THT's Methods that WIN

[THT]

Here is something new to the thread but very old in terms of its use

Human beings are EMOTIONAL - this feeds through as FEAR and GREED and we can see it in stock prices

So why not USE it, to OUR advantage?

Well we can

Add these to your analysis and you will be surprised

Look at the WEEKLY sentiment readings - make a note of the LEVELS were past reversals have happened and use that number as a proxy to then start looking for the OPPOSITE side of the sentiment reading

i.e. Lets say that based on the AAII members below, a reading of BEARISH 40% = The average level that market corrections "suddenly" reverse, then you can start to look for longs etc

The VAST majority of people are WRONG at key market reversals - this is why you can use the Index/readings to take the opposite side of what the general thinking is

This is another Sentiment Index from Investors Intelligence:

As you can see the RED line is the % of BULLISH advisers (fund managers etc) and as you can see, when the % is LOW, the markets tend to rally!

Likewise, when the reading is 60%+ the market tends to fall or correct!!!

CNN have put together a few fear readings

https://edition.cnn.com/markets/fear-and-greed

you can find the put/call ratio here https://ycharts.com/indicators/cboe_equity_put_call_ratio or from the cboe itself

https://www.cboe.com/us/options/market_statistics/daily/

As you can see the Put/Call Index is above 1 = TRADERS are very BEARISH and have been buying lots of PUT options (expecting markets to FALL)

Watch for a market reversal! This will happen as all those traders short the market have to cover their puts with calls = price rises

 

[THT]

Think about everything that is going on here

Let me show you how you can go AGAINST the main TREND and still make money (But its much easier, going WITH the trend)

• What has happened here is all the 2RSI's LINED up @ <25%
• Which resulted in a no-brainer multiple R profit trade
• I entered on the 15 min Time-Frame chart
• So even though the main trend is DOWN, we WAITED until EVERYTHING was in place on ALL Time-Frames to execute a counter-trend intra-day trade

DAILY Time-Frame chart = BEARISH (SMA's down + Lower Lows and Lower Highs)

BUT the 2RSI cycle Indicator is <25% as of YESTERDAYS CLOSE = "POSSIBLE" pop higher to some degree - JUST from this 1 Indicator (which we use to watch for price cycles) we have Identified a possible "pause" in the downtrend

60 Minute Time-Frame = Possible trend reversal playing out to some degree

We get a TREND set-up on the hourly chart - the bar was a bit wide , but it was tradable, the most Important thing was 2RSI <25% on this and the DAILY chart = "possible" pop higher to some degree

15 Minute Time-Frame = BULLISH (Higher Highs) + SMA's

We then get a TREND set-up on the 50 SMA = Set orders to go long if the high of the set-up bar taken out (the set up 4 bars back = loss)This

This trade made 3.3R profit (just stopped out literally)

So including the previous loss of 1R = 2.3R profit so far

Remember we just need a net 3R per week to DOUBLE our trading account every year

MAKE A BIG NOTE - We ONLY trade this for the "pop" higher - we are not trading it to reverse the main daily trend - Unless you had formed an opinion that the daily price low was at key retracement level etc - for me this trade was just the pop higher, in and out - just play for the 3R and you will soon massively outperform most people in this game

Notice how the RSI acts as a cycle Indicator - If you're right, then it WILL result in price going higher during normal trading hours and where volume /liquidity is present

 

[THT]

That's 5R for these 2 trades

add that to the 2.3r from the GBPUSD trade earlier on and thats a 7R return on the week

PS the DAILY 2RSI for the SP500 at close of play yesterday was <25% = "POSSIBLE" pop higher and the net result of that expectation is as per todays price action on the right of the chart - THIS IS OUR EDGE AGAINST THE MARKETS

adding multiple time-frames into the mix, can put YOU on the right side of the %'s

I hate talking money/returns, because it can sound like bragging - I'm emphasising to get the point across how EASY this is in the correct conditions

Market sets up, you set the trade order and if it triggers you manage the position by trailing up a stop until taken out

I now have the option to stop trading for the week, coming back refreshed for next week - I've got live daily chart trades on the books so I can't really do that, but you get the point

Pays to sit down and work out what moves, move well, under what conditions

 

[THT]

So you can see how the GBPUSD trade panned out - which was shown as a plain old normal set-up

If you took it one stage further and applied retracement levels and Gann Box with extended angles

You would have seen that the market bounced off support - which you can use to back up the validation of your thinking

Either way, we got a nice trade for profits - which is what the game is ALL about, however, you do it

People will tell you NOT to try to catch falling knives and they are right for the masses

But if you possess the skills to catch them, then you can - I have for over a decade now

Just remember, the markets are a complex geometrical grid system and with everything geometrical - it can be proven by exactness in some form of ratio of geometrical shapes (I've shown you how the top in 2022 came in within 1single point of perfection, the 2009 stopped dead on 57.7% of the 2007 high, well again within 1 single point of perfection)

Freemasons refer to the ratio of 70.7% as the "Sacred Cut" because it is 50% of 1.4142 which is the square root of 2 and the diagonal of a square

You can still get away with using Fib but if you use Fib, you really should be using the ratios of the other geometrical growth building blocks like the square, cube etc

ALL the mathematics you need are right there within the Great pyramid

 

[THT]

Probably the last time I'll write about this - Its happened again

All you have to do is be prepared

• 2RSI <25% - Is there anything else?
• Trend?
• Gann Box extended angle?

This is virtually as close to being guaranteed as you're going to get

 

[THT]

you can find the put/call ratio here https://ycharts.com/indicators/cboe_equity_put_call_ratio or from the cboe itself
https://www.cboe.com/us/options/market_statistics/daily/
As you can see the Put/Call Index is above 1 = TRADERS are very BEARISH and have been buying lots of PUT options (expecting markets to FALL)

Watch for a market reversal! This will happen as all those traders short the market have to cover their puts with calls = price rises

and we got the reversal a couple of days later!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You could trade this on lower time-frames using TREND or however you prefer to trade - the point being we USED an outside source of TRADER EMOTION INDICATOR to PREDICT the likely course of market action

Obviously at some point you get bearish market action and day after day of high put/call readings over 1 - When this happens you need to start looking at extreme readings and working out when everyone thinks the decline will never stop, that's your point of watching for a reversal etc

 

[THT]

If you've read this thread, you'll know that I've shown some pretty basic methods to beat the market and be able to make a living at this game

You'll of also of seen me mentions the Planets - You probably dismissed the mention as stupid, idiotic, crazy, as if, planets? No way, the markets are random

You know when markets just suddenly turn out of the blue, through no logical sense whatsoever - its probably got something to do along the lines of this..................

Don't think that planetary work is this easy though - this is the simplest form of it and it doesn't appear all the time, just at certain times

Take the LOW PRICE add 360 POINTS to the LOW PRICE, place a HORIZONTAL line market (not shown), then, MOVE along the TIME axis by the req'd number of days for the planets CYCLE - as an example for EARTH UP 360 pts across 365 cal days, where the up angle crosses the low + 360 points horizontal line that's the planets timing angle

you can see those on the chart below - This IS what GANN was doing with his Gann Angles!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Notice the accuracy of MERCURY!

Avid readers of this thread, will notice that I predicted the Jan 2022 HIGH before it got there - those other methods coupled with this, turned out to be one of the greatest top calls out there

Copy those angles across and if a planet is ACTIVE, then you'll ALWAYS get a reaction off the angle - you HAVE to accept that other planets, combinations etc are also there in the background and can "interfere" with things

Refer BACK in this thread to the GEOMETRY I showed of this market getting within 1 point of the high - That geometry could have been on a chart YEARS AGO, then when the 2020 low was evident (due to multiple other factors) you could have drawn this Mercury angle line and it would of intersected the other geometrical work to the same time and price

I cannot tell you the wonder when you have these lines on a blank chart and then you watch week after week as price moves towards the expectations - obviously you make money from it, but the fact that the markets move to these levels and angle is truly gob smacking

Notice the "SQUARE OUT" - Anyone familiar with Michael S Jenkins works, that is what he means by a square out - he just doesn't tell you its a planetary square out

The bright BLUE angles are simply normal Gann Angles using the main Mercury angle used as the 1 x1 - again you can copy them and move them around the chart if you like

PS - WHEN you see fast angled price action, Mercury is usually the culprit

It would be perfect if we could just place planetary lines on a chart and the market perfectly bounces off them all the way up and all the way down - BUT, its not that simple, In the chart above, think about this - MERCURY worked all the way up from the 2020 LOW to the 2022 HIGH and it stopped PRECISELY/EXACT at the point that the geometric ratios of the square and golden rectangle had been formed EXACTLY (previously shown in other posts on this thread), so MERCURY was forcing the buying UNTIL the COMPLETION of the GEOMETRIC SHAPES - The universe is moving and that movement is somehow throwing vibrations which is being shown on price/time charts of human buying and selling in the financial markets - This is Gann's "Law of Vibration" statement, that he refused to fully explain - when you sit and think about it, it is just truly amazing and those that "GET IT" will question the purpose of human life and then the MATRIX films don't seem that far fetched after all

Now this just happened to be a simplified coincidence - often planetary duo's force the angles and you have to calculate the timing angles of the combined planets ascent/decent

In the chart above also note the EARTH "square out" of the 50% level at the same time as the Mercury down "square out" AND price touching the blue VENUS planetary angle up from the Oct 2022 LOW

 

[THT]

Remember you don't need to know anything about Gann or the planets to make money from the markets - keep things nice and simples

TRADING WITH THE TREND

A friend wanted me to capture a screen shot for a £75 risk for a smaller account - I had to trade this on a 15 min chart live at the time of writing and up 2R

The margin at that £ per pip might cause issues for a small account, but you just trade within margin limits and adjust the £ per pip down - this is a UK spread bet - so you might trade a smaller £ per pip

Remember if you are making a NETT 3% (3R) per WEEK and 1R = 1% then you will DOUBLE your account every year

We are sitting WAITING for PICTURE PERFECT set-ups ONLY - Then we take a position - you HAVE to IGNORE the rest of the noise that happens for the other 95% of the week - If you will struggle with the noise, then make it a RULE that once you have a NETT 3%/3R for the week, you simply stop trading and do NOT look at the markets for the rest of that week

If we closed this trade out right now, then we only need to sit and wait for another 1R for the week, then we could be done for the week

Years back when I was trying to piece everything together - I've only a average brain - It made sense for me to label picture perfect set-ups as coloured cars - so I wait for RED/GOLD/BLACK coloured cars to show up and only trade those colours, no shades of the colour - just perfect set-ups

and if all we need is 3R per week, then we just sit and wait

In this example the entry was calculated, the stop placement was calculated that range of risk was then divided into £75 to ascertain the £ per pip to bet

The "EDGE" we have over the house is that we KNOW that more often than not when the SMA's are in a certain order and moving UPWARDS in unison/uniformed fashion, then when the 2RSI <25% more often than not we get a PRICE CYCLE low which results in multiple R profits

 

[THT]

I forgot to post this one from the other week - UK share - hour time-frame

See how easy it is - the boring bit is sifting through the markets to see what is lining up and waiting!