-trading at http://tinyurl.com/traderbook
them they will add a lot of positive tools, and privately coach top-
potential to your trading. performing astro-traders. —Tim Bost

Introduction to Roger Babson’s
by Ron Jaenisch
R
oger Babson was at the New York to do something to prevent the losses. It
stock exchange on March 14, 1907, put him on the path, which resulted in the
at the request of a friend. The founding of Babson Business Statistics,
market had started a drop from a high Babson Business College and the Gravity
of 111 on March 6, 1907 on the way to a Research Foundation.
low point of 60. Much of the drop occurred Prior to Babson graduating from M.I T.
on March 14. “On that day I actually saw in 1898 he sat in Professor Swains Civil
men’s hair turn gray.” Roger wrote in his Engineering class. To make the class more
autobiography. interesting, Professor Swain used stock
It motivated him to do market charts to illustrate the application
a study of stock exchange of Isaac Newton’s laws – particularly of the
transactions and what law of action and reaction. Babson used the
he referred to as foolish exercises learned in the class to develop
investments. He came to his method of analyzing the stock market
the conclusion that the cost and investing, subsequently making his
to even thrifty investors was one and a half fortune as a financial advisor and investor.
billion dollars a year at that time. At that Roger Babson, himself said that
point he made a life changing decision, his interest in gravity started with the
Figure 1

childhood drowning of his older sister in alternative career. His father Nathaniel
a river near Gloucester, Massachusetts. Babson counseled Roger to find a line of
In an essay called “Gravity- Our Enemy work that would ensure “repeat” business
No. 1,” he wrote, “She was unable to fight indefinitely. After careful consideration,
gravity, which came up and seized her like Roger Babson decided to try the world
a dragon and brought her to the bottom of finance and looked for work as an
One of the things he valued throughout investment banker. In 1898, Roger began
his life was learning about the British his business career working for a Boston
scientist, mathematician, and philosopher, investment firm where he learned about
Isaac Newton. Roger Babson was impressed securities, stocks, and bonds. Inquisitive
by Newton’s discoveries, especially his by nature, Roger Babson soon knew
third law of motion--”For every action enough about investments to get himself
there is an equal and opposite reaction.” He fired. Acting in the best interests of his
intuitively combined Newton’s various laws clients, he had questioned the methods and
of motion, and focused upon the easiest to prices of his employer and quickly found
explain to the public, which was the third himself out of work. Babson subsequently
law of motion. He eventually incorporated set up his own business selling bonds at
Newton’s theory into many of his personal competitive prices in New York City and
and business endeavors. Later in this then in Worcester, Massachusetts.
article the reader will see how specifically He published his analysis of stocks and
Newton’s Action Reaction theory is applied bonds in newsletters and sold subscriptions
to trading. to interested banks and investors. In
Upon graduating in 1898, Roger 1904, with an initial investment of $1,200,
knew for certain that he preferred an Roger and Grace Babson founded Babson’s
Figure 2

Figure 3
Statistical Organization, later evolved that are useful for a technical trader to
into Business Statistics Organization and achieve and surpass such a goal.
then Babson’s Reports, until eventually Roger read several books and kept
it thrived as Babson-United Investment Brenner’s Prophecies of future ups
Reports. Probably due to the Internet and and downs in prices as one of his prize
free stock data, it closed its doors in 2001. possessions. He found that a particular
Babson, in his autobiography titled the quote from the book was important to
last chapter “How $2,000 can become remember.
$831,543 without borrowing a penny”. As “There is a time in the price of certain
the reader will later in this article, there products and commodities, Which if taken
are powerful techniques that he developed by men at the advance, But if taken on the
Figure 4

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Figure 5
decline leads to bankruptcy and ruin.” chart called the Babson chart.
It was Brenner’s book and a book As can be seen in the Babson Chart,
by Henry Hall, How money is made in a normal line is drawn through the chart,
securities investments, that Roger Babson Times above this line were thought of as
brought with him to an important meeting times of prosperity and times below it were
with his old friend, Professor Swain. It was times of recession or depression. Babson
Professor Swain that originally introduced utilized the charts to forecasts not only
him to the idea of applying Newton’s third the times of prosperity but the degree and
law of motion to investing. length of the periods.
It was Professor Swain that worked with Babson wrote in his autobiography,”Our
Roger Babson to come up with a composite contribution to the analyzing and
Figure 6

Figure 7
forecasting of business conditions was would be due. In making these studies we
in connection of the areas above and took cognizance primarily of the shape of
below this Normal line. Other systems the areas.”
of forecasting considered only the high The size and shape of next area of
and low of the charts, while our studies prosperity, which was above the normal
considered the areas of the charts. line, was independent of the size and
Based upon Newton’s Law of Action shape of the prior area that was below the
and Reaction, we assumed that after normal line.
a depression area, equal in area to Many scholars have examined the
the preceding area of prosperity, had theory and found it to be flawed. As you
developed, another area of prosperity will see in this article, the scholars did not
Figure 8

Figure 9
truly understand the concept. An example of the application to the
Recent computer based studies of this FXI chart above took three steps. First,
theory have led some to the conclusion, using a special protocol the Normal line
that the area above the normal line is was selected and drawn
very useful at forecasting the turning There after the high pivot point was
points in the area below the normal line. selected for drawing an Action line that is
Furthermore, as will be shown, that the parallel to the Normal line as seen in Chart
extremes of the areas above the normal B.
line can also be forecasted successfully Finally the pivot area of the recession
with a few modifications to the application area below the normal line was forecasted
to theory. by drawing a Reaction line. The Reaction
Figure 10

line is always drawn parallel to the Action peak to low line for the normal line, this
and Normal line. It is the same distance to is the appropriate line in over 5% of all
the normal line as the action line is. charts.
In the above gold chart the Normal line Roger Babson researched the application
was selected using the normal line selection of Newton’s third law of motion and used
procedure. There after three action points it to forecast important turns in the stock
were selected. Note that the Action and market. Speaking at the Annual National
Reaction points are equidistant form each Business Conference on September 5,
other in relation to the normal line. Note 1929 Roger Babson observed, “Sooner
that when the normal line is down sloping or later a crash is coming, and it may be
the action points that are selected are low terrific”. JK Gailbraith records: “Babson
points and the reaction points are high was not a man who inspired confidence
points. The selection of the low action points as a prophet in the manner of Irving
from extremes is not universal in the Action Fisher or the Harvard Economic Society.
Reaction line calculations processes. What As an educator, philosopher, theologian,
is also not universal is that in this case the statistician, forecaster and friend of the
Action points are equal and opposite to the law of gravity he has sometimes been
reaction from the normal line. thought to have spread himself too thin.
After the protocol has been applied The methods by which he reached his
to selecting the normal line in the above conclusions were a problem. They involved
Semiconductor Index chart. the action a hocus pocus of lines and areas on a
points were selected and the computer chart. Intuition and even mysticism played
program drew in the reaction lines. Note a part. Those who employed rational,
that in this case again the normal line is objective and scientific methods failed to
down sloping, the action points are low foretell the crash. In these matters, as so
points and the reaction points are typically often in our culture, it is far, far better to
high points. The action points are equal be wrong in a respectable way than to be
and opposite to the reaction points, when right for the wrong reasons. Wall St was
measured from the normal-center line. not at a loss as what to do about Babson.
When Alan Andrews drew the Action It promptly and soundly denounced him.”
Reaction lines by hand, the charts would Perhaps one of the reasons that Roger
look like the June 2010 Gold chart above Babson was denounced by JK Gailbraith,
and the action lines and reaction lines was that his theory seemed to simplistic to
would be numbered in order to identify the those that did not understand it completely.
pairs of Action and Reaction points easily. They would have learned that applying the
It is well known that Roger Babson used theory was a complex process.
Action Reaction theory for indices. Above Since Mr. Babson probably did not want
is a chart of a stock where the Action to confuse his audience he did not give
Reaction lines are drawn. The Action point the details to the general public about his
is equal and opposite to the reaction point forecasting methods, which as you can see
when measured from the center or normal in the above chart forecasted the low in
line. The prior three examples utilized a the SPX after the market made a massive

drop due to the events of September 11, The Author, Ron Jaenisch is a high
2001. performance psychologist, and has spent
Comments made by JK Gailbraith years studying the techniques, much of
indicated that, Roger Babsons forecasting which was with Dr. Alan Hall Andrews in
methods were far more complex than the Miami. Ron has a library of over 900 pages of
public was led to believe. Those that came to the writings of Professor Andrews, referred
the Gravity Research Foundation meetings to as the lost cache of Andrews writing.
such as Alan Andrews, Igor Sigorsky and The documents are full of rich details on
Clarence Birdseye were privileged to the the day to day use of the Action Reaction
details. Techniques, how they were
Alan Andrews taught applied in real time to
some of the Action Reaction generate substantial profits
trading concepts to the and various techniques that
public in his “Action/Reaction Alan Andrews only told to a
Course” that he offered after select few.
he retired as a Professor This treasure of
of Civil Engineering at the documents gave Ron a
University of Miami. In unique opportunity to apply
private sessions and writings NLP in order to model the
recently discovered (often extremely successful trading
referred to as the hidden periods of Dr. Andrews in
cache of Andrews writings), the 1960’s and early 1970’s.
he revealed the many rules During this time Andrews
as well as something he would send out exact trading
called the “Ore rule”. It is directions on Friday for the
Figure 11
a mathematical formula next week via U. S. mail.
that Professor Andrews recommended for During a 6-month demonstration period
the selection of the Normal lines for high Andrews was able to turn $5,000 into
probability trades. $50,000 trading futures while giving his
When it comes to Normal lines, there are students orders ahead of time via mail.
a wide variety of types of lines that may be
drawn and important rules as to which one Ron Jaenisch, lives in the USA and his email
to use under varying market conditions. In address is RonJaenisch@hotmail.com.
addition there are rule sets to determine His website is www.Andrewscourse.com
the selection of Action points, which are where the Updated Advanced Andrews
used to determine the Reaction points. Course (with manuals and videos) can be
With the advent of computer technology ordered as well as a leather bound copy of
the rule sets are very easy to implement. the hidden cache Andrews techniques.
There is so much more to understand
prior to using the techniques for trading.
This leaves lots of material for future
articles.

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WWW.TRADERSWORLD.COM January/February 2011
Minimizing Financial Risk
in a Changing Investment
Environment By Steve Selengut
such hype causes among investors. No way

should a weak real estate market translate
into near zero bank balance sheet entries
--- it just doesn’t compute, except when it
is popular politics.
Similarly, the reality of financial-impact
cycles (market, interest rate, economy,
industry, etc.) just doesn’t fit at all into
M
the hindsightful, but popular and generally
ost investors incorrectly think accepted, calendar year assessment
of “risk” as the possibility that mechanisms. Brainwashing again.
the market value of a financial The amount, cause, frequency, range,
asset might fall below the and duration of market value change will
amount that he or she has invested in the always vary in an “I-don’t-care-who-you-
asset. OMG, how could this be happening! listen-to” unpredictably certain way --- the
Think about it. The harboring of these certainty being that the change in market
misconceptions (that lower market price values of investment assets is inevitable,
= loss or bad and/or that higher market unpredictable, and essential to long term
price = profit or good) is the greatest investment success.
risk creator of all. It invariably causes Without these natural changes, there
inappropriate actions within the large would be no hope of gain, no chance of
mass of individuals who are uninitiated in buying low and selling higher. No risk, no
the ways of the investment gods. profits, and no excitement--- boring!
Risk is the reality of financial assets The first steps in risk minimization
and financial markets: the current value are cerebral, and involve developing
of all securities will change, from “real” an understanding of the fundamental
property through time-restrained futures economic purpose of the two basic classes
speculations. Anything that is “marketable” of investment securities.
is subject to changes in market value. It is From the investors’ perspective: (a)
as the gods intended, and portfolios can equity securities are expected to produce
be designed so that it just doesn’t matter growth in the form of realized capital gains,
quite so much as you’ve been brainwashed and (b) income securities are expected
into thinking. to produce spendable (or reinvestable)
What is abnormal is the hype surrounding income. But it isn’t real growth until it’s
market value changes and the hysteria realized, or real income until it’s received.

Alternative investments? These are is education. You just can’t afford to put
the contracts, gimmicks, commodities, money into things you don’t understand,
hedges, and other creative ideas that or which the salesman can’t explain to
college textbooks used to call speculations. you in ordinary English, Spanish, French,
Once upon a time, fiduciaries, trustees, whatever.
and unsophisticated individuals weren’t Of course you would prefer to skip this
allowed to use them. The stigma is gone, step and jump right into some new product
but the artificial demand adds risk to all athletic shoes that will hurdle you over the
markets. work and directly into the profits. How’s
They are especially risky for the millions that been working out for you? It was once
of 401(k) and IRA investors who probably written (somewhere): no work, no reward.
cannot explain the difference between Risk is compounded by ignorance,
stocks and bonds, from any perspective. multiplied by gimmickry, and exacerbated
Most investors have virtually no clue what by emotion. It is halved with education,
is actually being done inside the products ameliorated with cost-based asset
they select, and have even less of an allocation, and managed with disciplined:
interest in learning about it. They dance selection quality, diversification, and
knee-jerk style to the daily media buzz. income rules--- The QDI.
Wall Street knows this, and takes Real financial risk in equities boils
advantage of it mercilessly. In spite of down to: the possibility that a company’s
the recent financial crisis, pension plan stock (that 30% share of your brother-in-
fiduciaries (particularly in the public sector, laws’ pizza parlor) will become worthless
go figure) are falling all over themselves to as management succumbs to economic
throw money at the very alternative and forces, and/or mandated costs imposed
derivative speculations that crashed the by outside entities whose edicts must be
market just months ago. complied with.
401(k) participants are force fed In debt-based securities, risk is: the
products du jour from self-serving possibility that the issuer of an interest
providor menus that make little effort to bearing IOU (the money your spouse
identify risk, much less minimize it. Very loaned her brother at 6% to start flinging
few plans allow participants to develop an pizza) stops or falls behind on its payment
understanding of their investment choices obligations and/or declares bankruptcy
with the only education provided by the and wipes out both owner (shareholder)
product vendors themselves. and creditor (bond holder) interests.
What ever happened to stocks and Here’s an interesting risk in the
bonds, the building blocks of capitalism? Do securities markets, one that governments
investors recognize the financial interest have cleverly refused to address for
they have in the very corporations their fairly obvious reasons. The “Masters of
elected officials are encouraged to tax, the Universe” routinely get paid obscene
constrain, and regulate into competitive amounts of compensation for risking OPM
mediocrity? (other people’s money) perhaps a bit too
Another mental step in risk minimization cavalierly.

Company fails, shareholder interests Do we risk more for the chance of a
become valueless, debt obligations are greater return, or do we risk less and
worthless, while the fat cats keep raking it try to preserve our investment capital?
in, even suing to preserve their bonuses. Keeping in mind that investment capital is
Boardroom corruption, and direct lobbying a measure of cost, not of market value,
(another euphemism, for bribing) of and that the only real loss is a realized
elected officials are two additional risks loss.
that investors need to be aware of. Typically, the older the investor, the
Most people enter the investment arena more boring or income focused the portfolio
thinking that “Risk” is a board game they should be --- minimizing the overall level
played in college. Today, I would guess of risk. But it’s difficult to actively minimize
that the majority of investors have never or manage your risk in the “open end”
owned an individual share of common mutual fund or passively managed ETF
stock or a Municipal Bond. marketplaces.
The popularity of investment products Risk minimization requires the
has heightened the risk for all investors identification of what’s inside a portfolio.
and has indirectly led to many of the policy Risk control requires decision-making by
errors that threaten both capitalism and the owner of the investment assets. Risk
the economic fabric of America. Market management requires a selection process
prices are increasingly and inappropriately from a universe of securities that meet a
influenced by decision-making based only known set of qualitative standards.
on the derivatives that contain them. Product owners assume the added “fear
Few people consider the investment and greed” risk of the general population,
risk associated with public policy decisions. while their fund mangers stand aside and
Product investors and derivative speculators mumble about the opportunities lost in
participate in less personal markets, where either direction.
it is more difficult to connect the dots Without a risk sensitive menu to
between their personal financial interests select from, 401(k) participants need to
and their political alignments. minimize risk by: (a) avoiding the poor
So in a very real sense, investors diversification that may be a requirement
have to deal with public policy risk every of their plan, and (b) developing outside
bit as much as they need to analyze the income portfolios with any investable
risks associated with the securities and income above the employer matching
other financial products they hold in their contribution.
portfolios --- complicated, but it is doable. The first and most important
Apart form these important peripheral management action focused on risk
considerations, the risk of loss in any equity minimization in any “program” is the
investment is generally greater than the development of an asset allocation plan.
risk of loss in any debt related instrument. The plan separates “liquid” investment
The potential reward from each type is assets into two buckets (Equity and
just the opposite, and that’s where all the Income) based on cost, not market value.
excitement begins. No portfolio should have less than 30% in

The Market Cycle Investment Management Methodology (MCIM)
Steven R. Selengut
Most investors, and many investment of investing as a competitive event. What index
professionals, choose their securities, run their or average comes even close in content to your
portfolios, and base their decisions on the unique portfolio of securities?
emotional energy they pick up on the Internet, The MCIM methodology is not a market timing
in media sound bytes, and through the product device in any sense of the word, but its disciplines
offerings of Wall Street institutional boiler rooms. will force managers to add equities to portfolios
They move cyclically from fear to greed and back more during corrections and to take profits
again, most often gyrating in precisely the wrong enthusiastically during rallies. As a natural (and
direction, at or near precisely the wrong time. planned) effect, portfolio "smart cash" levels will
The MCIM methodology combines risk increase during upward cycles, and decrease as
minimization, asset allocation, equity trading, buying opportunities increase during downward
investment grade value stock investing, and cycles. (See the "Process" Chart)
base income generation in an environment Absolutely no attempt is made to pick
whose time frame recognizes and embraces the bottoms or tops, and strict rules apply to
reality of cycles. It attempts to take advantage
of widespread "fear and greed" decision-making
by others, by using a disciplined, patient, and
common sense methodology.
This methodology embraces the cyclical
nature of markets, interest rates, and economies
--- and the political, social, and natural events
that can trigger changes in cyclical direction.
Little weight is given either to the short-term
movement of indices and averages, or to the
idea that the calendar year is the playing field for
the investment "game".
Interestingly, the cycles themselves seem
to concur with the irrelevance of calendar year
analysis, and it makes little sense at all to think
both buying and selling

disciplines. NOTE: these
rules are covered in minute
detail in “The Brainwashing
of the American Investor”
(click on the book on the
left to order the book from
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the income bucket --- no ifs, ands, or buts. disciplined, targeted, Profit Taking are the
And no investment plan should be only hedges an investment portfolio needs
developed “tax” or “cost” first. Risk to assure long-term success. Conveniently,
minimization comes first, and then tax the QDI+PT applies equally well to both
minimization if possible. Finally, transaction classes of investment securities.
cost minimization can be considered if you “Q” is for quality. If you study the long-
are qualified to run your program yourself. term behavior of Investment Grade Value
A cost based asset allocation approach Stocks, and high quality income CEFs,
(Working Capital Model) assures growing you’ll discover that they hedge themselves
levels of “base income” throughout the quite effectively.
portfolio development process and, Risk is wrung out of portfolios by
possibly, into retirement. Income growth, investing only in S & P, B+ or better rated,
by the way, is the only real hedge against dividend paying, and historically profitable
that other economic risk, inflation --- a companies and then only when their equity
buying power problem that has nothing to prices are well below their 52-week highs.
do with the market value of the income “D” is for diversification. Absolutely
producing assets. never allow any position in your portfolio
Minimizing investment risk is done to exceed 5% of total portfolio working
best through the use of disciplined sets of capital (i.e., the total cost basis) and never
rules for the various operations involved in start a position anywhere near maximum
managing a portfolio. Strict rules need to exposure. You want to be able to buy more
be developed for security selection, three at lower prices.
types of diversification, income production, Similar diversification rules apply to
and for profit taking. industry exposure and global diversification
Forget the Wall Street “I-can-fix-that” through the use of the mainly world class
product menagerie. We’re not interested companies in the investment grade quality
in massaging our market value to take the categories.
sting out of cyclical market value changes. “I” is for income. Own no security
Our plan is to take advantage of these that does not pay regular, dependable,
changes as they unwind around us over dividends or interest. Regular and growing
time, and when they occur unexpectedly, dividends are a quality indicator in equities.
causing short-term disruptions and In the income “bucket”, seek out above
dislocations. average yields while avoiding those that
In the securities markets (stocks seem either too high or two low.
and bonds), the real risk of loss can be Managed closed end funds do it best
minimized without products and futures and provide easy “PT” and “buy more”
speculations, without commodities and opportunities. Buy established CEFs with
hedge funds, and without the ageda that long term “income” (not ROC) payment
most people experience throughout their records.
investment lifetimes. “PT” is for profit taking. Absolutely
The old fashioned principles of investing: always smile and take your profits willingly,
Quality, Diversification, and Income, plus net/net 7% to 10% (dependent upon

available reinvestment possibilities and is fairly easy to determine, and you need
security class), and never, ever, look back. to position yourself to take advantage of
Trading this same body of securities, the higher rates that will sneak into the
again and again, has been shown to sustain economic formula as the cycle moves
growth of capital and income consistently further and further from its recent lows.
in a relatively low risk environment. How do we prepare for higher interest
rates? By designing the income bucket
Market Cycle Investment of the portfolio so that it refills itself with
Management With Ten Time at least 30% of total portfolio realized
Tested Risk Minimizers income, and by owning income generating
In the recent financial crisis, a very small securities in a form that is easy to add to.
percentage of (I bought my house to live With a reality-based perspective,
in) homeowners stopped paying on their investors appreciate that falling market
mortgages. Still, the hysteria over the values are opportunities to add to portfolios.
bursting housing bubble (i.e., lower market Loss taking and cash hording as stop loss
values) led to financial institution road-kill measures for income portfolios is a flawed
because of ridiculous accounting rules. strategy from all but one perspective ---
When the dot-come bubble destroyed that of the salesperson.
“new economy” gladiators in a gory That seemingly rational form of
spectacle destined to repeat itself over attempted market timing reduces
time, what investment portfolios cheered the amount of income available for
unscathed from the coliseum bleachers? reinvestment and living expenses, in an
If you reduce the amount of betting in approach that creates victims of higher
your portfolio (and throw out politicians interest rates instead of beneficiaries. You
who don’t have a clue about the workings need to welcome both higher and lower
of free markets) you can safely navigate interest rates, if for no other reason than
even the choppiest seas that the market, that you can’t prevent them.
interest rate, and economic cycles roll your Don’t mess with the investment gods;
way. accept the cycles they throw at you; respect
The tide-like change of market values and use them wisely for a better chance
is the normal order of things, and until we of investment success. Find meaningful
embrace the cyclical nature of markets, numbers that signal cyclical change and
all markets, our disappointment and which chart current positioning. Try the
disillusionment will continue. Portfolio IGVSI and related Issue Breadth, High vs.
market values will reflect where we are Low, and Bargain Monitor analytics.
within the various cycles.
Interest rate sensitive securities (all Bohicket Creek, in coastal South
bonds, government securities, preferred Carolina, has tides ranging from four to
stocks, and relatively high dividend seven feet, twice a day, every day --- not
equities) vary inversely with interest rate unlike the gyrations of the stock market. If
expectations, most of the time. you are in the ocean at high tide, and stay
Where we are in the interest rate cycle too long, you risk walking home shin-deep

in Pluff Mud a few hours later. infrequently and gradually. There is no
Boaters run aground by not paying popular index or average that matches
attention to tides, charts, navigation tools your portfolio, and calendar sub-divisions
and their GPSes. Investors get swamped have no relationship to market, interest
with information, media noise, breaking rate, or economic cycles.
news, politicians, gurus, and derivatives 4. Never fall in love with a security.
--- so much so that they can’t see the No reasonable profit, in either class of
oncoming fog banks and tsunamis of security, should ever go unrealized. Profit
cyclical change. targeting must be part of your plan, and
Most investment mistakes are caused by keep in mind that three sevens beats two
basic misunderstandings of the securities tens --- and is much easier to achieve.
markets and by invalid performance 5. Prevent “analysis paralysis” from
expectations. Losing money on an short-circuiting your decision-making
investment may not be the result of an powers. Limit the information you allow
investment sandbar and not all mistakes into your course charting process, and
in judgment result in broken propellers. avoid any form of future prediction or bet
Errors occur most frequently when covering.
judgment is rocked out of the boat by 6. Burn, delete, toss-out-the-window
emotion, hindsight, and misconceptions any short cuts or gimmicks that are
about how securities react to waves of supposed to provide instant stock picking
varying economic, political, and hysterical success with minimum effort. Consumers’
circumstances. You are the commander of obsession with products underlines how
your investment fleet. Use these ten risk- Wall Street has made it impossible for
minimizers as lifeboats: financial professionals to survive without
1. Identify realistic goals that include them. Remember: consumers buy
time, risk-tolerance, and future income products; investors select securities.
requirements --- chart your course before 7. Attend a workshop on interest rate
you leave the pier. A well thought out expectation (IRE) sensitive securities and
plan will minimize tacking maneuvers. A learn to deal with changes in their market
well-captained plan will not need trendy value --- in either direction. Few investors
hardware or exotic rigging. ever realize the full power of their income
2. Learn to distinguish between portfolio. Market value changes must be
asset allocation and diversification. expected and understood, not reacted to
Asset allocation divides the portfolio with fear or greed. Fixed income does not
between equity and income securities. mean fixed price.
Diversification limits the size of individual 8. Ignore Mother Nature’s evil twin
holdings in several ways. Both hedge daughters, speculation and pessimism.
against the risk of loss. Both are done best They’ll con you into buying at market peaks
using a cost based approach. and panicking when prices fall, ignoring
3. Be patient with your plan and the cyclical opportunities provided by their
think of it as a long-term voyage to a Momma. Never buy at all time high prices
specific destination --- change direction and avoid story stocks religiously. Always

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Gann's Astrological Method
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W D Gann was one of the most successful
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HARMONIC ELLIOTT WAVE
By Ian Copsey
T
here is no doubt Elliott Wave is one THE HARMONIC WAVE
of those techniques that traders STRUCTURE
either love or hate. For some Given that I believe quite strongly in the use
it’s almost a status symbol to be of natural order ratios in both retracements
able to count waves. Others find it just and wave projections I have spent a great
too hard. I have looked over some online deal of time working out which waves were
Elliott Wave forums on an occasional basis related. It was through this process that I
just to have a look at how people discuss thought I noticed a “Special Wave A” move
their wave counts. It’s not an infrequent that Robert Prechter noted in 1986, a
comment I see when some state “I like diagonal triangle wave development which is
Elliott Wave but it’s like something isn’t normally associated with an extended Wave
quite right.” Others tend to not adhere 5 was occasionally seen in a Wave A position.
too strictly to the rules and just observe See Figure 1: Prechter’s Special Wave A
for 5-wave moves. Looking at leading developing in five sets of three-waves
Elliotticians’ analyses their counts rarely However, what I was facing was a five-
any adhered to any relationships… wave move that developed in a similar
If you are one of these Elliotticians that manner to a diagonal triangle, in which
have had these doubts when counting waves Waves (i), (iii) and (v) all developed in
I have news for you… You’re absolutely three waves and not five… This implied that
right. R.N. Elliott made a misjudgment in any individual five-wave move could only
the impulsive wave structure. I am 100% develop in a Wave A position or in a Wave C
certain of that. position. In the next higher degree this ABC
sequence actually formed one section of a
Figure 1 Figure 2

larger five-wave sequence all constructed of impulse wave now appears. Note that each
three-waves. Wave a and Wave c are constructed of five
If I attempted to apply Fibonacci waves as Elliott originally proposed. As
relationships to the standard count that would opposed to the five wave impulse move
treat these as an example of an extending in Elliott’s original version that could form
wave everything fell flat. There were no either a Wave 1, Wave 3, Wave 5, Wave A or
relationships. When I used the three-wave Wave C the harmonic version can only form
structure for Waves (i), (iii) and (v) then the Wave A or Wave C.
wave relationships were perfect – and there See Figure 3 A five-wave decline in the
was no missing wave at completion. 10-minute USDCHF market
As went through my daily ritual of The chart above displays a 5-wave decline
tapping out various potential waves and in USDCHF. While at first glance Elliotticians
finding relationships I suddenly found will declare this to be an example of an
myself using this alternative all the time. extending Wave 3 the key to confirming
The projections and retracements began to this harmonic structure is through the wave
become consistently accurate. See Figure 2 relationships. Before going on further I
A harmonic impulse wave. should explain how Fibonacci and harmonic
The image displays how the harmonic ratios actually work.
A decline in the 10-minute GBPUSD market Figure 3

APPLICATION OF FIBONCCI around certain ratios while corrective ratios
AND HARMONIC RATIOS in Wave (c) also had its own clusters.
I shall not discuss in full how the Fibonacci What I noted was that specifically Wave
sequence was developed, or the ratios, but (iii) it is possible to take the ratios less than
merely state the popular retracement ratios 100% and add them to 100%, 200% and
of 38.2%, 50.0% and 61.8%. For projections occasionally 300% and 400% etc. These
161.8% and 261.8% are popular. generated projections of:
In fact, using the same methodology Mostly commonly extensions in Wave (iii)
we can derive a whole range of ratios, both I find on a very frequent basis are:
above and below 100%. 176.4%, 185.4%, 194.4%, 223.6%,
Below zero: 261.8%, 276.4%, 285.4% and 295.4%
5.6%, 9.0%, 14.6%, 23.6%, 33.3%, Mostly commonly extensions in Wave (c)
38.2%, 50%, 61.8%, 66.6%, 76.4%, I find on a very frequent basis are:
85.4%, 90.0% 94.4% 85.4%, 95.4%, 100%, 105.6%, 109%,
Above zero: 114.6%, 123.6%, 138.2% and 161.8%
161.8%, 261.8%, 423.6%, 685.4%,
1109.0% 1794.4% APPLYING WAVE
RELATIONSHIPS TO THE
The Square Root of Two HARMONIC WAVE STRUCTURE
The square root of 2, also known as The key to the harmonic wave structure is
Pythagoras’ constant, is the positive real the requirement for all degrees of the wave
number that, when multiplied by itself, gives structure to develop with relationships that
the number 2. Geometrically the square confirm each other. For example, very clearly
root of 2 is the length of a diagonal across Wave (c) must be related to Wave (a), Wave
a square with sides of one unit of length; (iii) must be related to Wave (i) and the Wave
this follows from the Pythagorean theorem. (c) of Wave (iii) must have the same target
It was probably the first number known to areas. Within the Wave (c) of Wave (iii) the
be irrational. Its numerical value truncated Wave v must also develop with a ratio that
to 5 decimal places is: 1.41421 confirms the same targets as the projection
At first I wasn’t quite sure how to use of Wave (i) and the projection in Wave (c).
this until I began to sit down and study wave This type of harmonious development is key
relationships and noted that two derivations to confirming the structure.
of the number frequently occurred: 41.4% Now, referring back to the earlier chart
and it’s “opposite” 58.6% being 100 – 41.4. of USDCHF the following relationships were
noted. See Figure 4.
Alternative Wave In this example the wave relationships are
Relationships exceptionally accurate. It is very important
From the many hours of research into the to note how the internal ABC relationships
common relationships between waves I confirm the projections of Waves –i- through
noted those that are generated directly from Wave –v-. In addition, while not shown the
both Fibonacci and the square root of two end of Wave (c) at 1.0434 should also be a
with trending projections tending to cluster close relationship with that of Wave (a).

Implications in Wave Wave (iv) should be related to Wave (iii)
Relationships Wave (v) should be related to a ratio
As has been mentioned on several occasions of the beginning of Wave (i) to the end of
the basis quoted by leading Elliott Wave Wave (iii)
followers is that market movements follow Within Wave (v) Wave c should be related
natural ratios and therefore the sequence to Wave a and match the target in Wave (v)
of waves in a structure should reflect this When these are applied to the harmonic
principle of relationships. However, the wave structure it can become a thing of
current structure fails to adhere to these beauty…
for the most part. The Harmonic Wave Let me finish this brief explanation with
structure requires there to be natural wave an example of how Elliott’s structure can
relationships: mislead. See Figure 5.
Wave c in Wave (i) should be related to A decline in the 10-minute GBPUSD
Wave a market
Wave (ii) should be related to Wave (i) The charts both display a decline in the
Wave (iii) should be related to Wave (i) hourly GBPUSD market. The upper chart
Within Wave (iii) Wave c should be has been labeled with what is a logical
related to Wave a and match the target in wave count under Elliott’s description of the
Wave (iii) wave structure. This appears to decline in

a complex five-wave move in which Wave relationships and this generated the second
(3) has a double extension. Apart from the problem of being able to forecast where
correction in Wave (2) all the swing highs price should stall.
and swing lows are declining confirming The lower chart labels this completely
a bearish move. This decline followed a differently as a three-wave decline. There will
previous move lower and therefore the be many Elliott Wave practitioners that will
implication is for another five-wave decline. question this but the evidence for the count
The decline in Wave (1) does follow come through the wave relationships which
Elliott’s structure of five waves with Wave in this case provide exceptionally accurate
3 being the longest and providing the main ratios that provided me with a much easier
thrust of the decline. The correction in Wave call for a reversal higher.
(2) appears normal and this is followed by a See Figure 6 and 7.
Wave (3) which has extended twice. Wave The table to the left displays the wave
-2- is an expanded flat with the rest of the relationships implied by Elliott’s original wave
decline developing normally. structure. As can be seen there is a mixture
The problems I habitually encountered of wave relationships. While there are some
with Elliott’s structural development were that have the normal wave relationships I
twofold. Firstly these extended waves look for, within a reasonable deviation, I have
frequently lacked any consistent wave highlighted those which really would have
Figure 5
4

posed serious issues in forecasting. Indeed, (v) of Wave (C) was only 4 points while the
there would be no real way to accurately projection in Wave (C) was 1 point away
anticipate the end of the waves. from the exact 161.8% projection of Wave
It was this type of imprecision that I (A).
found difficult to accept. On many occasions From that 1.5503 low price raced higher
the failure to be able to identify turns within in apparent defiance of Elliott’s structure.
a reasonable margin saw reversals much However, it was an easy call for me to make…
earlier and left me in no-man’s land wondering
whether a correction was being seen and not THE HARMONIC WAVE
a reversal. Anticipating extended waves and STRUCTURE IN OTHER
where each Wave 1 would stall was a hit- MARKETS
or-miss affair and then everything became So far I have given examples in the Forex
much more problematic. market in which I have worked for most of
The table below displays the relationships my 28 years in markets. I had always found
in the harmonic wave structure. The clarity forecasting other markets a lot tougher.
of the wave relationships stand out from the However, the harmonic wave structure has
first five-wave decline in Wave (A). Every changed this and provides further evidence
single relationship is common for its own that it reflects the correct impulsive structure
position, the 198.4% projection in Wave through all markets. I have made accurate
(iii), the 33.3% retracement in Wave (iv) forecasts in equity markets and gold to
and the 76.4% projection in Wave (v). The confirm that the harmonic wave structure is
maximum variance was just 3 points. applicable to all markets and timeframes.
The correction in Wave (B) developed
as an expanded flat with the pullback being CONCLUSION
exactly 61.8%. These common relationships I have been able only to include a limited
continued throughout the entire decline number of examples in this article but I
even to the end where the extension in Wave hope sufficient to provide solid evidence
Elliott’s original structure Figure 6 Harmonic wave structure Figure 7

that R.N. Elliott did unfortunately make
a misjudgment in the impulsive wave
structure, but an understandable
given the limited resources in being able to
one
SUBSCRIPTION
thoroughly research all wave relationships
TRADERS WORLD
without extensive manual calculations.
However, I should add that the harmonic MAGAZINE Digital
wave structure is not a holy grail and there
is always a strong element of subjectivity
which can occur, specifically when Waves
(i) and (ii) are difficult to identify with any
certainty. However, the requirement for wave
relationships reduces the level of subjectivity
compared to the original structure.
I provide more detailed explanations on
the various implications of the harmonic
wave structure in my book and a greater
number of examples.
There is no doubt in my mind whatsoever
that the harmonic wave structure provides
a stronger framework on wave recognition
and improves the ability to forecast by a
very significant degree.
Ian Copsey
www.harmonic-ewave.com
Ian Copsey is a veteran technician having

begun his career in Foreign Exchange over
28 years ago. He provides his harmonic
daily forecasting report on the Forex
market through www.harmonic-ewave.com.
Click to
His book “Integrated Technical Analysis”
has been read by over 4,000 readers get the
worldwide. His experience ranges from
working in Barclays Bank’s trading rooms 48 issues on
in London and Hong Kong, acting as a
technical analysis specialist for Dow Jones
CD
Telerate in Tokyo where he provided
seminars for bank traders and later as the
regional manager for technical analysis Click to
products in Asia Pacific. He is also an Subscribe for
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lived in Asia for over 22 years in Hong only $19.95
Kong, Singapore and Tokyo where he now
lives with his Japanese wife.

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Gann and Murrey “sea”
12.50% Rule: 1942 and
1992
Gann and Murrey “see” 12.50% Move want to run to 37.50% or 62.50% exact:
Rule: starting with Murrey’s Binary Algorithm:
Gann 1942 then Murrey 1992 MBA: .00152587890625 doubled out 17,
1992: Murrey “sees” 12.50% Rule: + 18 or 19 times will give you every (exact)
12.50% = 14.0625% Rule future reverse for any and all markets set
to Base Ten.
12.50: = 1/8th (of) 1/8th = 1.40625:
14.0625: 140.625: 1,406.25: 140,625 If you believe all market reverses to be
14,062.50 random, you can’t imagine one number
will “present” you with every (exact) future
Music City Money Maker: Murrey Math: price off M’$pie = 3.125.
created 1992 Oct 09 Nashville 37215
Wall Street Experts and “local”
Perfect Pitch Harmony “loses” 1/8 th
experts are (not) allowed to tell you:
(of) 1/8th = 1/64th 3.125 minutes (after) there are no random market reverses
“Tuned” when you set all markets to: MMTS
Dow 30 Index 1/64th = 156.25 exact
Murrey Math Spread for (intraday) trading 1900 Oct (09 to 11) S&P 100
1.5625: 156.25: 1,562.50 by 3/8th = Index at 140.625 + 703.125
37.50% = 4,687.50 x 3 = 14,062.50 = 843.75 highs 03.24.2000
1/64th = 1.5625: 15.625: 156.25: 1990 Oct 09 Gold at 250.00 + 1,000 =
1,562.50: 15,625: 156,250 1,250 + 1/8th = 156.25 = 1,406.25
1.5625 x 3 = 4.6875: 46.875: 468.75: 1990 Oct 09 Crude Oil at
4,687.50 40.625 + 100 = 140.625
1.5625 x 9 = 14.0625: 140.625: 1990 Oct 09 Dow 30 Index at 2,500 + 10,000
1,406.25: 14,062.50 + 1,562.50 = 14,062.50 on Oct 09 2007
1990 Oct 09 US 30 Yr Bond
12,500 by 1/8th = 1,562.50 x 3 (3/8th) All Time Highs at 140.625
= 4,687.50 Run x 3 = 14,062.50 1990 Oct 09 BRK.A All
1,250 by 1/8th = 156.25 Yrs = Mayan: Time Highs at 140,625.00
El Nino” Time x 3 = 468.75 Yr Cycle 1990 Oct 09 S&P 500 Index at 312.50 x
5 = 1,562.50 on 17 Yr. Cycle 2007 Oct 09
T. Henning Murrey created 1992 – ’93
the world’s (only) 100% Harmonic 17 Time: 17 Yr Murrey Math Cycle: Start
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1854 Oct 09: Nashville
Price: M’$pie = 3.125 produces all 17 5 Yr Cycle: 2007 to 2012 End 26,000
or (17 x 17) 289 Internal trading Octaves Sun Light (across) Milky Way (at) 180
known Degrees
Since 1992 – 1993 and “back tested” 2007 Aug 17 End Cycle Turns Negative:
to Crash (of) Oct 1987: Crash Oct 1929: Dow 30 Index 14,000 (near) 14,062.50*
Oct 2007
Mayan Indians set USA Central Time:
Mayan 52 Yr Cycle: 3/8 run 52 x 3 =
th
at 18 x 19 = 342 (almost) (7 x 7 x 7)
156: x 3 = 468 Yr Cycle* wheat Stores*
Mayan 520 Yr. Cycle: 52 x 10 = 520 + Phi: .618 so we insert 18.618 x 19.618
1492 Oct 09 Columbus Day = 2012 End* = 365.24 Yr Year: Wow: 5th Grade Math*
1519 AD The Mayan Culture (already) Murrey’s Birthday: 3.125 Yr Cycle

knew they would have to “suffer” through Oct 09 1997 S&P 100 Index at 468.75
156 x 3 = 468 Yr Cycle (of) torture by = 843.75 + 3/8th (125 x 3) = 843.75
Spanish Plague (of) Religious Ignorance 468.75 + 2/8th (125 x 2) = 718.75 +
when one Spanish Moron Leader burned 15.625 (1/64th) = 734.375 price on 2007
10,000 math books (of) Mayans in one Oct 11
day’s hard work.* Oct 25 1997 lows at 406.25: to 843.75
= 437.50 = Perfect Pitch
*He said: “the Devil made him do it” for Oct 25 1997 lows at 406.25 to 734.375
the protection of ignorant Christians who on Oct 09 to 11 2007 = 250 (2/8th) =
hate math and can’t memorize Moses’ 365 656.25
Sins (days) of the Covenant Year. + ½ Note: 62.50 = 718.75 + 1/8th Note
15.625 = 734.375
Mayan Culture 1519 AD predicted
“suffering” takeover 1562 AD to end Aug Murrey’s Birthday 5 Yr Cycle: 2002 to
17 1987* 2007
1987 Crash Aug 24 USA Stock Market End Y2K Bear Market Crash (off)
by way of World Currency Crash 140.625: 1 PE Ratio = “Losers”
1519 + 468 “Suffering” Cycle = 1987 End on Oct 09 2002: S&P 100 at
Aug 17th World Currency Crash* 390.625 (up) to 2007 Oct (09 to 11)
Aug 17 1987 Negative Cycle to Aug 17 390.625 to 734.375 = + 2/8th (125 x
1992 + Cycle and Dow 30 Index moves up 2) = 250 + 390.625 = 640.625 + ½ Note:
+ 300%* 62.50 = 703.125: + ¼ Note: 31.25 =
734.375 Close 2007 Oct (09 to 11)
5 Yr Cycle 390.625 + ( 7 x 7 x 7) = 343.75 =
2001 Aug 16 Negative Signal: Twin 734.375
Towers: World Turmoil: Sept 11 2001* This is a very long article and is continued
2002 Aug 16 Positive Mayan Cycle: USA on the web at:
stock market moved up + 100%* www.tradersworld.com/murrey48.pdf

What Really Matters Most
About Markets?
By Jeff Rickerson
exact price of the high/low or the exact
time (day) of the high/low?
Price is EVERYTHING because
everything is contained within the price. All
fundamental news and thousands of pages
of reports, all greed, all fear, all knowledge
is contained within the price for that
market. Price is everything and price is
reality.
Think of a price chart as a puzzle with

a million pieces. Eighty percent of that
puzzle is already put together for you and
is right before your eyes in the form of a
What do you think REALLY matters daily bar chart. What does the other 20%
most about markets? ...................... of that puzzle look like?
One of the key principles of trading
PRICE! success is what is called the 80/20 Rule/
Principle.
Most traders focus on TIME. Guess On page 23 Chapter Two of my book
what? Albert Einstein pointed out that «The Art of The Trade I (Cracking The Code
time is just an illusion and that everything & Unlocking the Secrets to Trend/Profit) I
is happening simultaneously (and this is talk about four(4) Key Principles. One of
what quantum physicists also tell us). those Key principles is the rule of 80/20
discovered by Vilfredo Pareto in 1897. The
Time is an illusion…..price is everything! rule of 80/20 simply states that 20% of
your effort creates 80% of your results.
However, Einstein also stated that In my NEW book The Art of The Trade
price is a function of time in his method II (The Art & Science of Trading Profits) I
of predicting price movement! Yes, he did discuss this 80/20 rule and how it applies
discover this and very few traders know to trading. I state that not only does 80/20
this. For more information see my book mean 20% of your effort creates 80% of
“The Art of The Trade I…Cracking the Code your results but also “both in Time, Energy,
and Unlocking the Secrets to Trend/Profit” and Money!”
on page 24 and page 67. I illustrate this 80/20 principle as
applied to trading as follows:
Which would you rather know: the Suppose you have $1,000 to trade with.

How would you trade that $1,000.00? Let›s TREND?........
theorize two trades. Here are the results
of your two theoretical trades: SYMMETRY!

Trade #1: $800.00 profit / $200.00 SYMMETRY of course! To be more
investment = 400% return precise exact price/time squared which
Trade #2: $200 profit / $800.00 leads to perfect trend symmetry. Trend
investment = 25% return symmetry is a price/trend that is repeating
in exact price/time flow within an exact
The 80/20 Rule as applied to trading is price and time pattern that is as equalized
very profound. For every dollar invested in as possible. It would be like the market
Trade #1 would yield 16 times more profit looking into a mirror reflecting itself back
than the same dollar invested in Trade onto itself in a never-ending flow of price
#2! (400 / 25 = 16). Trade #1 was highly and time. More about this in a moment in
leveraged. Trade #2 was low leveraged. relation to price/time squared.
Putting risk aside for a moment you would Ok, so if what matters most about
rather have your money invested in Trade markets is PRICE and what matters most
#1. about price is TREND and what matters most
The 80/20 Rule of trading also applies about trend is SYMMETRY what matters
to maximizing your time. Think about it. most about market symmetry?......
Focusing on the critical trades leverages
your time AND money with results 16 VELOCITY!
times FASTER!
All that knowledge about the reality It is of course VELOCITY of the price/
of price is displayed each minute, each trend.
hour, each day in graphic form called a bar Velocity of a trend is related to the
chart. The chart contains the open, high, directional price movement and velocity is
low, and close for that time period. So, if equal to price divided by time. Velocity of
price is what matters most about markets trend increases when price is accelerating
then what do you think matters most about faster than time (large range price
PRICE......... movements). Velocity is decreasing when
time is increasing faster than price (small
TREND! range price movements).
Price “Flows” in direction, duration, and
What matters most about price is its amplitude as the square root of time with
TREND! Trend is price repetition over a the open, high, low and close charted in
given time period (minute, hourly, daily, exact proportion to each other relative to
weekly etc.). Trend can be precisely space and time in perfect symmetry!
calculated.
If what matters most about markets is With the above we can hypothesize the
PRICE and what matters most about PRICE following:
is TREND then what matters most about

(1) If price and time are EQUALIZED of Singularity’ is the Alpha/Omega point in
and …. a market, or the end of one trend and the
(2) There is SYMMETRY between price beginning of a new trend.
and time and…. I have been searching for this since
(3) Price and Time are SQUARED 1982 and in great detail since 1998 and
creating symmetry which NOW I have discovered the mechanism
Creates maximum buying/selling that causes this effect (you cannot have
pressure within a an effect without a cause!). IT Is the
small space of price/time then…. MAGIC (Price) TICK. The MAGIC (Price)
TICK operates on a Quantum physics
(1) + (2) + (3) = High Price Velocity = property called ‘Entanglement’ where
Trend = PROFIT! one tiny packet of energy (in the case of
As price approaches and enters this trading a cluster of price ticks) influences
point of singularity price, time, velocity, another. How this relates to trading is the
volatility, and volume become compressed. MAGIC (Price) TICK will influence the next
When the market/price moves out of this tick until you hit the “tipping point” (price
“compressed” point of singularity price, clusters that equal those tiny packets of
time, volume, volatility, and velocity energy) and a major reversal in price will
expand rapidly. occur. This is a remarkable discovery about
There is a law in physics which says that the markets.
water will reach its own level by its own These principles combined make
weight. There is a corresponding law of up what I call the Market Syntax Code
market price action which states that price (a Triangulation of price, time, and
(ticks; smallest units of price movement) symmetry).
will reach its own level by its own buying/
selling pressure. The most important thing about
According to the laws of physics, MARKET’S is PRICE.
when enough electrons line up within an The most important thing about
atom to form a position, then all the rest TRADING is PROFIT.
automatically line up in a similar fashion. So, how do you MONETIZE PRICE into
In physics this is called ‘Phase Transition’. PROFIT?
A similar situation happens in markets
when the smallest unit of price (ticks) Proper alignment of price and time with
form a cluster and when enough of these Symmetry in conjunction with Velocity.
price ticks line up (in time) then a “tipping
point” or critical mass occurs and a phase For more information please read my
transition (change in trend) will occur. two books: The Art of The Trade I (Cracking
This ‘Point of Singularity’ (as described The Code & Unlocking the Secrets to Trend/
in my book The Art of The Trade I (Cracking Profit) click here and The Art of The Trade
The Code & Unlocking the Secrets of II (The Art & Science of Trading Profits)”
Trend/Profit) page 70 is the holy of holies click here
as far as trading is concerned. ‘The Point

The Law of Cause and Effect:
Creating a Planetary Price-Time
Map of Market Action
Book Review by Larry Jacobs
W . D. Gann in 1948 charted the May

1949 Soybean contract in the chart
at the bottom of this page. This chart is
this area. Even in Gann’s reading list of
books, there were many astrology books
recommended.
one of Gann’s most In Gann’s time, astrology was not
famous charts. It is on mentioned by professional traders, as it
the internet on dozens was considered almost witchcraft. So it is
of sites and is one of the understandable that Gann did not write
most talked about charts about it in any of his courses, however, in
from this legendary some of the personal trading letters to of
trader. Perhaps why this his customers there were many comments
chart is talked about so about astrology.
W.D. Gann much is the fact that This second chart with the highlighted
there are some planetary longitude lines blue, green and red lines is from the
plotted on this chart. new book “The Law of Cause and Effect:
The question that I have and many ask, Creating a Planetary Price-Time Map
did Gann really use astrology to trade the of Market Action”, by Italian market
markets? Some say he did and even that researcher and trader Daniele Prandelli. In
he hired expert astrologers to help him in his book Parandelli unravels the mystery
of how to use these
planetary lines on
charts.
There have been
many traders who
have experimented
with using planetary
lines and in fact
several programs
now available that
use these lines.
The Gann Trader by
Peter Pich and the
Market Analyst by
Mathew Verdouw
are the two most
popular programs.
Very few have been

able to document any successful use of intermediate and even long term trading.
these planetary lines. The author also presents a number of
Now for the first time Prandelli has new cyclic trading tools to help traders pin
introduced the proper conversion factors point timing along with these planetary
that he felt W.D. Gann used in his trading. lines. They give the trader a high probability
With the unveiling of this information correlation of price and time and when
the author gives traders the price-time to take action on entries and exits of the
projections that they can use to plot on the market.
available trading programs just mentioned. The book is recommended to those
Traders can now have a functional tool for traders and researchers who are interested
entry points, projections and exit points. in finding out what is really about behind
Using these planetary methods the author those mysterious planetary lines Gann used
believes that it is no longer necessary on his chart and how they can be applied
to use and be overwhelmed with the to today’s markets. As an added benefit
indecipherable and inconsistent other purchases of the book will be granted
computer oscillator tools that traders access to an online research and education
have attempted to use over the last few forum providing direct interaction with
years such as stochastics, RSI, CCI, etc. Prandelli. They can actually exchange
As you have probably found out computer charts, ask questions and get guidance
oscillators are after the fact tools and don’t directly from Prandelli.
really help traders to successfully trade the
markets and may even hinder them. The For more information go to:
author believes that planetary projection http://www.sacredscience.com/Prandelli/
lines, on the other hand, offer the trader LawOfCauseAndEffect.htm
before the event tools to trade with.
In his
book Prandelli
illustrated how
he uses planetary
lines with over
160 charts and
diagrams. Most
of the charts are
on the S&P 500
index. He also tells
the reader how
to use planetary
lines on other
times frames. So
planetary timing
can be used for
day-trading,

The Gartley Trading Method
By Ross Beck
H
.M. Gartley was a technical analyst are basically the same thing and how to
who published his book “Profits use the Quadrilateral to calculate price
in the Stock Market” in 1935. He extensions.
is best known for his Gartley Patterns in He also explains why the Gartley
the markets. Ross Beck is the author of Pattern is the most powerful pattern in the
the new book – Gartley Patterns. He is financial market and he convinces you of
the recognized authority on the subject of that. You’ll see the Gartley patterns in your
Gartley Patterns. chart trading and how easy they are to
In this book Mr. recognize. You have actually been trading
Beck explains Gartley and you did not know it.
how to utilize In the chapter titled, The Gartley Pattern
the methods of Revealed, the author goes into great detail
H.M. Gartley with many illustrations. He feels that it is
to capture the very important that the trader be patient
maximum profits until the desired move is developed, all
in the financial conditions laid down are present, watch for
markets. the minor reaction, which tests the market
The book and have the courage to get out with a fair
is divided into profit or protect the profit with stops.
three parts In the next section the author compares
1) The first part examines how to the Gartley methods with traditional
identify and profit from the pattern pattern methods such as double bottoms,
formations in the markets. head and shoulders. He explains one of
2) The second part explains the how the best opportunities in trading with
the Gartley patterns are much superior several chart illustrations. He details the
to classical chart patterns and even Elliott exact Fibonacci ratios to use in the Gartly
Wave Theory. pattern and how it fits into the Gann box.
3) The third part shows how to apply Finanally now that you know the
Gartley pattern filters to improve the Gartley pattern he explains entry and
profitability in entry and exit points. exit strategies and how they depend on
Mr. Beck basically describes how to setup your particular style. He gives several
your charts so to make sure the basics types of entries such as Fibonacci, 1-Bar
are covered. He explains the different Reversal, Candlestick, and the Technical
types of charts, computer oscillators and Indicator Entry method. He explains his
indicators and where to get your data. He exit strategies such as the 3-bar trailing
clearly explains exactly how Gartley and stop and how to trade multiple contracts,
Elliott Wave are related. How the AB = CD scaling in and out, calculating targets, etc.
label and the Elliott Wave ABC correction Then he goes into several case studies

that explains some of the strategies in the The author does an excellent job explaining
book. In these cases he shows examples the geometry of Gartley and combine that
of volume, quadrilateral price extensions, with his complete trading strategy and a
quadrilateral clustering, 78.6 percent Fib book written with simplicity and clarity, and
entry method and profit stop levels set, you have a winning book. So if you want
profit targets, trailing stops. Finally he a complete package with details about the
discusses the importance of the trading Gartley pattern this is the book for you.
plan and how you can stick to it.
At the end of the book the author Ross Beck, FCSI can be reached at www.
explains Gann’s Mysterious Emblem. After geometrictrading.com The Market-Analyst
uses angles, circles, squares and triangles has a Beck plug-in for many of the tool
relating to Gartley he felt that the Gann the author uses in his trading. It includes:
Emblem fit perfectly into his XABCD Gartley
pattern. He explains how to use the Gann
Emblem with several chart illustrations.
Finally he gives you one more filter for
Gartly Trades, the Wolfe Wave. It is used
to identify the D point of a Gartley pattern.
There are many illustrations to explain this
pattern. For an video display click this link.
http://www.youtube.com/
watch?v=98CVJQrcH2I
This book is designed and trader or
researcher interested in geometric trading.
Figure 1 Beck’s Emblem

15
TRADERSWORLD.COM Late Fall 2008 / Early Winter 2009 61

17-Year Cycle & Interest Rates
November 2010 Ushers in
Major Transition Period
By Eric S. Hadik
S
ince early-2007, I have discussed Commodities did see another surge
the 17-Year Cycle and its impact from late-2008/early-2009 into the
on everything from earthquakes & present (though late-2010 into early-2011
volcanoes to stock market crashes & real pinpoints diverse cycle highs in many of
estate debacles to currency meltdowns & these markets, including Gold & Silver).
commodity cycles. Many of the projections Major earthquakes did strike targeted
made in 2007 have already reached areas like Chile and/or South America
fruition… (as they did 17 years ago… and 17 years
The Stock Market did drop 35--50% in before that… and 17 years before that…
1-2 years (similar to what it did 34 years and 17 years before that… all the way back
prior… and 34 years before that… and 34 to before the mid-1800’s).
years before that… and 34 years before However, there are some markets that
that). have a similar 17-Year Cycle… but on a
Real estate did turn out to be a bubble delayed basis.
that is still losing air. In these cases, the initial 17-Year Cycle
chart 1

‘action’ - like the stock market meltdown The Fed Funds Rates chart (first
of 2007--2009 - creates a ‘reaction’ in published in November 2009) highlights
other markets, like interest rate futures. the major bottom in 1959, the subsequent
The plummeting price of stocks forces a low in 1976 (17 years later; the low that
mass stampede - more euphemistically preceded the 1976--1981 ‘mania’ in actual
recognized as a ‘flight to quality’ - into interest rates, in response to a ‘mania’
Treasury Bills, Notes & Bonds. The result in inflation), and an important bottom in
is a type of mania in these markets, which 1993 (17 & 34 years later).
is often the final 10-20% of a much larger Each one of these projected a major,
move or trend. 17-Year Cycle bottom for 2010, ideally for
This manic rally could be the final late-2010.
blow-off or could be the first major
warning sign of an impending top. This Narrowing The Focus…
is where cycles again come into play. Also reinforcing this focus is the
corresponding futures peak (interest
A Trio of 17-Year Cycles rate low) in late-1993 - exactly 17 years
The first phase of this analysis begins with ago. The 4th Quarter of 2010 is exactly
- and ends with - the ubiquitous, 17-Year 17 years from one of the most important
Cycle. In the case of short-term interest peaks in 10-Year Notes & 30-Year Bonds of
rates, the year 2010 is the culmination of a the past 30 years. In the case of Notes,
trio of 17-Year Cycles - dating back to 1959 the 4th Quarter 1993 peak ushered in the
- and was expected to usher in a major largest correction of the past 20 years (a
bottom in interest rates. See Chart 1 peak that came 7 years from the previous
chart 2

one - in 1986 - and a drop in which prices very consistent 26-month (2 years and 2
plummeted for 13 months). months) cycle comes back into play. This
A futures peak in late-2010 would also cycle has governed the entire advance of
come 7 years from the previous one (2003) the past decade.
and could set the stage for a sharp decline This 26-Month Cycle created lows in
to follow - perhaps a 13-month decline - January 2000, March 2002, May 2004,
beginning in November/December 2010. July 2006 & October 2008 (1 month
And, it would come at a time when an margin of error) and projects a major top
interesting 14-Quarter (approximately 3.5 for November 2010. This also resulted
year) cycle comes into play (the following in a corresponding 52-month low-low-
chart is of the treasury yields, so the (high) Cycle Progression - March 2002 low
turning points are the inverse of what is to July 2006 low to a projected November
taking place in Bonds & Notes futures; all 2010 high - that has been in focus for
of these charts represent an anticipated the past 18 months (the accompanying
bottom in interest rates and peak in Bonds chart is actually a copy of a chart that was
& Notes). See Chart 2 originally included in the January 2009
INSIIDE Track). See Chart 3
Narrowing The Focus A Bit
More… At the very least, a peak in November
The most likely time for this expected 2010 should hold for 6-12 months. Its
peak - in Notes & Bonds futures - is in validity - and holding power - will be
November 2010. That is also when a strongly influenced by an important
chart 3

indicator - the monthly trend pattern. The announced this, the futures markets are
earliest that this indicator could confirm a already looking ahead and posturing for
major (1-2 year or longer) reversal would ‘what’s next?’
be on January 31, 2011. So, the action of 2 - Sooner or later, the impact of
December & January needs to corroborate commodity price inflation is going to take
this expectation. its toll. Commodities have been heading
higher for over a decade. Even in the midst
But What About QE2 (and of collapsing real estate, employment
QE3… QE4…)? rates, etc., commodity prices have headed
The most frequent question I have higher. This means that they are nearer to
received in recent months - with respect the point when and where a parabolic rally
to this analysis - is something on the lines will take hold. THAT is when the Fed and
of ‘How would this jive with Quantitative the markets will be forced to sit up and
Easing?’ There are multiple responses take notice.
to that question (although I do not place On a 6-12 month basis, commodities
primary focus on fundamentals and do not are expected to see culminating surges in
expect the fundamental rationale to be December and initial (3-6 month) peaks
obvious at the point of reversal)… in January 2011… the topic of a separate
1 - The markets almost always discount discussion. A new bull market is not likely
fundamental events in advance (often to take hold until after mid-2011, although
6 months or more before the fact). So, the intervening lows are likely before then
the Bonds & Notes futures markets should (some as soon as March 2011). So, this
have already priced in the latest round of correlation between interest rates and
quantitative easing. By the time the Fed price inflation will not likely take hold until
chart 4

late-2011 or 2012, when the next surge in The January Shift!
commodity prices is more likely. While November & December are expected
3 - Dollar weakness is only beneficial to subtly usher in this transition, January
to a certain extent. The Dollar’s demise 2011 could provide more obvious extremes
has had some redeeming aspects but is and reversals. Multi-year, multi-month &
ultimately a bad thing. It has contributed multi-week cycles in Gold & Silver peak in
to the inflationary surge in commodity January 2011. A 3-6 month (potentially a
prices… but has also helped to support 6-12 month) top is expected at that time.
stocks. However, all my long-term Dollar Stock Index cycles peak in late-
cycles point to 2013 as a momentous year December and are expected to usher in an
that could see a decisive change in the US important top IF the Indices have reached
Dollar (and possibly other currencies). specific, upside price targets. The ‘January
Leading into that year, I expect to Cycle’ - a technique that helps identify
see another Dollar decline - most likely intra-year extremes and intra-year trends
beginning in July 2011 - that could force - will be the ultimate filter for this.
the Fed or Treasury to ultimately defend Grains are expected to top in late-
the value of the Dollar. Interest rates are December or early-January & pull back
one of the weapons in the arsenal of Dollar- into March 2011. This is part of ongoing
defending tactics. (On a 6-12 month projections for a Major bottom in early-
basis, the Dollar was projected to drop June 2010 followed by a new, multi-year
into November 2010 and then rebound bull market (see http://www.insiidetrack.
into May/June 2011. This is still the case, com/grain_cycles.html for a more detailed
so do not mix oranges with apples - or explanation of the cycles and indicators
longer-term analysis with intermediate that forecast this, beginning in late-2009).
analysis - when assessing this outlook.) Several commodities are entering
There is actually a lot more to these interest decisive periods in December & January.
rate cycles and the outlook for the coming months One that comes to mind is Coffee. Coffee
and years. My objective for this discussion is was projected to set a major low in
to again highlight the 17-Year Cycle - that has early-2009 and then surge into 2011 (see
been the focus of at least 4 or 5 Trader’s World http://www.insiidetrack.com/coffee_cycles.
articles since mid-2007 (and the focus of dozens html for details). In recent months, it was
of newsletters and special reports, most of which expected to rally into November, set an
can be found on our website - www.insiidetrack. intermediate peak and pull back, and then
com) - and to highlight the important transitional surge to new highs into late-December/
period in November 2010--January 2011. early-January.
While the Dollar & Interest Rates were/ Price action in early-December is
are projected to bottom in November, many validating this and Coffee is poised to
other markets are not expected to complete surge into January 5--7, 2011, when a
their 6-12 month trends until January 2011… myriad of short and intermediate cycles
come into play. Its 2-3 year (minimum)
upside target - from the 2009 lows - is at
259.0/KC, a level that could be tested in

December or early-January. However, the
most synergistic convergence of cycles Know Yourself
comes into play in May/June 2011 and
could have a much greater - and farther Astrological Report
reaching - impact on the price of Coffee.
Cocoa is another market that was
forecast to bottom in mid-September,
set a secondary low during the week
of November 15--19th, and then rally
into January (possibly February)
2011. The evolving analysis - with
corresponding cycles - is available at
http://www.insiidetrack.com/cocoa_cycles.html.
Phase II
The point of this is that late-2010/
early-2011 is a momentous period, when
an important shift could take place in many You need to know when it is favorable
for you to proceed aggressively or is it
markets. Some of these ‘shifts’ should time to proceed slowly and cautiously!
only last for 3-6 months. However, others
- like that in interest rates - should last for It is the desire of Traders World Magazine that the
magic of astrology should become available to as
many years to come.
many people as possible as inexpensively as pos-
See Chart 4
sible. Traders World will have a professional astrol-
Looking ahead a little farther, June 2011 is ogy report done for you. The professional report is
one of the most critical - and potentially decisive approximately 30 - 50 pages beautifully present-
- interest rate cycles of the next 2-3 years. It is ed in columns with beautiful fonts covering both
your personal and professional life. You can use
the culmination of many diverse cycles and could
the professional part of the report to develop your
help corroborate the outlook for a new paradigm talents, so you will be better able to attain your
in the financial markets. The accompanying desired growth in your profession. Problems can
chart from August 2010 (also a ‘yield’ chart that is be avoided and transformed into positives through
the inverse of the Bonds & Notes futures charts) insight and wise action. The report is in a pdf
document and is $19.95 and is emailed to you. To
gives a small taste of the cycles that come into
receive the report enter your order. We will send
play at that time. More specific and detailed you back an email with the following questions be-
analysis and trading strategies will be available low to do your astrological report.
in our publications. IT
We need from you to do the report:
(1) birthdate, (2) time of birth, (3) If you don’t
Eric S. Hadik is President of INSIIDE Track know the time of birth then we need if you were
Trading and can be e-mailed at INSIIDE@ born in the morning, afternoon, evening, night,
(4) city of birth, (5) state or providence of birth
aol.com. Their website is at www.
and finally (6) country of birth
insiidetrack.com.
Click to Order
www.tradersworld.com

Sync Yourself
into the Market
By Larry Jacobs
using a multiple monitor

trading system. I would
recommend using a three
monitor horizontal system.
This is what I have used for
the past 10-years and it is
wonderful.
What size of
monitors should you
get?
I would recommend 23 or
24 inch size. I would also
recommend a monitor stand
T
o be a successful trader you need to as you can see above in this
sync yourself into the market. What article. This keeps the 3 monitors right
that means is you need to do the next to each other and looks very nice. It
necessary research before you trade. How also hides the cables and looks clean. It
does this work. First go back on the long makes your office look space age.
term monthly and weekly charts. Get the Most software like eSignal will expand
big picture. Then go down to the daily and charts across all three monitors. So
intra charts to get the near-term picture. therefore you can view long term charts
Never go against the long term charts expanded across three monitors. This
using the short term charts. gives you the big and the short term
Master Traders of the past did not have picture. Three big monitors give you a 60-
computers. They had to plot charts out on inch horizontal view.
chart paper by hand. This actually gave You will also need a multiple monitor
them an advantage. They could see the computer. The Sonata Trading Computer is
big picture and the near term picture all the best as it has several advantages over
at the same time. W.D. Gann used charts conventional desktops. First it is totally
that were actually on a roll. They were 30 silent so you can think without noise. It is
inches tall and continuously on a roll. So powerful using the latest Intel CPUs. It can
he could plot the long term and short term display up to 12 monitors. It is upgradeable
trend lines all on the same chart. every 2-3 years for usually 50% less than
Today you can do what the Master the original price.
Traders did on their long term paper charts go to: www.sonatatradingcomputers.com

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By Larry Jacobs If you understand trading software program was
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By Michael Jenkins In this calculate a simple square root on a hand
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with accuracy down to the day and price Certain years seem to follow the patterns of
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but goes much further revealing little a trader how to used past harmonic cycles
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price. The chapter on the Gann Square of 1900 - 2006. Cycles are nothing more than
Nine is much more complete than 90% of repeating patterns. Trends follow cycles.
courses available selling for hundreds to This book gives you the key cycles in the
thousands of dollars more. This chapter market. All you need to know is what those
alone is worth several times the cost of the repeating patterns are. That is why the
book but the secret ratio analysis at the end historical charts become so valuable and
of the book will truly change your trading this is why this book is so important.
habits forever. When you finish this book

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Tradersworld

January/February 2011 ISSUE #48 com

Book Review 17-Year Cycle & Interest

Copyright ©2011 Halliker’s, Inc. dba Traders

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