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Nterview With Dan Zanger: Tradersworld

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Michael Romero
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THE OFFICIAL MAGAZINE OF TECHNICAL ANALYSIS

TRADERSWORLD
www.tradersworld.com | Jan/Feb/Mar 2013 Issue #53

Interview with Dan Zanger


The Astrological Edge Trading Math by Design Using Overlays
Glaring Money Trends and Trading Out Randomness
Risk Flares the Every Trader
Should Follow 7 Reasons Why Silver is Poised
For Strong Performance
This is the Mindset of a
Successful Trader Modeling Top Traders

The W.D. Gann Methods for High Power Trading


Forecasting Seasonal Analysis with Geometry
1 www.tradersworld.com Jan/Feb/Mar 2013
Advertisers
Editor-in-Chief
Larry Jacobs - Winner of the World Cup Trading
Championship for stocks in 2001. BS, MS in Busi-
ness and author of 6 trading books.
Jan/Feb/Mar 2013 Issue #53
Advisors to Halliker’s, Inc. dba TradersWorld
esignal.com 3 Susan Jacobs
Zachary Jacobs
Market-Analyst 5 Demetra Gentry
Nicholas Jacobs
mmacycles.com 9

Chartpattern.com 10 Office
2508 W. Grayrock Dr., Springfield, MO 65810
Tradersworld.com 11

SacretScience.com 13 Contact Information


417-882-9697,800-288-4266, [email protected]
SacretScience.com 17
Copyright 2013 Halliker’s, Inc. All rights reserved. In-
TradersWorld.com 24
formation in this publication must not be reproduced in
mmacycles.com 25 any form without written permission from the publisher.
Traders World™ (ISSN 1045-7690) is published quar-
NakedSwanTrading.com 30 terly - 4 issues, (may run late due to content creation)
for $15.96 per year by Halliker’s, Inc., 2508 W. Gray-
TradersWorld.com 31 rock Dr., Springfield, MO 65810. Created in the U.S.A.
is prepared from information believed to be reliable but
ForecastingMadeEasy.com 32 not guaranteed us without further verification and does not
purport to be complete. Futures and options trading are
TradingonTarget.com 34
speculative and involves risk of loss. Opinions expressed
SacredScience.com 42 are subject to revision without further notification. We are
not offering to buy or sell securities or commodities dis-
TradersWorld.com 45 cussed. Halliker’s Inc., one or more of its officers, and/or
authors may have a position in the securities or commodi-
CandleStickForum.com 46 ties discussed herein. Any article that shows hypothetical
or stimulated performance results have certain inherent
TraderPlanet.com 51 limitations, unlike an actual performance record, simu-
lated results do not represent actual trading. Also, since
SafeReliableComputing.com 56
the trades have not already been executed, the results
Tradersworld.com 77 may have under - or over compensated for the impact,
if any, of certain market factors, such as lack of liquidity.
MurreyMathTrading.com 83 Simulated trading programs in general are also subject
to the fact that they are designated with the benefits of
Atomictc.com 90 hindsight. No representation is being made that any ac-
count will or is likely to achieve profits or losses similar to
TradersWorldOnlineExpo.com 95
those shown. The names of products and services pre-
TradersWorld Digest 97 sented in this magazine are used only in editorial fashion
and to the benefit of the trademark owner with no intention
TradersWorld.com 98 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.

2 www.tradersworld.com Jan/Feb/Mar 2013


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Contents
Time by Synodical Degreees by Mathew
Verdouw 63

Two Bits.. or Not Two Bits Sept. 2012 --


Jan/Feb/Mar 2013 Issue #53 Sept. 2013 - Financial Foreshocks? by Eric
Hadik 68
Interview with Dan Zanger
Inverviewed by Larry Jacobs 06 7 Reasons Why Silver is Poised For Storng
Permance by Efrem Hoffman 78
As Above So Below The Astrological (H)
Edge with Trading! by Richard Scott 12 High Power Trading with Geometry by Ron
Jaenisch 80
Math by Design Using Overlays by Gilbert
Steele 18 The Path Ahead for 2013: Showcasing the
NASDAQ 100 and S&P 500 e-Mini Futures
Sometimes Things Just Don’t Work Out by by Efrem Hoffman 84
Gilbert Steele 26
Pendular Movements in Market Behavior by
Glaring Money Trends and Risk Flares that Catalin Plapcianu 88
Every Trader Should be Following by Efrem
Hoffman 27 Trading Computers 4 Less 91

Modeling Top Traders by Adrienne Toghraie Traders World Book Library 92


33
Traders World Online Expo DVDs 95
Several “Combined Views of the Masters”
Trading Seminars wil be Presented in 2013! Amazon Kindle Books 96
38
Traders World Digests 97
How to Develop a Winning Trading Strategy
by Daniele Prandelli 41

This is the Mindset of a Successful Trader


by Bennett McDowell 48

Trading Out of Randomness by Rob Mitchell


52

The W.D. Gann Methods for Forecasting


Seasonal Analysis by George Krum 57

4 www.tradersworld.com Jan/Feb/Mar 2013


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Interview with Dan Zanger
Interviewer Larry Jacobs

Larry: Please tell us what you look for in a stock with Dave Edson at IQXP
in today’s market. to integrate sounds of the
market into his IQXP system.
Dan: I look for very high beta stocks that trade To rotate through groups of charts in real time in
at least 1 million shares a day and can move multiple time frames I use Quotetracker which
a minimum of $4 to $5 a day for two to three is specifically designed for this.
consecutive days at a time. Most of my stocks
start in the $80 area but some of the best For my end of day charting and scanning I
stocks are in the $100-$700 price range such use AIQ Trading Expert and those charts are
as Priceline.com (PCLN), Google Inc. (GOOG) featured with comments and recommendations
and Apple Inc. (AAPL). Lower priced stocks in my newsletter.
seem to be spottier in their price movement and
therefore I find them less fluid for swing trading. Larry: Do you use any particular trading method
or combination thereof?
Larry: How many stocks do you scan nightly?
Dan: I use chart patterns to trade and combine
Dan: I have about 1300 stocks in my AIQ these with price and volume behavior on the
database that I scan routinely, but the main most explosive and high priced stocks I can
focus is a smaller select group of the biggest find. It seems to work very well and I have used
moving stocks of the day. Over the past few this method exclusively for the past 22 years.
years I have actually reduced my complete I do not use any Gann, Fibonacci or any other
database scanning from every night to two or tools of this sort in my trading.
three times a week. This is probably because as
this Bull market has aged, there are just fewer Larry: Do you use stops?
big movers in the market to find these days.
Dan: Tight stops are a must in this business
Larry: What software platforms do you use or you’re out of business. If you ever start
today? getting stopped out repeatedly in a one or two
week period of time then the market is telling
Dan: I use eSignal for my real-time quotes and you something. You should start going to cash
IQXP with my custom “sounds of the market” before a serious market break occurs.
alert tool during the market day. This alert tool
triggers sounds as trades suddenly fill at the bid Larry: What time charts do you use?
or ask on stocks through out the day. I created
sounds of the market in 1997 by connecting a I use many time frames on my charts which is
few alligator clips from my boombox speakers why Quotetracker software is so effective for
to the soundcard in my computer. It has helped me. I have six 5 min charts on one monitor,
me immensely through the years. I later worked six 30 minute charts on another monitor and

6 www.tradersworld.com Jan/Feb/Mar 2013


six daily charts on a third monitor all running that extreme leverage can wipe you out.
in real-time in front of me. This gives me a
thorough overview of any given stock and the Larry: What is your strategy to use coming into
overall market quickly. It also allows me to find the fiscal cliff?
some great set ups throughout the day in real-
time as selected leaders build out their patterns. Dan: Well I started reducing positions and raising
cash as soon as Apple stopped me out around
Larry: What patterns do you like the most to the $686 area back in mid to late September
trade with? and sold some other minor positions as well. I
had 50% cash by the first of October and by late
Dan: I find just a few patterns work best. Tight October, I was 65% in cash and 20% in housing
Channel patterns are some of the best as well stocks and the rest in high paying RIETs. But
as some Cup and Handle patterns. These are I sold all my housing stocks just before the
some of the most consistent. election and raised more cash. Currently, as of
November 15th I’m 88% in cash and 12% REITs
Larry: What about money management, do that have held up well in the recent REIT sell
you use that? off. So as you can see I’m pretty defensive right
now. Currently the market is oversold as we
Dan: Money management is key to staying alive. approach Thanksgiving and the market could
This market behavior over the past three years rally if an agreement is reached in dysfunctional
has caused me to trade with more cash on the Washington. We saw a very solid lift in stocks
sidelines than ever before and therefore I use on Friday November 16th when leaders of
far less margin. Also I have not been invested in both houses came out and said we need to cut
as many stocks as I have had been in the past. entitlements as well as raise revenues. The
November 16th rally day seems to be a Key
Larry: Do you use margin? Reversal day that could lead us higher into
a final resolution of this crisis. Certainly I’m
Dan: I do use margin at selected times and I ready to step back into the market whenever
have also used some deep in the money calls the charts set back up again.
at very selected times of the year on a few big
movers such as Apple. Each time Apple broke Larry: Do you watch any news or follow any
out from a large long base I used deep in the news sites on the internet?
money calls to catch the price movement. Of
course I reduced my position size as the stock Dan: The only news sites I read are Yahoo and
was roaring up and took profits at selected maybe once a week I go to Bloomberg.com to
steps which reduced my exposure on these dig into some news items of interest to me.
extended stocks should they suddenly reverse Other than these two, that’s it.
course along the way. Options and margin
are dangerous and need to be used sparingly Larry: How do you use psychology?
only one or two times per year and only by a
seasoned trader that has lived through market Dan: I use psychology very little in my overall
corrections and market breaks and understand approach to trading. For example, right now

7 www.tradersworld.com Jan/Feb/Mar 2013


stocks and the market are coming out of a What do you talk about during it? I know your
correction and when that happens many people members seemed to be pleased with what they
are bearish. Stocks move up from a correction learn.
and create bases and then start to breakout
from them. I buy leading stocks at the breakouts Dan: My show is all about chart patterns and
when the general psychology is bearish. After a how to use them to trade. I have a database of
period of time these leaders become extended many hundreds of charts in my website of past
and need to be sold but by then the psychology winners and I use the best ones at the seminar
has reversed to positive. It’s always more a to highlight how to spot these big movers in
matter of the charts for me than psychology. advance and how to sell out on the way up. I
also show ways to buy right after the breakouts
Larry: How does a big loss or gain affect you? and how to spot tops and bottoms. I also delve
Any way to handle that. into what was going on in my mind when I
entered some of the biggest trades of my career
Dan: When I make a bad trade such as holding such as when I shorted 160,000 shares of eBay
onto a winner too long or loading up on a fast just before it missed earnings and guided lower.
mover only to see a downgrade take the stock News after hours caused it to plunge over $20.
down anywhere from 15 to 60 points (60 points This was my biggest one day gain ever on a
was the case in Baidu in October 2007 prior single stock.
to its 10 for 1 stock split) it’s definitely a bad
hair day at the office. I usually become very At the beginning of the show, I go over earnings
quiet for a few days and think hard about what and explain how to interpret them for momentum
I might have done differently. Of course money trading. Then I go into positive chart patterns
management is key to not being swept away for buying and the final portion of the show I
when one stock gets crushed. On the other side, go over bearish patterns and when to be out of
when I get a big winner I try not to get excited longs or go short.
or emotionally charged up and focus on finding
a spot to sell or reduce shares to lock in gains. Larry: If you were a new or even an experienced
Traders that go out on buying sprees counting trader today trying to make this professions,
their money prematurely usually lose sight of like you have done. What would you do? What
how dangerous the markets can be and lose a books would you read? What services you would
great deal of money and or go broke. take? What kind of computer would you get?
Larry: How many hours a day do you put in How many monitors would you get? You are one
and how many of those hours are dedicated to that started and went through the process and
research? finally made it big.

Dan: I usually put in 10 -14 hours a day which Dan: Well the number one book to read is “How
is down from 12- 16 hours a day 12 years ago. to make money in Stocks” by William O’Neil. I
Research per day is about 1-2 hours and 4-5 read that book over 35 times during a 6 year
hours on Sunday. span when I was starting out. Then I would use
AIQ Trading Expert for end of day charting for
Larry: I am curious about your yearly seminar? crisp looking charts that help find those chart

8 www.tradersworld.com Jan/Feb/Mar 2013


patterns. AIQ is great for flipping through 1200-
1300 stocks at the end of each day quickly
with just the touch of a single key. Of course
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Dan: The chat room is a popular place for many


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AS ABOVE SO BELOW
THE ASTROLOGICAL (H) EDGE WITH TRADING!
By Richard Scott
Over the last ten years I have spent literally Neptune and Pluto. These three planets move
thousands of hours researching the correlation slowly. Uranus takes 84 years to complete a
of astrological influences and their effect on full cycle of the zodiac. Neptune takes 165
the stock market. Six years ago, armed with years to complete a cycle and Pluto takes
the confidence of being able to accurately approximately 248 years to complete a
predict likely market trends via prevailing cycle. When one of these three outer planets
astrological influences, I left the work force. changes signs it is big news astrologically and
Since that time I have turned trading from this is reflected in the stock market. A long
home into a very financially and personally term upward trend begins.
rewarding career.
This long term upward trend however
My research, in its entirety, deals with many historically has conditions attached to
different astrological influences and their it. It will only begin when the planet has
effects on the market. As there would always firmly established itself in the new sign. To
be a variety of different influences in effect explain this, the long term trader using this
at any one time, my work deals not only with information needs to know that an outer
recognising the different influences at play, planet will always go through what I refer to
but also, very importantly… how to weigh as a process of changing signs. It will slowly
them. Which are going to be stronger? Which approach the next sign until reaching about
are going to negate the influence of another? 27 degrees of the current sign. The market
Which are going to add to the influence of at this point will often react negatively. The
another? What do I look for in long term planet then continues on its way and moves
trading (months, years)? What do I look for into the new sign. It arrives at 0 degrees and
in short term trading (hours, daily)? What do the market reacts positively at this point.
I look for in medium term trading (weeks)? However, the planet, after a period of time
All my research is supported by 110 years in the new sign, will retrograde (move back)
of evidence on the Dow Jones Index and has into the old sign for a while. The market will
recently been published in two volumes. For again react negatively. This process, which is
the purposes of this article I am focusing on explained fully in my book, with 110 years of
just one area of my work, which is of value to supporting historical data, will continue with
the long term trader. its ups and downs until the planet is finally
settled into the new sign. It is at this point
I observed many years ago that life became that the upward trend is established.
very interesting in the stock market when one
or more of the outer planets went through the Because each of these outer planets moves
process of changing astrological signs. The slowly, it is usually the case that only one of
outer planets referred to here are Uranus, them would be going through the change of
signs process at a particular time. However,
12 www.tradersworld.com Jan/Feb/Mar 2013
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occasionally, we have a situation where two outer planet has arrived in the new sign and
of the three outer planets are changing signs is staying there. This is when the upward
within, say, a two year period. When they trend is firmly established. In each of the
are both established in the new signs, after charts the horizontal bars underneath the
the ups and downs of moving in and out of graph represent the planets. The bottom bar
the previous sign have finished, the resulting is Pluto, next up is Neptune and above that
upward trend will be stronger. Uranus. Other planets changing signs (for
example Saturn and Jupiter) have some effect
Even more rarely we have a situation where on market movement, as discussed in my
each of the three outer planets are all changing book, but I have not found them as significant.
signs within a period of perhaps three years. The upward trend, unless other influences are
The various ups and downs associated with this present, will be shorter lived.Here we have
particular phenomenon can make the market an example of the first scenario, Chart 1;
quite volatile for a while. However once all one outer planet changing signs. In this case,
three are firmly established in their new sign the planet is Uranus, and it went through the
the upward trend is even more powerful. process of changing signs from Aquarius to
Pisces in 2003. Uranus is represented by the
The following Market Analyst charts illustrate third bar from the bottom of the page and
historical examples of each of the above it can be seen that the bar changed colour
three scenarios. For the sake of simplicity, on the chart, indicating that the planet had
I have provided charts which, for the most changed signs in March, 2003. Chart 1. Note
part, demonstrate the final outcome; the the upward trend that commenced at that

Chart 1
14 www.tradersworld.com Jan/Feb/Mar 2013
point. Prior to this date, the downward trend this case. The “weights” of various influences
as mentioned before can be clearly seen. are discussed extensively in my course.
Uranus, of course, has changed signs since Here we have an example of the third scenario,
2003, and this is shown in the next chart. chart 3, the three outer planets changing signs
within a period of approximately three years.
Here we have an example of the second The example shows Pluto changing signs from
scenario, in chart 2, two outer planets changing Sagittarius into Capricorn in November, 2008.
signs within a period of approximately two Uranus moved from Pisces into Aries in March,
years. In this case the two planets are Pluto 2011. Neptune, which is represented by the
and again Uranus. The example shows Pluto bar second from the bottom, moved from
changing signs from Scorpio to Sagittarius in Aquarius into Pisces in April, 2011. A strong
January 1995. A strong upward trend began upward trend is established.
at this point. Pluto is represented by the
bottom bar on the page. Uranus also changed Note again that we are talking about general
signs during that same period of time in April, long term trends. Of course the market
1995, adding strength to the upward trend continues to experience peaks and troughs
which had already begun. In this case, the along the way, some more noteworthy than
downward trend prior to Uranus changing signs others. I understand all of these separate
was largely negated by the fact that Pluto was shorter term influences as well. I can explain
already in its new sign. This is an example them all astrologically and trade on all of these
of a stronger astrological influence negating a indications. The ultimate trading experience
comparatively weaker astrological influence in for me arises from observing the variety of

Chart 2
15 www.tradersworld.com Jan/Feb/Mar 2013
opportunities available at any one time, April, 2014, very strong indications of a drop
deciding which of these particularly suits me in the market at this time.
at that time, and then trading accordingly. I Wishing everyone happy and profitable trading
know when to get on a trade. I know when in the New Year!
to get off a trade. I don’t know however how
many points the market will move in any The complete explanation of my
particular direction, just that it will move in methodology in trading is available as a
that direction. There has to be some mystery course entitled
left to keep it exciting!
A Compendium of Astro-Economic
In general I believe we are in for a very Influences Practically Applied to
interesting and potentially volatile 18 month 110 Year Analysis of the Dow Jones
period commencing in mid-July, 2013 through Industrial Averages
to the end of 2015. Volatile, of course, indicates
both sudden surges and sudden drops. I will and is available through the Sacred Science
be very busy at this time weighing everything Institute at (http://www.sacredscience.com/
up as I always do and deciding who is going Scott/AstroEconomicInfluences.htm).
to win! Richard Scott
Contact through:
Here are a few specific dates for the diary; Sacred Science Institute
Mid July, 2013, very strong indications of a [email protected]
surge in the market, however only until mid- www.sacredscience.com
August when conditions suggest that the 951-659-8181
market will drop again.

Chart 3
16 www.tradersworld.com Jan/Feb/Mar 2013
A COMPENDIUM OF ASTRO-ECONOMIC
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tracked down every instance of every influence. This course presents the results of that labor, summarized,
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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
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17 www.tradersworld.com Jan/Feb/Mar 2013


Math by Design Using Overlays
By Gilbert Steele

There is only one way things can be, the natural way. Just look around you. Mathematically,
you need to find your starting point. Let the universe be your model.

The earth orbiting around the sun takes 365 days.


A circle is 360°. The combinations of these two together are the foundation of my concept.

Months become longer or shorter than 31 days in their position in time location, but not in the
number of days in each month. The 12 months are equal to 360° at 1° for each day.

18 www.tradersworld.com Jan/Feb/Mar 2013


I have colored coded the Equinox and Solstice Time Markers.

I have color coded the time markers for equations later when adding a new dimension in time.
With one look I know where I am in time.
Knowing the time you will know the Price. See the Movie.
http://youtu.be/BmY-lbzX16Q

Many more items can be added as needed that I am not showing.


Now adding time! Each time we add it all to gather.

19 www.tradersworld.com Jan/Feb/Mar 2013


Time used in the Dow 30 Movie projecting the fall to 12700.
Then showing how it was done.

To view the movie go to: http://youtu.be/BmY-lbzX16Q

20 www.tradersworld.com Jan/Feb/Mar 2013


Gilbert’s Methods:
Teaching my math would take some time, as it’s comprised of over 40 years of research. I
have written math equations in color to project the Time and Location of stocks. The person
would need copies of all of the spreadsheets and MetaStock Professional 10.1 end of day data.
I would expect you to show proficiency by demonstrating a working knowledge. My ultimate
goal is for the student to become a master, no longer needing any help from me. Teaching
hidden laws, that I have found, thru 40 years of hard work and research, are not given away
freely.

Additional and ongoing support could be provided for anyone who would like to work in
partnership with Gilbert. If a seriously interested person wants to learn to make money, cost
should be no object. I have done his work for him and he will not have to spend all day in the
office making charts. I hope this answer, the questions that I get after each publication.

21 www.tradersworld.com Jan/Feb/Mar 2013


Personal note to readers: I am thinking about selling Photo
Chart on the T. W. Magazine. 12/20/2012 - SEE MOVIE

This chart shows the outcome of the prediction.

This chart shows the prediction from the movie submitted to the Traders World Magazine.
Gilbert predicted the fall of the Dow Jones to 12700 before the storm hit New York City and
predicted on 12/17/2012 the market would start up, and then showed how Gilbert did it.
Remember Gilbert’s article, June / July 2011 Issue #49 on Page 42. Gilbert called the Major
fall of TXN look at the predication. Then read about Gilbert’s Vision, the Story “She Died”.

[email protected]

22 www.tradersworld.com Jan/Feb/Mar 2013


«SOMETIMES THINGS JUST DON›T WORK OUT»

By Gilbert Steele

A company I worked for hired a very “I called some very smart people recently, and
intelligent Quantum-Math scientist. He singled they recommended this stock.” She showed
me out, and said, “I was told you are liked- me the name, and I acknowledged it.
minded in the math world, and you might have
a common interest with me. I would like to talk She continued: «I lost $87,000 in less than
with you.” In time, we became good friends 4 weeks; So much for their valuable stock
and I started showing him my “Math Modeling” recommendation.” In the fourth meeting, I
projects that I was currently working on. He explained what we could do in the Business
said that he liked my work and would like to World. She became very excited and said, “This
explore it with me. idea is not in my world and I like it very much.
I will talk to my beloved Husband (still married
Coming in the next day, I could see he had at that time) about everything.” There was no
been up all night. Eyes blood-shot, he was trying more contact. It was like she had disappeared.
to “solve» the puzzle, and ran out of time. With Later, I learned of her messy divorce, and
no sleep, he had to check in for work at the main suddenly going to work for the U.S. Military.
office. Later that day, my boss informed me if I It was very depressing. I was so distraught
ever talk to their math man again they will fire over the matter, that the only person I spoke
us both! to for several years regarding mathematics
was a confidant of mine, Walter. Walter had
Another man I was working with, was continuing worked with Wernher von Braun in America on
College, and asked if I wanted to meet his the V2 rocket projects, and subsequent civilian
college Professor that taught Quantum Physics. rocket programs. Walter is extremely learned
Of course I would! She said to my friend, “Have and excels in mathematics.
Gilbert tell me something that I don’t already
know.” I thought for a moment, and gave him At the current time, my business associate
an «answer» which did not make any sense to has one PHD in math and electronics. We’ve
him. She, on the other hand, set up a meeting been working together toward our current goal
the next week. which is to influence people to make a success
Professor Doss, a PHD, and college professor of them-selves in the investment world. The
was married a man who also held two PHD’s. She future is for those that work and pursue it.
was on a team of 5 that created the original
electronic watch. Professor Doss also solved the Going to College:
problem in Bouillon Math.
Son said Dad, The Lord said for me to go to
During our first two meetings I showed her College.
my research and she made notes saying she
needed to verify times and dates. At the third I am going to college and become a Pastor.
meeting, as she looked at my work and said, The father said, that sounds good to me.
23 www.tradersworld.com Jan/Feb/Mar 2013
Son. Two years later the Son said, The Lord
said, for me to take up bookkeeping now. The Order all Back Issues
father said, that is fine with me. of Traders World
Magazine on CD
Then the Son said, I am going to take up
accounting as well.
Contains all of the back issue articles
of Traders World Magazine on CD in a
The father said, have you any idea you are
pdf reader format. 4901 - Issue #1,
going to do? The Son said no, but I don›t think
February 1988 Gann & Elliott Wave.
I will be a Pastor of a Church.

After graduation the News Paper ad said, you


53 Back Issues

$69.95
can apply for the job but, we don›t know what
we are looking for.

The interview: This is Mr. A and I am Mr. B. We


are going to hire you. It seems you are just These are many of the trading articles
what we would like in the Corporation. You from major traders from the last
see, I am putting in $ 5,000,000.00 dollars 20-years. Some of the covers are below.
and Mr. A is putting in the same. For a complete lising or to order go to:
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or call 800-288-4266 or 417-882-9697
Your job is to be the third Signer on the checks
and to watch over the Corporation.

Note: the father is 91 years old now and this


year he will be married 70 years. 5/11/2002

Yes, I miss so many friends that have crossed


over now.

[email protected]

24 www.tradersworld.com Jan/Feb/Mar 2013


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25 www.tradersworld.com Jan/Feb/Mar 2013
"SOMETIMES THINGS JUST DON'T WORK OUT"
BY GILBERT STEELE

A COMPANY I worked for, hired a very intelligent she said, “I called some very smart people
Quantum-Math scientist. He singled me out, recently, and they recommended this stock.
and said, “I was told you are liked-minded in She showed me the name, and I acknowledged.
the math world, and you might have a common She continued: "I lost $87,000.00 dollars in
interest with me. I would like to talk with less than 4 weeks. So much for their valuable
you.” In time, we became good friends and stock recommendations…..”
I started showing him my "Math Modeling"
projects, I was currently working on. He said, In the fourth meeting I explained what could
He liked my work and would like to explore it be done in the Business World. She became
with me. Coming in the next day, I could see very excited and said, “This one idea is not in
he was up all night. Eyes blood-shot, he was my world. And I like it very much. I will talk
going for the" SOLVE", and ran out of time. to my beloved Husband ( still married at that
time) about everything.” There was no more
WITH NO SLEEP, now he had to check in FOR contact. It was like she had disappeared off
WORK at the main office. Later that day my the screen...
boss INFORMED me “if I every talk to their
Math Man again they will fire us both!” Later, I learned of her messy divorce, and
suddenly going to work for the U.S. Military
The man I was working with, was continuing Department. It was very depressing. I talked
College, and asked if I wanted to meet his of this and the knowledge this lady had, with
COLLEGE Professor that taught Quantum a confident: Walter. Walter who had worked
Physics? OF COURSE I WOULD...And he said, with Wernher von Braun in America on the
She asked OF YOU: "tell me something I don’t V2 rocket projects, and subsequent civilian
know.” I THOUGHT FOR A MOMENT, and gave rocket programs. Walter is extremely learned
him an "answer" which did not make any and excels in mathematics.
sense to him and finished with, "when does
she want to meet me." My current business associate has two PHD’s
one in math and one in electronics.
Ms. Doss is a PHD, AND COLLEGE PROFESSOR.
Her former husband, at the time, had TWO “I have tried to recall and explain the flavor
PHD’S. Ms. Doss was on a team of 5 that and mood of events that sometimes just don’t
created the original electronic watch. Ms. work out.”
Doss also solved the problem in Bouillon Math.
During our first TWO meetings I showed her Our current goal is to influence more people
my research and she made notes saying she to make a success of themselves getting into
needed to verify time and dates, AND SHE the investment world. The future is for those
WOULD RETURN. that work and pursue it........

The third meeting, as she looked at my work, Gilbert Steele ©


26 www.tradersworld.com Jan/Feb/Mar 2013
Glaring Money
Trends and
Risk Flares
that Every
Trader Should
be Following
By Efrem Hoffman, Founder & Director of Macro-Market Strategy at
TradingTimeAndPrice.com and Naked SwanTrading.com

Glaring Money Trends and Risk Flares that to walking you through the Time Maps
Every Trader Should Be Following for each of the markets discussed. The
mission will be to help you shock-proof
-Look no further than what the charts are your decision-making from market noise,
telling you about the relative outperformance and keep you focused on the right side of
of the consumer class in both China and India. actionable support and resistance levels.
Because price follows decisions, which Please note that all references to symbols
ultimately drive momentum, I defer my of securities are in TradeStation format
judgment to Momentum Time Maps – [Note: A $ in front of a symbol represents
produced by Clear View Analytics Inc. -- for an index versus an exchange traded fund
identifying Decision Cycles -- the time frames (ETF) or equity security]. For those of
where market players will be clustering their you who are using a different analytics
decisions to buy and sell -- on the basis of platform to observe market value, you will
forward-looking momentum trends. need to look up the appropriate symbol
conversion.
That means having a constant eye on who
the key decision-makers and momentum I am current watching several barometers
influencers are, and when they will be of market health with great attention
synchronizing action for or against the and detail. They include the pronounced
current trend. But, because the inter market weakness in economic sensitive sectors
disconnects I am about to share with you that have among the highest contribution
today are so prominent, you will on only need to GDP, like the Semiconductor Index and
to observe the price action on a plain vanilla Exports (FEXP), brought about by rising
chart to add sensibility and confirmation to uncertainty by purchasing managers,
my bottom line intelligence. with regard to the fiscal cliff.

In my next series of articles, I look forward All this is occurring at a time when not
only food and agricultural pricing is having
27 www.tradersworld.com Jan/Feb/Mar 2013
a firm bid with periodic bouts of “ag-flation,” Should the US economy falter under a
but also while global trade is contracting – as confluence of one or more of the risk flares
currently expressed by a large divergence discussed, the structural progress in Asia
between Global Shipping ( DJ Global Shipping toward a higher living standard and increased
Index – Symbol: $DJGSH ), a barometer of local demand for consumer services, are
goods being moved, and Industrial activity sowing the seeds for a more resilient
-- as measured by the performance of the economic landscape in that region – especially
DJ 30 Index (ETF Symbol: DIA) and S&P 500 considering the transition towards favorable
Industrial Sector ETF (Symbol: XLI). demographics, rising currency inflows, and
foreign investment. That’s great for Asia, but
While the US Large Cap Markets (DJ 30-- ETF what does it mean for the western economies,
Symbol: DIA and S&P 500 – ETF Symbol: and particularly the US.
SPY) and particularly the tech laden NASDAQ
100 (ETF Symbol: QQQ) -- loaded up with It will become increasingly important to keep
big name semiconductor companies (ETF a close eye on the Electricity consumption,
Symbol: SMH) –- have been correcting since as measured by the Wilshire US Electricity
the late September high, “Chindia” ETFs, the Index-- $DWCELC, as its topping and
ETF and Index Symbols, CHIQ (Global X China unhealthy market action since early August
Consumer ETF), FXI (i-Shares FTSE China 25), may be the “Canary in the Coal Mine” for
INP (i-Path MSCI India Index ETN), $IINCO economic activity in 2013.
(Indxx India Consumer PR Index), and $III
(Indus India Index), have been building pent Also, when looking at metrics such as Real-
up energy for another leg top side. Estate Investment Trust (REIT) performance
These up-trends in “Chindia” products, that and the rising affluence of consumers in
have been established off their low points, these regions, there are now clear signs that
respectively, on Oct 4th, 2011, Dec 20th, 2011, their home, office, and retail property values
and May 23rd, 2012, are showing favorable -- as measured by the DJ Wilshire Asia/
market momentum and volume structure, Pac Real Estate Index (Symbol: $DWAPRS)
in support of continued bullish activity on -- are moving in opposite directions to the
two significant fronts. First in terms of both US. The glaring divergence in this asset
relative performance and absolute return; and class is not only a result of these improving
more importantly, they are actually gaining fundamentals, but is also brought about by an
value, even while their local currencies -- in alarming disconnect in the US equity markets.
relation to their US trading partners -- are I am referring to the capital migration, that
showing signs of exerting an underlying is beginning to show its face, out of the US
bid. The relative outperformance of Eastern REITS --particularly the SPDR DJ Wilshire
over Western nations may also be amplified REIT (Symbol: RWR) and the Wilshire US
by the repositioning of assets for improved Real Estate Index (Symbol: $WILRESI)
diversification into non-correlated risk – and into the US Homebuilders – most
factors and stronger geographic GDP growth prominently KB Homes (Symbol: KBH). While
opportunities. the near term movement off the September
lows is long in the tooth, the intermediate

28 www.tradersworld.com Jan/Feb/Mar 2013


term trend appears to remain intact. disproportionate underperformance among
This trend is largely due to the excess shadow the asset classes worth noting is driven by
inventory of existing home foreclosures that the extreme cliff hanger recently staged
is not available for sale on the open market. by the broadest measure of US Corporate
Uncle Sam’s efforts to keep this supply off Confidence. I am talking about investors that
the market is fueling a rush for new housing vote with their pocketbooks on the ability for
starts and home construction, as current corporations to finance their debts, attracting
supply constraints is often making it more the necessary capital to fund operations --
cost effective to purchase a new home. Until at the going market rate -- while remaining
shadow foreclosure inventory is unwound solvent and making good on their obligations,
from the bank’s balance sheets, it will be without default or restructuring. In each of
remain virtually impossible to assess the true the major downturns that the US economy
market value. has most unfortunately experienced since the
dot-com crash of 2000, the Dorchester Capital
The price charts of KB Homes (Symbol: KBH), Markets Bond Index ($CPMKTB), the broadest
a notable homebuilder, and the RWR most measure of US corporate bonds offered a
strikingly reveals the effects of this capital strong leading indicator of financial market
migration; and just what a difference a stress and economic weakness. The abrupt
relative value strategy can make to a portfolio downturn in the price of corporate bonds is
investment– i.e. by going long KBH and short particularly concerning given that since this
RWR on a beta-neutral basis – that means October 16th, they have been persistently
adjusting position size for their local volatility falling in value – both when the equity markets
differences and characteristics. have been rising and falling.

Other sectors that may get support from If it’s not bad enough that earning are
this emerging growth theme are aluminum contracting, Fast Food and Family Dining
producers and distributors. For one, since this is slowing and strongly underperforming
past July, Alcan Aluminum (Symbol: AA) has the broad averages, including such names
been building a stable market structure from as Chipotle Mexican Grill (Symbol:CMG),
which to launch off its base). But it will not McDonald’s (Symbol: MCD), and Cheese Cake
be until price advances above $9.88 that the Factory (Symbol: CAKE) – which may be
trend can gain some traction. indicating that the consumer is getting tapped
out.
Another ETF poised to benefit from the
convergence of food shortages and rising world Another interesting, but less talked about
demand, brought about by consumers eating observation is that Consumer Staples now
higher up on the food-chain, is the Rogers represents a disproportionately large part of
International Commodity Index – Agriculture the index relative to ordinary measures ( 13%
Total Return Exchange Traded Note (symbol: as of June 29th , according to Bloomberg).
RJA). It’s a sort of catch 22 situation. On the one
hand, since it is tightly correlated to the
The most critically relevant and industrials, a further move top side in the

29 www.tradersworld.com Jan/Feb/Mar 2013


industrials, baring extreme capital flight into has gone from confusing to absurd, and is
less crowded trades, would offer a tail wind now playing the role of Jekyl and Hyde. On the
for a more bloated -- and in some cases, one hand, the collective investor mood can be
dangerous valuations. While on the other perceived as highly complacent, and on the
hand, a sharp contraction in economic activity other hand, the market’s “animal spirits” are
would lead to large capital outflows. displaying a message of apprehension and
fear, as evidenced through the falling levels
What’s even more unusual in the market today in the ratio of Gold to economic pro-cyclical
is that the complexion of investor sentiment industrial resources -- including Oil and Copper.

A Critical Alert Window was opened on AAPL starting in March which led to a
precise Attack-Point™ set up at the 633 level on April 10th. Traders had eleven full
days to develop short strategies as AAPL was on the verge of a serious drop.
Efrem Hoffman laid it all out on his HIGH-DEFINITION RISK MAP days in advance!!

EFREM HOFFMAN is Offering His Market Intelligence on dozens of markets as they


set up their exact Attack-Points™ for trading strategies.
You can see the NEXT AAPL before it
See Efrem's exclusive article on ™Risk-Windows in issue #51. happens!

Enter Your First Name

Enter Your Email Address

We will NO T share your inform ation with


othe rs.

He has invested over 16 years of research for the purpose of identifying


Tail-Risk Attack-Points™ on specific equities, futures, commodities and
emerging markets as they enter their Critical ™Risk-Windows Efrem Hoffman states there are going
to be extensive trading Critical
See his decades of data mining experience using dozens of computers to Windows Setting up over the next 18
drive the analytical engine that distills the bottom down intelligence
Months!
Benefit from this analysis utilizing advanced math and physics tools to To learn more about Efrem Hoffman, go to:
secure a telescopic and forward looking view of market rhythms and www.NakedSwanTrading.com
human perceptions.

www.nakedswantrading.com

© Copyright 2012 Nakedswantrading.com

30 www.tradersworld.com Jan/Feb/Mar 2013


Moreover, the strong underperformance of the
S&P 500 relative to both the Euro – the largest Order all Back Issues
currency weighting in the US Dollar Index – of Traders World
and precious metals – including silver and gold
Magazine on CD
on their most recent run-up. The rising pocket
book of these emerging super-powers, coupled
Contains all of the back issue articles
with long-term inflationary pressures will offer
of Traders World Magazine on CD in a
increased demand for real assets, including gold
pdf reader format. 4901 - Issue #1,
and silver. This will likely drive up commodity
February 1988 Gann & Elliott Wave.
prices, and offer an underlying bid for Industrial
Metals. The threat of soaring energy prices,
combined with a renewed upward cycle in
53 Back Issues

$69.95
natural gas, may become a real and present
danger in 2013, and especially so when taken
into consideration with the mounting geo-
political risks in the middle east.
These are many of the trading articles
The Bottom Line: from major traders from the last
We have fundamentally disconnected from the 20-years. Some of the covers are below.
basic reality of the global economy since the For a complete lising or to order go to:
www.tradersworld.com
March 2009 rally – each QE rally in 2010, 2011,
or call 800-288-4266 or 417-882-9697
and 2012 has had an increasingly shorter shelf-
life with less economic and financial market
impact, especially as the profit cycle and cost
cutting measures are now peaking out, at a
time when currency debasement from falling
real asset values are leading to a big divergence
between economic sensitive resources and hard
assets.

What makes this a very sticky and precarious


situation, is that earnings cannot replace
revenue growth as profit margins are rolling
over. Unfortunately, the only game in town is
for Wall Street to incrementally underestimate
earnings, to the point that the S&P rallies are
fueled by positive surprises.

Be very careful into 2013! – Manage Tail-Risk,


and prepare for the worst, while seeding your
best opportunities.

31 www.tradersworld.com Jan/Feb/Mar 2013


New Advisory Forecasting Service
1) Mikula Forecasting Service
We are now offering the Mikula Forecasting Service. A new advisory and forecasting service for the DJIA30, EUR-USD
Forex currency pair, interest rates, soybeans and gold. We are using the Master Time Factor and a few other cycle
methods to make the forecasts. Learn more at http://forecastingmadeeasy.com/wordpress/

Forecasting Made Easy 2012


Master Time Factor Forecast For the DJIA30 for 2012.

2) Master Time Factor charts


W.D.Gann's most famous forecasting method, the
Master Time Factor, is now available in the new
software Forecasting Made Easy 2012. The Master
Time Factor can now be setup for any market allowing
you to make annual forecasts similar to W.D. Gann's
1929 annual forecast, or make short term forecasts for
the next turning point. We also have the new
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more forecasting research. If you want to learn the
Master Time Factor and forecast the markets, you
must have Forecasting Made Easy 2012.

Multi Time Frame Indicator Mirror Cycle Forecast

3) Multi Time Frame charts


Forecasting Made Easy 2012 has embedded Multi
Time Frame features into the built in indicators. Almost
every indicator can calculate on a higher time frame to
show the longer term indicators on the short term bar
chart. Because the Multi Time Frame ability is built in,
it has never been easier to use the forecasting power
of Multi Time Frame indicators. Forecasting Made
Easy 2012 also has the ability to make Mirror Cycle
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4) Multi Symbol charts


Forecasting Made Easy 2012 has Multi Symbol Charts
for Intra-Market Forecasting and Inter-Market
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Easy 2012 has built in Inter-Market features into most
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about this forecasting approach come to our web site.

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Real-Time and EOD

32 www.tradersworld.com Jan/Feb/Mar 2013


Modeling Top Traders

By Adrienne Toghraie, Trader’s Success Coach

Remember when you wanted to conquer be one. After all, you have worked very hard
the world, when nothing could to get this far. Wouldn’t it be great to take the
stop you from becoming a Top next leap. The answer is that the difference
Trader? With a passion for between a Top Trader and an Average Good
success you developed your Trader is a very small difference indeed. I
system, and over time you have worked closely with a fair number of
began to produce consistent genuine Top Traders, and I can tell you that to
and comfortable returns. You be a Top Trader, you do NOT have to be:
have a supportive family, your dream home, • extraordinarily intelligent
two cars and a country club membership. • highly educated
Comfortable you may be, but a Top Trader you • very lucky
are not. • from a happy and well-functioning family
• brilliant at math
If you have not yet lost the dream of being a • well-connected
Top Trader, you might wonder what it takes to • good-looking

33 www.tradersworld.com Jan/Feb/Mar 2013


Trading on Target
Free Newsletter

Adrienne Toghraie, Trader’s Success Coach

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

34 www.tradersworld.com Jan/Feb/Mar 2013


Giving up the Dream
If you do not have to be an exceptional Inside, Richard’s disenchantment began to
person with exceptional resources, you gnaw away at his spirit. He found it harder
still do have to be willing to take calculated and harder to face his trading and his profits
risks. For many traders, the accomplishment slipped away. His comfortable agreement
of becoming an Average Good Trader is an unraveled. After a while, instead of being a
exceptional accomplishment. But if your goal Top Trader or even an Average Good Trader,
was to be a Top Trader, and you traded in your Richard was barely making a living at trading.
goal for security, the part of you that needs
that fulfillment will feel like it is in a state of So, what are some of the components that
paralysis. Eventually, you will reach that point Richard was missing?
where even your secure world will start to
crumble. A Continual Winning Strategy
Richard had dreamed of being a Top Trader. Marc is a Top Trader who has never given up
After getting off to a good start, he soon his dream. From the very start, he knew that
achieved a respectable level of success. he was going to be a Top Trader. Although he
Within a brief period of time he had married, did not know the exact steps to take to reach
fathered two children, and bought a home. Life his goal, he knew from experience that each
was comfortable for him and his Top Trader time he overcame a hurdle or conquered a
goal was within reach. Then, he experienced personal limitation, there were lessons to be
his first major draw-down. Suddenly, Richard learned and that an opportunity would open
saw what he could lose and he was frightened. up for him. So, Marc decided to find the right
He was afraid to take any additional risks teachers for each step of the way. As a result
because it might mean that he would not be of this strategy, Mark advanced one notch at
able to keep up with his responsibilities. As a a time. Although he does not possess a super
result, Richard forged an unwritten agreement intellect, and he is not a great scholar, he is
between his trading and his life. He agreed to very skilled at getting the best from the best.
do what was necessary to maintain his trading As Marc progressed in his career, he hired the
at the current level and life would give him best and learned from them.
what was necessary to keep up the status
quo. Each time he found himself at a plateau, he
discovered how to get off of the plateau.
This arrangement would have been sufficient Using this strategy, he realized that he had
to make Richard content but for one fact: he reached a limit in his trading results by relying
knew that being a Top Trader was the main on his methodology. The only new territory
source of his passion and his reason for being left to explore was to learn to have a better
a trader in the first place. He had let go of his relationship with himself. Marc realized that
dream and what he had in return was security. he needed to overcome the issues of his
The security was good for his family and for past that were holding him back, such as
a part of him that needed it, but not good for his limiting beliefs, his internal conflicts and
that part of Richard that wanted to live life his fears. At this point, he became conscious
fully. of the importance of psychology to his

35 www.tradersworld.com Jan/Feb/Mar 2013


trading performance. With coaching, he that many great men today are shorter than
transformed his limiting psychological issues he is. He also learned that while he was not
into a psychological base that would support physically the man that would make women
exceptional trading. At present, he is not swoon, he could be charismatic about using
only exceptionally good at bringing in trading his energy to attract people. The right energy
capital, and creating money for his clients, but could attract not only women and men to
after years of siphoning off the knowledge from him, but investors, as well. He learned that
his mentors, he is now a mentor for others. he must take the initiative to meet people in a
He says that now being a teacher gives him way that would make them want to seek him
what he needs to continually grow to the next out. Each and every lesson was a difficult one
level of success. And, he is earning around for Sam, but because of his determination
ten million dollars a year. and his laser-like focus, he has become a top
money manager. He needed to feel that he
Unlimited Beliefs was as tall and attractive as the money he
Sam is a young Top Trader who once viewed earned in order for people to believe in him
himself as short, unattractive, and totally enough to trust him with their money.
lacking in personal appeal and charisma.
Nevertheless, he decided that he wanted to Finding Teachers who can Teach
be a top money manager. He commenced Elliott was a Top Trader on the floor who came
his career on high hopes and extremely low in from the cold and is now trading off the
funds. He decided that if he were going to floor. He started as a floor trader by knocking
attract investors, he would need to bring in the on doors and by schmoozing people at trader
largest returns since he felt he wasn’t sales hangouts. By making friendships and using
savvy. He did not know that the average good his charm, he extracted information from
money manager brings in 20%, so without these traders and learned all he possibly could
that limiting belief he started to bring in more about floor trading. The more information he
than 100% on family money. Even though he obtained in this fashion, the more he increased
had limiting ideas about himself, he did not his abilities and position until he was working
have limiting beliefs that he was not going to as an independent floor trader. Long before
be a Top Trader. So, with virtually nothing he would need to leave the floor, he decided
in hand as far as his own capital for trading, to take the next step and become an off the
Sam took every cent he had and hired me as floor trader.
his trading coach.
Applying the same strategy to this move that
Like Eliza Doolittle with Professor Higgins to he did to getting on the floor, he used his
transform him, Sam learned to transform charisma to seduce others to teach him about
his opinion about his appearance. First we trading off the floor. But, he discovered that the
changed his feelings about the way he viewed information he derived from charming people
his height, since that seemed to be a major was not enough to get him started. So, Elliott
issue. Instead of seeing his height as a started hiring people to teach him. When we
limitation, he learned that many great men worked together and he had recapped who
in the past stood no taller than he did and he had hired to teach him, I realized much

36 www.tradersworld.com Jan/Feb/Mar 2013


of what he learned was not going to make success.
him successful off the floor. Great traders Whenever you are on a new plateau, think
are not necessarily great teachers. Great of it as a stepping stone to the next level.
marketers and seminar leaders don’t always The minute you stop growing you set up the
give information that will make you a highly environment for sabotage.
successful trader. Once he was directed to the
right teachers he was on his way to achieving Always work on a better relationship with
success as an off the floor trader. Now, Elliott yourself by overcoming your fears and
owns two separate mansions and through his conflicts.
organization, he supports twenty people in an
affluent life-style. From his trading on his own Charismatic energy is the best energy for
account, he makes in excess of two and a half having a good relationship with yourself and
million dollars each year. other people. This energy will bring out the
passion in you, which will motivate you to
Modeling these Top Traders focus on your dreams.
From these three Top Traders, you can extract Mentoring for others is one of the best ways to
some of the qualities that it takes to be a Top learn new lessons for yourself. Teaching will
Trader: open you up to a part of yourself that needs
to learn and grow.
Keep in the forefront of your mind your dream
and your goals. Make sure you never take Conclusion
them for granted. Review them often. Top traders have a formula for being on top
Make sure your beliefs are in alignment with and when you apply this formula, you too can
your dreams and goals. Strong supportive also reach high levels of success. To be at this
beliefs in the best of yourself and your ability elitist status requires you to bring out the best
to achieve your dreams and goals are the in yourself and sometimes that best is not
foundation for building success. enough. But, if you do what Top Traders do,
think how they think and work as hard as they
Hurdles are part of the journey and with each do, you are more likely to reach your dreams
hurdle there is a valuable lesson to learn. and goals. The important thing to realize is
Think of them as opportunities for growth. that by modeling on these Top Traders the
Find traders who are successful in the trading road is not as rough.
that you want to do and model them.

Find teachers who know how to teach.


Ask traders who are successful to give
recommendations on good teachers.

Find a traders coach who you feel comfortable


with, who will assist you in eliminating the
sabotage that is holding you back, and will be
there for you to keep achieving new levels of

37 www.tradersworld.com Jan/Feb/Mar 2013


Several "Combined Views of The Masters"
Trading Seminars will be Presented in
2013!
By Robert Giordano

I am Robert Giordano President and CEO of What I found


Pivot Point Research Inc and will be holding After spending more then 15 years testing
several LIVE "Combined Views of the masters" and re-testing many different market
1 and 2 day trading seminars throughout forecasting systems invented and explained
2013! by the numerous so called modern day
forecasting masters, I have come to the
The tentative locations will be Manhatten NY, following conclusion: To me it was only this
Atlantic City NJ as well as several other US small handful of traders which consistently
locations to be announced. shown an accuracy ratio well above the laws
of chance. I came to this conclusion only after
Each seminar will present several full and part several hidden key concepts had been found
time Astro/Technical strategies discovered within their legendary works.
and utilized by Mr Giordano himself along with
several affiliate and sponsor groups speakers. One of my biggest harmonic discovery's was
found hidden within hand drawn Price and
Featured Topics Will Be: Time charts!

Who are the Masters It was only after I began to scale and re-
An in depth Biography of the 20th centuries scale the hand drawn Price/Time charts using
most famous and yet highly misunderstood a prototype of the new "Gann Grids Printing
forecasting masters WD Gann, George Bayer, Program" that I began to see the true value
RN Elliot along with several not so well known of their master overlays and indicators.I also
others. began to see most stocks, commodities and

38 www.tradersworld.com Jan/Feb/Mar 2013


indexes worked primarily off of different price financial markets.
and time harmonics proportions which could
only be found using several of these highly What I Feel They Found
unorthodox research methods. Through the use of the special hand-
drawn charts combined with their unique
In my opinion, each harmonic key held several mathematical forecasting tools, insights and
of the secret ideas hidden within the planetary overlays it is my belief they were able to see
price channels so vaguely spoken of by WD at a glance once the proper price scale was
Gann in his astro letters, the general concept found many unique support and resistance
behind the Elliot wave price and time periods, levels inherent within the markets they were
and the George Bayer elliptical chart patterns. researching.

Core Ideas Shared By Each Unfortunately each set of support and


Though each individual trader had developed resistance level calculations could only be
their own unique sets of tools, ideas and found through extensive trial and error
forecasting applications there seem to be a research on every concept discovered by each.
single core idea shared by each........Their
knowledge of natural law! But once found each fantastic mathematical
tool when properly combined with their
Each felt the natural laws as understood by unique planetary energy data gave many
the ancient mystery schools were the keys accurate and documented forecasts weeks if
for not just understanding price and time not months in advance as past records have
fluctuations within universal markets, but shown.
were also the cause for almost all natural and
periodical events which seem to follow some How!
unexplained pattern or time code. Though I do not claim to understand all the
unique concepts and ideas within this most
According to each this unique timing technique elusive subject I do however feel our New
vibrates at specific lengths throughout our "Gann Grids Ultra software" can help unlock
past and continues endlessly into the future. at least some of the hidden "why's" behind
their methods.
This concept according to them also controlled
most events, repetition of events and the I feel by being able to see at a single glance
cyclical periodicity within all parts of our exactly what the 3 masters where trying to
natural environment. convey on screen, the user can now perform
in just minuets research projects which in the
Some examples would be: the ebb and flow past would have taken weeks if not months to
of tides, periods of famines, periods of floods, complete by hand!
wars cycles, earthquake cycles, natural growth What Is Gann Grids Ultra?
spiral mathematics, natural plant, human and The Gann Grids Ultra Basic and Advanced are
animal growth time tendencies, planetary unique software package built and used by us
rotation cycles and the cyclical nature of our at Pivot Point Research.

39 www.tradersworld.com Jan/Feb/Mar 2013


Each unique and specialized research product was built to research and test only the highest
percentage worthy forecasting applications learned within the works of the legendary WD
Gann, George Bayer , RN Elliot and others

Gann Grids Ultra's primary goal is to set up actual price and time forecasting models for most
stocks, commodities and indexes along with finding unique sets of stop loss order placement
locations not found by any other software on the market

With our new 7.0 version of Gann Grids Ultra you will no longer need to hand draw all the
applications read about within their books and courses on our print version's charts as you
can now see most of the highest percentage single systems each had to offer on screen with
a simple click of a button!

Gann Grids Ultra Basic And Advanced Version 7.0 Highlights


The areas of study highlighted within the New "Gann Grids Ultra Program" are based on the
sacred sciences of:

Natural number progressions


Fibonacci sequence
Golden spirals
Golden sections
Sacred geometry using Gann angles and squares
Sacred proportions using Gann angles and squares
Forecasting price cycles using natural squares
Forecasting future time cycles using natural squares
And sound, numbers, and vibrations in harmonic law

The astronomical and astrological secrets hidden within the universal principals of mundane
events include:
The basics of financial astronomy
The basics of financial Astrology
Energy date cluster research or mundane astro research
Planetary periodicity within our markets
Gann and Bayer's natural "time" research
Individual market timing using planetary fingerprint research
Individual market timing using planetary motion harmonics AND MORE !

Each of the above mentioned concepts are included as a special tool within the new "Gann
Grids Ultra Program" with a course of study to follow.

For more information on actual locations, guest speakers,dates and times please view our web
site at : www.pvtpointmktres.com or contact me direct at [email protected]

40 www.tradersworld.com Jan/Feb/Mar 2013


How To Develop a Winning
Trading Strategy
By Daniele Prandelli
For some people it seems impossible to ever I had big losses and small profits
make money in the markets. Whatever they I had too many losing trades
trade, they always seem to lose. But there is a
fundamental mathematic reason that proves So, I concentrated my effort to solve this
this does not have to be true, and this reason problem. For those who don’t know me, I
is simple: if you can lose money, you could win use a specific price target technique which
money as well, if only you traded in exactly allows me to trade with small stop-losses,
the opposite way as you do when you lose. while leaving the profits to run, To do this, I
Everyone in their trading life, after a constant use very precise price points (which I call Key
string of losses, asks themself if there is a Prices), which work by providing important
way to trade in the opposite direction, and in support and resistance or acceleration areas.
this way turn the losses into profits! And the This knowledge allows me to place my trades
annoying thing is that there is truth to this at a specific price target which allows me to
reasoning! trade with very tight risk management around
these points. Using this technique, I can be
But when you start to think in this manner, stopped out 1-3 times with very small losses,
your mind becomes confused, and it seems while waiting for the market to break away
almost impossible to be able to do the from this Key price level and begin its run,
contrary… Why is this? Because we are really and when it does so, the profits produced
not aware of our trading process. We lack are many times the amount of the 1-3 small
precise rules, and are not disciplined, and this losses taken to enter the trade at the Key
is the exact reason why people are not able point. Along with these Key prices, I follow a
to make money trading. It is because they time forecast model given by my of Polarity
really do not understand what they do wrong Factor System, which complements the price
and why they lose money. If you understand levels with the important expected turning
exactly why you lose money, you will be able points in time.
to learn to make profits as well. This is like
a mathematically precise psychological rule. To demonstrate the results obtained by
If, in a sum, you have a total of 5, with one following all these rules as explained in my
addendum being 3, you know that the other Polarity Factor System Course, I will show
addendum must be 2! It is the same thing you the results for an account that I was
with your trading. If you know why you lose, managing. I have records of all my trades on
you know how to win as well. the contract of the S&P500 Future exp. March
2012, the contract ESH2 (I will summarize
So, following this line of reasoning, I created the results here, but for those who would like
my own personal trading methodology. In to see the specific trades, they are posted at
analyzing my losses, I saw 2 major problems: this link: http://iaminborsa-eng.blogspot.se/2012/03/

41 www.tradersworld.com Jan/Feb/Mar 2013


THE SOLUTION TO GANN’S PLANETARY LONGITUDE LINES!
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 SECRET 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 PLANETARY 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 TIME 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,
 WORKS IN ALL MARKETS & TIME FRAMES!
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

PRANDELLI’S NEW TRADING COURSE! Prandelli’s Polarity Factor System forecasting


model is based upon the power ful insights of the
THE POLARITY FACTOR SYSTEM great market master, W. D. Gann, and particularly
AN INTEGRATED FORECASTING & TRADING STRATEGY upon his Master Time Factor, presented in one of his
INSPIRED BY W. D. GANN’S MASTER TIME FACTOR rarest and most secret courses. Prandelli has
redeveloped Gann’s Master Time Factor and created
BY DANIELE PRANDELLI proprietary software to create yearly forecasts of the
BLACK SUEDE HARDCOVER 242 PAGES & SOFTWARE market with the same level of accuracy as those
produced by Gann in his Supply and Demand Letter,
CREATE DIRECTIONAL TIME FORECASTS almost 100 years ago. This PFS timing technique
LIKE WD GANN’S IN MULTIPLE MARKETS forecasts market tops and bottoms with an 80%
accuracy, giving clear directional indications. It also
S&P, CORN, WHEAT includes a sophisticated risk management system
FOR A DETAILED WRITEUP & EXAMPLES SEE: and strategy to trade the forecast. Integrates
WWW.SACREDSCIENCE.COM/PRANDELLI/PRANDELLI-
seamlessly with the Planetary Longitude lines from
POLARITY-FACTOR-SYSTEM.HTM
his first course.

SACRED SCIENCE INSTITUTE Ө WWW.SACREDSCIENCE.COM


EMAIL: [email protected] Ө US TOLL FREE: 800-756-6141
INTERNATIONAL 951-659-8181 Ө MAIL: P.O. BOX 3617, IDYLLWILD, CA 92549-3617

42 www.tradersworld.com Jan/Feb/Mar 2013


is-real-trading-possible.html). This is an account good percentage! Many people ask me what
which I trade using generally only 1 contract, percentage of success of my strategy has,
though in exceptional cases I used 2 or 3 but I think this is the wrong question, though
contracts. From the 14th of December 2011 inside it is the reason why people are not able
until the 14th of March 2012, (3 months), I to understand why they lose money. If I can
gained 4782.82 Euro, which is around $6,250 make two trades with a loss, and just one
US Dollars. I think this is not bad, considering with a profit, with the end result a profit of 30
that I was working with an account that started points, I can easily accept my low rate of wins
with only $14,000 US Dollars, so a return of with pleasure!
approximately 45% in 3 months, or 15% a
month on average. Also, I generally traded So, the most important thing should be
only 1 contract, and it is not easy to create a evident! It is not important how high the rate
strategy with just 1 lot. of winning trades is, but how much I lose
when I close a trade in loss vs. how much
Over this period, I traded 141 buy/sell lots. I win when I close a trade in profit. When I
I pay around 3 Euro per buy or sell per trade using my Key price points, I am able
contract. So I paid 141 x 3€ x 2= 846 Euro to use stop losses of only 3 points, but my
in commissions. There were 67 trades with average winning trade is over 20 points. So,
profits and 46 trades with a loss, meaning even several losses are over compensated by
that there were 59.29% winners to 40.31% just one profitable trade. This is what you
losers. Some might consider this not a very need to understand and take advantage of in

43 www.tradersworld.com Jan/Feb/Mar 2013


your trading, and is why I have said that you a sudden powerful movement, one will catch
must always create a strategy that permits the profitable trade. But if your stops are
you to cut the losses and to let the profits run! not tight enough, your capital will be eroded,
This risk management system is explained in and your overall results will suffer. With my
my Polarity Factor System Course, available 3 point stops placed at my Key price points, I
through Sacred Science Institute. If you can always limit my losses, while still being in
have a way to indicate key price levels, you the market when it begin its run.
can use those points to trade very effectively
using these tight stop losses. Adding a layer Now that we’ve discussed the Key price areas
of timing to the system through the study of and the risk management system, let’s take
cycles taught by WD Gann, I also have an a look at the PFS time forecast, that I know
intermediate forecast model which I call my it is the most exciting part of the study. The
PFS Model, which indicates important turning following chart shows the PFS for the Soybean
points of several days to a couple of weeks. market for 2012.
When I watch these Key Time Points conjoined
with the market’s movement around the Key As you can see, the trend was up till July,
Price Levels, clear and tradable indications are then descended until October, then up again.
given as to the intermediate changes in trend. We are looking at this model for the general
Sometimes these changes can occur with trend, and as you can see looking the Soybean
several choppy swings at a top or a bottom, Chart, it worked well, and was a good guide to
which will often leave a trader who enters too trade the trend:
early getting stopped out before the trade
begins. In this situation, you need a risk The PFS was up until July, where a final top
management system which will allow you to on July 22 was indicated, then a descent until
enter again, if stopped, and again, at each October. Soybeans followed this up trend,
opportunity, so that in case the market has starting the year around 1219 points and on

44 www.tradersworld.com Jan/Feb/Mar 2013


Friday, July 20 (22 was Sunday), Soybeans
closed at 1757 points. Not bad! But looking Order all Back Issues
the PFS, it is time to close the position because of Traders World
it is down until October 10. On October 10,
Magazine on CD
Soybeans was at 1523 points. Again a good
hit. After October 10, the PFS is up, but
Contains all of the back issue articles
Soybeans continued down in the first part of
of Traders World Magazine on CD in a
November before turning. Now Soybeans is
pdf reader format. 4901 - Issue #1,
back near the October 10th level, with an up
February 1988 Gann & Elliott Wave.
movement from mid-November, rejoining the
expected trend. I do not trade long term, I
use a mid-term strategy with mid-term prices.
53 Back Issues

$69.95
For example, I didn’t remain SHORT during
the descent of November, but when the trend
changed, I I entered LONG just on November
20, above 1400 points, because it was a one
of my mid-term Key prices. These are many of the trading articles
These are examples of the trades that are from major traders from the last
posted on my Daily Report Service. I have 20-years. Some of the covers are below.
also now made available the PFS Forecast For a complete lising or to order go to:
Bulletins for the full year of 2013 on the www.tradersworld.com
or call 800-288-4266 or 417-882-9697
S&P500, Corn and Soybean Markets. These
Bulletins are published by Sacred Science
Institute (www.sacredscience.com), and
include a Yearly Report where I give the PFS
Models with the general trend, intermediate
time turn indications, and impulse points
throughout the year. The service also includes
ongoing updates during the year giving the
relevant Key prices to use in trading these
markets. On the Sacred Science website,
you will also find information about my two
trading courses, The Law of Cause & Effect,
and The Polarity Factor System, as well as
trading records, information about how to join
my blog, and more.
Daniele Prandelli
Contact through:
Sacred Science Institute
www.sacredscience.com
[email protected]
951-659-8181 or 800-756-6141

45 www.tradersworld.com Jan/Feb/Mar 2013


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This is the Mindset of a Successful Trader

By Bennett McDowell, TradersCoach.com®


Your psychology and beliefs will be a major the patient first to recognize issues that are
determining factor in your trading results. causing their problems. The patient must
Consider this example, where the same believe that these issues are causing the
successful trading approach is used by a problem in order for the patient to heal. The
hundred traders and usually no two of them reason this process can take so long, perhaps
will trade it exactly the same way. Why? even years, is because the patient needs to
Because each trader has a unique belief not only recognize their problems, but must
system, and their beliefs will determine their accept that there truly is a problem. They must
trading style and their trading results. That is take responsibility for their problems to heal.
why even with a profitable and proven trading As traders, we must take responsibility for our
approach, many traders will fail. They do not trading results in order to make changes and
have the proper belief system to enable them be profitable.
to trade well. In other words, they lack «The
Trader›s Mindset.» Success in trading is a direct result of a sound
trading system, sound money management,
When you encounter psychological issues it is proper capitalization, and sound psychology.
best to recognize the issues, just be aware All of these must be in sync to be successful
of them and don›t deny they exist. In order in your trading. The only area where you may
to «fix» psychological issues, we must first need additional help once you have mastered
become aware of the issues that are causing your trading skills is your psychology.
the problems in order to heal. This is much
of what psychoanalysis is all about. The Mastering your psychology is an ongoing
psychologist or psycho- therapist tries to get process that really never ends. To master your

48 www.tradersworld.com Jan/Feb/Mar 2013


psychology to be a profitable trader can take unrealistically “in control” of the markets.
time, and the amount of time will be different
for each trader. Limiting Profits: You don’t deserve to be
successful. You don’t deserve money or
Here is a list of common psychological trading profits. Usually psychological issues such as
issues and their causes: poor self-esteem.

Fear Of Being Stopped Out Or Fear Of Taking Not Following Your Proven Trading System:
A Loss: The usual reason for this is that the You don’t believe it really works. You did not
trader fears failure and feels like he or she test it well. It does not match your personality.
cannot take another loss. The trader’s ego is You want more excitement in your trading.
at stake. You don’t trust your own ability to choose a
successful system.
Getting Out Of Trades Too Early: Relieving
anxiety by closing a position. Fear of position Over Thinking The Trade, Second Guessing
reversing and then feeling let down. Need for Your Trading Signals: Fear of loss or being
instant gratification. wrong. Wanting a sure thing where sure
things don’t exist. Not understanding that loss
Adding On To A Losing Position (Doubling is a part of trading and the outcome of each
Down): Not wanting to admit your trade is trade is unknown. Not accepting there is risk
wrong. Hoping it will come back. Again, ego in trading. Not accepting the unknown.
is at stake.
Not Trading The Correct Position Size: Dreaming
Wishing And Hoping: Not wanting to take the trade will be only profitable. Not fully
control or take responsibility for the trade. recognizing the risk and not understanding the
Inability to accept the present reality of the importance of money management. Refusing
market place. to take responsibility for managing your risk.
Trading Too Much: Need to conquer the
Compulsive Trading: Drawn to the excitement market. Greed. Trying to get even with the
of the markets. Addiction and Gambling issues market for a previous loss. The excitement of
are present. Needing to feel you are in the trading (similar to Compulsive Trading).
game.
Afraid To Trade: No trading system in place.
Anger After A Losing Trade: The feeling of Not comfortable with risk and the unknown.
being a victim of the markets. Unrealistic Fear of total loss. Fear of ridicule. Need for
expectations. Caring too much about a specific control. Fear of another loss. No trust in your
trade. Tying your self-worth to your success trading.
in the markets. Needing approval from the
markets. Irritable after the Trading Day: Emotional
roller coaster due to anger, fear, and greed.
Excessive Joy After A Winning Trade: Tying Putting too much attention on trading results
your self-worth to the markets. Feeling and not enough on the process and learning

49 www.tradersworld.com Jan/Feb/Mar 2013


the skill of trading. Focusing on the money too • Always aligning trades in the direction of
much. Unrealistic trading expectations. the market, flowing with the market
• Not caring about the money
Trading With Money You Cannot Afford To Lose • Always looking to improve your skills
Or Trading With Borrowed Money: Last hope at • Profits now accumulating and flowing in as
success. Trying to be successful at something. your skills improve
Fear of losing your chance at opportunity. No • Keeping an open mind, keeping opinions to
discipline. Greed. Desperation. a minimum
• Accepting the risk in trading
These are by no means all the psychological • No Anger
issues, but these are the most common. • Learning from every trade
They usually center on the fact that for one • Winning and losing trades accepted equally
reason or another, the trader is not following from an emotional standpoint
their chosen trading approach or system. • Enjoying the process
And instead prefers to wing it or trade their • Trading your chosen approach or system
emotions which in trading will always get you and not being influenced by the market or
in trouble. others
• Not feeling a need to conquer or control
Our goal as traders in regards to psychology the “market”
is to maintain an even keel so to speak when • Feeling confident and feeling in control of
trading. Our winning trades and losing trades “yourself”
should not affect us. Obviously we are trading • A sense of not forcing the markets or
better when we are winning, but emotionally yourself
we should strive to maintain an even balance • Trading with money you can afford to risk
emotionally in regards to our wins and our • No feeling of ever being victimized by the
losses. markets
• Taking full responsibility for your trading
Obtaining “The Trader’s Mindset” takes time. • When you can read the list above and
It will happen when it happens, and when you genuinely say that’s me, you have arrived!
achieve this level of mental ability; it will come
after working long and hard on yourself. It Bennett A. McDowell, founder and chief
may even happen without you even knowing trader at www.TradersCoach.com. He began
it. It usually happens when you least expect his financial career on Wall Street in 1984, and
it. later became a Registered Securities Broker
and Financial Advisor for Prudential Securities
Below is a list of what one feels after acquiring and Morgan Stanley. Bennett is considered
“The Trader’s Mindset.” an expert in technical analysis; he frequently
lectures and authored bestselling books like
• Sense of calmness “The ART® of Trading”, “A Traders Money
• Ability to focus on the present reality management System”, and “The Survival
• Not caring which way the market breaks Guide For Traders”.
or moves

50 www.tradersworld.com Jan/Feb/Mar 2013


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51 www.tradersworld.com Jan/Feb/Mar 2013
Trading OUT of Randomness
By Rob Mitchell

As traders we often lose track of the big picture we are trading in. How we trade in the
moment and how it impacts our bottom line in time is a topic rarely addressed by traders.

Illustration 1
52 www.tradersworld.com Jan/Feb/Mar 2013
By being aware of the big picture, traders can Expectancy = (Probability of Winning* Average
avoid pitfalls that can cause failure even when Win) – (Probability of Losing * Average Loss).
a trader wins a high percentage of the time.
There are several ways the trading decisions So, for the above profile, we would have
we make influence our bottom line. First, is something like (0.75*2) - (0.25*4) = 0.50.
the type of trading we do. Different types of This is a profile with positive expectancy where
strategies have different statistical profiles. you expect to make $0.50 for each trade on
For example, if you are a counter-trend trader, average.
typically you will win a fairly high percentage
of the time, but your average trade may be Traders who elect to trade trends can also do
smaller than trades that trend traders get well even though they are doing the opposite
caught in. As a counter trend trader, it is as the counter-trend trader in some respect.
easier to trade from a psychological standpoint A trend trader will get caught in big winners,
because of the high win percentage. Counter- but they will not come as often. Additionally,
trending can also have fairly small stops which a trend trader may go through periods of
also helps in this same way. The trade-off many losers as the market is in periods of
for counter-trenders is the ratio between the consolidation. Markets may consolidate as
average winner and loser can be relatively much as 70% of the time, so some trend
small. It is not uncommon then for a counter traders may only win 30% of the time.
trend trader’s profile to win, say 75% of the However, the average winner may be many
time, with an average win/loss ratio of about times the average loser, maybe even as much
0.5 (ie. a win of 2 and a loss of 4). In other as ten times,. For the purpose of this article,
words, the average win is only about half the let’s say eight times, or 8:1.
average loser, but the losers do not happen
that often. If we apply our summary expectancy equation
There is measure we can use to summarize the to this, we get (0.30*8) - (0.70*1) = 1.70.
above numbers. It is the Expectancy formula: These numbers are not intended as a
comparison of the efficacy of these two

Illustration 2

53 www.tradersworld.com Jan/Feb/Mar 2013


approaches. Both approaches could result in If you are able to trade multiple contracts,
winning in the long run. Here are some of then you can develop strategies to take
the pros and cons of each strategy (without shorter counter-trend strategies, but also keep
regard to trading timeframe): See illustration portions of your trades to stay with trades
1. that end up being runner trades. This can
happen about 30% of the time if you recall the
As you review this list, you may mentally plug assumption/estimate that the market might
yourself into the various traits and decide consolidate up to 70% of the time. So, you
which might work better for you based on can try to let the winners run with a portion
your personality. As always with trading of your original position. This makes a kind of
however, there are other factors which can hybrid strategy for money management that
impact you. For example. If you are trading can balance trader psychological issues that
1 lots and you are counter-trending, you may can lead to success.
have a tendency to take targets by getting This kind of thinking leads to a second point
out of trades at a profit. This of course feels I wanted to cover about trading and aligning
good and is good psychology. But what can ourselves with the big picture in a way that can
happen is you end up winning a very large increase the likelihood we will win in the long
percentage of the time, but the occasional run. This has to do with trade distributions.
big losers and trading expenses make you a This is a form of statistical analysis of our
break even trader. trades over time which enables us to make
One lot trend traders, of course are less subject better trading decisions. I find doing this
to this targeting, so it is a generally better graphically is much more intuitive, so we will
strategy for the small trader to be a trend do it with some graphs.
trader. Of course it is very hard to implement
because you have to stay with trades for long The most basic sort of distribution and the
periods of time. If you are a screen trader, one on which most statistics is really based, is
this is very difficult to do psychologically. And the basic bell curve. A bell curve is a balanced
this makes trading difficult at best. distribution you will generally get if you flip
coins and tally large sequences of heads and

Illustration 3

54 www.tradersworld.com Jan/Feb/Mar 2013


tails. This is similar to a trading system or Now what we have theoretically done is remove
approach. What happens generally is you will all the of $750 losses (and larger) and made
get many sequences in trading that are small this approach highly profitable. Of course,
winners and losers. So you will get a clustering this will not actually happen in reality because
in the middle near zero dollars. Then you will many of the winners in a given strategy will
occasionally get big winners and losers. So, if go through the stop and will end up becoming
you plot the sequences of trades in a type of winners later. This will cause the overall curve
graph called a frequency distribution, without to change and most likely be less profitable.
any stops etc. You may get something that But, it may very well be profitable by placing
looks like the following. See Illustration 2. the stop loss there. This is, in essence, the
What we have in the above is a trading simplest form or designing a trading strategy
approach that took about 5500 trades total or system and is a very important concept
but did not use any money management. for traders to understand. Further, because
What this trading approach has done over this we did it more or less exclusively with a stop
period is break even. The number of winners loss order, it would actually be more accurate
and losers is evenly distributed. We can tell to call this a money management system/
this more-or-less by looking at the shape of strategy. In my experience most successful
the curve. It is even. In financial markets, trading approaches are just this; a way of
we rarely deal with normal distributions. This managing risk on an ongoing basis. This
is true because financial markets do not move is also one of the biggest misconceptions
randomly. As mentioned, they consolidate for most beginning traders; that successful
a good part of the time and then they make trading is risk management.
fairly big moves. This is why trend following
that we discussed above can work. There is another issue going on here. As we
move more to the right of the distribution or
So, in the middle of the curve above we have more to the left, we have progressively less
about 1400 breakeven ($0) trades in the control of the result of the trade. This is true
middle of the curve and on the outside of the because you do not get market moves of
curve we have a couple $3000 winners (left), $3000 very often. and you get small moves
and a couple $3000 losers (right) and each quite often. So, the further out we place
increment is evenly balanced with the other the stop on the right side of the curve, the
side of the curve. more likely it will be that it will improve our
As traders, we can shift the distribution of the strategy’s performance.
above curve by simply placing a stop loss order
on our strategy. Ideally, this would chop off We began this article talking about trend
a portion of the losing trades on the right and based and countertrend based approaches
would cause our distribution to skew to the so let’s contextualize this. The above curve
plus side. So, if we had an ideal world, and might approximate a strategy close to a trend
placed a stop loss for trades that exceeded following approach where we will get caught
$500 against us, the curve would look like in a number of big trades, but will have a lot
this. See Illustration 3. of trades clustering around breakeven to small
losers. A counter-trend approach would likely

55 www.tradersworld.com Jan/Feb/Mar 2013


reduce the losing side of the distribution (the
right side). This is true because countertrend
approaches will tend to buy closer to a market
low or sell closer to a market high and therefore
have smaller stops. In exchange for this, it
will likely get out sooner and so will not likely
capture the big $3000 winners for example.

Because the counter-trend approach will miss


the big trades, it can make this sort of trading
riskier when compared to trend trading and
the big picture (that we cannot see trading in
the moment). Of course a successful money
management strategy will need to take into
account how much total risk a trader can
tolerate before having to shut down trading
where losses exceed levels forcing a trader
into margin calls etc. As a result, any money
management approach must take into account
a large number of variables in order to be
ultimately successful.

Each trader should keep good records and


statistics on his trading so he can establish
trade distributions. By doing this, and using
some of the concepts above, a trader can
make better decisions that will keep him in
the game in the long run. By knowing where
we are in the big picture as traders, we are Easy to use and Designed for any Laptop or PC computer!
including Apple Computers. One of the most basic and yet
better able to stick with our trading plan and
critical components of any information system is the
have a good mental state as we go through backup system. Amazingly enough, so many ignore the
the capital alternations we all experience as backup process, tools and notifications for their systems.
traders. Ever consider the cost of recreating all of your information?
For most, the cost is extravagant and time consuming
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[email protected].
work on the file and the time you make the backup; as with
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set time each day.

56 www.tradersworld.com Jan/Feb/Mar 2013


The W.D. Gann Methods for
Forecasting Seasonal Analysis

By George Krum

Early on in his career, which spanned almost 5 designed to hide the valuable market secrets
decades, W.D. Gann made a name for himself hidden inside, in others he was surprisingly
on Wall Street with his forecasting and trading candid and revealed exactly what methods
acumen. He also published the Supply and and tools he used to prepare his amazing
Demand Letters and provided his subscribers forecasts.
with annual stock and commodities forecasts
which proved to be remarkably accurate. And In the pages below we’ll analyze some of
although some of his books, like Tunnel Though Gann’s market forecasting and seasonal
the Air were written in a veiled language, analysis techniques and methods, and will

Chart 1

57 www.tradersworld.com Jan/Feb/Mar 2013


introduce a very simple tool which will allow of presentation, I’ve marked the 20 year cycle.
anybody to replicate his methods quickly and It is clear, at least to me, that this market
effortlessly, regardless of their trading level cycle continues to define market movement,
and expertise. The focus will be on Gann’s 20 and squarely defines the period 2001-2020 as
year cycle, his bull and bear calendar year a sideways stage. We’ll keep that in mind for
table, and the decennial cycle. our future discussion. See Chart 1.

20 Year Cycle The practical implications of this finding are


This is what Gann had to say about forecasting fairly obvious: now is not a time for buy and
in the New Stock Trend Detector: hold. While this may be bad news for some, on
the other hand there are ample opportunities
“Future stock market movements can be to make money both on the long and the short
forecast by a study of past history and past side. To put things in perspective, since the
movements. By knowing the time when the turn of the new century, the SP-500 index has
greatest advances have taken place and the lost 50+% of its value twice, only to regain
time when the greatest panics and declines more than 100% on both occasions. That’s
have occurred and the time periods to watch a cumulative swing of more than 300% (or
for major and minor changes in trend, you about 2500 points) in 12 years, for a market
can detect what to expect in the future. Just that has lost about 3% so far since January
remember one thing, whatever has happened 2000. By 2020 the cumulative size of the
in the past in the stock market and Wall Street swings may very well double.
will happen again. Advances and bull markets
will come in the future, just as they have in In other words, in order to be successful,
the past. “ investors, like it or not, will have to work
harder to improve their market timing and
In his courses Gann gave a very straightforward technical analysis skills. One obvious solution
explanation of how he prepared his famous would be to focus on like market cycles and
yearly forecasts. But first he cautioned that see what can be learned from them.
in order to make up an annual forecast,
one must first refer to his Master 20-year Bull and Bear Calendar Years
forecasting chart, and see how these cycles Gann observed that similar years in a decade
have worked out and repeated in the past. often have the same characteristics. He even
According to Gann, the 20 year cycle is the left us a handy little table where anybody who
most important cycle for forecasting future can count on their fingers can ascertain what
market movements. He then gives the dates kind of year the market is in. With the start of
of the cycles: 1861-1881, 1881-1900, 1901- the new millennium it may be a good time to
1920, etc. check if this particular tool is still useful.

The chart below is a logarithmic daily DJIA Using the DJIA History add-in for OT Seasonal,
chart from 1886 to the end of October 2012. checking the validity of Gann’s table in the
Even to the naked eye it is easy to discern the years following his passing in 1955 is as simple
20 year bull and sideways stages. For clarity as typing in a few years, and then comparing

58 www.tradersworld.com Jan/Feb/Mar 2013


the results and the average. I’ll include a and lays foundation for a bull market.
screenshot for the current 2012, or Year 2, The average for year 4 is slightly positive. The
in order to explain what to look for, and will only negative year was 1974, which laid the
discuss briefly the findings for the other years. foundation for the 1975 bull market. All other
One caveat though: when comparing years in years ended flat (1984, 1994 and 2004) or up
a decade, it is always useful to be cognizant (1964) and did indeed lay the foundations for
of the market stage the relevant year belongs subsequent bull moves.
to.
No. 5: is the year of Ascension, and a very
Here’s what Gann said about the years in a strong year for the bull market.
decade: The average for year 5 is strongly positive,
and only 2005 finished marginally up.
No. 1: bear market ends and a bull market
begins. This continues to be true. The No. 6: is a bull year, in which a bull campaign
average for Year 1 is positive. All years fit the which started in Year 4 ends in the Fall, and a
description with the exception of 1981 and fast decline starts.
2001. After 1981, a bull market didn’t start
until the second half of 1982, and after 2001 Here the record is mixed, although the average
the bear continued until 2003. for year 6 is positive.

No. 2: year of a minor bull market or a rally No. 7: is a bear year.


in a bear market will begin. Price action in The average for year 7 is flat, although it
2012 can certainly be interpreted by many includes the crash of 1987 (the year ended
either as a minor bull market or a rally in a positive). The only bear year ending in 7 was
bear market. Although years ending in 2 since 1977 .
1960 exhibit negative correlation with 2012,
the average of the 6 years ends the year on a No. 8: is a bull year and big advances usually
positive note, with the notable exceptions of take place.
1962 and 2002. The average for year 8 is positive with the
notable exception of 2008.
No. 3: starts a bear year but a rally from Year
2 may run to March or April, while a decline No. 9: is the strongest of all for bull markets
from Year 2 may make bottom in February or when bull markets culminate and start to
March. decline.

The average for Year 3 is strongly positive, The average for year 9 is strongly up (only
with the exception of 1973, and that seems to 1969 went down, and the decline started in
contradict Gann’s observations. It should be May).
noted, however, that the average bottoms out
in March-April, just like Gann predicted. No. 0: is a bear year, when rallies often run
until March and April, and a severe decline
No. 4: is a bear year but ends a bear cycle starts.

59 www.tradersworld.com Jan/Feb/Mar 2013


The average for year 0 is up, with 3 bear years Daniel Ferrera and David Hunt in recent years.
(2000, 1990, 1970) and 4 bull years, which Gann simply stated in his forecasting course
went flat/down until October, then up, i.e. that the future is but a repetition of the past
opposite of Gann’s forecast. and to make up a forecast of the future one
needs to refer to previous cycles. He further
Overall, Gann’s observations still hold true, stated that the previous 10-year cycle and
except for years ending in 3, 7 and with mixed the 20-year cycle have the most effect in the
results for years ending in 6 and 10. future.

We’ll perform our review of the 10-year cycle


Decennial Cycle using the same DJIA History add-in for OT
Closely related to the years in a decade study Seasonal. We’ll do this by applying correlation
is the decennial cycle analysis, popularized by analysis in order to figure out which of the

Chart 2
60 www.tradersworld.com Jan/Feb/Mar 2013
past 126 years are most similar to each on average, 2011 has had the strongest
other. In order to do that all we need is to correlation with years ending in 1, thus
type the Target year (in this case 2011) in confirming the validity of Gann’s findings. And
the appropriate box, and the app does the second, that out of 12 decades ending in 1,
rest. This is what the end result looks like. 2011 had better than double digit correlation
See Chart 3. with seven of them. After completing a similar
study for years 2003 through 2012, we are
The correlation coefficient is shown in presented with the following table. See Table
% format, and the years with strongest 5.
correlation to the Target year (2011) have a
green background. In summary, the table tells us that years
ending in 9 most frequently correlate to each
There is a lot of information one can gather other, followed by years ending in 1, 2 and
from this table, but we’ll focus solely on the 5. As noted above, 2008 was an aberration
decennial cycle, i.e. years 2001, 1991, 1981, among the years ending in 8, which have
etc., all the way back to 1891 (the first cell in been uniformly bullish, and that shows in the
the top left corner of the table). table above. If we substitute 2008 with 1998
or 1998, the numbers more closely match the
The first thing that stands out is that, rest of the table (see the color coded column

Chart 3
61 www.tradersworld.com Jan/Feb/Mar 2013
on the right side of the table).
The results for the rest of the years in this
There’s something else we can learn from that century are equally impressive. With OT
table. For that we turn our attention to the Seasonal you can extract all the other dominant
color coded row at the bottom. This tells us cycles and prepare your own forecast for
that the 10, 20, 60, 70 and 90 year cycles 2013 or any other year by simply typing in
have been the most prevalent during the last a few digits. You can also experiment with
126 years of Dow history. The cycles in bold countless other combinations and your own
are the ones Gann emphasized most. favorite cycles.

We’ve covered a lot of ground so far, but In summary, W.D. Gann’s market insights
I’m going to mention one more study. By continue to be relevant and to amaze to this
performing Target year analysis with OT day. With the help of modern day technology,
Seasonal, we can explore which cycles traders now can replicate much of his work
produce the highest number of years with the with speed and ease which were unthinkable
highest positive correlation to each other. And in his day. Even better, they have all the tools
the answer is that the 21 year and the 42 year needed to continue to build upon his legacy
cycle rank in second. I mention them, because right at their fingertips.
they should be familiar to those who have a
more in-depth knowledge of Gann’s work. George KRUM is a trader, author, blogger, and
In order to illustrate the validity of this finding, the developer of the OddsTrader app family,
I’ll construct an average based on these two available in iTunes. Designed by a trader
cycles using 2012 as Target year. The result for traders, the OddsTrader apps employ
is a 71% correlation and, most importantly, the methods of Gann, Fibonacci, Hurst, and
a forecast that pretty accurately matches the seasonal analysis.
important turns in 2012 so far.

62 www.tradersworld.com Jan/Feb/Mar 2013


Time by Synodical Degrees
By Mathew Verdouw

Over the last fifteen years of developing Market that this has been an interesting journey for
Analyst I have had the opportunity to meet me personally as I, like most people I meet,
so many different traders with many different thought that there could not possibly be any
ways of assessing what is happening in the correlation between the positions of the planets
market. Everyone is looking for something that and the markets. The idea that astronomical
will explain why the markets behave the way bodies could influence the decisions of rational
they do when they do and give themselves an people on earth was something that I thought
advantage when trading. was absurd. However, in listening to many
people explain various theories to me, and
Whenever we study the market from a seeing too many examples that I cannot deny,
technical standpoint, there are times where I have reached the point where I would say
our analysis works perfectly, every call is that I know without a doubt that our markets
spot on. Then comes the times where it stops correlate with astronomical phenomena.
working all together, the process that we
were using so well for so long just does not Why is the market affected by astronomical
work anymore. It's like analysis techniques events? I’m not sure that anyone can answer
are seasonal, they work for defined period that fully (I have heard some amusing
of time, then it's like they become the single theories). I rather deal with what I can
worst thing you could do in the market. It is measure and search for repeatable events
the search for understanding why analysis that I can trade from.
seems to be seasonal that made me look to
see what else could be effecting the markets. There are many things around us that are
Right from the start of building Market Analyst based on Astronomical events
my mantra has always been that I was not the
trading expert but rather my expertise lay in • A day is a revolution of Earth, a year is a
being the engineer behind Market Analyst and cycle of earth around the sun.
all the tools that were developed. With this in • We plant crops based on seasons.
mind I was always open to any new idea that • Emergency Services often experience an
could be applied to the markets. It always increase in incidents during a full moon.
saddens me when I meet traders who are so • Sun spots spewing out radiation cause
fixated on their beliefs that they will not even problems with communications.
consider that there can be more to what is • Moon's gravity pulls our tides.
going on beyond their understanding.
As much as we may not like it, we live on a
There have been some really interesting tools/ tiny rock spinning in a huge galaxy that is all
systems that I have worked on, but I have to there for a reason. If as a trader I can find a
say that the one area that intrigues me the correlation that assists my trading then I will
most is the Astronomical analysis. I must say use it.
63 www.tradersworld.com Jan/Feb/Mar 2013
Let me take a moment to explain why what markets.
Market Analyst does is Astronomy and not
Astrology. Astrology takes the position of Over the coming months, I want to write more
planets, houses etc and interprets those into about the different Astronomical tools that
a theory on what will happen in the future. Market Analyst contains and how they can be
Often based on an ancient perception on used, but for this week I want to focus on
the malicious or beneficial "nature" of the what is possibly one of the most fascinating I
event. Astronomy on the other hand takes have ever seen, Synodic Intervals.
the position of planets as empirical inputs and
looks for statistical confirmation that there is To explain this we first need to take a step
a correlation between historical events and back and look at an Aspect. An Aspect is
the observed changes in the market. There simply the measure of the angle between two
is a lot of overlap, but as an engineer, I have planets. Well really it actually is when the
always struggled with anything that I could angle reaches a defined size. Huh??? Let me
not explain in a scientific way and too many explain it this way. If I want to know when
"Astrological" concepts were too subjective. two planets are 45deg apart then I say that I
Anyone who has been around the market for am looking for a 45deg (official term is Semi-
a period of time will tell you that the market Square) Aspect. A lot of basic astronomical
moves in cycles. Bull runs always follow the analysis centres on looking for correlation
Bears. It is always the identification of what between aspects and the market.
part of a cycle we are in and when the cycles
change that has been the hard part. Given that In looking at Synodic Intervals, we are just
planets have fixed cycles and combinations interested in the angle between two planets.
of planets produce complex cycles, it makes What we are looking for is measuring a change
an interesting study to see if correlations can in the angle between the two. Have a look at
be found with the complex cycles in finance figure 1, in it we see that the angle between

Figure 1. Jupiter trailing Saturn by 30deg


64 www.tradersworld.com Jan/Feb/Mar 2013
Saturn and Jupiter is 30deg with Jupiter behind Where the power of this technique really comes
Saturn. See Figure 1. to the fore is when you find a historical turning
point in the market and then you calculate a
In the next image, figure 2, you will see that synodic interval from that point. So lets say
Jupiter is now 60deg ahead of Saturn. So the that a major top in the market happened
change of the angle between the two is 90deg. when Saturn and Jupiter were 13deg apart,
We call that change the Synodic Interval. See we can then look for what might happen when
Figure 2. they are move apart by a further 90deg. What
analysing historical events like this has shown
The Synodic Interval allows us to start our me is that there are many instances where
measurement at a major turning point, which synodic intervals has given advance notice of
we know was a significant moment in time a future change in the market.
since the market has had a major reversal,
and then we are able to measure the Synodic There is another twist that needs to be considered
Intervals from there and see when in the whenever you work with any Astronomical
future those planets move by the interval we tool from earth's perspective. Every planet in
are looking for. our Solar System revolves around the Sun,
so from the Sun's perspective they are all
In the example above we used nice round fairly consistent in their speed and trajectory.
numbers but frankly if we were doing that we However from the Earth's perspective there
could just as easily use the 30deg and 60deg are times when planets appear to be moving
Aspects tool and achieve the same result. in reverse, this is because earth is moving at

Figure 2. Jupiter leading Saturn by 60deg.


65 www.tradersworld.com Jan/Feb/Mar 2013
a different speed and we are "overtaking" the we searched for Synodic Intervals of Jupiter
planet. We call this Retrograde motion. and Saturn (including Retrograde motion
The following image shows the theory behind from a Geocentric perspective). Each blue line
this. See Figure 3 represents 30deg of synodic measure. While
all are interesting, the obvious stand out is
When we consider Synodic Intervals from that the 90deg interval falls within 2 days of
an Earth (Geo-centric) perspective, we need the March 2009 market bottom. Unfortunately
to decide are we going to measure every I found this example after the March low, but
movement regardless of direction, summing I have been watching future dates carefully.
both direct and retrograde motion, or are we See Figure 4.
just going to consider direct motion and ignore
any retrograde periods. Personally I have seen All of this analysis is great and wonderful in
both work and it adds to the complex nature hindsight, but how do you trade with it? You
of this tool. may have an interval date coming up next
week, what do you do? I personally treat this
In figure 4 you will see an example of one type of analysis more as a bias then a definitive
of the most amazing examples of Synodic signal. The first thing a budding Astronomical
Intervals I have ever seen. The tool was Trader needs to do is study history. What has
started on the October 2007 all time high and happened in the past? how many times did

Figure 3. Retrograde Motion.


66 www.tradersworld.com Jan/Feb/Mar 2013
this work? recoup a 50% loss.

You must satisfy in your own mind that the Synodic Intervals is a fascinating tool, there
technique has merit so that you can trade are countless combinations of planets that
with confidence. Then when a signal comes you can explore to see if there are better
along, you trade with a bias. If I think that the combinations. Don't limit your analysis to
market is about to fall, I'll keep tight stops on planets either, have a look at some of the
any long positions and be on the look-out for major asteroids and the Sun and the Moon.
short entries, but still maintaining my stops in Astronomical studies can take years but it is
case I am wrong. one of the areas that I have seen the most
successful traders around the world use. At
The golden rule, which applies with any Market Analyst we are always looking for better
technical technique but is so rarely followed, ways to help our clients in their research of all
is to accept that your analysis may not be Technical Analysis.
complete and protect your capital. In short
protect your capital not your pride. Always Mathew Verdouw
remember that you need a 100% profit to www.mav7.com

Figure 4. Example of Synodic Intervals on the Dow Jones.

67 www.tradersworld.com Jan/Feb/Mar 2013


Two Bits.. or Not Two Bits
Sept. 2012--Sept. 2013 = Financial
Foreshocks?
By Eric Hadik

In line with what has been described for ‘rehashing’ this now is to provide some context
over a decade (regarding the Dollar), and in and hopefully demonstrate some credibility
fulfillment of the next phase of the 11-Year to these two ubiquitous cycles - the 11-Week
Cycle of Middle East Wars, and in synch with Cycle and the 14-15 Week Cycle - that have
Stock Index cycles that have been described again just reached fruition in mid-Sept. 2012
during the first 8 months of 2012, Sept. 2012- (and which predict the culmination of a major
-Sept. 2013 pinpoints a momentous period advance).
in financial markets . It has been projected
to begin with a stock market correction from “A 14-15 week low-low-low-(low) Cycle
major cycle highs - in Sept. 2012 - into Progression recurred on June 20--24th & June
initial cycle lows in January 2013. A Middle 27--July 1st… (The next phase of this 14-15
East skirmish is also forecast for the Sept.- week cycle is September 26--October 7, 2011…
Nov. period. If all this unfolds, it would add when another low is likely.) This possibility -
validation to the 6-12 month outlook... for a rally to new highs in at least one Index
- was further corroborated by a unique cycle
Overall, Sept. ’12--Sept. ’13 is projected to that has governed the action of the Nasdaq
be a year of financial transitions & tremors - 100 for over a decade…the next phase of this
foreshocks to a coming financial earthquake 11-week cycle comes into play on October 3--
(a major shift of the global economic tectonic 7, 2011…there are a few related points that
plates), leading into 2016. Before delving into are already hinting this time frame should be
this analysis, it is important to step back and a low. The first is the 14-15 week cycle.
look at where we are… and how we got here…
The second is that a 50% retracement in time
An Update - for the DJIA & SPU, which peaked in early-
In 3Q 2011, I explained (in INSIIDE Track and May after a precise 44-week advance - would
in a follow-up Trader’s World article) how the involve a 22-week decline and would bottom
11-Week Cycle was governing much of stock on October 3--7, 2011. A related 15.5 month
market action and why it projected a major, (approximately 66-week) cycle divided the
multi-quarter bottom for the week of October last two multi-year lows - in March 2009 and
3--7, 2011. June/July 2010 - and next comes into play in
October 2011. (An exact 66-week cycle from
As part of that article, I reprinted the following the mid-2010 low comes into play on Oct.
excerpt from the August 2011 INSIIDE Track 3--7, 2011.)” [End of excerpt from July 29,
(7/29/11) - which also explained the link 2011.]
to the 14-15 Week Cycle. The reason for

68 www.tradersworld.com Jan/Feb/Mar 2013


Stock Indices followed this analysis, with the advance (wave similarity) from their October
DJIA & S+P 500 setting their major lows on 2011 lows, it would culminate in August/
October 3rd & 4th, 2011… in line with both September 2012.” [End of excerpt from Jan.
the 11-Week Cycle (that has influenced the 31, 2012.]
Nasdaq 100 for over a decade) and the 14-15
Week Cycle (that has governed all the Indices March 30, 2012 INSIIDE Track: “Stock indices
since 2007). This powerfully validated the are reinforcing cycle lows from early-October...
6-12 month outlook and set the stage for a that come back into play in/around January
substantial advance to follow. 2013. They are expected to move higher into
3Q 2012 - a powerful convergence of weekly
Stock Indices 2012: ‘See You in & monthly (and even yearly) cycles…Since
September’ the March '09 bottom, the Nasdaq 100 has
Since January 2012, the focus has been on 3Q experienced two major rallies of almost equal
2012 - when a major peak was projected. A duration (59 weeks & 56 weeks). There is a
top in 3Q 2012 would complete 5-Year & 10- chance it could see a 3rd, successive advance
Year Cycles, as well as a host of monthly and of 56-59 weeks... and peak in September
weekly cycles. To help readers understand 2012” [End of excerpt from Mar. 30, 2012.]
how this conclusion was reached - and why the
Indices were expected to rally into September Stock Indices have now fulfilled this projection
2012 and then suffer a 2-3 month, 10-20% and a myriad of cycles, wave projections, price
(minimum) decline, it is necessary to include targets and timing indicators in the process
a few additional excerpts (sorry about that, - advancing into September 2012 when a
but it is necessary context)... major top is expected. A small sampling of
these indicators - including a very rare one
Jan. 31, 2012 INSIIDE Track: “Stock indices that is only seen at major tops and bottoms
are reinforcing cycle lows in early-October. - is included in the following excerpt, setting
They remain in a 5-year trading range and a the stage for a projected 2-3 month, 10-20%
6-12 month trading range but are expected drop - the opening salvo of what could be a 1-3
to move higher into 3Q 2012 - a powerful year, 20-50% decline. The first phase of this
convergence of weekly & monthly (and even decline is forecast to last into late-November…
yearly) cycles... From the March 2009 low to
the May 2010 high to the July 2011 peak, the Sept. 15, 2012 Weekly Re-Lay: “Stock Indices
Nasdaq 100 has created a 14-month low-high- rallied to new highs with the DJIA testing its
high-(high) Cycle Progression that comes back weekly LHR for the 2nd consecutive week. This
into play in September 2012. That is when a is a rare occurrence, usually seen at multi-
peak is most likely. month or multi-quarter peaks... This projects
a multi-month peak in the coming weeks...I
All the Indices experienced a 10-11-month have only seen this pattern a handful of
advance from June/July 2010 into May 2011. times... In each one, a very important turning
The NQ-100 went on to spike to a higher high point took hold within 1-2 weeks... This ushers
in July 2011, but the DJIA & SP did not follow in a perfect time to reiterate what has been
suit. If they trace out a similar 10-11 month emphasized since January 2012...

69 www.tradersworld.com Jan/Feb/Mar 2013


The most likely time for a multi-month top 25-Year Cycle: The Bigger Picture
- based on the greatest convergence of Stock Indices are closely adhering to this
monthly & yearly cycles - is September 2012. analysis, which brings us to the present…
The outlook has always been for an advance
into 3Q 2012…with the most cycles pointing There are many reasons that support the
to Sept. 2012...when a major top is expected analysis for a financial & economic shift - a
- that is most synergistic on September 17- kind of ‘foreshock’ - to begin in September
-21, 2012...the most likely time for a multi- 2012… and on a bigger level, to begin in Sept.
month/multi-quarter peak. There are several 2012--Sept. 2013. One of them has to do with
factors corroborating this. the important transition period that is ushered
in each September, particularly in the Middle
...the Nasdaq 100 (with a multi-month peak East. That is the focus of separate reports.
and a multi-month low both created in July/ An over-arching reason is an uncanny cycle
August 2011 - only two weeks apart) also that is continually impacting the two pillars of
created a 58-week low-low-(high) Cycle the American economy: Stock Indices & the
Progression - connecting its late-June 2010 US Dollar.
& early-August 2011 lows and projecting an
advance into late-September 2012 - that The cycle being described is a 25-Year Cycle
reaches fruition on September 17--21, 2012. and its divisions/multiples (12.5 Year, 50-
The S+P 500 - with a rally into September Year & 100-Year Cycles). There is a lot to
17--21st - would complete a 25-week low- this cycle, which current space prevents too
high-(high) Cycle Progression that divides the much elaboration, but the following excerpt
advance since October 2011 in halves. sums up one of the more salient highlights
that link a sharp market correction with an
And, then there is the 14-15 Week Cycle - ensuing geopolitical conflict - every 25 years.
along with a corresponding 29-30 Week Cycle
- that governed the Indices from 2007--2009, This time, however, late-2012 also aligns with
pinpointing almost every intermediate turning the latest phase of the 11-Year Cycle of Middle
point on the way down... September 17--21, East Wars that has been in force since 1923
2012 completes the latest phase of this 14-15 (when the Middle East was originally carved
Week Cycle and could produce an important up) and most recently gave us the Islamic
top, as a result. Revolution in Nov. 1979, the Persian Gulf War
in late-1990 and the attacks on New York and
Just as the 2007--2008 drop culminated with a Washington D.C. in Sept. 2001. Sept.--Nov.
14-15 week decline, the 2011--2012 advance 2012 is the next phase.
could culminate with a 14-15 week surge.
And, just as the Nasdaq 100 declined for 13 June 28, 2012 INSIIDE Track: “...2012 is the
months in 2007/2008, it is now completing a culmination of multiple cycles (5-year, 10-year,
13-month advance (from August 2011) into etc.) when an important top is expected. That
a potential peak... like bookends on multiple could come at any time, but the 3rd Quarter of
levels." [End of excerpt from Sept. 15, 2012.] 2012 is the ideal time. This is also in lockstep
with the... 25-Year Cycle that timed the

70 www.tradersworld.com Jan/Feb/Mar 2013


August 1987 peak (and subsequent, 35-40% ‘Cycle of Life’) from two decisive events in
drop into October 1987), the preceding 1962 the Middle East: the death of Ibn Saud (the
plunge & 'Flash Crash' (Jan.--June 1962, 27% original leader of Saudi Arabia) and the British/
plunge & subsequent Sept/Oct. 1962 Cuban American-led coup in Iran… both of which took
Missile Crisis), the Aug.--Nov. 1937 crash & place in 1953. It would not surprise me to see
'depression within the Depression' (40% drop a new generation of Saudi leaders come to
in 3 months, part of a larger decline and also power in 2013.
coinciding with the 1937--1938 recession)
and the crash of late-1912 (into early-1915, From a timing perspective, one of the most
when the DJIA dropped nearly 44%).” [End consistent, longer-term cycles in the US
of excerpt from June 28, 2012.] Dollar is a 25-Year Cycle. [It is important to
realize that the ‘value’ of the US Dollar is best
25-Year Cycle in US Dollar determined by its inverse relationship to the
September 2012 is also exactly 12.5 years price of Gold… and sometimes Silver - even
(1/2 of the 25-Year Cycle) from the Major though it is no longer backed by either.]
peaks of March 2000. While Stock Indices are
an important and closely-watched market, the The convergence of these cycles in 2013 is the
real purpose for this article is to touch on an next phase in a cycle that incorporates events
equally decisive period - and market - that in 1987/1988 (market crash, secondary
has related cycles converging. peak in Gold prices), 1963 (last Silver coins
minted), 1937/1938, 1913 (Federal Reserve
Two Bits Act, which ultimately changed the US Dollar
For the past 10 years, I have described a to the Federal Reserve Note), 1888, 1862-63
unique convergence of longer-term cycles - (Legal Tender Act, National Banking Act), 1837
related to the Dollar and/or banking - that (Banking Act, Panic of 1837) & 1812/1813
reach a crescendo in 2013. That is when I (fight against re-chartering of US National
expect a fundamental shift in the U.S. Dollar. Bank & charter of bank that would ultimately
It also aligns with the crescendo of longer- be key part of Federal Reserve).
term cycles in Saudi Arabia & China - which
could be giving some indication as to the type This cycle has had many corroborating events
of shift the Dollar will experience. at the midpoints - a period of roughly 12.5
years… or 1/8 of a century (100 years). The
Since the 1973 ‘agreement’ w/Saudi Arabia last peak in the Dollar Index was in 2001 -
to sell oil in Dollars is what has artificially 12 years prior to 2013. This was another
supported the US Dollar for a 40-Year Period example of a stock market downturn (in
of Testing, and since China is the one lending 2000) preceding a Dollar downturn by a year
the greatest support to our currency (in the or more.
form of holding our debt), the silhouette of
a possible cycle fulfillment - beginning in It is interesting that this division (1/8 of a
2013 - becomes apparent. 2013 is - among century) represents the earliest division of a
many other things - 60 years (Gann’s grand Dollar (100 cents) into 8 bits (following the
supercycle and what I have explained is the Spanish piece of eight currency) - or 1/8 of

71 www.tradersworld.com Jan/Feb/Mar 2013


a Dollar - and coincides with the common Promised Land. Noah spent a similar period of
division of Stock prices until 1997 (quoted 120 years, preparing for a catastrophic flood.
in eighths - a representation of 1/8 of 100 And, the nation of Israel had its zenith during
cents). the successive, 40-year reigns of Saul, David
& Solomon (total of 120 years).
This 25-Year Cycle in the US Dollar has often
been foreshadowed by a similar, 25-Year Cycle
This is also the ultimate lifespan of man, as
in US Stock Indices - which have experienceddecreed in Genesis 6 (120 years). Whether
sharp declines in anticipation of the Dollaror not one wants to give any credence to
woes. If the Dollar is going to set another high
this ancient declaration, modern history
in 2013 - before a new, multi-year decline -substantiates this cycle. In the past two
it could be presaged by a Sept. 2012 Stock centuries, there are records of hundreds of
Index peak. individuals living past 110 years old. There is
only one record, however, of a woman making
Let’s examine another combination of cycles it past 120… to 122 years old.
that conclude the same thing…
There are several other examples as well.
The Ultimate ‘Test’ And, a 120-Year Cycle is also twice the 60-
Two of the most prevalent numbers & cycles Year Cycle of Life. The point is that multiples
in the Bible (the book that W.D. Gann had his of cycles have an even greater significance
students read three times before preparing to and a larger impact. With that said, let’s
learn his works) are ‘7’ and ‘40’. This is not do a quick review of what America has gone
a religious topic or conclusion, but rather a through in her history as the United States
historical one (with religious implications). It of America. In this discussion, I am focusing
is also a mathematical one. on the financial aspect of America and the
connection between government and money…
One of the unique aspects to these two cycles
is that they have the same connotations, It all began in 1773, with the most notorious
whether applied to days or years. 7 conflict - between U.S. citizens and
represents completion (as seen even in the government (the British Parliament). 1773
days of our week) while 40 represents testing is when the Tea Act was enacted and 1773
or preparation. There are multiple examples is when the Boston Tea Party occurred (‘no
of 40-day periods AND 40-year periods taxation without representation’).
representing a period of testing or preparation
for some momentous event. While it is far from the only event, the Boston
Tea Party is the most iconic event associated
There are also several examples of a trio with the American Revolution and the onset of
of 40-Year periods preceding an even more this great societal and economic experiment -
significant event. Moses lived in Egypt for 40 known as the United States of America.
years, then in the wilderness (as a shepherd)
for 40 years and then in the wilderness (as 1773 ushered in a tumultuous ‘week’ of time
a leader) for 40 years, before arriving at the (a 7-year period, encompassing the American

72 www.tradersworld.com Jan/Feb/Mar 2013


Revolution) - the reverberations of which have observed:
impacted the world for the past 240 years.
It also ushered in a giant ‘Week’ of testing/ “A private central bank issuing the public
preparation (7, 40-Year periods - the 6th of currency is a greater menace to the liberties
which is about to culminate in 2013). Let me of the people than a standing army.”
explain…
Nothing is able to more closely link (directly
40 years later - in 1813 - Thomas Jefferson and/or inversely) the relationship between
was fighting a new version of government- Gold/Silver & the Dollar than a central bank -
controlled money - the National Bank. Its with the power to print fiat/paper money.
first charter had expired in 1811 and was
quickly followed by the War of 1812. There 1813 was a critical year - sandwiched between
are suspected links between what England the two U.S. National Banks (the first ended in
did, leading up to and at least partially 1811 and the second began in 1816), a small
provoking this war, and the behind the scenes window of time when Congress was back in
links between the Bank of England and the US control of the currency but when the quest for
National Bank. another national bank was evolving.

In 1813, Thomas Jefferson wrote to the Ways Each of the US Bank charters was for a 20-year
& Means Chairman - John Eppes - fighting term. So, in the first 100+ years of America’s
against the establishment of a new national existence, there was an exact 40-Year period
bank (which would ultimately be chartered in of national bank charters & existence - a
1816). Jefferson’s biggest battle was against testing or preparation for what would later
the issuance of paper money and the control take place in 1913.
it gave to government (much the same as
taxation). Jefferson - and others - were The second 1/2 of this 40-Year period of testing
staging a diplomatic, more civil version of the (with US Bank charters) represents a critical
Boston Tea Party… exactly 40 years later. In battle in our nation - between an honest, hard
1813, he stated: currency and the consolidated power of a
printed currency. Perhaps the greatest irony
“Specie (gold/silver coin) is the most perfect is that the man who fiercely battled - and
medium because it will preserve its own level; ultimately overcame - the push for a national
because, having intrinsic and universal value, bank that could issue paper currency is the
it can never die in our hands, and it is the man immortalized on our $20 bills: Andrew
surest resource of reliance in time of war.” Jackson.

Jefferson was opposed to the national bank Andrew Jackson - after winning the most
and viewed it as unconstitutional. While he decisive battle of the War of 1812 - was later
- and others - were fighting this second ‘tea elected President in 1829. At that time, he
party’ (how ironic that yet another Tea Party is fought and ultimately won another battle -
emerging as the latest 40-Year Cycle reaches against the charter of the US National Bank.
a crescendo - in 2013), Jefferson astutely As he left office, after returning the U.S. to a

73 www.tradersworld.com Jan/Feb/Mar 2013


hard currency of gold & silver coinage, he left amounts of silver every month - a form of
the American people with this profound and stimulus intended to create cheaper dollars
prescient warning about the Dollar: and allow farmers to pay off mounting debt…
with these cheaper dollars. Wow! The more
“The paper-money system and its natural things change, the more they stay the same
associations, monopoly and exclusive (which is what Cycles are all about).
privileges have already struck their roots too
deep in the soil and it will require all your The US Congress of 2009--2011 (120 years
efforts to check its further growth and to - or 3 periods of 40 years - later) bears a
eradicate the evil .” striking similarity to that of 1889--1891, with
massive amounts of spending legislated in
40 Years later - in 1853 - the US government order to placate the demands of a powerful
found a different way of altering the value of the ‘lobby’ of citizens.
Dollar by reducing the weight of Silver in coins.
4 years later - in 1857 - U.S. banks suspended However, the events of 1890--1893 & 1853
payment in Silver. This period culminated in were merely the opening acts for the ultimate
1861 with U.S. banks suspending payment in attack on hard currency by the government.
Gold AND Silver, which ended attempts at a That attack came - exactly 40 years later - in
Silver standard for the U.S. Dollar. 1933, when the U.S. banned its citizens from
holding Gold, when Gold coinage went out of
This was another example of the raging battle production, and when the link between Gold &
between honest money and government- the US Dollar sharply weakened (Emergency
(or para-government-) manipulated paper Banking Act & Executive Order 6102 in 1933
currency. & Gold Reserve Act of 1934). Immediately
after confiscating Gold, the US government
40 years later - in 1893 - the price of Silver revalued the Dollar - resulting in a windfall
collapsed after the removal of government profit - in reality, a massive tax - for the
support. Here again, government price government.
manipulation caused a boom-and-bust cycle in
the Gold/Silver/Dollar relationship. The entire The decision to dramatically alter the Gold/
election of 1896 revolved around Gold, with Dollar relationship - in 1933 - is what set the
William Jennings Bryan (the loser) arguing to stage for another financial debacle in 1973…
end the Gold Standard. exactly 40 years later (are you beginning to
see a pattern here??).
The really interesting thing is what led up to
this collapse in 1893. The Sherman Silver Having effectively removed the gold backing
Purchase Act of 1890 and the Billion Dollar of the Dollar, it took exactly 40 years to back it
Congress of 1889--1891 were a time when with a different commodity - oil. This began,
the US government was spending like crazy however, with Saudi Arabia deciding to use
(much like recent years, when we have the the ‘Oil Weapon’ against the West (during/
Trillion Dollar Administration) and when the following the Yom Kippur War of October
government was legislated to buy increased 1973). Once they had wielded that weapon,

74 www.tradersworld.com Jan/Feb/Mar 2013


and brought the US to her knees and to the the American economy could disappear in a
brink of economic ruin, a compromise was flash. Of course, this could also occur by a
forged. The Saudis agreed to price oil only in changing of the guard, with the last of the
Dollars and the rest of the Middle East followed octogenarian Saudi leaders exiting and a new,
suit in the ensuing years. younger generation taking control. 2013 is the
culmination of a myriad of cycles pertaining to
It was, however, the synergy of multiple events Saudi Arabia… so don’t be surprised to see
- in 1973--1976 - that really set the stage this transition occur in the next 15 months.
for the present. 1973 was also the collapse
of the Bretton Woods agreement while 1976 As alluded to at the beginning, there are
timed the Jamaica Accord - an agreement to also cycles pertaining to China that reach
de-link Gold from the Dollar & allow a floating a crescendo in 2013. Economically and
exchange rate. monetarily, it could be a different kind of
’Perfect Storm’. China & Saudi Arabia already
Those events ushered in the largest surge in have major oil agreements (refining, pricing,
Gold (and corresponding collapse in the US etc.) and the two nations are linked with a few
Dollar, when viewed from the perspective of others pushing for the removal of oil pricing in
Gold) - from 1973 into 1980. Don’t look now, Dollars.
but the next 40-Year Cycle is nearing fruition…
So, you do the math.
A Perfect Storm
2013--2016 is the culmination of a 40-Year A Giant Week
Period of Testing from 1973--1976 - when the As stated earlier, the number 7 represents
U.S. began experimenting with a new kind ‘completion’. Within this structure, there is
of backing for the Dollar: Oil… and the world the principle of ‘Work for 6, Rest on 7th’ -
restructured how Gold was priced. However, the basis of the Jewish Sabbath. This is a
there is no Fort Knox full of oil actually backing principle that applies on many levels, not just
the Dollar. the 7 days of the week.

Instead, the entire backing hinges on the It also applies in the markets, with many of
promise of a nation that is growing rapidly the most significant cycles being split into 6
more antagonistic toward the U.S. And, it parts (up or down) and 1 part correction -
is a nation ripe for an ‘Arab Spring’ type of where the main trend consumes 80-83% of
revolution. The only thing that has delayed an overall cycle and is followed by a sharp
an uprising was/is the spreading of money to correction for the remaining 17-20% of the
the population, a bribe that began in 2011 - cycle. The bulls work for 6 periods of time
when the handwriting appeared on the wall and then ‘rest’ during the 7th (or vice-versa).
(the wall of Egypt, the wall of Libya, the wall
of Syria, etc.). A perfect example is the bull market in Stock
Indices from 1987 into 2000 - a 13-year
If/when there is ever an overthrow of the period. They then corrected for 2+ years -
House of Saud, this willingness to prop up completing an overall cycle that was roughly

75 www.tradersworld.com Jan/Feb/Mar 2013


6 parts up and 1 part down. more money than actually exists. As is
always the case - even in personal matters
The Nasdaq 100 then advanced for the next - a carefree approach like this is always the
61 months - from Oct. 2002 into Nov. 2007. most fun… right up until the point that it is no
It then dropped for 12 months into its low of longer the most fun.
Nov. 2008… a 19% correction (in time).
Pardon the additional Bible quote, but a
Silver rallied for almost 10 years - from 2001 very wise man named Solomon once stated
into 2011 and has unrelated cycles that portend (actually, he repeated it multiple times):
a bottom in late-2012. If fulfilled, it would
be another textbook example of this pattern. “There is a way that appears to be right, but
(Gold has just fulfilled its 2-3 month upside in the end it leads to death.”
target by attacking 1800.0/GC and should see
a similar decline into late-December.) He said this in the same chapter (Proverbs
14) that he said things like:
Why do I mention this Cycle of 7? Let’s
connect the dots… “Where there are no oxen, the manger is empty,
but from the strength of an ox come abundant
2013--2016 is the culmination of 6 periods harvests…The wisdom of the prudent is to give
of 40 Years (period of testing/preparation) thought to their ways, but the folly of fools is
from the period of the Boston Tea Party deception… The simple believe anything, but
& the American Revolution/Declaration of the prudent give thought to their steps...All
Independence. hard work brings a profit,
but mere talk leads only to poverty.”
Each of the 40-Year cycles - within that 240-
Year period (1773--1776, 1813--1816, 1853- Is there a connection? It might be more
-1857, 1893--1896, 1933--1934 & 1973-- obvious if readers recognize that ‘death’ and
1976) - revealed landmark events for the ‘debt’ come from the same root word. So, a
currency - and the economic freedom - of the paraphrase could also read: “There is a way
United States. Many of these events could that appears to be right, but in the end it leads
be presaging the ultimate enslavement of the to debt.” To put this in proper context, you
population. might want to also read Solomon’s thoughts
on debt and the borrower being slave to the
And, each of these revealed the raging battle lender, etc. The USA is a slave to Saudi Arabia,
between advocates of an honest, hard, China and others… we just don’t yet recognize
gold-based currency versus proponents of a the full extent and ramifications of it. Will we
paper, fiat (ultimately debt-based) currency. in 2013 (--2016)?
In the short-run, there is no debating that
the debt-based, easily-manipulated, funny- 2013--2016 is the culmination of this battle
money approach is the most fun, carefree and - for true and lasting freedom - and ushers
manageable. It allows for quicker reaction to in a time for a ‘rest’ or ‘sabbath’ from this
crises and allows banks to create exponentially battle. Barring an extremely unlikely truce

76 www.tradersworld.com Jan/Feb/Mar 2013


being declared, there are only two ways to
accomplish this ‘rest’: Order all Back Issues
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1 - Victory (return to Gold-backed currency Magazine on CD
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2 - Defeat (demise of Dollar, as we know it,
of Traders World Magazine on CD in a
and the emergence of a new currency).
pdf reader format. 4901 - Issue #1,
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2013--2016 represents a watershed time for
America, for the U.S. Dollar… and potentially for
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Cycles (as well as the preceding discussion on
25-Year Cycles, etc.) only represents a small
portion of the cycles that conclude this.

There are many other facets to this analysis These are many of the trading articles
and to what is expected in 2013--2016… and from major traders from the last
how to prepare for it. They will be continuously 20-years. Some of the covers are below.
revealed and discussed in our INSIIDE Track For a complete lising or to order go to:
www.tradersworld.com
monthly newsletter. For now, it is important
or call 800-288-4266 or 417-882-9697
to comprehend the significance of the cycles
that come into play in 2013--2016…The Dollar,
Gold & Silver and Stock Indices are honing
the outlook for the final months of 2012 and
first 3-6 months of 2013. It could provide
ideal opportunities to prepare for - and/or
capitalize on - a coming shift.

Eric S. Hadik is President of INSIIDE Track


Trading and can be e-mailed at INSIIDE@
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insiidetrack.com. Trader’s World readers can
contact them and request FREE copies of Stock
Indices 2012: ‘See You in September’ Reports
that describe the uncanny convergence of
cycle highs in September 2012… and what
is expected leading into early-2013 and also
receive unique analysis on the likelihood of
Israel being embroiled in a new conflict - just
before or just after the US election - and in
line with multiple cycles.

77 www.tradersworld.com Jan/Feb/Mar 2013


7 Reasons Why Silver is Poised For
Strong Relative Performance

By Efrem Hoffman, Founder & Director of Macro Market Strategy at


TradingTimeAndPrice.com and NakedSwanTrading.com
Silver is entering a seasonal bias, top-side, with serve as a tail-wind for additional silver purchases.
particularly strong demand from China and India for
this precious metal into the Holiday Season. Since November 8th, precious metals, and especially
silver have been outperforming, not only with respect
Favorable consumer sentiment and spending in to the US Dollar, but also in terms of the Euro. The
these Asian Regions, as reflected by the strong out- widening divergence in the movement of silver and
performance of consumer-based ETFs – particularly, the Euro is indicating that renewed fear over Euro-
the Global X China Consumer (symbol: CHIQ) and EG zone troubles is making investors seek safe harbor
Shares India Consumer (symbol: INCO – Warning: and diversify money flows into precious metals,
volume much too thin for trading) – have potential to particularly silver.

78 www.tradersworld.com Jan/Feb/Mar 2013


TradingTimeAndPrice.com analysis of the volume and international economy, and/or monetary
micro-structure of Dec. Silver Futures is most debasement, resulting from expanded quantitative
favorable within the precious metals complex. easing policies, precious metals, and particularly
silver will likely receive a shining status on the global
The Time Map (at the top of the next page) lays out financial stage.
the opportunity window. It overlays boundaries on a
price chart (In this trading situation, a 110 minute The Time Map Market Intelligence, offered at
price chart is applied), the specific price levels in the TradingTimeAndPrice.com, is indicating yet another
future that precisely calibrate with where decision- wave of equity index panic selling -- to develop into
makers on different time-frames will be measuring Month End. An increased fear of uncertainty will likely
zero price momentum crossing points. be exacerbated by this down-draft – thereby, setting
in motion additional asset protection strategies in
The convergence of a large confluence of boundaries favor of silver purchases.
near the current price of $32.68 (Dec. Silver
Futures) is indicating that as price advances through The Time Map is also indicating that the specific time
this cluster (with volume) then many market players frame that key decision-makers will be keying off --
will be synchronizing their actions in favor of bullish to trigger buy orders -- is the 60 minute chart. To best
order flow and momentum structure. monitor profit-seeking points using your favorite exit
criteria – i.e. divergence indicators -- the Map shows
General concerns over the potential for slower global that the 21 minute time-frame is most suitable.
economic growth, and uncertainty over the fiscal cliff For active traders keeping a close eye on the silver
is also contributing to asset rotation into silver. Even market, pay particular attention to the following
as Equities sold off sharply in a wave of panic selling support and resistance levels.
into the Nov 7 th
close, both Dec. Silver Futures and
silver ETFs, including, iShares Silver Trust (symbol: Near term support for December Silver Futures
SLV) -- which is essentially a paper asset -- started comes in at $32.02; with $31.55 to $31.31 offering
being bid up, and continued to do so on additional broad base-line support.
weakness into Nov. 9th. From a technical inter- $33.01 offers near term resistance for December
market perspective this is a very significant bullish Silver Futures; with the next interim overhead
development. resistance level near $35.40. Longer-term -- into
2013 -- a strong underlying bid with much higher
What makes this situation most promising for the prices will have high potential to take shape.
continued outperformance of this monetary asset is
that in the event of an upward retracement in the For updates on silver as we progress toward these
Euro, the downward pressure on the US Dollar would price zones, and for risk insights on further downside
provide an underlying tail-wind for silver. Given that equity pressure, follow TradingTimeAndPrice.com –
silver is priced in US Dollars, basic math implies that Your One-Stop Destination for Market Time Maps and
it will take more Dollars to purchase an equivalent Twitter commentary -- at @TradinTimePrice
amount of silver.

Be it a threat of contracting money velocity


brought about by the risks of a cooling domestic

79 www.tradersworld.com Jan/Feb/Mar 2013


High Power Trading with Geometry
By Ron Jaenisch

Would you like to take some of what you What could he have used to determine when
already know and learn a technique that will to buy and sell? Simple and straight forward
help you find some of the tops and bottoms, geometry. Finding market turning points
when it comes to investments? Would you is still possible today and easier to do with
like to know a little about someone who did it modern charting software using geometry.
nearly 100 years ago?
When Alan Andrews met Roger Babson
In the 1920’s Dr. Alan Andrews made his (founder of Babson Business College) they
first million after graduating from college and found that they had something in common,
trading cotton for two years. At the time there using geometry for trading.
were no computers, and his technical analysis
charts were drawn by hand. Roger used what he called the Action-Reaction
method. He believed that the movements of

80 www.tradersworld.com Jan/Feb/Mar 2013


prices in the market were governed by Sir action line to the center line is measured, it is
Isaac Newton’s third law of motion (action and projected into the future to determine where
reaction are equal and opposite). He used this to draw the parallel line labeled Reaction Line
concept to develop tools to determine future #1. At the reaction line, specific tradable
turning points and correction patterns. patterns are anticipated. When prices stopped
at reaction line #1, several weeks passed prior
To accomplish this Babson would first draw to the trend continuing up.
what he referred to as a center line. His center
lines are carefully selected. Our computer This method may be used in most markets and
based research has shown that using previous you can apply this method to stocks, indices,
major “ore” reversal points are very useful for commodities and futures. Babson pointed
his. More about these reversal points will be out that with his Action Reaction method, the
discussed later. reaction lines would forecast future market
reaction points. A trader could these lines
In case of the run up in gold in 2010 and for targets, and as reference points, for
2011, the longer term trend was up. The line price continuation forecasts. After a reaction
for figure 1 that was selected to demonstrate line is hit, the trader may recognize it as a
Babson’s method was a line that was drawn reaction line that shows when to get in for the
from the peak of the uptrend, to the low of continuation of the trend.
the counter trend move. This high and low As you can see in figure 2, after price action
point was chosen because the low was at an finally broke past Reaction line #1 the uptrend
ore reversal point. This line is seen in figure 1. continued in the Gold chart.
It is called the center line.
The next step is to determine action points, Figure 3 is a daily chart that shows two
which in this case are prior lows. In figure 2 additional action Lines drawn, with the daily
the line from the action point is labeled as gold price bars The action lines are parallel to
Action Line #1. After the distance from the the center line. Once again an equidistant (to

81 www.tradersworld.com Jan/Feb/Mar 2013


the center line) point is projected in the future course members came up with, but privately
where more reaction lines are drawn. he recommended using only three.

Figure 4 shows gold prices no longer in a daily According to Andrews, the best of these was
format, as the prior charts, but in a weekly the “ore”. It differed from Babson’s center
format. It shows the two additional action lines and we found that it was useful mainly
lines and their corresponding reaction lines. It for finding the end of probable corrections.
shows how the market reacts to the reaction Regular Babson reaction lines may be used
lines, which help the trader to know whether to determine the future end of a long term
or not the trend will continue. move.

When the gold market made the high in 2011, Examples of Andrews unique Ore points that
it was at the reaction line. In Figure 4, the final were selected and posted live to the Andrews
high was at reaction line #3. The location of discussion group, in real time, are seen in the
the reaction line was something that you as a S&P chart. Also drawn in the chart is the well-
trader could have forecast months in advance. known Andrews Pitchfork. This is something
A trader can use these by simply taking profits that is combined by some with the Action
after prices come near the line and reentering Reaction lines to determine the trend and
the trade after a viable correction pattern probable reversal points.
which typically lasts several weeks.
Andrews pointed out that prices make it to
Alan Andrews privately taught the various the median line about 80% of the time, when
trading geometry technique’s in the 1980’s, the proper pivots are used. The median line is
often at the kitchen table. The insights he calculated by taking three consecutive pivot
discussed there were sometimes very different points, which may be labeled A, B, C.
from the concepts he wrote about. For when it
came to center lines he touted a long list that The median line is determined by finding the

82 www.tradersworld.com Jan/Feb/Mar 2013


mid-point between points B and C and then
drawing a line through it from point A. The two MURREY MATH
parallel lines drawn from points B and C then TRADING BOOK
form the “Andrews Pitchfork” The pitchfork Chapter 1. Setting up Mathematical Rhythm for your Stock

may be used to determine the trend, and


(Setting up range of Fluctuation and not off high or low)

Chapter 1 Part 2. Setting up Murrey Math Lines

reversal areas. As you can see in the above a) Mathematical significance of each major M.M.L.

b) Colors for each 1/8 M.M. Line.

chart, sometimes price spends time outside c) Rhythm changes for stocks between 100,000 to zero

d) Recognizing natural bidding 1/8th

the pitchfork prior to going to the median line. Chapter 2 Setting Up Moving Averages (2 Rhythms)

These geometric tools and others, along with


a) Fiscal year 5-20-50-89

b) Up market position

the corresponding rules for their use, were c) Down market position

d) zig zap market conditions

taught by Dr. Alan Andrews. e) Classic wrong correct signal

f) bond market cycle averages

Chapter 3 Watching Time Reversal Signals

Now that you have an idea as to how to


a) Consolidation time reversals highs

b) Consolidation time reversals lows

determine the end of moves and areas where c) Time coversion

d) Watch volume at lows

prices are likely to continue the actual trade e) Many weeks in narrow range

f) Watching time reversals signals

entry techniques will be discussed at the g) Market number of days when it should reverse

webinar and in the course.


h) Watch for reversals after 5 days, weeks, months, years

i) Watch for reversals in bear markets

Chapter 4

a) Single

The author Ron Jaenisch, learned the b) Double

c) Triple

techniques from Alan Andrews over ten years d) Variation

ago at live seminars and privately he teaches


e) Double M

f) 5 Spikes

the online based Advanced Andrews Course. Chapter 5 a) High volume

b) Ascending stairs

He has been involved in computer based c) descending stairs

d) up chevron

research in the techniques and has developed e) down chevron

numerous enhancements that are taught in


Chapter 6 Social Situations

a) Open interest

his web based Advanced Andrews Course. The b) Speed of prices

c) Day 3 is critial

course utilizes a new color manual as well as d) Move up your stop

e) 50% of long candles

over twenty five web based videos and a private f) Best entry positions

email discussion group. More information may


g) 7-10 day S rule.

h) Short Legged W bottom

be found at www.AndrewsCourse.com as well as i) Secondary bottoms and tops

j) Secondary Tops

[email protected] and 858 487 5151. Private k) 4 to 7 Topping out

l) Pivot Price

live seminars to all course members are freely m) Time off 1st Bottom

given regularly.
n) 3rd Day

o) Two Rules that are opposite

p) Minor 50% Point

q) Proof Gann didn't choose to tell it exact

Charts are courtesy of eSignal because I let r) 6 down 1 up

Chapter 7

you know the fact that everyone can save Part II. Practice Sheet

hundreds monthly by avoiding exchange fees.


Part III Learning to Read Japanese Candlesticks

Part IV Look at Raw Chart and Set Moving Momentum

The first step is to ask eSignal representative Part V Selling the Square in Time

Part VI 5 areas of Conflict

Ryan Langdon Phone: 800.322.9325 or email Part VII 19 or 39 Cent Reversal

part VIII Options Trap

[email protected] how we Chapter 8 Harmonic Rhythm

do it at Andrewscourse.com. This is available


8th Grade Math Ruels to Set the Trading Rhythm for your stock

to our customers and noncustomers, through Buy Murrey Math Trading Book $78
Ryan.
83 www.tradersworld.com Jan/Feb/Mar 2013
The Path Ahead for 2013: Showcasing the
NASDAQ 100 and S&P 500 e-Mini Futures
By Efrem Hoffman, Founder & Director of Market Research at
TradingTimeAndPrice.com and NakedSwanTrading.com

Below is the Dec 2012 - Feb 2013 Time Map of Current Risk Events and upcoming Trading
Opportunities in the NASDAQ 100 e-Mini Futures, with Negative Implications for the S&P 500
e-Mini into the Spring of 2013.

Note: As of December 3rd, 2012, we have now entered one of the first in a series of Key
Risk Intervals (within the Dec. - Jan. time zone), and, as expected, the equity markets

84 www.tradersworld.com Jan/Feb/Mar 2013


have weakened coming off the recent high,
both in nominal terms and especially in recent and Video Updates at TradingTimeAndPrice.
days with respect to the advancing Euro. com.
Signaling an unhealthy market environment
is a widening bearish divergence between For further details, you are welcome to view a
the weaker NASDAQ 100 and large cap recent educational video address I presented
multi-nationals. To date, the NASDAQ under- at this Year's TradersWorldOnlineExpo #12
performance has been largely impacted by at TradersWorldOnlineExpo.com. An article
technology infrastructure purchasing manager summarizing the key points are also featured
uncertainty, brought about by "Fiscal Cliff" along-side other Expo presenters in a recently
uncertainty, as well as recent AAPL related published #1 Best Selling Commodity and
news events; and attendant risks of a crowded Investing Kindle Book -- available at Amazon.
trade coming off a high relative valuation. com.
As for large caps like the DOW 30 and S&P
500, which get a large part of their revenues In my best estimation, there exists a very
in Euro, it is clear that the Euro currency high potential for a severe asymmetric tail-
strength into early December has factored risk event; and our research framework is
into the markets -- as multi-national profits currently indicating that it on course to strike
need to be converted back to US Dollars, for the market with a vengeance as we pass
which US market equities are priced; thereby into the New Year and through the end of
adding a tail wind to U.S. Dollar denominated Q1 or Q2, and again later in Q3 and Q4. The
asset prices on days when the Euro rises. NASDAQ 100 is the weakest link, but the big
note to take home is that the S&P is seriously
This divergence, in combination with both deteriorating relative to the Euro. Given our
an unstable market micro-structure and fragile market state, even a garden variety
maturing price momentum jet-stream -- on downside reversal of the Euro would set off
a wide array of time-horizons -- places the risk flares that would negatively impact multi-
market in a precarious state; with alarming national equities -- since they derive a large
risks of an intense and broad-scale market part of their profit from Euro-land operations.
sell-off, to begin in earnest as early as the While this would likely narrow the widening
December 2012 and/or January 2013 time divergence between NASDAQ 100 under-
zone; with heightened potential of a full- performance and the broader market indices,
scale market crisis before the Spring of 2013 it would also lead to a breakdown in main-
comes to a close. The market logic and critical stream market diversification strategies.
trigger levels that are likely to kick off this A focus on Market Risk Intelligence will
bearish scenario are presented in the bottom- increasingly become the order of the day as
line analysis below. we progress through 2013.

The Bottom-Line Insights for Today into 2013 Of note is the falling S&P/Euro Ratio -- this
are the following: indicates that the correlation of large-cap U.S.
equities, is becoming less correlated to the
The market risk profile has remained largely Euro-currency movements, particularly on up
unchanged in recent Executive Market Briefings days in the Euro (due in part to idiosyncratic risk

85 www.tradersworld.com Jan/Feb/Mar 2013


factors that are dominating the US markets), best. Under such a scenario, the first sign
but on down days in the Euro, the downside of strength (I stress limited strength in both
acceleration will be tightly correlated. This intensity and market scope) would most likely
type of asymmetry in the correlation on up show itself in the NASDAQ 100, so long as the
and down days in the Euro is a serious sign of S&P bearish support at 1382.50 (mentioned
weakness in the domestic US equity markets. above) is not breached prior to the NASDAQ
100 Futures (based on Dec. Pricing) exceeding
From a risk perspective, the 1431.50 price level the 2716 price level ( and for such a rally
offers strong intermediate overhead resistance scenario to have any gusto, it must take out
for the S&P 500 e-Mini Futures (Dec. Basis Price this level, top-side, after Dec. 10th or prior
Value). Long term overhead resistance, as to Dec. 16th, 2012). Even if this occurs, the
indicated on the latest TradingTimeAndPrice. asset prices would first get repelled below the
com Time Map Video, as referenced nearer to September highs (in the price zone of 2798 to
the base of this article, points to a prolonged 2870); and at best, the potential overshoot
deflation in US equity assets -- with virtually in the event of a manic melt-up -- even if in
no material "overall" growth, following the the presence of positive macro event drivers
initial tail-risk downdraft, for the foreseeable and geo-political developments -- would
future. It will therefore become increasingly hit a ceiling in the price range of 2911.25
important to pick the right stocks in the most to 2949.75. The advent of such a scenario,
favorable sectors, at the right time. would unlikely derail the downside Tail-Risk
event that I see hitting the markets violently
The most toxic panic episode will likely hit the in 2013, first in Q1 and possibly part of Q2,
market in spades within the Dec 2012 and/or and then again in Q3 and/or Q4.
January 2013 period, particularly once the S&P
500 e-mini Futures price trades below 1382.50 Furthermore, the maximum expansion in
with above normal volume for a complete volatility -- likely to resolve itself in a market
trading day. The sweet spot opportunity meltdown -- would be strongest once the
window time for triggering this risk scenario NASDAQ 100 Futures (adjusted for Dec.
and subsequent downside acceleration would contract month price level) trades below
be somewhere in the time zone of Dec. 12th, critical support at 2483.75, for at least one
13th, 14th, or near the 20th-24th, or before full trading day. Thereafter, the 2383.25 price
or near the first week of January, and again level is the next potential interim balance
before month-end. The 1330 to 1300 price point, from which a possible retracement
zone is the initial downside risk level, before an would find itself limited to the 2549.50 level --
interim market retracement has the potential before crashing back down toward the August/
to set the stage for further weakness into the October 2011 lows. Based on my 16 years
end of Q1. of market risk analysis in forecasting and
tracking volatility events with Time Maps ( the
Even if a major political announcement is technology powering the insights produced
made that temporarily kicks the "Fiscal-Cliff" by TradingTimeAndPrice.com ), it has been
down the road, any market relief rally that identified that the date range of Dec. 20th,
may follow will likely be very short-lived, at 2012 into at least Feb. 20th (& Spring 2013) is

86 www.tradersworld.com Jan/Feb/Mar 2013


one of the most notable of a series of extreme By Combining this current market outlook
volatility intervals that is likely to shock the on the NASDAQ 100 Futures with the High
US equity markets in the New Year. Conviction & Proprietary Analytic Insights
offered in the most recent S&P 500 Futures
Given current and upcoming market conditions, (Dec.) Time Map video ( posted last week --
the Time Map is homing in on the 377 minute valid for several weeks), http://tinyurl.com/
chart and 233 minute time frames -- these chmgfbx , you will be able to see the forward
time units of market measurement have been path of the NASDAQ 100 and S&P 500 markets.
mathematically determined to calibrate with
a most favorable trading outcome; namely to With the Time Mapping technology on your
shock-proof your decision-making and trading side, you can now know, with confidence, the
strategies from market noise. By following optimal time frames to focus your observation
market action on these data intervals, you will of market action -- including the time frames
thereby find that your favorite technical and to best spot the entry levels for upcoming
fundamental indicators will be better positioned market opportunities, as well as the specific
to identify trend persistence and momentum time horizons to apply for both sticking with
strength, as well as spot important inter and the trend (without getting chopped up in
intra-market divergences that precede risk noise) and identifying strategic exit levels.
events and market opportunities -- on both
the long or short side of price movement. The time-line of the expected risk and
opportunity sequence is also precisely laid out
Although market manipulation appears to with key support & resistance levels, including
be rampant of late, it is precisely this type Volatility Trigger Zones -- or "Attack Points.
of activity that often sets up the best trading When relevant updates are in order -- i.e. as
and investment opportunities and outcomes. we are approaching critical decision levels or
Time will certainly tell -- the clock is ticking, attacking key volatility levels or date-lines --
and there is not much time or price travel left they will be posted in the KEY LEVELS Daily
for the market to resolve itself. As director Blog section of TradingTimeAndPrice.com.
of Macro-Market Strategy and Global Risk
Intelligence for TradingTimeAndPrice.com and Moreover, vertical lines will also be overlaid on
NakedSwanTrading.com, I look forward to the Time Map to indicate important calendar
actively focus my analysis on both: (1) shock- dates of upcoming High Potential Risk and
proofing your trading strategies against such Opportunity Events --
adverse scenarios; and (2) converting market
uncertainty into actionable opportunities, *** Pay particular attention to blog postings
which for the foreseeable future, are clearly as we both approach these key date-lines and
stacked to the short side. This series of pass between them.
events is expected to set the stage for great
buying opportunities in the strongest sector You should also review the Time Map section
performers (both on a relative and absolute of TradingTimeAndPrice.com to observe the
basis) after the downside tail-risk pressures latest Momentum Jet Streams impacting the
abate. S&P 500 and/or NASDAQ 100.

87 www.tradersworld.com Jan/Feb/Mar 2013


Pendular Movements in
Market Behavior
By Calalin Plapcianu
Questions arise as to how and why markets move and behave in such and such manners.
Besides being considered sloppy, traders and the general public assign randomness as being
their main characteristic.

Different systems have been created to try predicting traders’ behavior but most of them
failed miserably. Some worked for a period and then collapsed, others worked detecting some
of the trends but none worked consistently, at least none of which I am aware of and to which
the modern world bows when the name of its founder is pronounced. Nonetheless people still
talk about a bunch of traders who stand tall above the trading community, their systems being
acknowledged as being “the systems”. Even a short description of these traders’ backgrounds

88 www.tradersworld.com Jan/Feb/Mar 2013


and personal studies, let alone their works, release the possibility of the similarities of their
systems. A closer look will bring forth similarities even in minute details. In this article I would
like to point out some of the working models designed, back-tested and in testing constructed
by me which will penetrate through the resistance of a misconception as to the randomness
of the markets, and the similarities of my system in regard to the “market wizards” will
immediately come forth.

The chart 1 shows an indicator called Top-Bottom which defines what a turning point really
is. In order to predict turning points in the markets you definitely need to know what they
are first and then to mathematically model them in order try predicting them. The red Ts are
defined as tops and the green Bs are defined as bottoms. A signal is casted when a T or a
B has been confirmed in the future, so there is a requirement in order for a T or a B to be
confirmed. This is the first indicator which is the basis for the rest which predict turning points
defined by the TB indicator.

Markets have a total amount of energy which can distribute. This energy has to be distributed
in order for evolution to run its course. The following charts display the signals given by the
indicators when potential energy reaches its fullest and ready to convert to kinetical energy.
It is just a pendular motion through alternating energy levels of price and time towards a
common goal.
http://tradersworld.com/pendular_movements.pdf

My latest indicator is consistently determining the total energy of a market and distributes
it to kinetical and potential. The results speak for themselves, click here. I have provided a
spreadsheet with in-sample and out-of-sample back-tested results for the user to take a look
at the efficiency the indicators provide. For the moment these indicators can be found on the
Bloomberg terminals by running the command APPS CS:AST <GO>.

89 www.tradersworld.com Jan/Feb/Mar 2013


90 www.tradersworld.com Jan/Feb/Mar 2013
Trading Computers 4 Less!

By Larry Jacobs

T he new Ivy Bridge Trading Computers are


being released from Traders World. These
will use the new Intel 22nm Ivy Bridge 3rd
Today the trading computer needs to have
the power to monitor the markets when the
volume shoots up. Old computers now lockup
generation multi-core processors. They give when there are volume spikes in the markets.
you around 20% more power using 20% less You need power to monitor many charts,
energy. The also use the new z77 motherboards view business news, chat rooms, etc. The Ivy
that are easy to use and easily overclockable, Bridge processors run at 3.1Ghz to 3.5GHz
even for the average user. They can be set to and can easily overclock to nearly 5.0 Ghz.
overclock only when you need the power. The Most traders today now use 2 - 6 (24-inch)
multiple-core feature allows you to run many monitors. More screens improves productivity
programs at the same time. They also easily and usually profit. It is also very important
connect to the new solid-state drives, which that the computer be nearly silent as traders
are 100 times faster than the old hard disk need that feature to concentrate.
drives.
These computers start at $1399.00 at www.
So why does a trader need this power? SonataTradingComputers.com

91 www.tradersworld.com Jan/Feb/Mar 2013


Traders World Book Library

A Unique Approach To Forecasting Market Reversal Points, A


comprehensive guide for predicting precise, price and time turning points
for any market. Price: $36.00
By Ivan Sargent This book is possibly one of most advanced books
in technical analysis you will read regarding price and time reversals.
Knowing the Price and time of a stocks reversal point is undeniably an
important element for to successful trading. Unlike most trading books
which use indicators, oscillators, and basic geometry to forecast the
markets outcome; this technique uses a series of lines which when
accurately placed can deliver reversal points with amazing accuracy.
Trend lines, retracements lines, channels, fan lines, pivot points etc,
all inspect a stock chart from the outside, which is more or less the
obvious point of view. While these techniques can give probable
predictions at times, for many of us this just isn’t enough. Now what would happen if you
were able to analyze charts from what I like to refer to as, “the inside” of the chart? As you
read on in the book, you soon will discover an amazing way find reversal points, and finally
realize that back doors to chart analysis do exist.
When attempting to look at the market from the inside the main thing you need to understand
is that the rules in which how the market is predicted changes completely. Normally when using
trend channels or retracement lines to determine the markets trend direction for instance, it’s
ok to allow the chart to slightly exceed or come close to either of these lines and still be in legal
limits for correct analysis. However these rules do not apply to this different type of analysis.
This type analysis requires that all lines be accurately placed for accurate predictions. It’s a
little more work, but at the end of the day it has its virtues.
When using tools which allow you to see the market from the inside the predictions that
manifest within the analysis are totally different than common technical analysis. Here are two
main occurrences that you will notice when working with this type of analysis. A) Exact target
points will be forecasted or, B) A complete miss of a target point, and nothing else.
This is not a case of a 50/50 hit or miss. When you apply this technique to the markets it
becomes a matter of line accuracy resulting in high target percentage. As you read on through
the book, you understand how to use this technique and see how easy and powerful this
technique can be when used in conjunction with other analysis.

92 www.tradersworld.com Jan/Feb/Mar 2013


Patterns of Gann Price: $159.00
By Granville Cooley This set of books [included within this bound volume]
is not about pulling the trigger. It is not a system on how to make a million
dollars in the market in the morning. It is about certain mathematical and
astronomical relationships between numbers and their possible application to
the number of W. D. Gann.

W.D. Gann in Real-Time Trading Price: $69.00


By Larry Jacobs If you feel that you would like to do short term scalping or swing
trading in the markets, then this book might be for you. It illustrates many
short-term Gann mathematical trading techniques which have a high tendency
to work intraday. Various intraday time frames are shown and how they can be
used together to keep you in the direction of the market. 200 pages

Patterns & Ellipses Price: $49.95


By Larry Jacobs Stocks and futures move in elliptical paths. When a market makes
a gap, its price action usually passes into a new sphere. All its activity will remain
in the current sphere until it moves into another new sphere. This new book tells
you how to use ellipses along with detailed chart patterns to determine if a stock or
futures contract is bullish or bearish. 100 pages

Pyrapoint Price: $150.00


By Don Hall Mr. Hall discovered a secret from one of Gann’s associates “Reno” who
shared a desk with him on the floor of the Chicago Board of Trade. Apparently
Gann carried a piece of paper with him to the floor every time he made a
successful recorded trade. Mr. Hall found out what that paper was and developed
the Pyrapoint trading method around this. An easy to understand trading software
program was fully developed. It creates a natural trend channel and areas of both support
and resistance. It’s clearly tells you when the trend changes. 300 pages.

The Structure of Stock Prices Using Geometrical Angles Price:


$49.95
By Russell M. Sedlar “This chart based book shows how the Geometrical Angles
described by W.D. Gann, when used is this newly discovered way, literally become
the controlling force of stock price fluctuation, causing tops and bottoms to form
and trend lines to be determined.”

93 www.tradersworld.com Jan/Feb/Mar 2013


Simple Secrets of the Trading Master by Jack Winkleman $90.00
This is a book put together by Mr. Winkleman and is a very valuable tool. This
book tells a trader how to used past harmonic cycles for forecasting future trends.
This book is a picture of the markets since 1920 in Soybeans. As an added bonus,
it has a track record of the Dow Jones Cash Index from 1900 - 2006. Cycles are
nothing more than repeating patterns. Trends follow cycles. This book gives you
the key cycles in the market. All you need to know is what those repeating patterns are. That
is why the historical charts become so valuable and this is why this book is so important. With
the content of the book along with charts, it is nearly 200 pages in length.

Don’t get caught in the next market down turm. The method is simple, and easy to follow
and is designed to keep your protfolio profitable in these uncertain market times. The ability
to anticipate the directional shifts in the S&P 500 market gives you a significant advanage in
trading indexes, options and individual stocks.

Gann Master Charts Unveiled Price: $49.95


By Larry Jacobs Complete It is just like a professional athlete, he trains over
and over again and when he is out on the field he doesn’t have to think when he
plays, it becomes automatic. You too, must train over and over again using these
methods with historical data before you are ready to go out on the field to play
or trade.

Most of Gann’s books and courses were written in a veiled language as said by
the trading community. What this means is he buried his techniques in his courses. It’s there,
but the reader has to read and reread his material several times to get anything of trading
value out of it. Gann’s material is extremely complicated and the trader must have a strong
background in mathematics to full benefit from it. Some experts think that he did not put in
the books and courses what he really traded with, even though the price of the courses was
an unbelievable $3500 at the time he sold them. Converted into today’s prices, it would be
equivalent to $50,000. He kept the good trading secrets for himself or for those few who could
afford to pay him the asking price of $100,000.

One of the trading methods that Gann kept to himself was the use of Pythagorean Square.
He also kept secret the hexagon and the circle charts. He went to the land of the Pyramids
to study the Pythagorean Square to find its secrets. It’s believe that he found someone over
there who explained how it worked and how it could be used in the markets.

Also included in this book are many of the archived articles previously written in the Gann and
Elliott Wave and Traders World magazine on the Square of Nine. These articles are included so
you can get a different viewpoint from experts in the field.

94 www.tradersworld.com Jan/Feb/Mar 2013


Traders World Online Expo DVDs
The Traders World Online Expos have been recorded and now are available
on DVDs. You can just put the DVDs in your computer’s optical drives and
listen to the entire expos. Below are a listing of the expos. Most of the
DVDs contain up to 45 presentations that occurred during the 5 day events
from top traders in the world. With these DVDs there is no need to travel to
an expo and leave your work or trading. You will understand what strategies
work and how to implement them. Learn key trading ideas and tactics that
you can use immediately to trade more profitably. So order the DVDs today.

Go to www.TradersWorldOnlineExpo.com

Expo 1 Topics & Presenters of Expo 1 Buy DVD at $12.95

Expo 2 Topics & Presenters of Expo 2 Buy DVD at $12.95

Expo 3 Topics & Presenters of Expo 3 Buy DVD at $12.95

Expo 4 Topics & Presenters of Expo 4 Buy DVD at $12.95

Expo 5 Topics & Presenters of Expo 5 Buy DVD at $12.95

Expo 7 Topics & Presenters of Expo 7 Buy DVD at $12.95

Expo 8 Topics & Presenters of Expo 8 Buy DVD at $12.95

Expo 10 Topics & Presentors of Expo 10 Buy DVD at $12.95

Expo 11 Topics & Presentors of Expo 11 Buy DVD at $12.95

Expo 12 Topics & Presentors of Expo 12 Buy DVD at $12.95

All 10 DVD Package Buy DVDs at $99.95

95 www.tradersworld.com Jan/Feb/Mar 2013


Amazon Kindle Books
Gann Masters Course by Larry Jacobs $9.95
As you know, W.D. Gann was a legendary trader. Some say he amassed a
fortune in the the markets. He wrote several important books on trading as well
as a commodity trading course and a stock market trading course. He charged
$3000 to $5000 for the trading courses which included 6 months of personal
instruction by phone. The Gann Masters Trading Course to help traders become
successful.
A Unique Approach to Forecasting by Ivan Sargent $32.95
This book is possibly one of most advanced books in technical analysis you
will read regarding price and time reversals. Knowing the Price and time of
a stocks reversal point is undeniably an important element for to successful
trading. Unlike most trading books which use indicators, oscillators, and basic
geometry to forecast the markets outcome; this technique uses a series of lines
which when accurately placed can deliver reversal points with amazing accuracy. Trend lines,
retracements lines, channels, fan lines, pivot points etc, all inspect a stock
chart from the outside, which is more or less the obvious point of view.

Patterns and Ellipses by Larry Jacobs $9.99


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

Gann’s Master Charts Unveiled by Larry Jacobs $9.99


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

Gann Trade Real Time by Larry Jacobs $9.99


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

96 www.tradersworld.com Jan/Feb/Mar 2013


Traders World Digest #1 Traders World Digest #15

Traders World Digest #2 Traders World Digest #16

Traders World Digest #3 Traders World Digest #17

Traders World Digest #4 Traders World Digest #18

Traders World Digest #5 Traders World Digest #19

Traders World Digest #6 Traders World Digest #20

Traders World Digest #7 Traders World Digest #21

Traders World Digest #8 Traders World Digest #22

Traders World Digest #9 Traders World Digest #23

Traders World Digest #10 Traders World Digest #24

Traders World Digest #11 Traders World Digest #25

Traders World Digest #12 Traders World Digest #26

Traders World Digest #13 Traders World Digest #27

Traders World Digest #14

97 www.tradersworld.com Jan/Feb/Mar 2013


TradersWorld Magazine
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98 www.tradersworld.com Jan/Feb/Mar 2013

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