Wednesday, March 18, 2009

Island Fantasies

Jeff Cooper is a professional trader. Certified Specialist New York University, he is also the author of "Trading on the rocket and the main line", "Trading on the jerk and the main line 2" and "Lectures on the rocket and the main lines, as well as a comprehensive video course" Jeff Cooper on dominance in the daily trade in the markets. "

Turning the island is a powerful technical tool. However, the classical turning the island, where GEPy up the prices to drop out to a new relative maximum and GEPy down the follow-up session left below the minimum of previous sessions, occurring less frequently. Even with the adoption of certain assumptions, the model is likely to be quite rare.

Therefore, I created "The Island Dzhilligana" to capture the spread in the spirit of the depletion of one model of the island. Island Dzhilligana explained in my first book "Trading in the jerk and the main line." In fact, this happens when the market makes the tool GEPy up to 60 days maximum, but rose slightly (in the lower 25% range). Alerts purchase Dzhilligana Islands are mirror model vertex.

Now let me provide you a sister island Dzhilligana model - Fantasy Island. Alarm sales Islands Fantasia happens when market-based instruments overlap, or jumps up above the previous closing day, but below the maximum of the previous days, then the new 60-day maximum, but due to subsequent sales closing date in the lower 25% range. (To purchase, simply flip the model). To obtain an effective model of Fantasy Island, formed by the overlap of previous closures must be substantial and not formal.

There is a turn and then again turn. Lots of tops (and reason), there is a Islands Dzhilligana or Fantasy Island, but not the whole model Islands Dzhilligana or Fantasy Island is a vertex (or base). I am going to show you how to determine which signals are significant. Sometimes very significant. We should remember the important thing - marketing tool deployed on a large size, most holders of the positions can not keep them. Sudden turn of the market, developing a strong trend in any direction, often leaving investors and financial managers in a difficult position. Hence, hence the name "Island Dzhilligana" (on the same film). His sometimes less relative, Fantasy Island, may also leave the market participants at bay, or figuratively speaking - "planted on the uninhabited island."

6 th December 2001. "Imclone Sistems" (IMCL), a leading biotechnology company, was called to overlap the previous closure and rushes up, just to mention a new 60-day maximum, and then completely change direction at the end of the day. Looking at the daily schedule shows that IMCL closed for a minimum of the day and significantly lower than the closing of the previous days, after GEPa the opening and a new 60-day maximum, signaled the sale of Fantasy Island. Of course, as always, the completion of the duty to confirm the signal. Bear spread has also been confirmed by the model "Soup NaziTM", which occurs when price makes a new 14-day maximum, and recedes fails in testing this maximum. Keep in mind that the previous 14-day maximum for the failed test should be at least 4 sessions before, to avoid joining in the obvious way to continue.

The symmetry of time: (A) Turn Islands Fantasia occurred 14 days after the breakthrough consolidation (B); (C) After the rally 1-2-3 (where the intersection of the 10-day and 20-day moving averages), there was another turn in 7 days after the maximum; (D) After another poor 1-2-3 rally to a 50-day moving average, there was another turn in 7 days; (E) The collapse began after the 3rd of a lower maximum.

When there are multiple signals that there is a high probability that the signal is successful. In this case, we have three signal turn: Fantasy Island, "Soup Nazi" and "LROD". When multiple signals, it is highly probable that the movement will lose value. When the signal (or multiple signals) occurs in a natural crease the price point and time, often the main trend.

Let's look at what I meant by the natural crease the price point and time. W. D. Gann, a legendary trader and kontseptualist market, I believe that all of the sequence of vertices and bases are mathematically related, or vibrate relative to each other. (for details see "Market vibration in the number 27) He believed that there was a causal link between the nodes and bases of varying lengths in exactly the same as the stone thrown in a reservoir associated with caused them to crisp. One of the tools with which Gunn oscillations are usually observed between the peaks and the base was a schedule "Square of Nine" or as I call it, The Wheel of Time and Price. (for details, see "Numerology Hanna" at number 28) Square the first odd number (3) is equal to nine, and forms the first box, or a cycle in the graph "Square of Nine" and, therefore, so called "Square of Nine." Since the square of 1 is equal to 1, this number is not counted. "Square of Nine" - is, in essence, a grid of numbers starting with 1 at the center, which form a clockwise spiral like the Milky Way. As I mentioned, the first cycle, circle or square around the center is completed the number nine. Once you find the "zero" point, from which the market is "ripple" may be defined for the geometrical dependence of the potential maxima and minima in the future. However, it is important to bear in mind that can be used not only historic maximums and minimums on the annual schedule, but also the maximum and minimum closing day, weekly and monthly schedules for the design of price cycles.

If you break 360 degrees from the maximum achieved, increased potential for a return to "square one".

A look at the week-long schedule of IMCL showed significant minimum in March 2001. at around 23.87. Check 23 is at an important cardinal cross graphics "Square of Nine" (the intersection of vectors from north to south and east to west). A weekly schedule of shows that one cycle up or 360 degrees plus 90 degrees (a total 450 degrees) corresponds to point 53 on the same vector as the 21st of March and marked the closure of one-week peak in June 2001. June is a 3-month or 90 degrees in March. Movement of ninety degrees for the price and time are a natural area, where to look for support, resistance, or in some cases, the possible acceleration. This is the behavior after 90 degrees of growth, which should be taken into account. As you can see, the opposite of time, June, or 180 degrees in time from June to December 2001. the completion of a minimum raise from March 2001. Period, which used the nine months (270 degrees year - 2 plus 7 equals 9).

Please note that the bychi IMCL initially increased through the 46 mark, which was first cycle of 360 degrees to a minimum. This implies that after the rollback can be expected to further increase. Primary resistance at level 46 is largely kept nine rolls. Interestingly, during this period, nine, IMCL has not closed below 46 on a weekly schedule by more than a paragraph. In these cases, the closure was as follows: 45.99 for the week ending June 22, 2001.; 45.50 during the week ending July 13, 2001.; 45.81 during the week ending August 3, 2001.; 44.88 during the week ending August 10, 2001.; 45.50 to week ending August 17, 2001. Not too bad. That is the strength of the squares.

Again, from a minimum of March, IMCL has a maximum at 450 degrees for the price, and 90 degrees on time. Then the market revert back to within 7 - 10 weeks and 90 degrees in the price before the opening of the new foundation. Really, in your opinion, is just a coincidence?

At the next pillar, pay attention to the consolidation in the region of 61, which corresponded to 540 degrees from the minimum bid. Please note also that IMCL first reached the 61 th marks the 20 th of September, which is exactly 180 degrees in time from the March level. Ultimately, IMCL has made a mark 75.44, making attempts to reach 77, which represents two full cycles of 360 degrees to a minimum. Check 77 is 720 degrees from point 23 and also lies at the crossroads of the vector between June and December. This shows how the June and December maximums linked square price and time.

As shown in the monthly schedule, the maximum closure of the month for IMCL was at around 77.21 in February 2000. From this maximum closure IMCL rally shows in 36 weeks (or six weeks later in a square), until the week ending 3rd November 2000. Leading to the main page spread. Since the week ending 23rd March 2001., Counting 36 weeks gives the week ending 30 th November 2001., Maximum week closure last fall of the previous mark of 75 to 17 during the entire seven weeks. Gunn used to say that the panic on giving for the seven periods. It will be interesting to see what happens with IMCL in the next. The annual schedule is turned down, and the maximum of a week-long closure in December at around 72, 720 degrees down at 20.50. The closure last Friday just 21.14, which is close enough to recognize the effectiveness of this instrument.

Summarize, by combining all the parts together - signals a turn in the afternoon schedule, combined with the signals of sales on a weekly schedule for the December maximum (the new 10-week maximum, which leaves the spine) has proven math, which connected the point on the wheel prices and time. I think you will agree that the market is, indeed, there is a certain symmetry.

No comments: