Market Pattern Forecast Tutorial

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Overview
The Perfect Pattern
Anticipation Move
Inversions
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Summary

Day Trading Inversions:

Market Pattern Forecasts are created using extrapolation of current short term trading patterns.

Gann angles and Fibonacci sequenced short term cycles in time and amplitude of movement, facilitated

by aritificial intelligence.

In spite of all the research done in the application of time and cycles, there

 are times when the Market Pattern Forecast cycles invert, for short periods or long periods.

An inversion means that the market is doing exactly the opposite to what it "should do" or is

"expected to do" as depicted in the Maps. 

ALWAYS be prepared for patterns and cycles to INVERT. 

The market will adhere to whichever track it needs to take;

Market Pattern Forecast Maps are here to SHOW YOU those possible tracks the markets

are likely to take, preparing you for movement either way the market goes.

At least we know the shape the market will likely take, either way it doesn't matter-

if the market is moving into a LOW at a projected HIGH point on the map, or vice-versa:

look for the INVERSION of the projection. 

This excercise, "what if"-- examining EITHER resolution of the markets' direction will prepare traders

for what they must do in case they are on the wrong side of a trade. 

That being said, this work is EXTREMELY HELPFUL: It is similar to knowing the fire escape route

while staying in an unfamiliar hotel.

Once the trader has gotten used to seeing the Market Pattern Forecast- and knows that there are

two ways that the market should move; either "on track" (as projected) or "on the inversion" - (the OPPOSITE track)

you will become a better trader, always being aware of WHEN you should stop out of a trade and possibly reverse your

position because it is ultimately about timing highs and lows during the day.

The biggest advantage to having the Market Pattern Forecast is that it alerts the trader of the expected times a

 high or a low will occur. If the trader suspects an inversion is taking place, then he or she simply trades against the Map.

 

Experienced users of the Market Pattern Forecast will tell you that if a time zone does turn the

market, but this price level is then taken out shortly after, there is a high probability that the market will

continue in that direction and it is often a good sign that the Market has inverted or reverted back in sync

with the projected pattern.

Some days you will find small inversions lasting only a short while. Sometimes you will look

at the whole day, and the market follows the projection perfectly, when you stand back as in

"being able to see the forest through the trees".  But if you zoom in and look closely, you can also see

small inversions in the rotations. We call these "Inside Inversions":

Take a look at the EURO projection in this series of 3 charts below, where I have diagrammed what I described in the previous lines:

(inside inversions)

Were these "minuette" inversions that are diagrammed meant to confuse you? Perhaps indicate an impending larger

INVERSION for the rest of the day? At this point in time, I diagrammed the chart with two horizontal lines at the levels of the

PREVIOUS ROTATIONS' EXTEMES.  A general rule in this case is to go with the direction of the break of the previous

nd go with the other direction.  So experienced traders MUST BE NIMBLE and QUICK! In this example, it appears that some stops

needed to be taken out above the HIGHS of the day before the ensuing down move would be allowed to take place, hence a stop

and reverse at the breakdown of the previous low rotation level depicted by the lower horizontal trendline drawn on the chart:

 

 

 

 

 

A picture is worth a thousand words.

 

 

 

 

 

Money managementt: 899px" />

 

 

Money management is one of the absolute top priorities of successful traders. The beauty of the Market Pattern Forecast is that it assists

the trader to enter the market at the most opportune time, thereby risking as when he will be wrong on his trade and an optimal stop-loss can be placed.

Stop-losses are there to protect the trader, but any trader will tell you a story about how he or she put on a trade and a stop-loss.

The stop-loss got triggered and then the market reversed and would have made the trader a profit. When you trade with the

Market Pattern Forecast you can use fairly tight stops because you dont have to wait for very long to find out if you are right

or wrong. However, it is definitely recommened to use some other indicators that you are familiar with to support your trading decision.

 

Here is an example of using "other indicators that you are familiar with to support your trading decision". Here is a typical map for a

typical day in the S&P 500, overlaid with what actually occurred that day.  The chart BELOW it is a snapshot of the quantitative model

that we use here in-house to CONFIRM, probability-wise; whether the market should follow in sync with the pattern as displayed--

or whether we should be prepared for the INVERSION:

 

Our quant model issued BUY indications at both the 7:45 am Pacific projected LOW point, as well as additional BUY indications at the

projected RE-TEST at the 8:30 am Pacific Bar. Done deal here, the MAP was confirming our quantitative/technical models that

the PROJECTION was "on track" and that the probabilities of an INVERSION were low.  Additionally, the quantitative model issued

SELL indications at the projected HIGH points depicted on the MAP.

 

 

 

 

Below are 5 snapshots taken during one trading day: Very powerful illustrations of behaviour typical of intra-day inversions:

you can see why our traders benefit from having this uncannily accurate research tool.


S&P 500 Pattern Map: 23rd JAN, 2008

 

S&P 500 Zooming in: first 90 min. 23rd JAN, 2008

Below: Zooming in on the first 5 hours, the inversion becomes quite apparent20080123NUM2.PNG" />

Below: Zooming in on the first 5 hours, the inversion becomes quite apparent

S&P 500 inversion behaviour
Below: As illutstrated, the Market Pattern Forecast is extremely helpful on a micro-level:

S&P 500 inversion behaviour


Below: A snapshot of the full day after the close.  Our traders won't trade without this tool.

S&P 500 Market Pattern Map overlaid with actual 23 Jan, 2008

Below is a chart with some comments from one of our subscribers:

inversion example

The next tutorial shows more Day Trading System examples.

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