Contents
Who Am I, and Why This Book was Written 1
My Background 2
The Trading Masters Mind Map 7
1 Vibrations, Oscillations, Periodicity, Waves, and Angles 9
Some Interpretations of Gann’s Law of Vibration 10
Using the Averages as a Trend Indicator 12
Periodicity 14
There Was a Single US Stock Market and Several US Commodity
Markets 16
Introduction to Gann’s Master Time Factor 17
Gann’s Quick Angle Method 18
Gann’s Use of Geometrical Angles 18
Gann Setting Up a “Money Value” Angle 20
Jensen’s Use of Angles 21
Richard Ney’s Use of Angles 22
The Law of Action and Reaction 23
Andrew’s Median Line Identification of Price Action and Reaction 24
Merrill’s Filtered Waves 25
Garrett Adapting All Three of Newton’s Laws of Motion 26
Vibrations and Angles – A Summary 26
2 Latent or Hidden Governing Variables for Understanding
Financial Markets 28
Natural Laws for Understanding Financial Markets 28
Types of Astro Approaches Applied to Understanding Financial
Markets 29
Positions Around the Signs of the Zodiac 30
Gann’s Conversion of Chart Prices to Degrees of the Zodiac 31
Gann’s Averaging of Planet Longitudes 31
Gann’s May Soybean Chart 32
Jensen’s Use of Astrology 33
Bayer’s Use of Astrology 34
The Bible Connection to Astrology 35
Bayer’s Strange “Egg of Columbus” 36
McWhirter’s Use of Astrology 37
Long’s Use of Astrology 38
LCdr. William Use of Astrology 38
3 Sacred Geometry, Fibonacci, Elliott Waves, and Space Levels 39
Dunnigan’s Summary of Natural Laws 39
Space Measurements 40
The “At Least 3/8 Retracement Rule” 41
The Predictive Power of the “At Least 3/8 Retracement” Rule 42
Gnomic Growth 43
R.N. Elliott’s Wave Principle and Natural Law 44
Elliott Wave Analysis Ignores Volume 44
The “Orthodox View” for the End of Elliott Waves 46
The Timing Weakness in Elliott Wave Forecasting 48
Miner’s Dynamic Trading 49
The Proposed Link Between Natures Law, Waves and Cycles 49
Casey’s Wavelet Analysis 50
4 Fundamentals, Market Conditions, Time, and Time Cycles 52
Time as a Fundamental Variable 52
Four Market Phases 52
Interpretations of Bull and Bear Campaigns 54
Gann Following Bull and Bear Campaigns 54
Gann’s Interpretation of the Four Sections to a Bull Campaign 56
Gann’s Interpretation of History Repeating in Bull and Bear Campaigns 58
Conditions Compared to Fundamentals 61
Time Cycles for Stocks as Distinct from Commodities 63
The Possible Link between Gann’s Law of Vibrations and Time
Cycles 64
Gann’s Mysterious MTF 65
Gann’s 1929 Forecast 65
Dewey and Dakin’s Cycles Analysis 66
Puetz’s Cycles Analysis 68
Hurst’s Cycles Analysis 68
5 Other Perspectives of Price Structure 71
How Dow Theory Developed 71
A Master Getting into Trouble Using Dow Theory 72
A Valiant but Failed Attempt to Talk Up Dow Theory as a Forecasting Approach 74
Dull Periods Indicating the Buildup of a Cause 76
Forecasting Breakouts from Dull Periods or Ranges 77
Volatility as an Effect 77
Wyckoff’s Idealization of a Bottoming Range where Accumulation
is Occurring 77
Selecting which Markets to Trade 80
Large Operators Who Went Broke, and the Implications for
Manipulation 80
6 Relative Total Volume, Supply & Demand, and Manipulation 82
Wyckoff’s Tape Reading 83
Gann’s Tape Reading 85
Standard Scaled Chart Paper 86
Neill’s Tape Reading 86
Neill’s Interpretation of Volume 87
Neill’s General Principles for Understanding Volume 88
Wyckoff’s Three Laws for Understanding the US Stock Market 88
A Natural Law Interpretation as to How Volume Affects Prices,
and Manipulation 90
Why was Wyckoff not Fooled by Gann’s Talk of a Law of Vibration 91
The Penny Drops 91
Manipulation 95
The Process of Legal Manipulation 96
The Art of Legal Manipulation 97
Identifying Manipulation, if it Exists 98
The Importance of Volume and Supply & Demand When Monitoring
a Forecast 99
What Happened to the Discussion of Volume in Gann’s Later
Writings? 100
Illegal Manipulation 100
Bar by Bar Chart Reading Including the Principles Underlying VSA 102
Ord’s Average Volume Waves, and Weis’s Total Volume Waves 104
Garrett’s Use of Volume to Identify Cycles 105
7 Viewing Perspectives 108
The Two Paradigms for Understanding the Financial Markets
Natural Law or Manipulation 108
Dewey and Dakin’s Argument about Perceiving Cause and Effect 108
The Third, or is it the Fourth Dimension for Understanding a
Financial Market? 110
How the Trading Masters Perceived Cause and Effect 111
8 Developing a Traditional Knowledge Bar by Bar Chart Reading
Indicator 113
Lessons from a Failed Attempt at Capturing the Expertise of Trading
Masters 114
Consistency Problems with Coding What Experts Say 116
Avoid Exception Rules 117
Coloring the Relative Total Volume Bars 118
Use Flexible Perspectives-A SOW May End up as SOS or Vice Versa 118
Avoid Using Hindsight 119
The Elegant Bar by Bar Indicator 119
Coding One’s Own Bar by Bar Understanding of a Financial Market 120
Subtleties of Light (or Lite) Demand 121
Subtleties of Indices and Large Cap Stocks Compared to Small Cap
Stocks 122
Defining Turning Points that Identify Market Structure 122
Reading a Market Top 123
The Buying Climax 124
Avoid Trying To Be Too Specific When Defining Price Vibrations 127
Gartley’s Chart of The New York Times 50 Stock Averages 1911 to
1938 129
Identifying Bar by Bar Market Structure Using the DJIA Weekly
1911 to 1938 131
A Quick Lighter-Volume Market Trend Assessment 132
An Assessment of an Uptrend Where Distribution was Occurring 133
Does the Bar by Bar and Market Structure Indicator Work? 135
Case Study-A 1914 Cold Case 136
Case Study-A Post Mortem of Hamilton’s announcements pre and during the 1929 Crash 141
Wyckoff’s Daily Chart of the NYT50 for the Period Dec 1930 to
Nov 1931 142
Bar by Bar Indicator-A Comparison to Wyckoff’s 1932 Chart
Reading Logic 143
Case Study-The 1987 Stock Market Crash 145
Case Study–A 1998 Bottoming Range with a Selling Climax and a
Shakeout 148
Contemporary Events in 2016-the Shock Brexit, and the US
Election, Results 150
Bar by Bar Review of the GSPC500 151
9 Deriving the New Way-The 6 Paths Time & Price and Buying
& Selling Volume Formula 153
Keely’s Concept of Vibrations and Oscillations 153
Garrett’s Original Torque Analysis Formula 155
Torque Analysis Allocation of the Buying and Selling Volume
Components 157
The Amended 6 Paths Gross Supply & Demand Vibration Formula 158
Reconciliation of the Six Price Paths Price Vibration Formula 159
Derivation of the Accumulated Total, Average, and the Marginal,
Buying and Selling, Volume 161
Interpreting the Amount of Supply & Demand Effort or Buyer
and Seller Behaviors 161
The Gross, Buying and Selling, Volume Within Natural Waves 162
The Net, Buying and Selling, Volume Within Natural Waves 163
Reconciling Gross and Net, Buying and Selling, Volume Within
Natural Waves 164
Interpreting the Marginal Change in Supply & Demand Within Trends, or Any Chart Pattern 167
A Review of Some Historical Charts 171
Case Study Understanding Supply & Demand Leading to the 1929
Crash 171
Case Study Understanding Supply & Demand during the Great
Depression 172
Supply & Demand, or Cause and Effect, in a Modern Market 173
10 The 6 Paths Measurements of the Forces of Supply & Demand 178
The Garrett Bal% Statistic 178
The SM Bal% Measurement of the Force of Supply or Demand 179
The SM Bal% Pulse Indicator 179
The Cause of Cyclical Price Action, and the Snake to Serpent
Indicator 182
Further Examples of Measuring the Forces of Supply & Demand 184
Identifying the Four Market Stages from a Supply & Demand
Perspective 188
The Accumulating SM Bal% Indicator 189
The “Appropriate Sizing” Technique to Make Microeconomic Supply
& Demand Sense 189
Another Example, Identifying, “Appropriately Sized” Filtered
Waves 192
Periodic Recalculations of the Accumulating SM Bal% for
Monitoring a Market 194
The 6 Paths Candlesticks and the SM Bal% Forces of Supply &
Demand 197
The 6 Paths H, L & C Bars and the SM Bal% Forces of Supply
& Demand 200
11 Measuring, Stock, Money Value, and Equilibrium Price
Vibrations 201
Understand Market Conditions Before Sampling Price Vibration Measurements 203
Stock Vibrations and Wave Characteristics 204
Working out Geometrical Angles from Sampled Vibrations 205
Obtaining Historical Stock Vibrations from a Relevant Stage
Analysis 207
Using the Snake to Serpent Indicator to Clarify Market Stages 208
Extracting Historical Stock Vibrations using Radius Vectors 210
A Gann Mini-World Vibration Indicator 212
Two False Trading Starts When Coming Out of a New Stage 1 214
Introducing Equilibrium Price Vibrations for Longer-Term
Forecasting 215
The 6 Paths Annualized Money Value Equilibrium Rate of Return
Indicator 216
The 6 Paths Vibration Tracker Indicator 216
12 Volatility is an Effect, not a Cause of Price Action 220
Case Study 1-Supply & Demand as the Underlying Cause of
Volatility 220
Case Study 2- Supply & Demand as the Underlying Cause of
Volatility 221
13 Single Wave Time & Price Vibration Forecasts, and Wavelet
Forecasts 225
Extracting Time & Price Wave Vibrations from a Previous
Stage 2 Market Phase 225
Traditional Geometrical Angle Forecasting using Averaged Stock
Vibrations 226
A Separate Forecasting Reality 230
Sampling Changing Wave Characteristics and Automated Forecasting
Squares 231
Single Wave Forecasting Practice – The Basics 234
Study the Historical Causes, and Forecast Future Likely Effects 242
A Forecast Within a Forecast Indicator 243
The Next Down Wave Forecast 246
Wavelet Pattern Forecasting 247
14 Forensic and Periodic Market Analyzes 250
Forensic Analysis of Supply & Demand Toolkits 250
Periodic Recalculations of a Forensic Analysis of Supply &
Demand 252
Case Study-Distinguishing Cycles Versus Trends 256
15 Analyzing Dull Markets Where the Big Money is to be Made 264
Case Study Analyzing Three Quite Different Narrow Trading Ranges 265
The First Dull Period 266
The Second Dull Period 268
The Third Dull Period 271
Using Periodic Recalculation Indicators 274
Case study-A 1948 Line Pattern on the DJIA 275
Case Study-A David Weis Chart Reading Skills Test 281
Case Study-A Difficult Trading Range to Analyze 286
16 Measuring Planetary Vibrations, and Planetary Rhythms in the
Stock Market 292
Planets Ingressing and Passing Through the Signs of the Zodiac 292
A Gann Astro Perspective 293
Other Astro Perspectives for Soybeans 295
The New “Quick Heliocentric Planet Trading Day Vibration”
Calculations 297
The Gann Mini-World Forecasting Indicator Using Planetary
Vibrations 300
Adapting Gann’s Concept of Averaging Planetary Vibrations 301
A Trading Experiment relating to Etheric Vibrations 302
Trading Lunations 304
A Trading Experiment relating to a Supermoon Event 305
17 Self-Adapting Angles
Leading to the Third Dimension 307
Comparing Self-Adapting Angles to Historically Measured Angles? 308
Self-Adapting Angle Indicator Using a Planetary Longitude
Vibration 314
Matching an Averaged Stock Vibration to a Planet Longitude
Vibration 315
The Third-Dimension Indicator Perspective 316
18 Market Structure Based on the Forces of Supply & Demand 320
Time & Price Based Market Structure 320
Supply & Demand Based Market Structure 321
The SM Bal% Spike Indicator 321
Further Examples of the SM Bal% Spike Indicator 324
A 6 Paths Supply & Demand Interpretation of Wyckoff’s Three Important Laws 328
The Law of Supply & Demand from a 6 Paths Spike Indicator Perspective 328
The Law of Cause and Effect from a 6 Paths Spike Indicator
Perspective 329
The Law of Effort Versus Result from a 6 Paths Spike Indicator
Perspective 329
Case Studies-Major Tops and Bottoms from a 6 Paths Spike Indicator Perspective 332
19 Quantifying Stock Market Manipulation 335
The Mathematics of Churning Stocks Without Being Seen 335
Case Study-Was Abnormal Shorting Activity Taking Place? 340
Case Study–Do Raging Bull Campaigns Still Occur? 343
Case Study-Richard Ney’s Claim of Manipulation of the DJIA 30
Stocks 346
Quantification-Could the IBM Specialist Make Substantial
Profits? 347
IBM-The True Story Comes Out 351
20 Action and Reaction, Price Tunnels and Long Term Price
Vibration Forecasting 353
Step 1 - Sampling Minimal Risk Price Vibrations from the Past 353
Step 2 – Applying a Minimal Risk
40.7% Annualized Money Value Rate Angle 355
Step 3 – Apply the Minimal Risk Price Vibrations from the Past
to the Future 356
Step 4 – Identifying any Structural Changes in the Price
Channels 357
Step 5 – Relative Strength Vibration Comparisons 358
Step 6 – The Money Value Vibration Viewing Perspective 361
A NASDAQ Case Study, Looking for a Trump Effect on Prices 365
The Four Fang Stocks 367
An alternative perspective as to whether History was Repeating 371
21 Interactive Short-Term Forecasting 375
Geometrical Angle Forecasting Utilizing the Forces of Supply
& Demand 375
22 Gann’s Master Time Factor, Identified, Explained, and Tested 381
Prof. Weston’s Jupiter/Saturn Synodic Cycle 1928 Research Paper 382
Prof. Weston’s 10-Year Pattern 386
My Musings about Gann’s Interactions with Prof. Weston 387
Gann’s Time Cycles 390
Gann’s Problematic Dataset Sizes for Working Out Great Time
Cycle Periods 392
Annual Stock Market Patterns Are Not the Same as Time Cycles 393
Decennial Pattern Research
Compared to 10-year Time Cycles in the US Financial Markets 394
Gann’s Master Time Factor Identified 398
Comparison of Gann’s MTF Pattern
to other Decennial Pattern Research Conclusions 400
What Causes 10-Year Cycles and Decennial Patterns? 402
Identifying Gann’s “Rules for Future Cycles” 403
Compliance Test of the 1936 MTF Pattern with Gann’s “Rules for Future Cycles” 405
Compliance Test of Prof. Weston’s Pattern to Gann’s “Rules for Future Cycles” 406
The Conundrum “Rule 7 for Future Cycles” 408
The Numerology of Gann’s 1936 MTF Pattern 410
The Accuracy of the 1936 MTF Pattern for Forecasting the Stock
Market – an 8-Year Test 410
The Accuracy of the 1936 MTF Pattern for Forecasting the Stock
Market –a 60-Year Test 412
Calculating a Single “Law of Price Vibration” Rate to use with
Gann’s 1936 MTF pattern 415
The Accuracy of the 1936 MTF Pattern for Forecasting the Stock
Market – a 40-Year Test 415
Does Gann’s MTF Pattern Still Work -a 28-Year test well into the
early part of the 21st Century 418
23 Conclusions About Different Chart Reading Perspectives 420
A Wykoff Case Study by Jim Forte 420
The 6 Paths Minor and Major Creek Indicator Perspective 423
Two 6 Paths Bal% Spike Indicator Perspectives 425
6 Paths Forensic and Periodic Analyses Perspectives of Forte’s
Case Study 425
Two Wykoff Case Studies by Richard A. Dickson and Tracy L.
Knudsen 427
A Third Wykoff Case Study by Jim O’Brien 432
Appendix A Seeking Gann’s (Later in Life) Understanding of
Supply & Demand 437
Appendix B Looking Back in Time at Perceived Time Cycles 444
Looking Back at Perceived Time Cycles at Tops, or the End of Bull Campaigns 446
Looking Back at Perceived Time Cycles at Panic Years or the End of Bear Campaigns 449
Gann’s 1929 Forecast 452
Appendix C Real Cycles and Real Waves 455
The Snake to Serpent, Time, Price and Cycle, Indicator 455
Further Example-The Snake to Serpent with SM Bal% Measurement
Indicator 460
Using the Forces of Supply & Demand to Identify Real Cycles 461
Catching a Single Vibration and Turning it into a Wave and then into a Cycle 464
Sampling Multiple Vibrations, and the Derived Forecasting
Wavelets 465
Appendix D Difficulties EW Experts had Agreeing on their Elliott Wave Forecasts 470
Appendix E Mechanics for Constructing a Planetary Line Indicator 474
Long Form Code for a Planet Line and Harmonic Line Vibration Indicator 475
Short Form Code for a Planet Heliocentric Trading Day Indicator 478
Long Form and Short Form Planetary and Harmonic Lines, and Other
Vibration Examples 482
What do Planetary Lines Represent? 485
About the Author 486
Bibliography 487
------------- BC User since June 2007
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