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The official magazine of technical analysis. Covers both classical and modern technical analysis plus reviews of the latest trading computers, software and books.

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  • WWW.TRADERSWORLD.COM January/February 2011 1

    comTradersworld January/February 2011 ISSUE #48

    Being Accountable

    Dynamic Trading Workshop

    Catching Significant Trends

    Vantage Point Review

    The Trading Strategies

    Time Factor Points of Force

    Notes on Day Trading fromNovy Principles of Market Flow

    Minimizing Financial Risk

    What Really Matters MostAbout Markets

    17-Year Cycle & Interest Rates

    Introduction to Roger Babsons Action Reaction Trading Technique

    The Gartley TradingBook Review

    Calibrating Ganns Planetary Lines

  • 2 WWW.TRADERSWORLD.COM January/February 2011

    Letter From The Editor

    Issue#48 hasmany excellent articles in it.

    Traders World MagazineSonata Trading ComputersTraders World Online Expos

    Traders World Magazine Digital Edition is now 100% digital. It can be read on our computer, and Ipad or any device the reads pdf files. The benefits of this the digital medium is already very clear. And those benefits will continue to multiply in the coming months as digital evolves. With Traders World Digital Magazine, subscribers will continue to receive the same quality reviews and articles from expert traders that you have come to expect from us in the last 20 years. Our coverage will not alter, only the format, which offers these benefits:

    1) It arrives in your e-mail when it is released automatically.

    2) Its in a completely portable pdf document. Once youve downloaded the issue (which takes a matter of seconds) you can view it anywhere on your computer.

    3) It looks like the Traders World Magazine youve known. The format is the same, only tweaked for the digital experience.

    I think you will enjoy this issue.Larry Jacobs - Editor

    Editor-in-ChiefLarry Jacobs - Winner of 2001 World Cup Championship of Stock TradingOffice2508 W. Grayrock Dr., Springfield, MO 65810Contact Information417-882-9697,800-288-4266Email: [email protected]

    Copyright 2011 Hallikers, Inc. dba Traders World. All rights reserved. Information in this pub-lication must not be reproduced in any form with-out written permission from the publisher. Traders World (ISSN 1045-7690) is published 4-6 times per year, (may run late due to content creation) for $19.95 per year. Created in the U.S.A. and is pre-pared from information believed to be reliable but not guaranteed us without further verification and does not purport to be complete. Futures and options trad-ing are speculative and involves risk of loss. Opinions expressed are subject to revision without further noti-fication. Hallikers, Inc. dba Traders World may be an affiliate of some of the writers, speakers or advertis-ers in our magazine, website or online expos. We are not offering to buy or sell securities or commodities discussed. Hallikers Inc., one or more of its officers, and/or authors may have a position in the securities or commodities discussed herein. Any article that shows hypothetical or stimulated performance results have certain inherent limitations, unlike an actual per-formance record, simulated results do not represent actual trading. Also, since the trades have not already been executed, the results may have under - or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designated with the benefits of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The names of products and services present-ed in this magazine are used only in editorial fashion and to the benefit of the trademark owner with no in-tention of infringing on trademark rights. Products and services in the Traders World Catalog are subject to availability and prices are subject to change without notice. To Subscribe Click Here.

    TRADERSWORLD

  • WWW.TRADERSWORLD.COM January/February 2011 3

  • 4 WWW.TRADERSWORLD.COM January/February 2011

    Jan - Feb 2011 Issue #48Contents7 Being Accountable By Adrienne Toghraie

    11 Dynamic Trading Multimedia E-Learning Workshop Review By Larry Jacobs

    18 VantagePoint Intermarket Analysis Software Review

    25 Calibrating Ganns Planetary LinesBy William Bradstreet Stewart

    32 The Trading Strategies to Employ in Todays Challenging MarketsBy Glenn Neely

    40 Time Factor in Points of ForceBy Oleksandr Salivon

    42 Notes on Day Trading from Novy Principles of Market FlowBy Leonard Novy

    47 Introduction to Roger Babsons Action Reaction Trading TechniqueBy Ron Jaenisch

    57 Minimizing Financial Risk in a Changing EnviornmentBy Steve Selengut

    67 Harmonic Elliott WaveBy Ian Copsey

    74 Position Manager from CSI

    78 Gann and MurreyBy T.H. Murrey

    81 What Really Matters Most About MarketsBy Jeff Rickerson

    85 The Law of Cause and Effect: Creating a Planetary Price-Time Map of Market Action Book Review

    87 Gartley Trading Method Book Review

    90 17-Year Cycle and Interest Rates November 1010 Ushers in Major Transition PeriodBy Eric S. Hadik

    96 Sync Yourself into the MarketBy Larry Jacobs

  • WWW.TRADERSWORLD.COM January/February 2011 5

    Advertisers03 World Cup Championships

    06 eSignal

    08 Traders World Subscription

    09 Trading On Target

    10 Mikula Forecasting

    13 Dynamic Trading Multimedia E-Learning Workshop

    15 Traders Coach

    19 Selfish investing

    20 Vantage Point Software

    23 SFO Magazine

    26 Sacred Science

    28 Sacred Science

    30 Sacred Science

    33 Neo Wave Institute

    35 Jan Arps

    37 Gann Numbers Newsletter

    38 Traders World Online Expo DVDs

    39 ELWAVE

    43 Training for Traders

    44 Jack Winkleman

    45 Tim Bost

    46 Specialist Trading

    50 NoBSFX

    56 Traders World Online Expo #9

    60 Market Investment Management

    63 Tsunami Trading

    65 Super Timing

    66 Merriman Market Analyst

    73 Traders World Back Issues

    75 CSI Commodity Systems Inc.

    79 Murrey Math Trading Supplies

    83 Market Optimizer

    89 Market Analyst

    95 Know Yourself Astrology

    97 Best Selling Books

  • 6 WWW.TRADERSWORLD.COM January/February 2011

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    From the time we are born, most of us learn that we must be accountable for our actions. First it is to our families and then later to our teachers, preachers, coaches, and society. Since traders are already conditioned to be accountable, they should make use of this tool in reaching for trading mastery.

    Sweeping it under the carpetTraders like to think that they only need to be accountable to themselves in order to get the best out of their trading. But it has been my experience that most traders fail miserably at this task. So why are traders not able to do this?

    They do not want to: Be wrong Admit that they are changing their rules Face up to the fact that they do not

    have good rules Realize that they need psychological

    help Realize that they do not have what it

    takesIf 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 traders accountability? A significant other A friend A trading buddy A teacher A coach

    What would a person need to help you be more accountable? A clearly defined set of rules from you Your commitment to telling the truth to

    them An accounting of the trades you took Why you think the trades you took were

    good opportunities The risk/reward ratios before the trade The money management procedure

    you followed Whether or not you followed your rules The lessons you learned And at the four month periodical review,

    the changes you would make and why

    Reward or punishment There should be a clearly defined

    Being Accountable

    By Adrienne Toghraie, Traders Coach

  • 8 WWW.TRADERSWORLD.COM January/February 2011

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

    Punishment 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

    ConclusionWhen 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 Traders Coach,is an internationally recognized authority in the field of human development for the financial community. Her 11 books on the psychology of trading including, The Winning Edge1-4 and Traders Secrets have been highly praised by financial magazines. Adriennes public seminars and private counseling have achieved a wide level of recognition and popularity, as well as her television appearances and keynote addresses at major industry conferences.

    [email protected]

    SUBSCRIPTIONTRADERS WORLD MAGAZINE Digital

    Click to get the 48 issues on CD

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  • WWW.TRADERSWORLD.COM January/February 2011 9

    Master Yourself Master Your Life Master Your Profits Master Traders Coach Author of 11 books on Traders Psychology

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    In 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-1980s. He was one of the presenters at our first conferences in 1989 sponsored by Gann-Elliott Trader Magazine, the predecessor to Traders World Magazine. At that conference over twenty years ago, he presented his W. D. Gann Home Study Trading Course which was the first independent study course for traders that we are aware of. So, Miner does have a long and successful history producing educational materials for traders.

    Miners credentials include publishing an advisory service since the mid-1980s, writing two of the best selling trading books of all time (Dynamic Trading andHigh Probability Trading Strategies),winning first place in the Robbins World Cup Championship of Futures Trading, being named Guru of the Year by the Super Traders Almanac, speaking at many of

    the trading conferences for over 20 years beginning with the Computrac conferences over 20 years ago and more.

    Miner calls his latest self-study workshop the culmination of over twenty years of real world trading experience and trading education. He has taken advantage of contemporary, self-study learning techniques with the Dynamic Trading Multimedia E-Learning Workshop.Following the introduction sections where Miner discusses trading as a business, trading verses forecasting and more, he begins to focus on each of the three primary areas of technical analysis that are a part of a complete trading plan he teaches including pattern, price and indicator strategies.

    Review: Dynamic Trading Multimedia E-Learning

    WorkshopBy Larry Jacobs

  • 12 WWW.TRADERSWORLD.COM January/February 2011

    Miner describes that his trading approach is to identify conditions with a high probability outcome and acceptable capital exposure. He teaches three technical areas to identify the trade setups including simple pattern recognition, price reversal zones and multiple time frame momentum strategies. None of these technical areas should be foreign to traders but Miner does approach them from unique and more simplified perspectives than we usually are taught in other trading courses.

    As one of the leading Gann, Elliott and Fibonacci traders and trading educations for more than twenty years, we would expect the course to include complete price and pattern analysis strategies. Miner delivers with a quick and simplified trend and counter trend pattern approach derived from Elliott wave and price reversal zone strategies, as he describes, go beyond simple Fibonacci retracements.

    A unique feature of his trading plan that we have not seen implemented in other trading courses is the Multiple-Time-Frame-Momentum-Reversal strategy which is the primary filter taught to identify which markets have the best trading opportunity regardless of the time frame traded.

    But, the heart and soul of the workshop are the last two major sections, Practical Trade Strategies and Trading The Plan.In these major sections, The Dynamic Trading Multimedia E-Learning Workshop teaches the student a complete trading plan from objective entry strategies to 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

    experience that is possible. Each section is divided into 5-10

    relatively short modules. Each module includes background instruction, step-by-step and bar-by-bar details of the specific technical or trading strategy followed by a summary and short quiz. Each module also includes a PDF file of the summary of the key strategies taught in the module so the student will compile a complete quick reference guide of the entire workshop and trading plan.

    The Dynamic Trading Multimedia E-Learning Workshop is not a quick study. Miner states it should take a student about 30 hours to complete the course including all of the study materials and the quizzes. We dont believe this is too much time to learn a comprehensive trading plan from a 20+ year veteran. Miner warns the students to study the workshop in the order the sections were designed because each module builds on the strategies taught in the prior modules. After the entire course is complete, the student can then go back to specific sections to review at any time.

    I think The Dynamic Trading Multimedia E-Learning Workshop is an exceptional course for any trader and any time frame.

    To view a video of the trade strategies taught in the Dynamic Trading Multimedia E-Learning Workshop and a special offer for Traders World Magazine, CLICK HERE.(goes to (http://www.dynamictraders.com/dtw-tw-1201.html)

  • WWW.TRADERSWORLD.COM January/February 2011 13

    Dynamic TradingMultimedia

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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.

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  • 14 WWW.TRADERSWORLD.COM January/February 2011

    Most money in trading is made from catching a significant trend. Most money lost in trading occurs by missing or being on the wrong side of trends. So the real question is How do we protect and preserve our trading capital as we position ourselves to catch the next profitable trend?

    Significant trends are known to emerge from market consolidations and it is during these consolidations that traders experience whip-sawing leading to psychological trauma that can cause havoc with a traders life, which can cause the trader to miss the trend altogether!

    It is said that markets trend approximately 35% of the time, meaning that 65% of the time they are trend-less. Consolidations are known to occur before many significant market trends and to be a profitable trader you must learn how to exploit these trends while not losing your money when the market is trend-less.

    Consolidations: A Textbook DefinitionLets define a market consolidation. A dictionary definition of a market is the world of commercial activity where goods and services are bought and sold; without competition there would be no market. A dictionary definition of a consolidationis something that has consolidated into a compact mass; combining into a solid mass; an occurrence that results in things being united. Reading these two text book definitions leads one to believe that

    a market consolidation is one where the competition between buyers and sellers unite to form a compact mass. A traders definition of a market consolidation is one where prices have remained range bound within a narrow price channel.

    Is market consolidation an area where little or no new information has come into the market to cause a greater disagreement of value or perceived value which would move prices? And do trends occur because the value or perceived value is changing so much that the price must change to represent the new value? Answering yes to these questions leads to the conclusion that market consolidations are areas where no new value perceptions are being generated. Thus, prices remain tight or range bound.

    The Nature or Psychology Of Market ConsolidationsConsolidations by their very nature can not last too long since they become increasingly unstable with time. Most traders view consolidations as a stabilization of price, but consolidations actually become increasing unstable with time. In fact the longer a market remains consolidated, the more unstable it becomes.

    Market consolidations have their own cycles. During their initial formation traders are undecided as to value and the price oscillates. If this condition continues, traders perceptions of this assets value remain the same until new information enters the market to change perceptions.

    Catching Significant Trends Equals Big Profits!

    By Bennett McDowell, President, TradersCoach.com

  • WWW.TRADERSWORLD.COM January/February 2011 15 TRADERSWORLD.COM Fall 2008 / Early Winter 2009 5

    As a trading coach and nancial advisor, Bennett McDowell has used his own proprietary trading system--Applied Reality Trading or ART to enhance the performance of his clients portfolios. Now McDowell outlines the unique benets of his system and makes the case for trading the reality--not the fantasy--of nancial markets. Readers will discover the importance of simplicity in a trading approach; how to develop The Traders Mindset; how to use ART(r) technical analysis software; and much more. The ART of Trading will enlighten readers in how to use reality to enrich both their nancial portfolio and their own nancial psychology.

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    .OTADHERINGTOASOUNDMONEYMANAGEMENTPROGRAMCANEXPOSEAtrader 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 Traders Money Management System, author Bennett McDowell introduces readers to the most important elements of money management in trading. Topics covered throughout this BOOKINCLUDEHOWTODESIGNAPROGRAMTOGETMAXIMUMPROlTFROMa trading system; how to calculate the best trade size on every trade; how to analyze prot/loss results and identify weaknesses in a strategy; plus much more. Along the way, McDowell also addresses THEIMPORTANCEOFRISKCONTROLANDSTOPLOSSEXITS4HEBOOKALSOINCLUDESAONEMONTHFREETRIALOFTHE4RADE3IZE#ALCULATORSOFTWARE

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  • 16 WWW.TRADERSWORLD.COM January/February 2011

    Until new information arrives, the consolidation becomes narrower and narrower to a point where the consolidation is now very unstable and this is where new trends are born.

    The longer or more mature the consolidation is, the larger the trend usually is as well. Lengthy or mature consolidated markets are so unstable that even just a whisper of new information coming into a consolidated market can make it move, but a shout of information can make it trend fast!

    Once you spot a mature consolidation, your trading approach should be to bracket the upper and lower part of the consolidation. This helps to avoid unprofitable whip-sawing trades within the consolidation channel caused by insignificant trading reactions from minor market information. It is important that

    your trading approach not react to every whisper of information that the market ultimately finds meaningless.

    By bracketing your trade entries above and below the consolidation channel, you automatically eliminate unnecessary losing trades. If you are an aggressive trader who welcomes the additional risk of a few losing trades within the channel to achieve a superior trade entry price, then you should wait for the mature consolidation to get very tight and thus very unstable.

    This will increase your odds of successfully timing the next significant trend and therefore reward your aggressive entry approach. Just as important as the length or time of the consolidation is the low Average True Range or volatility of prices in recognizing the mature end of the consolidation before a significant new tend emerges. It is important to note that not all significant trends emerge only

  • WWW.TRADERSWORLD.COM January/February 2011 17

    from market consolidations. But if you recognize a consolidation in the market, the potential is great for a significant trend to emerge if the consolidation has become so consolidated it is now also become unstable.

    Finding & Monitoring Market ConsolidationsThe first step is to find markets that are in consolidation so you can be ready to trade the breakout when it occurs. To find these consolidated markets, it will be best to scan for markets will low volatility and narrow price movement. Look for a consolidation with at least 20 price bars before considering it for a potential trade based on bracketing the high and low of the channel.

    Since markets can consolidate for weeks and even months, you will want to monitor several markets simultaneously while they are in consolidation, this way you do not have to wait a long time before entering a trade.

    Active traders can use this technique to scan for trade setups, and with 9,000 + stocks the trader can be quite active! If you are a day trader, you can scan intraday charts looking for consolidations as well.

    Trading Market ConsolidationsOnce you have identified the consolidation of at least 20 price bars, the next thing to do is to draw a line on the top and the bottom of the consolidation channel effectively bracketing the consolidation Then place your long trade entries one-tick above the upper consolidation band, and your short trade entry one-tick below the lower consolidation band.

    Where To Place Your Stops Once the market breaks and begins to trend, stops can be adjusted according to market activity, with the initial stop-loss being placed on the opposite side of the consolidation channel in relation to which way the market started to trend.

    Trade Example Combining BracketingThe stock chart below illustrates a market consolidation in the Nortels stock with upper and lower lines drawn in that bracket the consolidation. Trade entries are placed above and below the consolidation. Also note how prices become even more compressed towards the end of the consolidation just before this market begins to trend. This occurs often since markets usually spring from compressed price consolidation.

    When the market finally breaks above the channel you should enter your trade one-tick above the upper green colored band or line drawn on the chart above. Your initial stop-loss is placed one-tick under the lower band and adjusted upward as market activity warrants.

    ConclusionSometimes one good technique is all we need to be profitable traders. Trading from market consolidations may just be the trading technique you have been looking for.

    Whether youre a futures trader, stock traders, day trader or position trader, adding these trading concepts to your trading toolbox should prove worthwhile.

    www.TradersCoach.com

  • 18 WWW.TRADERSWORLD.COM January/February 2011

    Trading is hard work normally, but in these tumultuous times of algorithmic trading, hedge fund dominance, and global, macro forces driving markets, traders need a sharp edge to compete successfully and come out on the winning side. VantagePoint Intermarket Analysis Software from Market Technologies gives individual traders that needed edge.

    To be clear, VantagePoint does not produce buy or sell signals, nor is it an automated trading system. Instead, VantagePoint uses proprietary, patent-pending technologies involving neural networks applied to global intermarket analysis to analyze how related markets influence each other. These technologies produce unique predictive, technical indicators that make short-term, highly accurate trend forecasts.

    In the trading world, the trend is truly your friend, and having a tool that can identify trends particularly impending changes in trend direction -- reliably and consistently is a big step toward trading success.

    VantagePoint has been serving traders since 1991 when Louis Mendelsohn first introduced trading software that utilized what, at the time, was his revolutionary intermarket-analysis approach using the pattern recognition features of neural networks. Mendelsohn is no stranger to

    technical analysis. In 1983, he was the first person in the world to introduce strategy backtesting in commercially available trading software for personal computers.

    Market Technologies has continued to increase VantagePoints predictive accuracy over the past two decades by refining its application of neural networks to global intermarket data, while adding more leading indicators, expanding the markets covered, and generally improving the softwares functionality and user-friendliness. Even newcomers to trading can easily benefit from its forecasting capabilities without having to look under the hood.

    Product OverviewVantagePoint software provides leading indicators for more than 600 markets in four major categories: forex, futures, stocks, and exchange-traded funds (ETFs). The forex category includes the eight major currency pairs and 13 important cross rate pairs. The futurescategory covers all of the major financial and commodity markets.

    In prior versions, VantagePoint forecasted only U.S. Stocks comprisedof 12 popular U.S. Stock Sectors. The newest version has added even more U.S. stocks in response to customer demand. Even more exciting to VantagePoints customer base in over 125 countries is the

    VantagePoint Intermarket Analysis

    Software

  • WWW.TRADERSWORLD.COM January/February 2011 19

    Virtue of Selfish Investing

    Gil MoralesDr. Chris Kacher

    www.selfishinvesting.com

    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.

    Dr. Kacher and Gil Morales wrote the book, Trade Like An ONeil Disciple: How We Made 18,000% in the Stock Market.

    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 2010 +55.1% with exposure to the market less than half the time as audited by Rothstein Kass.

    CONSERVATIVE APPROACH: 2008 market timing results: +38.8% using no leverage (unaudited results).

    Watch for Gil Morales and Chris Kacher on Traders World Online Expos

    Dr. Chris Kacher / Gil MoralesMoKa Investors, LLC

    181 Culver Blvd. Suite BPlaya del Rey, CA 90293

    www.mokainvestors.com

  • 20 WWW.TRADERSWORLD.COM January/February 2011

  • WWW.TRADERSWORLD.COM January/February 2011 21

    addition of 12 Sectors of Indian stocks as well as 12 sectors of Canadian stocks.

    VantagePoint has also expanded its forecasting coverage of ETFs and now includes Canadian ETFs in addition to U.S., international, short, and ultra short funds.

    VantagePoint makes searching all of these global markets extremely easy with its IntelliScan

    feature. Users can choose from more than 70 filters when scanning markets for a potential trade. When a market fits the selected

    criteria, a mouse click takes you to that chart so you can decide if you want to make a trade. (This information is also available in daily and historical data tables, which are also exportable into Excel).

    Leading Technical IndicatorsThe real power behind VantagePoint comes from the forecasts provided by its leading technical indicators derived from Mendelsohns patent-pending technologies, which he and his research team have been perfecting

    over the past quarter-century.

    Predicted short-term, medium-term and long-term moving average crossoversWhen a predicted moving average crosses an actual moving average, it suggests an impending trend change. VantagePoint provides the optimal moving average combinations, but users can also choose their own combinations from among six predicted exponential moving averages of typical prices and three actual simple moving averages of the daily close.

  • 22 WWW.TRADERSWORLD.COM January/February 2011

    Predicted short-term, medium-term and long-term differencesThese indicators comparethe differences between a predicted moving average and an actual moving average for the various time periods. The predicted differences act as a momentum indicator in evaluating a trends strength or weakness and often provide an early alert about an impending trend change.

    Predicted Neural Index (PIndex)This proprietary indicator compares todays actual three-day moving average with a predicted three-day moving average to forecast whether the typical price will be up or down in two days. PIndex is the indicator cited by Market Technologies for its accuracy rates of up to 86% across a broad range of markets over a broad range of time. Predicted next day high and low

    This indicator gives traders a heads-up on what to expect for the next days

    trading range. Breakouts from this range can be used to identify precise entry/exit points to go along with the short-term forecasts provided by other indicators.

    Other Predicted technical indicatorsThese indicators actually forecast values one day ahead for such popular indicators as Moving Average Convergence-Divergence (MACD), Stochastics, Relative Strength Index, and True Strength Index.

  • WWW.TRADERSWORLD.COM January/February 2011 23

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  • 24 WWW.TRADERSWORLD.COM January/February 2011

    The VantagePoint charts also provide other information, such as volume, open interest, differences between the predicted high or low and actual high or low. Included as well is the nifty ProfitCalcTM tool, which lets you instantly see the difference in points and dollars between two dates on a chart. The tool even calculates pips for forex traders, and ticks and points for futures traders.

    The Accuracy of the Leading IndicatorsExtensive evaluations and certified independent, scientific studies conducted by Ph.D. mathematicians and rocket scientists over decades verify VantagePoints accuracy statistics.

    A recent study demonstrates, once again, VantagePoints predictive indicators live up to the expectations set by Market Technologies. Here is a summary of the accuracy study broken down by market segment for the period 10/30/2009 to 4/30/2010.Commodities: The average percent accuracy for the Neural Index was 78.1%, with a low of 73.3% for E-mini Silver, to a high of 84.7% for ASX All Ordinaries, E-Mini Japanese Yen, Gas Oil.

    Forex: The average percent accuracy for the Neural Index was 79.1%, with a low of 74.8% for Euro / U.S. Dollar, to a high of 82.4% for Australian Dollar / Canadian Dollar.

    ETFs: The average percent accuracy for the Neural Index was 76.4%, with a low of 71.8% for iShares MSCI Germany IDX, to a high of 84.7% for iShares COMEX Gold Trust.

    Stocks: The average percent accuracy for the Neural Index was 77.3%, with a low

    of 70.2% for Adobe, to a high of 87.0% for Cheesecake Factory.

    Of course, there is no holy grail in trading, and nothing works 100% of the time, but increasing the odds of success is what trading is all about. VantagePoint does this. The fact that traders across the globe have successfully utilized VantagePoint since 1991 is a testament to its predictive accuracy and increasing relevance in todays globally interconnected trading environment where correlations and hidden relationships between related (and even seemingly unrelated) markets now dictate market movements more than ever.

    ConclusionIntuitively, traders realize that todays markets influence each other, and the VantagePoint indicators, relying on intermarket analysis and an intelligent neural-network process, provide a unique perspective on markets, a perspective you wont find in any other analytical software package. Traders still need to develop their own strategies using these indicators, but with the outstanding customer support and the educational materials available, traders quickly get up to speed, which makes it possible to recoup the cost of the software very quickly. The quality of VantagePoint speaks to the adage, You get what you pay for. If you are serious about becoming a successful trader or investor and you are looking for an edge that spots and helps confirm potentially profitable trading opportunities, while helping you to avoid dangerous traps, VantagePoint is the tool for the job.For more information go to www.Tradertech.com

  • WWW.TRADERSWORLD.COM January/February 2011 25

    Figure 1

    Through the autumn and winter of 1948, W. D. Gann hand charted the May 1949 Soybean futures contract traded on the Chicago Board of Trade. Unlike much of Ganns work, this chart survived and is publicly available from numerous sources. Many analysts have commented on this chart and a number of them have cited Ganns use of planetary longitude. I have reproduced it here with certain planetary lines highlighted, as defined by the color key below, showing exactly what each of these lines represents.

    W. D. Ganns 1949 May Soybean Chart Planetary Lines Colored

    Red Line = Mars Longitude Blue Line = Jupiter Longitude

    Green Line Jupiter 255 Horizontal Dashed Blue = Jupiter 270 Horizontal

    We can see here that Gann is drawing trendlines and price level lines based upon planetary longitude on this famous chart, and these lines perfectly define the trend as well as the top in the Soybean market. Gann never spoke or wrote in any detail about this technique, and the few references we have to it appear only on some of his most complex and messy charts, having to be deciphered and reverse engineered by the astute Gann analyst in order to determine what he was actually doing.

    Many people have experimented with using this technique, and a number of software programs have functions which produce variations on this application. However, often after years of experimentation, researchers are still unable to discover the true potential of

    calibrating ganns Planetary lines

    By William Bradstreet Stewart

  • 26 WWW.TRADERSWORLD.COM January/February 2011

    A COMPENDIUM OF ASTRO-ECONOMIC

    INFLUENCES PRACTICALLY APPLIED!

    TO 110 YEAR ANALYSIS OF THE DOW JONES INDUSTRIAL AVERAGES

    BY RICHARD SCOTT

    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. Specics of the projections can dene 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 congurations serve as conrmations 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 dierent 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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    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

  • WWW.TRADERSWORLD.COM January/February 2011 27

    Figure 2

    this powerful tool, because there is just too much variation in planets, harmonics, settings, and markets to easily make sense of this phenomenon. But it turns out that it is not only due to the range of factors that leave most people incapable of applying this technique effectively, but also due to a price and scaling issue.

    When Gann drew his May Beans chart, Soybeans was trading below 360 on the price scale, so his planetary longitudes could easily be drawn right on his chart using their exact longitudinal values. But in many of our modern markets, prices have gone through many multiples of a $360 price scale, and when trying to apply planetary lines to these new scales, the lines skew and do not provide the effective insight that they did for Gann above. This has been the issue that has led so many analysts to fail in finding a real use for this tool. What is needed is a calibration factor which realigns these Key natural planetary forces to different markets with different

    price scales, so that the planetary lines can be usefully plotted on modern day markets.

    I have come across only one person who has resolved this problem, Daniele Prandelli, who in his new trading course, The Law of Cause and Effect, solves the puzzle of Ganns Planetary Price Line technique, by developing a mathematical offset factor, or calibration rate, through which powerful and effective planetary lines can be laid out on any chart, in any market, showing important price and time trigger points and support/resistance levels, which the market moves between as if it were pushed and pulled by some kind of magnetic force. Without the use of this conversion factor one can put planetary lines on charts all day long, but they do not give accurate or consistent results that one can count on. The endless variations between the aspect harmonics can overload a trader with so much information that it all becomes essentially useless, unless

    Figure 2

  • 28 WWW.TRADERSWORLD.COM January/February 2011

    THE LAW OF CAUSE & EFFECT

    CREATING A PLANETARY PRICE-TIME MAP OF MARKET ACTION THROUGH SYMPATHETIC RESONANACE

    BREAKTHROUGHS IN GANNS PRICE/TIME RELATIONSHIPS

    BY DANIELE PRANDELLI

    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

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    W. D. GANNS PLANETARY LINES CRACKED USING CALIBRATION FACTOR!

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    DETERMINE IMPORTANT ENERGY LEVELSUSING PRECISE MATHEMATICAL RULES

    KEY PRICES TO TAKE TRADING POSITIONS FORECAST CLEAR TARGET EXIT LEVELS KNOW IMPORTANT TURNING POINTS THRUCONFLUENCE OF PLANETARY LINES

    DETERMINE THE SLOPE OF THE EXPECTEDTREND THROUGH PLANETARY ANGLES

    LONG-TERM, INTERMEDIATE AND INTRADAY

    This new course unravels the correct application of WD Ganns Planetary Longitude Lines. Gann used these lines on his famous May Soybeans chart, but most people have never been able to figure out how to apply them as effectively as Gann did. Until now!

    This new course explains why most analysts have failed here! There is a missing conversion factor or calibration rate which must be used to adjust the planetary relationships to the scale and vibration of the market at any particular price level. This book CRACKS the conversion factor and makes Planetary Lines one of the most valuable tools youll have in your toolbox.

    Simple to apply with the proper software, which is easily available, this powerful technique will give an added dimensional perspective to market action. These lines call both price and time, and are one of the easiest but most powerful of all Gann tools. Once you know them, you will NEVER stop using these lines to trade from!

  • WWW.TRADERSWORLD.COM January/February 2011 29

    Figure 3

    one understands how to mathematically calibrate these lines with each particular market. When this is properly done, the planetary lines serve as a kind of lattice or grid work through which the market moves in a predictable and tradable manner.

    The following example shows the S&P500 Index from 2007 to 2010 with only one planetary influence, shown by the blue lines. Notice how the market just bounces between these blue planetary lines, and particularly how the extreme tops and bottoms find their reversal points exactly upon, or very close to these pre-determined price levels.

    This is because planetary price lines act as 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.

    The prior example showed only one planetary influence overlaid on the chart, but there are other important planets which will determine other important levels, providing confluence points between the lines for stronger indications. For example, on the following chart we are zooming in on the same chart and adding some other planetary lines, in order to observe how a confluence of multiple lines can give us an even clearer indication of an important bottom in the market. This low is the same major bottom from the last chart.

    Notice that with the addition of other resonant planetary lines at this March 2009 Low, there was not just one line that confirmed this Key turning point, but a huge confluence of multiple lines, the first lines creating the initial resistance from the precipitous drop, with the final Low falling EXACTLY upon the resonant confluence of

  • 30 WWW.TRADERSWORLD.COM January/February 2011

    BEHIND THE VEIL

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    forecasts in 7 different markets. His results were impressive, 7 out of 7, yielding 3,161 points in 7

    days, with 7 trades, in 7 different markets! Wouldnt you like to forecast like this?

    T-Notes 20-22 August. Result - a pivot low on 21 August, followed by a rally of 241 points to 2 Sept. Soybeans 17-20 August. Result - a pivot low on 17 August, followed by a 710 point rally in 6 days. Gold 17- 20 August. Result - a pivot low on 17 August, followed by a 780 point rally to 8 Sept. Platinum - 23/4 August. Result - a pivot high on 24 August, followed by a 607 point drop in 7 days. NY Cocoa 21-24 August. Result - a pivot high on 25 August, followed by a 257 point drop in 4 days. NY Cotton 21- 24 August. Result - a pivot low on 26 August, followed by a 426 point rally in 7 days. German Bund 21-24 August. Result - a spike low on 24 August, followed by a 140 point rally in 7 days.

    We are extremely happy to announce the release of a new and deep Trading Course. Behind The Veil presents powerful trading techniques based upon the deepest scientific and metaphysical principles. It unveils many mysterious and difficult theories and applications similar in approach to those of W.D. Gann and shows a trader how to use these principles to successfully forecast and trade the markets. DONT MISS THIS VALUABLE COURSE!Dr. Goulden, a Cambridge educated scholar, penetrated many of the hidden techniques used by Gann, and has developed numerous new and original trading applications based upon similar principles, leading him to the forecasting results in seen here.The techniques developed by Dr. Goulden will teach traders how to identify future pivot points following which profitable market moves ensue. All of the timing tools needed to forecast these pivot points and the geometric tools used to identify price entry and exit points, and to determine the nature of the ensuing trend are demonstrated in the Course. Based upon a deep level of metaphysical and cosmological insight, these techniques are easily applicable, clearly presented and shown through numerous chart examples in multiple markets, including stocks, commodities & Forex, in all time frames, monthly to minute.

  • WWW.TRADERSWORLD.COM January/February 2011 31

    3 different planetary lines!Another fascinating element of this

    technique is that it will demonstrate that the markets are controlled by natural order, even at times where people think there was random error. The following chart illustrates the influence of the planetary lines on a move that was considered by main-stream media to have been caused by a trader or computer error, causing the S&P 500 to plummet 100 points during the days trading session (with the Dow falling about 1000 points that day in intraday trading).

    As can be seen above, the low of that day touched EXACTLY upon the confluence of two overlapping planetary lines! After seeing this, how can anyone believe that the markets are merely random? Traders who understand these techniques KNOW there is no random movement in the markets, and are well poised to take advantage of

    such seemingly chaotic events!It is a simple fact that the overlay of

    these powerful planetary price techniques upon any chart adds an extra dimension to ones market vision and trading indications, giving a profound insight into the forces behind real market action. Whatever trading tools you may use, the addition of the Ganns planetary lines will provide a significantly deeper insight into the true cause of market reversals! We have no doubt that, once understood, no trader will ever again place a trade without consideration of these essential planetary price lines.

    William Bradstreet StewartSacred Science InstituteInstitute of CosmoEconomics800-756-6141 - [email protected]

    Figure 4

  • 32 WWW.TRADERSWORLD.COM January/February 2011

    The Trading Strategies to Employ in Todays Challenging Markets

    By Glenn Neely, Founder, NEoWave Institute

    No 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 aftera markets high or low, on a pull-back toward the center of its range, you might be called a Bargain hunter (which breaks down into two categories - an Accumulator, if you bought, or a Distributor, if you sold).

    Despite the incredible universe of market systems available to the financial industry, ALL trading techniques fall into only one of three categories (i.e., Top/Bottom-fishing, Trend-following or Bargain hunting). By definition, a market will spend about 1/3 of its time in each portion of a markets 3 ranges; so, each approach to trading works about 1/3 the time. As a result, if you do what most do (i.e., stick to one trading style) you will make money about 1/3 the time and lose money the other two-thirds. If you want to trade successfully 3/3s of the time, you must understand all three phases of market activity, learn to determine which phase is unfolding, then adjust your trading style to fit that environment.

    In this article second in my Stock Market Predictions series I outline

    the three phases of market activity Bottoming/Topping, Accumulation/Distribution, and Trending (up or down) and the best trading strategies for each, including Elliott Wave/NEoWave and other techniques. At the end, I provide specific trading recommendations for todays difficult trading environment.

    Bottoming/Topping phase of market activity A major market top or bottom is rare, which means it holds for a long time. Therefore, you cant have a major top or bottom every week. Recognizing a market top or bottom can be difficult, yet extremely profitable if youre right. Unfortunately, this phase of market activity is one of the most dangerous times to trade, because it can produce repetitive losses if you continually guess incorrectly. For example, in an expanding environment, a market can be in a topping phase, yet make minor new highs over and over without changing

  • WWW.TRADERSWORLD.COM January/February 2011 33

  • 34 WWW.TRADERSWORLD.COM January/February 2011

    the fact that a top is forming. The biggest mistake I see when teaching others how to trade is that they expect or forecast major market turns all the time (by definition, that cant be true), which is why they end up losing so often.

    Accumulation/Distributionphase of market activityFor this section, lets focus on Accumulation first. After bottoming, a market may bounce off its low and experience a period of back-and-forth consolidation. This occurs because financially powerful traders are accumulating positions, preparing for the future market advance. While wealthy traders accumulate positions, less experienced, under-capitalized traders might panic (thinking the market will go lower), or be forced out (due to lack of capital) as the market retests its bottom. . While a majority of traders are selling into the markets decline, that public activity makes Accumulation possible for a minority of wealthy traders. In other words, when the majority of traders are selling, the wealthy understand this is an excellent time to buy (hoard positions), and they have the financial patience to wait for the demand environment to change, forcing prices higher. Distribution phase is the exact opposite of the Accumulation phase.

    Trending phase of market activityContinuing our discussion from above, once nearly all positions that can be bought have been purchased, the Accumulation phase is complete. Most traders are committed theyve laid their claim and are now waiting for the market to move

    their way. During Accumulation, wealthy traders capture nearly all supply in the hope future demand will make their long-term commitment worthwhile. This sets the stage for the Trending phase of market activity. As the economy improves as it always does the public realizes the end of the world did not occur; so, their willingness and ability to invest increases. Over time, growing public demand forces prices upward. (Remember Economics 101: increasing demand coupled with limited supply creates higher prices.)

    In comparison to the prior two phases, the Trending phase lasts the shortest period. Generally, its the most difficult phase to profit from because most traders are uncomfortable entering a market well after the bottom (they realize they are no longer getting a bargain).

    Which trading strategy should you employ during each phase?Bottoming/Topping At market extremes, NEoWave or Elliott Wave trumps all other techniques, leaving little doubt what will happen next and what to do. During this phase, Wave theory clearly portends market potential, allowing you to catch major turns. Ironically, at such times, the public (and your friends!) will have the exact opposite market perspective, leaving you a lone voice in the woods. Consequently, profiting from Wave theory requires the ability to identify patterns and enter when multiple patterns simultaneously end. Identifying and entering at major market tops or bottoms makes most traders extremely uncomfortable. As a result, placing your trust in Wave theory at this time requires mental fortitude and the

  • WWW.TRADERSWORLD.COM January/February 2011 35

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    personal confidence necessary to buck the majority and take an unpopular position. Though it often appears contrary to logic or reason, following NEoWave (or Elliott Wave) during this phase of a markets development generally offers the greatest possible reward.

    Accumulation/Distribution After a major top or bottom, a market will transition into a choppy period (above its low or below its high). Wave theory can still be useful at such times, but its usefulness begins to diminish. Instead, oversold and overbought indicators tend to be more useful, allowing you to trade the range, getting in or out at each market oscillation. The longer the consolidation, the longer you should institute this strategy.

    For example, lets say you have interest in the Gold market. In this scenario well assume Gold recently began rallying from the $900 level. As one who desires to accumulate Gold, you patiently watch it rally to $1,000, which in hindsight enables you to see the market created an important and obvious low at $900. That observation allows you to objectively implement your accumulation strategy. When Gold begins to pull-back from the $1,000 level (noting this level), carefully watch your indicators for an oversold condition similar to what occurred near the $900 low. If that oversold condition occurs when Gold is around $950, its time to buy. If Gold later exceeds $1,000, you can decide to liquidate some of your position OR simply wait for the next oversold condition to pick up even more Gold. This process can be repeated over and over each time the market exceeds it prior noted high.

    Trending (up or down) As I discussed in my previous interview, this market phase can be random and unpredictable. Here, Wave theory is least useful. During the Trending phase, its best to do what most people are afraid to do: buy into market strength. Keep in mind, strong market trends are not common, especially those in which you can buy into a new high or sell into a new low. When strong market trends happen, they can yield tremendous return in a very short period, far outweighing results you might get from other market phases.

    While its clear when a market is trending, a safe, low-risk entry may be difficult to identify. So, what do you do? To explain, lets continue our Gold market example: Gold bottomed at $900, rallied to $1,000, then sold off to $950. If the Accumulation phase has ended, Gold will next move into an uptrend. This is when the scary buying-into-highs strategy actually works. In our example, you would place an order to buy Gold at $1,001; if activated, your stop would be just below $950 (say $949). This way, you are going with the flow of the market, letting it identify your specific entry and stop points as it progresses. When implemented at the right time, this strategy produces the greatest profit in the shortest period.

    Todays challenging U.S. stock market: What phase is it in? Which trading strategy should you use? After rallying for nearly 2 years off 2009s low, the U.S. stock market is now (mid 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

  • WWW.TRADERSWORLD.COM January/February 2011 37 Chart 2.png

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  • 38 WWW.TRADERSWORLD.COM January/February 2011

    this period, wave theory works best. Make sure to wait for structure to complete on all time frames, starting with the largest time frame first (this means monthly). As monthly structure clears and warns a top is near, drop down to weekly charts and make sure patterns on that time frame are close to ending. If that is true, move to daily wave charts and wait for structure to end on that time frame. If all is in order, you are ready to sell on weakness with a stop at the established high OR sell-into-strength with a stop 2-3% above current prices (this approach requires the market not rally too much after you get in, so is a little riskier). Waiting for confirmation, by selling-into-weakness, is generally a better idea, but it does reduce future profit potential.

    About the author Founder of NEoWave Institute, Glenn Neelyis internationally regarded as the premier Wave analyst. He has devoted more than 25 years to mastering Wave theory, stock market predictions, and successful trading. In 1990, Neely published his advanced Wave analysis process in his classic book, Mastering Elliott Wave. In the following decades, Neely continued to evolve Wave theory to make it objective, practical, and consistently accurate. This evolution produced NEoWave technology a precise, step-by-step assessment of market structure, which results in low-risk, high-profit trading and investing. See for yourself: Subscribe to NEoWaves 2-week Trial Service. Learn more about Glenn Neely and NEoWave Trading and Forecasting services at www.NEoWave.com.

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  • 40 WWW.TRADERSWORLD.COM January/February 2011

    Point of Force is an area on the chart, where strong price levels and significant time periods intersect. There is a great number of tools, which help to identify levels, where price can meet resistance or support. Congestions of price levels are much stronger than a single level, but there are always few congestions. How do you know where the

    trend will finally reverse? Here we find importance of Time Factor. If time for the move elapsed price will start moving in the opposite direction from the nearest significant level.

    Price methods in actionToday we will work with November Wheat chart and reveal reasons for the price soar in July. First we find out that in January-June

    by Oleksandr Salivon

    2010 price movement was weak, i.e. price slid to the new low and than returned higher that low, while if it remained below - this would be an indication of a strong structure. Only this would tell us that Wheat price is about to change medium-term trend for at 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

    Time Factor in Points of Force

  • WWW.TRADERSWORLD.COM January/February 2011 41

    11th or even on June 30th

    after classical confirmation, one should hold until daily swings showed strength, consequently moving trailing stop under the swing low or low of the second day back.

    To find where Wheat will find resistance on the way up - take 1284 to 473 price range and divide it in 8 parts, adding 1/8th to 473 low we get 574, 676, 777, 879, 980, 1081. Also take 633-473 range and extend it adding 1, 1.5, 2, 2.5, 3 extensions (Figure 2). In the Square of 9 - 47 (473) is 90 degrees from 88 (876) and 473 is 4 cycles minus 45 degrees from 869. Playing with these tools you will understand

    that congestions around 675, 870 and 960 will be important. Two of them worked precisely, should we wait for 960?

    Time is initial factor for change in trendBut how we would know that June 9 is a final bottom and that price will not stop at 533 or 574. This question can be answered only by studying cycles. No matter how good price levels and indicators signify a reversal, if the cycle is calling for a higher top or lower bottom - it will eventually take place in predetermined time.

    Final higher low in the first week of July before price skyrocketed was

    extremely important as we had synodic Jupiter-Saturn cycle traveled 45 degrees from Feb 27, 2008 and Saturn proceeded 108 degrees from Apr 29, 2002.

    Following only price levels we would close positions on 574, 675 or 770, but understanding that this is a major change for few months you would hold until see 870, and then added after rebound.

    We see how beautiful markets are, how amazing and precise results you can achieve after researching markets own individuality.

    Oleksandr Salivon has been studying the markets for 7 years. He learned all known 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 [email protected] reading:W.D. Gann, Master Commodities CourseW.D. Gann, Tunnel Thru The Air

  • 42 WWW.TRADERSWORLD.COM January/February 2011

    Since 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 designated as the buy or the sell within the system or method.

    This article will attempt to shed some light on organizing short term trading as it is viewed from the standpoint of Novy Principles of Market Flow.

    NOTES ON DAY TRADING from Novy Principles Of Market Flow

    While there is not enough space in this brief article to cover the many aspects of this large body of work there are some concepts that I would like to share with the readers in hopes of adding clarity to what it is that traders do irrespective of the design of the method or system that

    by Leonard Novy

  • WWW.TRADERSWORLD.COM January/February 2011 43

    you are using. In Novy Principles of Market Flow day

    trades fall into one of two categories.

    Scalping and Position Day Trading.

    SCALPINGMost methods and systems attempt to use very short term intraday time frames for entries and exits while using longer term intraday time frames as a directional guide.

    Here are some concepts you might want to consider. I hear traders say that they want to be scalpers.. I just want to catch a few ticks. There is nothing wrong with that as long as the term scalping is better defined to a condition in the market that will allow that to happen.

    We at Training For Traders define

    scalping as trading an impulse or energy pocket in the direction of the market flow. For those kinds of trades there should generally be no draw down. The expectation should be that the trade is elected and it moves as planned with very little hesitation.

    In order to arrive at that condition, short term timing signals should be moving from the center of the scale (ZMZ = Zero Momentum Zone) outwards to the extremes.

    Scalping is a technique applied to a condition in the market flow where energy and momentum are about to surge. Once in the trade, the trader can money manage the flow to clip off quick profits or to turn a short term trade into longer term winner.

    POSITION DAY TRADING

    www.TrainingForTraders.comLeonard Novy

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    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 [email protected] 760 841 1522 Calls returned Promptly

  • 44 WWW.TRADERSWORLD.COM January/February 2011

    Position day trading is typically for traders who use Fibonacci Retracements or Pivot Point Support and Resistance or Line Drawings, Bollinger Bands or Moving Average Support and Resistance etc, who are waiting for the market to hit a target for an entry in the opposite direction. Most of the time, these targets will be over run with emotion.

    This means there will be draw down. This is a developmental area where the market is running into opposing forces that cause for a lot of back and forth movement. If your expectations are that you will need to place a stop loss that adjusts to the current volatility to allow for the trade to develop then you are in the right frame of mind.

    If you try to scalp under these conditions you are likely to lose most of your money. Scalpers dont like using big stop losses and shouldnt be playing in this arena. Position day trading is for players who like

    to trade areas of support and resistance rather than energy pockets

    In Summary: The idea with Scalping is to find a repeatable and consistent action that moves the market instantly in the intended direction with no draw down. Its a performance trade and it must perform. That is the condition.

    The idea with Position Day Trading is that it is developmental in nature and requires patience along with acceptance of draw down. The expectation is that targets will be over run before the turn comes and one must measure risk relative to the current volatility. The condition for Position Day Trading is different than for Scalping.

    For more information on Novy Principles of Market Flow please contact me at [email protected] or 760 841 1522 or go to www.trainingfortraders.com

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