Market Pattern Forecast Tutorial
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
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;
Forecast Maps are here to SHOW YOU those possible tracks the markets
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.
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
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
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
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:
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
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
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
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
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
The stop-loss got triggered and then the market reversed and would have made the trader a profit. When you trade
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
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
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:
see why our traders benefit from having this uncannily accurate
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
Below: As illutstrated, the Market Pattern Forecast is extremely helpful on a micro-level:
Below: A snapshot of the full day after the close. Our traders won't trade without this tool.
Below is a chart with some comments from one of our subscribers:
The next tutorial shows more Day Trading System examples.