Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Here is another chart for the mini Dow contract symbol YM. This is a 5 minute chart. On this chart I have applied the MarketWarrior stop and reverse indicator based on the Bollinger Bands. I have labeled the main trading session with the words “Start” and “End”. We have taken note of the trades inside the main trading session. The stop and reverse method will keep a trader in the market all the time. On a five minute chart, there will be only 5 to 7 trades each day.
mini Dow YM
The trade listings below show the trades from the chart above. There were 7 trades on June 30 in the mini Dow market. The trades resulted in 83.255 points of profit. The minimum tick in this market is 1 and it is worth $5. This results in a profit which is worth $416.28. These are theoretical prices. The actual prices you will get in your trades depends on how you enter the trades with your broker.
mini Dow YM results
end;
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Here is another chart for the mini gold contract symbol YG. This is a 5 minute chart. On this chart I have applied the MarketWarrior stop and reverse indicator based on the Keltner Bands. I have label the main trading session with the words “Start” and “End”. We have taken note of the trades inside the main trading session. The stop and reverse method will keep a trader in the market all the time. On a five minute chart there will only be 4 to 6 trades each day.
Mini Gold YG
The trade listings below show the trades from the chart above. There were 5 trades on June 30 in this gold market. There were 14.1674 points. The minimum tick in this market is 0.1. Each tick is worth $3.32. There were 141.674 ticks in profits which are worth $470.36. These are theoretical prices. The actual prices you will get in your trades depends on how you would enter the trades with your broker.
Mini Gold YG
end;
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Below are 5 charts that show how to use the MarketWarrior indicator Square of Nine Chapter 4. These charts are 60 minute charts for the mini gold contract YG. The first chart shows the starting point for the indicator which is set to the high price on June 03, 2009 2:00AM. This indicator is counting the time around the face of the Square of Nine starting from the listed starting point. When using this indicator, you need to select the Square of Nine overlay angles that you want to use for selecting the times. On the chart below I have selected only the 180 degree line on the overlay. Each small vertical line drawn by the indicator has two numbers. One number is always “180″ which represents the 180 degree line on the overlay. The second number represents the Square of Nine cell number where the time is located. The intraday version of this indicator will draw both the 24 hours time cycles and the trading bars time cycles. For a complete explanation about this method read our book “The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine“.
Square of Nine (1)
On the second chart below I have drawn a red cycle line by hand. Normally the cycle moves from high to low and low to high. There are a few times when the cycle moves from high to high or low to low. On the chart below, these cycle points are marked by the letters A and B. There may also be a cycle point where the market ignores the Square of Nine cycle point. On the chart below I have labeled this point with the letter X.
Square of Nine (2)
Below is a continuation of the 60 minute mini gold chart. I have again used the letter X to identify the cycle point that was ignored by the market.
Square of Nine (3)
The final chart shows the cycle count into the future. There are two potential cycles drawn into the future based on the Square of Nine.
Square of Nine (4)
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Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Here is one chart showing the MarketWarrior indicator
Square of Nine chapter 4 applied to a 5 minute chart for the mini Dow symbol, YM. The indicator starts at the top of June 26, 7:30AM. The indicator draws the Square of Nine cycles for 24 hour time and trading bar time. When using the Square of Nine chapter 4, you must select the overlay angles to use for selecting the time cycles. The angles I am using on the chart below are the 90 degree angle, 180 degree angle and 315 degree angle. The normal cycle moves from high to low or low to high. Using this method there are going to be cycle points that move from high to high or low to low. These points are labeled with the letters A, B, C and D. For a complete explanation about this method read our book “
The Definitive Guide to Forecasting Using W.D.Gann’s Square of Nine“.
Square of Nine
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Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The chart below shows the weekly prices for the CRB commodity index. On this chart I have applied three MarketWarrior indicators: the Gann Speed Lines, the Swing Projector and the Stochastic Smoothed. The Gann Speed Lines use 3 points to draw a high low range and then draws the speed lines through the price range divisions. The top in 2008 and the bottom is early 2009 are used to create the high low range. The price has now retraced 1/4 or 25% of the previous range. At this point the Swing Projector is showing a red triangle with a “T” inside. This Swing Projector icon indicates the conditions for a top have been met. Also at this time, the stochastic has had a top close to 100. This all indicates that the weekly chart for CRB index is starting to make a top.
Gann Speed Lines
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Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The chart below shows a weekly chart for the US Dollar Index. On this chart I have applied three MarketWarrior indicators: the
Square of 9 chapter 13, the Swing Projector and the Stochastic Smoothed. The indicator Square of 9 chapter 13 will draw the price time grid that is seen on the chart below. I have labeled the pivots where the price was on a vertical time line drawn by the Square of 9 chapter 13 indicator and the stochastic was either close to 10 or close to 0. These situations are labeled A, B, and C. Currently on this chart, the price for the US Dollar Index is at point D. At point D the price is on a a vertical time line drawn by the Square of 9 chapter 13 indicator, the stochastic has recently made a bottom close to 0 and the Swing Projector is showing a red triangle with a “B” inside. This Swing Projector icon indicates all the conditions for a bottom has been met. I would expect the US Dollar index to make a bottom at point D. The next point where I would look for a turning point is “E”. I would expect the US Dollar Index to make 1 and possibly 2 turning points between points D and E.
Square of 9 Forecast
End
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The chart below shows a weekly chart for the Dow Jones Industrial Average. On this chart I have applied three MarketWarrior indicators: the Square of 9 chapter 4, the Swing Projector and the Stochastic Smoothed. The red zig-zag line and the labels in the center of the chart were drawn manually.
The
Square of Nine chapter 4 indicator is set to start at the high of mid 2007. The degrees being used to create the Square of Nine count are the 45 degree, 135 degree and the 315 degree angles. I have manually drawn the red zig-zag line on the center of the chart that shows the top-bottom sequence with which the Square of Nine aligns. The Square of Nine does not identify the exact top or bottom, but the sequence of tops and bottoms is approximately correct.
The current weekly DJIA made a bottom near the 315 degree angle on the count value “73″ and is now moving up to the 135 degree angle on the “91″ count value. As the DJIA approaches the 135 degree angle on the “91″ count value, the the Swing Projector is showing a red triangle with a “T” inside which indicates the conditions for a top have been met. Also, the Stochastic has made a top close to 100 and is now turning downward. These three indicators show that the DJIA is starting to form a top on the weekly time frame.
Square of Nine Forecast
End
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
We have had a lot of questions about using the stop and reverse methods on longer term charts because most of our examples have been on the 1 minute charts. The chart below shows the 60 minute chart for Apple computer. This is a popular stock with day traders. I have applied the stop and reverse method to this chart. Recently there was a new long position which is now open. I will track the progress of that trade this week and see what happens later in the week. In my opinion, when trading the NASDAQ stocks, the 60 minute chart is better for stop and reverse trading than the daily chart which often has several episodes of volatility.
60 Min Apple Chart
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The 5 price bar charts seen below are 1 minute charts for Yahoo stock. On these charts I have added the MarketWarrior stop and reverse Bollinger Bands indicator. The stop and reverse method will keep a trader in the market all the time. The first trade that I start counting is the first reversal after the main trading session starts trading. The blue lines on the chart below represent the long trade stop order prices. The red lines represent the short trade stop order prices. Below I show the results for the day.
1 min Yahoo Chart 1
Yahoo 1 min Chart 2
Yahoo 1 min Chart 3
Yahoo 1 min Chart 4
Yahoo 1 min Chart 5
The picture below shows the results for trading the Bollinger Bands stop and reverse method on the 1 minute chart for Yahoo on June 19. There were 24 trades during the trading day with 14 losing trades and 10 winning trades. The order entry and exit prices are theoretical prices. The exact entry and exit prices will depend on how you are able to place orders with your broker. The total for the day was a profit of 0.2204 cents. This is cents per share. In the calculations at the bottom of the results, I have used 500 shares per trade to calculate $110.20 profits on the day. If you would normally trade more or fewer shares per trade your profit would be greater or lesser based on your shares.
Yahoo 1 min results
End
Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The chart below shows the current September 2009 wheat prices. On this chart I have added MarketWarrior’s Mirror Cycle indicator. I have adjusted the starting point to a place where several turning points line up with the wheat market. The Mirror Cycle must line up with several turning points before it is used. These turning points are labeled A, B, C, D and E. The Mirror Cycle now forecasts a decline in wheat to the end of June and a turning point in early July. Then there is a choppy upward market to mid August. Finally the forecast shows a strong upward move starting in mid August.
Mirror Cycle Forecast
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