Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
Most planet methods move to slowing to work on intraday chart. One method that does work quite well is the planet lines method. On the chart below you can see Moon planet lines being drawn. These lines are based on the longitude of the moon. This chart shows a 5 minute chart for the mini Dow symbol YM. The price of this mini Dow futures contract made several tops and bottoms against these planet lines. The planet lines work as support and resistance lines in different markets.
moon planet 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
W.D. Gann’s method named Squaring The Range is designed for trading sideways markets. Many markets spend most of the time moving sideways with no significant movement either up or down. To use this method you need to find the start of a sideways movement. The chart below is for PACCAR Inc., symbol PCAR. On the left side of the chart, the market completed a significant down trend. After this down trend a sideways move started. To use the Squaring The Range method, you need to select two pivot points to be used as a measuring range that will be repeated into the future. In this example I am using two tops and I am using only the time distance into the future. On the chart below, A and B mark the two tops I will use for the measuring distance to draw the Squaring The Range method.
Square The Range #1
The picture below shows the MarketWarrior indicator Squaring The Range using the time distance between A and B as the measuring distance. The measuring distance is used as the time between each vertical line drawn by this indicator. The future time increments based on the measuring distance are identified with MD1, MD2 and MD3. You can see on this chart, the stock made a top on the 1st and 2nd vertical time line. Look at the arrows labeled C and D to see these two tops.
Square The Range #2
The next picture below shows a continuation of the MarketWarrior Squaring The Range indicator. Notice the market has made a bottom on vertical time lines drawn by this indicator at E and I. The market also made tops on vertical time lines at F, G and H. This shows that the market swings occurring at the start of the sideways movement after the down trend, worked well to predict the time cycles in the sideways movement that followed.
Square The Range #3
The final chart shows the next two vertical time lines in the future. These two lines occurred in the last week on August and the last week on September. You would watch these times for a change in trend in the PCAR stock.
Square The Range #4
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We did not previously have a planet index for the gasoline market. This is a new planet index for the RBOB futures market. RBOB means Reformulated Gasoline Blendstock for Oxygen Blending Futures. It is the new name for unleaded gas futures. Notice this is a weekly chart. The chart below is a weekly nearest futures contract. This planet index has been created for the weekly chart and should be used on a weekly chart in the future. You can see from the two charts below these index settings worked very well to identify the weekly turning points in gasoline. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for Gasoline
The final chart below shows the weekly gasoline with the MarketWarrior planet index drawing the next two vertical pivot lines in the future. The vertical pivot lines mark the dates where a change in market direction should occur. These are labeled A and B on the chart below. If you are trading gasoline, you would want to watch these dates for a change in direction.
2) Planet Index for Gasoline
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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 charts below show the new planet index settings for the Japanese yen. I am using the futures contract J6. The data is a daily nearest futures continuous futures contract. The MarketWarrior planet index has been set to draw dotted vertical lines marking where a change in direction should occur. I have manually drawn the arrows pointing to the corresponding tops and bottoms in the market. When trading with a custom planet index, you should watch the vertical pivot lines drawn by the index for the Japanese yen to change direction. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for Japanese Yen
2) Planet Index for Japanese Yen
The final chart below shows the next four pivot lines into the future. These lines mark the dates where the Japanese yen should change direction.
3) Planet Index for Japanese Yen
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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
This posting shows the new planet index settings for heating oil. The MarketWarrior planet index requires the settings updated after a period of time. The exact amount of time before a planet index’s settings need to be reset is not known. When the planet index stops correlating with a market’s tops and bottoms, the settings should be reset. On the charts below I am using the Heating Oil futures Contract, HO. The data is a daily nearest futures continuous contract. I have re-established the settings that should be good for six months to a year. On the first chart below, I have drawn arrows showing where the planet index correlated with a heating oil change in direction. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for Heating Oil
The MarketWarrior planet index seen in the chart below is set to draw dotted vertical lines. This chart shows the next three vertical lines that occur in the future. These are labeled A, B and C. These dates should be watched in heating oil market for a change in direction.
2) Planet Index for Heating Oil
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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
This posting shows the new planet index settings for gold. I am using the Gold Futures Contract, GC. The data is a daily nearest futures continuous contract. The planet index is used by watching the vertical pivot lines for a change in trend. On the first chart below, the MarketWarrior planet index is set to draw a vertical dotted line when the planet index has a significant change in direction. These vertical pivot lines do not indicate a top or bottom but rather any change in direction. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for Gold
The chart below shows the next series of planet index vertical pivot lines into the futures. These are labeled A, B and C. These lines mark the dates where we would want to watch the gold market for a change in direction.
2) Planet Index for Gold
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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
This posting shows the new planet index settings for crude oil. I am using the ICE Brent Crude Oil. The data is a daily nearest futures continuous contract. The old settings for the crude oil planet index were over two years old and were no longer working. On the chart below, I am having the MarketWarrior planet index draw dotted vertical lines to mark where the planet index changes direction. These changes in direction should correlate with a change in direction in the crude oil. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for Crude Oil
The chart below shows the next series of planet index vertical pivot lines into the futures. These are labeled A, B and C. These lines mark the dates where we would want to watch the crude oil market for a change in direction.
2) Planet Index for Crude Oil
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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
It has been a while since we updated the settings for our planetary index which is used in different markets. When making a custom planetary index for a market, the settings do need to be adjusted from time to time. The next few posts will show the new settings used to create a custom planet index for several different markets.
The first market is the Euro currency. I am using the euro futures contract. The data is a daily nearest futures continuous contract. On the charts below, the MarketWarrior planet index has drawn a dotted vertical line marking the planet index’s major changes in direction. These lines mark approximately where we would want to see a change in trend. The vertical lines do not specify a top or bottom; they simply indicate a change in trend in any direction. If you own MarketWarrior, you can download an indicator Template for this planet index on the MarketWarrior owner’s page.
1) Planet Index for the Euro
2) Planet Index for the Euro
The last chart below shows the next series of vertical pivot lines into the future. I have labeled these lines A, B and C. If you trade the euro market you should be watching these dates for a change in trend.
3) Planet Index for the Euro
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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
This article will discuss the Bollinger Bands stop and reverse trading method on the 5 minute chart for the mini Dow symbol YM. The day covered on the chart below is July 21, 2009. As I stated previously stop and reverse methods will have a series of small losses between large wins.
There were six trades during the main trading session. On the chart below, you can see the first four trades were quick choppy trades that resulted in small losses. Then after the small losses, trades 5 and 6 resulted in larger winning trades.
stop and reverse July 21
The picture below shows the trading statistics for July 21, 2009. The trades that occurred during this day show a classic example of how stop and reverse methods work. The first several trades were quick, choppy, small losses. Then the final two trades of the day, which were trade 5 and 6, were large wins. The two large wins created a total profit for the day of 53.528 points. Each point is worth $5. The total dollar value of the profit for the day is $267.64. The entry and exit prices are theoretical. The exact prices you receive will depend on how you are able to place trades with your broker.
stop and reverse stats for July 21
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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
When discussing the use of stop and reverse methods in previous posts, I have pointed out that there often will be a series of small losses between large wins. The series of losses usually occurs when a market is moving sideways in a back and fill motion. The chart below shows the 5 minute chart for the mini Dow symbol YM. The trading day shown in July 20, 2009.
When looking at the trading that occurred during the main trading session, you can see that the prices moved back and forth over the same price range. Only during the final one-third of the main trading session did the market move upward consistently. This produced a series of choppy losses for the Bollinger Bands stop and reverse method.
Stop and Reverse for July 20
The profit and loss statistics below show the stop and reverse trading method took a series of losses until the last trade #7. This final move upward did not produce a large enough win to offset the losses that occurred in the first two-thirds of the main trading session. When using a stop and reverse method, this type of choppy sideways market will occur from time to time. The total loss for the day was -22.889 points. Each point is worth $5. The total dollar loss would have been $ -114.45. These are theoretical entry and exit prices. The exact prices will depend on how you are able to place orders with your broker.
Stop and Reverse Stats for July 20
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