Key to the Secrets - A Traders Primer

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Key to the Secrets

A Trader's Primert

By Neall Concord-Cushing

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Neall Concord-Cushing with AI! Rights Reserved. All)' copying andior distribution q(this material ofany

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Key fo tlte Secrets

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Table of Contents

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Preface ......................................................................................3

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Chapter 1

Keys and Secrets .........................................................6

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Chapter 2

Keys to the Law of Vibration....................................... .11

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Chapter 3

Keys to Trading ........................................................24

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Chapter 4

Keys to Forecasting ................................................... 34

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Chapter 5

Money Management Keys .......................................... .43

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Chapter 6

Gravity Centers ...................................................... .49

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Chapter 7

First Trade "Harmonics ............................................... 75

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Chapter 8

Action vs. Alignment. .............................................. 10 1

Chapter 9

Secret of the Key Note ............................................. 107

Chapter 10

Magic and Miracles - The Secret Key ........................... .113

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Appendix A Aligning Internal Vibrations ....................................... ]21

Appendix B Charts and Additional Infonnation ................................ 133

Epilogue................................................................................. 151

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Preface

Before you embark 011 al1Y path

Ask the qllestion,

Does this path lurce a heart?

If the answer is 110,

You will knolP it

And thell you must choose another path.

The trouble is that nobody asks the question.

Alld when a mall filially realizes

That he has taken n path without a heart

The path is ready to killllim.

--Carlos Castaneda

Don't you just love beginnings? Like spring, everything is new and starting to break out of the long sleeping soil and a rich energy exudes from everything. The barren and cold winter has prepared us for a great awakening and we are eager to see what is in store for us. The beginning of this book holds the same promise or it really holds anything you want it to hold, for it is your book and it is your mind that will engage with the many words on these pages. \Vhat you decide to do with them will detennine what grows from your spring soil. It's an unlimited opportunity to find anything you are looking for with one stipulation; you need to know what you are looking for. You are literally at a new beginning. a starting place that is unencumbered from the old ways that haven't worked as well as you've wanted. You are holding this book because you want something different and you are ready to change. So let's change, lefs release those old ideas that haven't worked and let these new ones fInd a place to reside in your mind. You can always go back and get the old ones if these don't work, but you \vant to fInd more in life. you want to find peace of mind and ease of doing what you desire to do. So this is a good beginning.

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Relax and enjoy the trip. Hold ofTjudgment and old ideas that want to slmv you down. Let go of the oars you have been paddling up stream with and start a gentle journey with the current of life and see how easily it will bring you aU that you desire. Life is ready to give you all you want as soon as you say yes and let go of all the no's, I cant's, and it won't happens. These words have been around too long, let them go and find new ones that allow dreams to literally come true. So what is this book about? From the title, it says it's about "keys to secrets". Of course the obvious meaning if you've read the Secrets Books. it's about these books. Well yes it is and yes it is about much more too. If you have read some or all of the Secrets Books, this will add to them and bring about a correlation and how they can work together to aid in making the trading experience more profitable and fun.

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If you haven't read the Secrets Books, then this is an overview and introduction to what they are about. From the titles. we can see that the books address trading, forecasting and the Law of Vibration. As you read this book and more importantly read and tie together the other more definitive books. it will bring it all together into a cohesive understanding of your self and the trading experience. You literally can have an)1hing you want. In trading this includes unlimited profit. insight, enjoyment fulfillment and anything else you truly desire . It is up to each of you to become clear just what it is you want and then to fol1ow through with a plan to get it. The Secrets Books provide a very simple and easy to follow plan if you want to use it. It isn't the only one and it isn't for everyone. Each of you will ultimately find how you will do it, but what you read in these volumes can help guide you to a new place of seeing what you can build from. You need a stable platform to create from and until you are ready to stand on it and define your wants and desires, you will not realize your life's purpose. Your purpose is to be you in the most authentic way you can. To find and play with your innate gifts and talents and to blend a harmonious t10w of actions into the unique pattern you represent here. We each have a song to sing, so to speak. When you find your song and sing it to the world. you become that which you were born to do.

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In that clarity, you resonate at a frequency that is heard throughout the Universe and fulfills the individual space/time you are. You add to this Universe your gift and as such the whole becomes more. You become more and with that you experience your fullness ofiov. , " It's a great song. Are you ready to sing it? We are all ready to hear it when you don't hold back and you become wi1ling to let it flow out freely and clearly. Every sound that makes its debut in our world for the first time is innocence personified. So you are this innocence and with this new path you are starting right now at the beginning of this book you embark on this journey of finding more of what you want

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in life. More of who you want to be and more of what you want to have. You are at the door opening to a new possibility and as you allmv more to come in you expand your experience to embrace it. Peaceful Journey my friend---­

Always do

What YOll are afraid to do

T11lst your instinct to tile end

Though you can render 110 reason

Ralph {Valdo Emerson

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Chapter 1

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Keys and Secrets

Curiosity

Is lying 1111/'ait

For every secret

--Ralph

~Valdo

Emerson

Ok. here you go ... Well. one last time ... are you sure you know where you want to go? One last chance to make up your mind before you get lost in the words of someone else instead of being master of your own vessel heading to the destination you planned. If you want to spend some time and get clear about your intentions for reading this book, then go ahead and write them down. You'll forget you know!!!! Write them down and remember to look at them later today, tomorrow, next \\leek and until you don't need to look any more. When you have clearly set in mind your desire, it is just a matter of aligning your nature with this moment and that desire becomes real. it becomes the environment you live in the present moment. All of creation is made \\lith our alignment of energy with energy. Alignment of vibration with vibration and the resultant pattems we call reality is what we get to experience and enjoy. Or we default into a mixture of chaos and dissonant patterns that are not harmonious to our natural state and we experience the other side of peace and joy, we get to have a lesson in life to show us where we went off course and that it is time to get back on track. Don't you want to set the proper course, to get on track and follow it to your bliss? You want to realize your natural perfection in this magnificent world and add to it your contribution of your self. your experiences and your creations you will leave for

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all. Welcome to this possibility and stay awake. irs too easy to fall back to sleep and not know where you are or what you want. What are Keys? What are Secrets? Yes we all have our own definitions and that is fine. but because we are reading this together, we need to know what each of us is talking about. I need to tell you what I mean and you need to tell yourself what you are hearing. When they are the same then communication is taking place and we move down the path together. When we don't understand. we get lost, and until we get back together this exercise of reading this book is futile. Ok, first---what are keys? The first thing that comes to mind is a ke.v is something used to open a lock. Car keys, door keys, safe deposit box keys. ya ...those full of jewels and money and what ever else you consider treasure. It's something you have to open in order to get in and take what you want. You wouldn't necessarily want to open a locked box and find out it contains thousands of bees, that when you open the door they get very determined to chase you away. [fyou were a beekeeper and dressed properly and wanted to get the honey from inside the hive, you would "want" to open the lock and go inside. Otherwise, you don't want to open it. You don't have a clear desire to play with the bees. In trading, we all seem to want to open the lock to the \vorld of trading, but do we clearly choose which world that will be? Are we dressed properly for the experience that will follow when we open the lock? Are we dressed properly and have the tools to do whatever we think we want to do? To be able to collect the honey and not be affected by the bees who have sharp stingers ready to take us out at their convenience. Keys are wonderful tools in life. they are necessary to allow us entrance into the new and unknown worlds of creation and the future. They are individualized markers within our self. that open time and space to our view and lets us reach out and hold what we have called to us with our intentions and desires. Noticing our ability to use the keys we have fashioned for our locks, lets us move more easily through this sometimes cloudy world. We see clearly, when we are focused on something we have an interest in. \Vhen \\'e say yes and know how to dress for the occasion, we enjoy the honey we get to find inside.

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Ok, so one key is to open a lock. Another kind of key is an answer to a question or riddle. It's a clue, an additional piece of information that brings completion to a partial thought. an incomplete statement or a part of a whole. When there is less than a whole vibrational pattern then it is usually unrecognizable. Something that can't be re-cognized is not known to us. When it is not known to us, we have no experience with it in our reality.

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So when we lack an answer to our question. or the infonnation we are looking for, to "know" what we want or desire. then that severely limits what we get to have in our life. Not having this key to a successful trading experience would be the same as saying we don't know how to trade and be successful. It is the key we lack to enjoying our journey with trading. Another "key" is defined as a legend to a map. Perhaps we could substitute chart for the word map and see hmv that fits in our trading world. Do you see the charts you look at each day with the same surety that you can look at a road map and know exactly how to use the map to get to where you want to go? Does your chart of the market have a legend in the comer that tells you exactly what means what? A road map would be useless if we didn't know what all the lines meant and hmv far an increment on the map represented in the real world. A chart is just as useless, if we don't know what the lines mean and how they represent movement in the real world. These keys are part of what makes life easy or hard, clear or confused, abundant or not. Let's quickly go through some more of the definitions of what a key may be, A set o.finstructions governing the encipherment and decipherment of messages A system oftones and harmonies generated from a hierarchical scale ofseven tones based on a tonic Attune, to bring into harmony or conformity To be essential to: p1a.v the most important part in Something that gives an explanation or identification or provides a solution An aid to interpretation or identification

If you are looking for a key to experiencing the forecasting and trading game as an enjoyable and profitable adventure, then you must first decide where this key is going to fit. From the above definitions, it becomes apparent there are many meanings to the word "key", Any of them could be applicable to trading but what you want to do here is to get very precise and eliminate any elements that would throw you off course, whatever that course may be. If the right opportunity were placed before you would you take it? Is this a legitimate question? Some would say ...of course you would take it because it is the right one. Others may say I'm not sure and they would have to think about it. \Vby would they 8

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have to think about it? Because they really don't know yet what the right opportunity is. Until you are sure. until you have made your mind up as to ''-'hat is right for you, you won't be able to take it. and you won't be the one that lets it come into your expenence. This allowing is what \ve need to talk about right here, before you can continue reading what is to come in this book ...or any book for that matter. Until you are willing to make up your mind and say what you want. what you say is ok, what you are willing to allow. you are not ready to move ahead. Moving ahead requires one to know which way is ahead. don't reallv... know what it is for. or what it will What good is a kev. any key. ifvou ...... "'" open for you? Even when you put it in a lock and open it, you seldom recognize what it gives to you. unless you are looking for it. You always recognize what you want. So, what do I want. really want. and I'll find it. ."...."

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Ok, so there are many keys, now \vhat is a "secref'? Secrets are something we don't want to tell anybody. We want to keep it to our self. Secrets can also be something we don't know. or somebody isn't telling ·'us·'. Sounds like a two-way street here and something is hidden to one or the other side of the street. It doesn't matter which side of the street we are on. \ve still have to know what we are

looking for or we will not know when \ve find it or have it. This knowing what we are looking for is the basis for finding and having anything/everything. So if I'm looking for a way to trade and be profitable and have fun doing it. I need to already know what it is. Did you hear it? You need to write the script for your story. You can't use someone else' s, that is their secret. You need to decide what you want and then allow it to come. So by now you are probably hearing what I am talking about. or you are getting a little upset that I keep talking about this for so long and you want to get on to the "good" stuff in the book (what Neall is going to say!). 'Yell, the good stutTis what you say. not what I say, and until you hear it, you will never get it. The book is great to move you to a place to make up your mind, and it can give you many ideas you may want to consider, but it is only a piece of the puzzle you are putting together. and you need the whole puzzle. Your puzzle. the one you recognize as it comes together and seems so right. Looks so beautiful and feels so satisfying Alright. you hear me. so \ve'll go on. Just remember to pay attention to your puzzle, not mine. You will never have all the pieces to mine or anyone else's. You absolutely have all the pieces to yours. This is the "Secret" that is on your street and it has all the honey you want. Which side are you on? Do you see it? Ifnot. you better stop. You don't know where you are going. (Well ok. I'll tell you which way you're going. You are going the 9

wrong way, when you don't know where you are going!!!) So \\Tite your secret down for you, it's the only way you will knO\v t'Or sure. If you can write it down in detaiL you can decide if ifs enough or too little. if it is still what I want (because things change). When it is still what I want and matching my creative platform, I will get it.

It's not a secret when you know what it is and you are willing to live it. That is what life is about. But until \ye figure out what these secrets are. on both sides of the street, we will not be in sync with our natural creative force. We will not be able to summon all the elements of our unfulfilled desires and enjoy unbounded freedom in this life. Unraveling what we are calling secrets will reveal what the rest of our story is, and we will be able to express and offer to a harmonious universe, our gift. our true nature and essence that we are. In that state, \ve are standing on the edge of unlimited opportunity and joy. which is our true self.

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Chapter 2

Keys to the Law of Vibration

It's not

l;V7wt you look at

That matters

It's 71l111It you see

Henry Dal'id Thoreau

As I look back at how I wrote the Secret's books. it came to me that I had written them in an order that seems backwards now. The first book was the Forecasting book. then the Trading book and then the Law of Vibration. I think I did this at the time because most traders, including myself were asking "how can I know what the market will do". There is this hoping to find a way to be on the right side of a trade so I can WIn.

Then I realized that even ifI knew where the market was going, I still needed to be able to trade successfully. Trading is more than just buying or selling in the right direction. Getting into the market in the right direction is really the easy part of trading. You can do this without even knowing where the trend is going 50% of the time, and the other 50% of the time you find out very quickly and you can get out and get back in, in the right direction. That is if you know how to trade. So in a sense the Forecasting books seem to lose some of their importance or value, when I know how to trade. So I wrote the Secrets of Tradin2: and showed a wav" of trading \vith or without the tools of forecasting and proved it is indeed possible and probable to be as successful as I desire. ~.

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But \J,lith this came a lessening of the fun of trading. Trading is an experience of tremendous variety for many different kinds of personalities. Our ideas and feelings along the path ohvhat we call trading is a \vonderfully full experience. When we take away the quest to finding the secrets of forecasting then trading becomes a ditlerent journey. A journey that seems a little more sterile and exact and not infused with the mystery of finding what the future holds. So I see the interesting dynamic of trading is not just making money. it is an activity that brings together my unique energy and desire with an adventure into a world of cycles and mystery. money and markets. greed and tear and all the emotions and thoughts that could possibly be. It is an unlimited adventure into a world as fascinating as we are \villing to let it be. The final book the Law of Vibration. is an enigma of sorts. It delves into the very depths of creation and can be seen as eliminating the first two books completely. Once one understands the Law it is a key that opens the door to everything we want, literally. Everything becomes available and without the need for all the action we have been seeing as necessary in the past. This too brings a change in the outcome we will experience. By not needing to know hmv to forecast or how to trade we can still be as successful as we desire. It is our "desire" that we manifest into reality, \\lith or without all the effort and need for matching an ancient pattern or way of doing it. In the next tew chapters 1 will go back through the pathway these books have laid for the reader to find a change in an old routine. Or perhaps it could be a pathway to a whole new possibility and pattern to start living a ne\v one. The result will hopefully be a more abundant life. full of ones joyful desiring brought into reality. We are here on Earth to fulfill the measure of our creation and unless we are willing to move through our old ways. we will never realize our new ones and what they hold for us. Let's start with the Secrets of the Law of Vibration. I'm not going to re-write in this book what the original book contains. It is a Vel)' complete and in depth discourse on the Law of Vibration. so \vhat we are going to do here is encourage us to look again and again at the original volume until we find our new way. our ability to create and manitest what we desire. Because we grew up in an environment that may have been quite different from the teachings ofthe Law of Vibration. \ve may have to let go of a lot of information that will not serve us in our new quest. Letting go of what we think we know is a lot like cutting off one of our appendages. We are not easily convinced we can do without our ann or leg and we value our old foundational thoughts just as convincingly. But until we move a\vay from the source of distraction will we see the simple clarity we are looking tor. These old ideas are so entrenched within our being that it usually takes some time for a new way to become established. That is why reading a book one time and expecting 12

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a big change to occur is quite unlikely. We must revisit the new possibility over and over until it becomes an old friend too. an old comfortable idea the same way our early ideas found their place in our mind and behavior. So if you have read Secrets of the Law of Vibration once. then wonderful. If you have read it twice. this is wonderful. Ifyou've read it more than (\vice, wonderful, too. Each is wonderful. but each is different. The more you accustom yourself to a certain concept the more it becomes familiar. The more familiar, the more it has power to generate from v,;ithin a pattern in alignment with your inherent nature. It is our inherent nature that creates and allows space and time to fill our experience with what we \vant. Most of the things we learned in early childhood are still present in our daily lives. We can notice these if we pay attention and look. but most of us are too busy living in them to stop and take a look. It is possible that these early concepts and beliefs are not serving us as well as we may \vam. How we can know that, is to pay attention to how we are teeling. Are we happy and content filled with joy and peace of mind? Or are we unhappy at times. filled with fear or anxiety, frustration or boredom. sadness or some form of upset that we want to change? If so, then we are using an old way that doesn'1 work anymore and we need 10 find a new one. Remember when you were little and would cry to get your diaper changed. or be ted or to just get some attention and love? Hm\' well does that technique work today as an adult? It really doesn't and most of us have let it go and found a better way. Throwing a tantrum is a poor foundation for getting what you want. How well does your personality and expertise serve you as a trader? In a sense, we started trading as an infant and probably found a way that kinda worked but is it really working now? Do we need to let go of the old ways and find a new one that will really give us what we want? The Law of Vibration is a new way for most of us. It may take some time to understand and to allow but it's a proven and easy way to bring change into our life; to allow new opportunity in any form into our life. It is an unlimited possibility that will literally manifest anything \ve are clear about: anything that we can desire within a compatible framework of beliefs. Ifwe are ready to change; wanting more in our life. then this is an easy and natural way to do it. Whether we will or not is yet to be seen.

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I will go back through parts of the book as an incentive to visit it again and encourage this change we all desire. But until we move away from the old way. enough to let in something new. we are stuck. We are unable to change, really change. So as we go back and hear some this new stuff again. let it find a familiar place to reside, and to become ok. to become a desire that moves into a core belief that we can build from.

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The book is in two parts. external and internal. Because we are so entrenched in the externaL we have to start there and come to a place of \villingness to let some of it rest for a moment so we can see the internal. The internal is the source of change, not the external. Yes the external gets a lot of credit for creating change. but it is really the internal that causes the external. Kind of like the chicken and the egg. which is first? As long as we tocus on the external we are focusing on that which is already created, it is the present (but really the past). The internal is creating the present (but really generating the future). So until we notice this. \ve will do nothing with it. We will stay in our old way. the external. There is a lot of space given in the book to the externaL because until we notice what it is. we won't be willing to give it a rest and choose something else for a moment. When we really see this external as past. then we can see it is old and not creative. It is done, a creation that is done and not forming newness. Not that form isn't wonderful. it is. But we are looking here at change and change cannot come from that which is already done. stopped and sitting there in space and time as a form, solid and heavy and stopped. Now that may sound a little heavy, but to get the point across. let's see it as it is. The old stuff out there in our environment is a done deal. The past will never change. the present is done too. The present will become the past instantly, right now. and that doesn't leave any time or space to do anything with it. We must move into the future to create something new, to create change. This future is found in our internaL within our mind. so the Law of Vibration lays out a very simple picture of this internal and external if we will look. You can't hold the old external in front of the internal and have a clear picture. They are two different views and trying to combine them will only cause one to be confused. Confusion has never created anything; clarity is the creator in this universe and until that clarity is focused within a compatible energy matrix or vibration, it will not work here. It becomes dissonance and quickly diminishes into static or white noise if you will. Not seen as form. The Law of Vibration is not a complex or difficult idea to understand and use. We can talk about it in many ways, and my way may not be what you may hear easily. But with a little willingness. it is grasped naturally, for that is what you really are. You are an extension of the creative process we are calling the Law of Vibration. It is a natural process that is prevalent all around us. in nature and in everything we hear, see, feeL taste or smell. It is also everything we can image and from that comes our experience with it. Spending more time with it gives us more understanding. With more understanding we come into alignment with it and in sync with how it works. When you are in sync 14

with the Law of Vibration you are in sync \vith all that is available for manifestation into this space/time experience. everything you desire. Be clear about what you desire and you will have it, that is, when you follow the Law of Vibration. Going against the Law is like getting a ticket for going against a traft1c law. We don't like that out come; it costs us our time and resources to tight it. Going \vith the Law of Vibration is to give our self what we want. Driving down the road in sync with the traffic laws lets us easily have the experience we want, to get from here to there. Being clear about our desires and wants and being in sync with the Law will give us exactly \vhat we want. It is a cause and effect process that is easy to see in external events and when we become familiar with it as an internal process, we move to a place of ease with generating our desires into future events.

L of V Part One

H01/1 often 1foulId v\1tere I should be going Only by setting out For somewhere else R. Buckminster Fuller

I will list the Table of contents for Part One and as I talk about this section you may want to review some of the material in the Book. It is not the purpose of this book to go into all the detail because it is quite extensive, but it is more intended to remind each of us what we want and if we are on track to getting it. We must change if we don't have it yet. This change comes from something new. a new way of seeing, of thinking of desiring. This review can be a catalyst.

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Table of contents

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Fore'\\ord,« ,. ,... ,

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1• Part I

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Introduction

Part One

Chapter 1

Vibrational Harmony in the Market.

Chapter 2

Octave Shells and Harmonic Doubling in the MarkeL.

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Chapter 3

W. D. Gann and the La\\ofVibratiol1«.

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Chapter 4

Vibration alld

Chapter :5

Law of Vibration alld the lI,la,ters orlhe Far East",

Chapter 6

Ouspensky and the Law ofVihration

Chapter 7

Spatial Representation " ..... , ... , ...

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ChapterS

VibratIonal Time" "

117

Chapter 9

Vibration within Numbers.,

The External"

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I:-.merald Tablet;; of Thoth. .

'"'''' 58 ..... 66

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I had the opportunity of studying under Bucky Fuller before he died. I remember him as a short little man with very thick glasses that made his eyes appear very large to us on the other side looking in. He didn't seem to have to see this outside world to know where he was going but I had the feeling he wore the glasses so he could and then tell us who were "seeing so clearly", in our own language what he saw. He was aware of the internal nature of things but spoke with an external context for us to hear. This difference between external and internal is like night and day in many ways. It is representative of the polarity we are experiencing, and from this divergent view we bring our self into an amazing experience in life. It may be possible that we may only see one side for a whole life time. and that would still be a wonderful life. But with the knowledge of what else is here, it adds a big new beautiful arena we can walk into and literally command at will what we want and desire. This first part, the external. is what most of us pay attention to. It is what we see all around us and from birth we have taken it for granted to be what is real. The little child didn't argue with it, it was beautiful and full of wonder and delight. As a child we also were aware ofthe magic, the not so real stuif that was just as beautiful and ful1. But with our growing up, many of us lost the magic part and started to rely more

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and more on the external: probably because it is always there, like a default when we don't use the magic, the internal energies to create our own experience.

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Because we are so steeped in the external, we may \vant to pay attention to just what it is. Reading the tirst part of the Law of Vibration is for each of use to notice. To pay attention and say "oh ya. I remember this is what it is." After we remember, we can then know the difference between what we are in and what we have forgotten. Then with choice again. we can have both. The chapters on Gann. Thoth. Masters of the Far East and Ouspensky give us a varied perspective to see that they all are really saying the same thing, only using different words and examples. We all tell our own stories in our own language and it's often hard for someone else to really get it. But by going over it again and again, no matter what it is. it becomes ours. Then we begin to knO\v what it is .

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Whether we want to do this or noL is always our choice. We could just tell our own story and skip the part of repeating others. but we each get to choose and until we do. we don't. So it is good to know where \ve are right no\v. and trom this place we can move to another. If we are lost, so to speak, we don't knO\v where or how to move. Knowing what we want and how to get there is our peace of mind in this life. The chapters on vibrational harmony and octave shells are external examples of trading charts that reflect the sublime nature of the markets. We can see these underlying harmonies reflected in geometry. numbers. time and balanced spatial images. It is always there, it just a matter of how we want to see it or not. Seek and you will find ... your way. These chapters are to be read with an intent to see beyond them. for they are from the past and renect what already is. To desire something more or something new we must leave the old and move to the internal magic of newness. It is fine to look for answers in the old. but they are limited and may not hold your particular answer. You are a unique vibration that aligns with a specific set of energies. This alignment is called harmony; it is a natural blending of vibrations into a pattern or form that is you. Any other only be temporary at best if it forms at all.

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The universe is very exact as to what aligns and remains in reality. Your place in the universe is very specific and alignment is based on compatible energies aligning. You know it by the way things show up and how they feel to you. Peace and joy is alignment. fear and upset are signals you are ofT course somehow. This path is determined by the internal and creates the external. The external will never create your path. it is the path. So read all these external examples again in the book, or just start noticing them and realize they are completed and not part of the path that will come. Unless by default we stop desiring and '.vanting and settle for what just comes to us. We may get lucky

17

and we like it. but often it is not our natural energy and we suffer through it, waiting for the one that will be.

I, I,

This book reminds us that we are the one that decides and moves our nature through this world in peace and harmony or if we are oft: it reminds us to get back in sync. It is a constant balance of desire matched to fulfillment. Now as I talk about the external. I don't want to create the idea that the internal is better or not as good. Everything is perfection and has no better or less than except in a mind that has choice. Choice doesn't judge or create a hierarchy: it is a means of creating a course through the endless possibility of a tinite world. I love the chapters in part one about new ways to look at space (chapter 7) time (chapter 8) and numbers (Chapter 9). These chapters excite me to continue my journey into the unknown and find these new pearls of possibility.

I

The external is an amazing seed bed for new creations. As each spawns a new direction and we travel down its winding road, playing with all the magic around each comer. our life reflects a unique journey only we can take and only we can enjoy. Life in the external comes from the internal that came from the external and that from the internal. ... And so. it \veaves in and out of each other, each necessary for the other to exist and to flourish.

L of V Part Two It isn't my job

To flaY attention

To wlUlt I don't want

It is my job

To pay attention

To 1l'iuzt I wan t

A110n

I will list the Table of Contents tor this section also. Keep in mind that this information is my experience and that you may find it interesting but it is when you make it yours that it becomes effective as a catalyst. The more you entertain it in the mind, the sooner it becomes yours.

18

.....

Table of Contents (Continued) Part 2

1

Introduction

PartT"o

ThclnkmaL,

Chapter 10

Creation C\de ofVihration"

Chapter II

Speed in Vihrational Structures"

Chapter 12

Stream,ofYihration" , " , , """'",,'''''''

1M

Lhllptn 13

Point ofYibrational A\\'arencss,

185

Chapter 14

One fhought to Change the "'lind"

19]

Chapter \5

Trading with the Law nfVibration,,,

Chapter \6

Trading in Harmony \\jlh Vibrational L1emcnts"

Chaptcl'li

Trading in a \1alfix.. '

Chapter 18

The Hoh Grail of Trading

Appendix A

Numncrs, ,

Appendix B

"IDE"

Appendix ('

Additional Reading, and Chapter Supplements,

Appendix 0

Charts" '

" " ' " 126 ,,131 , ""

1

""",198

,"',"

,

'"

""",143 249

"",,,,,,,,,,255

"

Epilogue, '

1

14~

168

""".294 ,,,',' .301

In the second paI1 of the Secrets of the Law of Vibration we read of the "internal" part of the Law. Most people are not aware of the Law of Vibration and even those who have studied it have usually focused on the external. As humans we are fascinated \'\'ith this amazing external world around us and we spend a lot of time in it. What may be our next step down this magical path is to realize how this external is happening and how it is in our control if\:ve choose to create it. The internal is an explanation of how this path we are all on unfolds according to our particular vibrational pattern. matching with a creative matrix already in place. With our choice of which path \ve want to go on, \ve bring those energies into alignment with our own unique patterns and together they become a new form of space and time realized in our environment.

19

I

Realizing this key is available in our life. could bring about a grand transformational opportunity. Kno\ving \vhat we want and being aware of how to get is a sublime mystery \vithin our grasp. Reading this section about the internal part of the Law of Vibration will otler this possibility. but it is a process of allowing it to override the old way. the external viewpoint and seeing it with new eyes and embracing it with self~assurance.

,J As I have said many times in these works. you will have to read them more than once. more than tVv·ice. You ,viII need to read them until they become important and more real than your old thoughts and beliefs. If you really want to engage the magic of creation. the natural creation cycle of this universe. then you must align with it. You cannot be aligned with any extraneous or "other old way". It must be clear and pure and without any diminishment. It must be whole and clear and fully functionaL without dissonance and distortion.

I

When the La\v of Vibration is functioning in our life with clear intent and a hannonious underlying set of creational beliefs. it works. It has to work just as reliably as picking an apple otI a tree and watching it fall to the ground. Gravity abides the Law of Vibration perfectly. Every creative endeavor you undertake in agreement with the Law of Vibration will manifest perfectly. It has to. It is the law of the Universe as real as is the Law of Gravity. This may sound wonderful to you. like you have been wanting something like this your \\hole life. Or this may seem weird, or too far out hocus pocus stufT: because you have no reliable way of believing it yet. But remember it took awhile for you to believe you could read and write. ride a bicycle, run a marathon. trade or whatever you have come to believe (or not). It is just a matter of believing it and then it happens for you. Believing in a natural law of creation, in a Law of Vibration, is no ditIerent and the outcome from such a belief has an enormous possibility. Think of how much time you have spent trying to become a profitable trader. Where have you been looking? 99% of us would answer, "out there". In books, in workshops. in day after day sitting in front of a screen watching the market and trying to see what it is going to do. Seldom has the thought crossed our mind that we may what to look at "what are 'we' going to do". We have been waiting to see it outside of our selL and all that is available out there is someone else's way, an old \-vay. a past that is trying to tell us it is ours. But that is not where it will be found. it will come from the only place anything really comes from, it will come from the internaL our internal. I can go on and talk about this for pages and pages. for days and days, but what has to happen is that each of us has to decide it is what we want. and then do it. Let go of the ideas and beliefs that aren't working. at least for a moment so we can hold an

20

unadulterated. pure. complete desire and belief to let it happen. The only way anything won't happen is if I say so. I say so with an opposing desire and belief If this sounds easy and quite reasonable. then you have the beginnings to an underlying creative matrix to allmv this to happen. If you are still leery of it, have doubts and think something else is "more real", then you won't have this available yet. It will be your job. if you so choose. to move these old and new concepts around in your mind until they fonn a suitable base to allow it to be "more real" than the old ones you picked up in the past that say they aren't. It is only a matter of rearranging what you believe. what you are calling true and not true, what you are allowing to be real and what you aren't. The section on the internal L of V will give you ample inforn1ation to add to your old knowing, and perhaps move you into a place where you can see something besides the old way. Until there is an option to take a different route. we will continue to use the only one available to us. We won't even have an idea anything else is possible until we allow more in. So be gentle on yourself and when you are ready to move some of this old stuff around and let in another possibility, then you can start living in a whole new world; a world in which you have the ability to choose what you want and to realize it to create it. As you read these words, notice what you are feeling. Are you receptive to this new way? Are you somewhat hesitant'? Are you mad you bought this crazy book and wish you were doing something "more productive". Spend some time with "your answer". It is the clue to how close or far away you are to integrating the Law of Vibration into your life right now. If your old beliefs are very strong and are giving you many reasons this won't work. then it won't. If you have found enough similar beliefs to help support this possibility, then you will entertain it you will let it happen in your life. you will use it and create with it. This is the path we are exploring when we look at the internal. It is a very personal and unique perspective that only you will see. I can talk about it, but you will be the one to see it or not from your own willingness. Give yourself a reality check right now: ho\\' are you doing? Do you want it more than you don't? That is the key to knowing if you will get there. you want it more than you don't want it. Fear is usually the big stopper in our process. Fear we will lose a part of our self: an old part we have come to know and think it is who we are. But remember we are constantly changing. becoming a very ditferent person than we were in the past and we are still ok, we are still who we are. just a new me. In fact, we are probably glad we have changed and become something new. It would get a little boring if we never changed. So change is good and to be a new me is good, and it is ok to let my nature evolve into what the rest of me is. This feels good, to allow me to evolve. That is really what I want, so this new infonnation sounds ok.

21

I

Letting our self talk things through, like the above paragraphs is one way to rearrange the old and new thoughts and beliefs. Do it often and it will become familiar. it will become the ne\v me; an open and expansive being. willing to say what I want and let it come to me. Willing to experience this amazing creative process we are apart of. If you haven't read the Secrets of Vibration recently, I would suggest you pick it up and read it when you have a few spare moments. It will be much more conducive to bringing a positive change in your life. than spending that time watching a TV show, or arguing with your spouse or yelling at kids. or whatever you may do that you would rather not do. Just pick up the book when you are distracted or bored or in some kind of upset and see hov.7 it can change your experience. If you haven't read the book yet. I would suggest you do. It is a catalyst. and will give you an opportunity to change, to move into what you really want, to bring about your true desires. It won't do anything you don't want it to, so make up you mind what you want and then get it. Allow it to come to you because as soon as you are aligned with the vibrational patterns you desire they will come and be yours. They will form the experience you desire because that is how this universe works: this is what this universe is made up of, unique vibrational patterns we experience with our 5 senses as space/time and form. It is a cause and effect relationship that must happen. It is the only way it will happen. I want to briefly talk about the contents found in the internal section of the book. It's quite comprehensive and certainly not all that is there is necessary for you to understand so you will "get" it. Actually. you are the internal but you may need to look at this in a different way. The old way hasn't really served as a platform to understand our true nature because of our looking "out there" for the answers. Looking to the external evidence to support what we can and can't do. It has limited our ability to find it possible to desire anything or everything with knowledge that we can have it. The external is limited, it is finite. but the internal is unlimited. it is inflnite. In Chapters 10 through Chapter 12, there is a focus on describing and understanding the nature of vibration and how it relates to us. This is important so we can trust (believe) what we are going to base the Law of Vibration on so we can use it, Without a believable underpinning, we won't use it. There are plenty of examples from abstract to very real everyday experiences to associate with our experience. Read it until you believe it or it will never work as a creative matrix. Chapters 13 and 14 are associating the Law of Vibration with our mind and how. where we are coming from. determines where we can go. A thought can only align with a similar pattern. so our position in the present vibrational matrix determines 22

what and how we will create. Chapters 15 through 18 relate the Law of Vibration to trading. These chapters are not specific systems to use in trading, that is an external activity. If you want the external way to trade with step by step procedures on how to do it, then read Secrets of TradinSL and Ylaking Monev again. These chapters delve into the internal aspect of trading and how you can create a trading experience anyway you want. If you have been looking for the Holy Grail in the external you probably haven't found it. You can only have that "sure" thing relationship with yourself. When you find your true nature and utilize it for trading, it will become the effortless experience that brings you everything you desire. Literally it will bring you everything you desire (as long as it is in alignment with your core beliefs). The appendix has many additional readings, charts and supplements to enhance your base for creating this platform to manifest from. The more ideas and concepts we have to build fi'om the more quickly it will generate the outcome we desire. Time spent becoming familiar with this material will pay you a much more handsome return than watching the same old TV shows or whatever you may do in your spare time that you find less than exciting.

71lOse who beliel'e that the world ofbeing

Is gOl'erned by lllck or challce

A1ld tllat it depends UpO/1 material causes

Are far rel1lOl'ed from the diuine

A1ld from the 110tioll of tlze One

Plotinus

Chapter 3

I ,

Keys to Trading

TIle fibers ofall things

Halle their tension

And are strained

Like the strings

Of (lIl instrument

Hcnnj Dm,id Thoreau

This is a great chapter because I love this book. The Secrets of Trading and Making Monev makes trading appear so easy. The examples are very straight fonvard and simple. Not a lot of complexity to get lost in. though some of the systems we look at has many parts. They are optional and we can take them out or leave them in depending on what we want. It still works with the bare bones or with the full enchilada. In fact trading is easy and successful when it is simple. We usually tind trading to be dinicult. because \ve are not clear what we want to do, and we are not clear about the tools and methods we are using. If it is contusing, don't use it. Keep it simple and it will be successful. Here is the table of contents for the chapters. Look at the whole picture and then the parts. See how this brings together the foundation for what we want to create and then the way to do it. If you are still looking for a trading system, then consider what is written here. It can be a road map for finding your way~ for finding your method to accomplishing that which you want. First be sure you know what you want in a very clear and precise way. Clarity will create. Confusion will not.

24

I I I

I

Table of Contents ,

Preface .. ........... .

.J

Chapter I

In the Beginning ...

. .. 5

Chapter 2

Forecasting vs. Trading...

. 15

Chapter 3

Trading as a Business ..

Chapter 4

Mone\ ..

Chapter 5

V'-ealth Accumulation

Chapter 6

Winning and Losing Classkal Systems.

Chapter 7

Money Management

Chapter 8

Fear....

...62

Chapfer 9

Finding l\1y /,,\arket ..

. .67

. ....... 19

24

..27

. .....36

..........'9

Chapter 10

Trading S)stems and Plam,.

Chapfer 11

The Anatom) of a Trade.

Chapter 12

Trading Plans and Settings ..

Clwpter 13

Beyond the Bars.

Chapter 14

Flipping a Coin, the Heads and Tails of II..

.. 78

105

..132

.................. 147

Epilogue

.............. 164

Addendum A

Alternate Trade SYstems (e-mini S&P. eCBOT Gold 100 on

Addendum B

Alternate Combined Trade S) stem/Stop System

... 166

..... 175

............... 186

Last Thol/ght.

I'm going to talk about some of the chapters in an effort to encourage re-reading what you may have forgotten or perhaps missed the first time through. If you haven't read it yet. then] would suggest you do so. Without change you will not progress and without moving toward what you really want. you \-vill not get it. The book can be like the carrot in front of the horse. It gets the horse to move forward and to move to the place you want it to go. You have to move yourself, and sometimes we need to coax our self with come kind of carrot. We are too easily satistied with the status quo, but we really want to have our desires realized. So clarify what it is that is really wanted. and then give yourself a carrot to start the journey toward it. You will reach it. ..

If !JOlt

Evenjluhere

Is withill walking distance

have the time....... by Steven Wright

25

I ,

In the first two chapters. there is a great foundation that you may want to consider in what you may want a trading system to be built upon. Every business that is successful has a business plan. Trading is no different and when it is clear what this plan is and that you are willing to follow it, then the business will develop accordingly. Any building that is built has a blue print identifying everything that needs to go into it and the proper order in which it is to be built. When these two are satist1ed, it insures a completed building. The example in chapter two of a casino business plan may seem a little strange for a trading business plan. As you see the parts unfold and how they match very nicely with what a trading business needs to do to be successful. It becomes a possibility to consider. In tact it is more than a possibility when you really see it. The casino model. has no gambling element in it for the casino. They leave that for the customer. but this business doesn't gamble at all. It is very structured and defined and as such, it produces guaranteed profits. That is what we want in our trading plan ...guaranteed profits. In chapters 4 and 5 we get to revisit our thoughts about money and accumulation. These ideas we may hold in our head probably came from our early experiences in childhood. At that age they became very fixed in our minds because at that age we tended to believe everything. Even things that are not sensible to us now, but at that impressionable age. \ve were sponges willing to absorb lots of information so we could function in the family. school room. with our friends, etc. Now we can look at some of those ideas and perhaps decide we want to see things a little differently. Many early thoughts about money were probably a reflection of our parents. and perhaps we were lucky enough to have parents who saw money as plentiful, accessible and for our uninhibited use. But many parents had accumulated thoughts about money from their parents and some went through the great depression of the 30's and money took on a very peculiar meaning. Scarcity and lack became the major focus of many children's thoughts and these are not suitable for becoming an abundant trader who accumulates profits and is successful. So accumulation of wealth is not necessarily a given for everyone who trades. Yes, we need to be able to win. but more important we need to be able to keep it and let it increase. I love to read the definition of money I wrote down one day and it has become a mantra of sorts. I"lI put it here again because I like it. I like to read it. More importantly I'll put it here so you can read it and begin to see the beautiful child we are asking to come into our lives. It is a child that will continue to grow if we embrace it as our own.

26

A10ney I am the means for people all over the world to eat and play, to learn and laugh, to )'fOny and cry, I am all a/it. Everything can happen and people can say it is because ofme. I am innocent, just a piece a/paper. a metal disc, or a number in a computer memory. I change hands often and get to see the world or I lie hidden in a pocket, mattress or old can buried under the ground. I am cried over, laughed at, kissed, loved, hated and on and on. I am held tightly and thrown loose~v around; I am never enough and coveted b.v almost everyone. I am willing fo do what anyone asks as long as it fits in reali~v and so I am a ve~v honest thing, I can 'f be more or less, just me, no bigger no smaller. I can/eed a small child or blow them up, it all depends on you. I will change hands with everyone and willingly do what they say. I have no judgment; I am 100% active in doing the present movement without any thought to change what I have been told to do. I am obedient to carrying out }'our wishes. I am money. (Neal! Concord-Cushing)

Now whatever \ve have in our conscious and unconscious memory banks will be the basis we use to embrace this child (money). Ifwe don't like it for some reason then we won't take care of it and feed it and it will not grow and be a vibrant energy in our life. If on the other hand we love this child and want to cherish it and help it grow into all it can be, then we will enjoy a relationship with money that will be with us our whole life. Chap 4 and 5 are filled with opportunities to see this child in a new light. There are many examples of ways to play with it and nurture it into a very robust and hearty entity, filling our hem1s and coffers to overflowing. Money is energy but we can lose the connection with it, if we make it too nebulous. Keep it personal and be willing to care for it as you \vould your own child. Go back through the two chapters and then while this is fresh in our mind. review the Law of Vibration's internal nature. Create it into your experience and let it flourish into that which you envision it to be. Many of the examples in chap 5 have a time element for wealth to grow. It may appear that this time element is static, but I suggest we allow our internal creating platform to hold time in a more flexible state. Let energy be your slave, not you a slave to old energy concepts that will limit your ability to manifest. The key to all this wealth accumulation is seated in having a broad understanding to choose from and then holding it with a creation matrix that tits your time frame, not someone else's. Be willing to say what you want and you will get it. After reading Chap 6 "Winning and Losing", you should be able to know with a certainty, who creates winners and losers and how to be either one. I don't find many people who say they want to be a loser. They may admit they are one, but they don't want to be one. Everyone wants to win~ it feels better, it is healthier, it's more fun.

27

Go to page 5 I (,'Secrets of Trading and Making Money") and look at the graphic again. Who said the number 735 is a loser??? \\Iho created that innocent observation and what does it do to your ability to think clearly? This isn't rocket science. it is as plain as the nose on your face or the number on a screen; it is how we create winning and losing and how we experience the effects of our creation. Our trading ret1ects our current state of mind. and when we pay attention 10 the atmosphere we are trading in, and choose a beneficial platform to trade on, we are assured a much better result than when we don't. This chapter (Chap 6) says a lot about classical systems. These systems have been used for a long. long time and they work. What you may want to look at a little closer is the correlation of these systems 10 trading and how they fit your particular personality type. Traders that try to use a Martingales system can create a huge amount of stress until the system plays out and you recoup your position. Very few traders have the ability to think clearly under a lot of stress. If you can. then this may be for you. if you can't, this is not for you and you should never use it. You should never use anything that creates stress.

I

Once you know your unique pattern for optimal performance. then you create your trading system to match. Never force yourself into a "sure thing", "Holy Grail" system if it doesn't fit you. Even though you see someone else making Ions of money, it won't make you any. unless it ttts you. Better to have a simple effective system that you enjoy and prottt from. than to force the "Holy Grail" square peg into your round hole. Use your round peg; whatever it is ...because it works for you. Just a few thoughts about the Classical Systems in this chapter: the Martingales System would probably be very stressful for most people and not easy to use in trading. The D'Alembert and Labouchere are somewhat more cumbersome but are assured of a profitable outcome (remembering that this would only be a "part" of a more comprehensive money management system), The last example in the chapter starting on page 56 is worth studying some more, if you haven't already. Because of the space requirement in that book, those examples are limited and one may miss the subtle inference suggested. This example ofletting wins increase and cutting loses short is an axiom in almost every trading book written. \Vhat most books don't do, and what few traders ever ttgure out. is how to make this work. This last example is a great beginning to realizing this possibility of increasing wins and limiting losses from just a money management perspective. This example that shows a profitable result in both instances (System A and B, pages 56-58), can be

.

28

modified in several ways and made to fit many trading systems with the outcome being potentially guaranteed profitability. The example in the chapter uses a simple doubling of each win. This works very well if the number of consecutive wins reaches the amount in your system, ensuring a realized profit because then the amount reverts back to a smaller number and locks in the profit. The downside to doubling is that if it doesn't reach the number of consecutive wins when the last number is greater than the sum of the previous ones, a loss wipes out all the paper profit and then some. If you win four times and lose the fifth on a doubling system. here is the result:

] + 2 + 4 + 8 equals the first four wins and the total is 15. The fifth trade would have been with a doubling of 8 16. and so if the loss comes on the last trade of 16. then you wipe out all the previous 15 points and lose an additional 1 point. This is a good opportunity to see what you can come up with on your own to make this a better system (think about it before reading on). After you have spent all the time you want looking at your own thinking process and what mayor may not work. then go ahead and I'll illustrate another possibility. There are an unlimited number of possibilities and it would be important. if you were to use this type of system, that it be fine tuned to the trading system you are using. Ok, if you have finished, then here is something to consider: -rhe first trade that wins should be protected somehow so you at least breakeven or make some profit. We can't do that in a doubling system because the next trade is larger than the previous one. We win 1 on the first one and the second trade is 2. Ifwe lose, we lose more than we've won on the previous trade. So we can't have the next number be larger than the first one. If\ve started with 1 then all we can use for the next trade is 1. Now if we win again the second time, \ve have \von 1 + 1 = 2. so the third number we can use to trade with can't be larger than 2 or we will lose every1hing and then some. So we could use a 1 or 2 for our third trade. This insures that we will breakeven or have profit. (We are not taking into account commissions or slippage.) The next trade would be our 4th trade and so far we have won three in a row: 1 + 1 + (either 1 or 2) = either 3 or 4. so this fourth trade would have to be equal to or smaller than 3 or 4 and this will insure breakeven or profit. Ifwe get to the fifth win in a row and our first 4 wins = 1 + 1 + 2 + 4 = 8 then our fifth trade could be 8 or less and we would still breakeven or profit. If we won we would make 16 and if we lose we would breakeven. In the doubling example of 1.2,4.8.16 if we won. we would make 31 or if we lost we would lose 1 at each trade level. Now at first glance. one might say, well there's no question what I want to do. I want to make 31 and risk 1. But that is not how the market works, what we are doing here is waiting for a winning streak of five (or

29

whatever our number sequence is) to complete and then we profit. Depending on the svstem you are usinQ., if \ our win-lose ratio is 50/50 or'!??? then vou would have to take into account how many trades you take and lose more than you win: over and over until you get the string of five to insure the profit by taking it and cutting back to a smaller share or lot size. ""...

<......-,.t

,.t

You may want to increase or decrease the number oftrades in a string. I will suggest that there is a simple combination of increasing ratios that literally insure profitability (at least from just this system ... remember \\"e can do a lot of other things to negate a winning system.) If you are willing to understand the mathematics of what we are looking at here. I'm sure you will find a particular sequence that will work for you if you are interested in this kind of money management. If s the building of a total system that makes trading profitable and fun. While we're here. go back to chapter 3 and familiarize your self again with the Casino business model. This is a very good model to pattern a trading business after. If you have been trading for some time. stop now and find a similar business that you would compare to your trading business. If you can't tInd something similar. it is probably because you are not treating your trading as a business and you will not have the advantages a business model lends to an enterprise in keeping it stable and profitable. Don't let the stigma of Las Vegas and gambling keep you from understanding how you can use this money making model. proven efIective for hundreds of years. It works. and will work for you too. Write out a business plan and follow it. it is the blueprint to building the successful trading experience you are looking for.

Chapter 8 is a revisiting of an old friend many of us entertain in daily experience. Fear is a strange idea that seems to have an enormous affect on our life. We sometimes understand what it is about. but often we are clueless as to the real cause. In trading it is a nemesis that will render us hopelessly lost in a state. anywhere from mild upset to catatonic stupor. It is a good thing to understand. especially to know how it is affecting us and how we can do something about it. vVlzen you overcome your fear You will know yourself

Anon

So here are just a few thoughts to go along with this chapter ... .in the examples in the book all the fear is generated in the mind not in the exterior world. As you read this chapter, (which I want to say has a very simple and realistic solution to overcoming

30

tear). you can also be aware ofhov,,- the Lavv of Vibration works in an environment of fear or no fear. Think of the vibrational matrix one is building on. and when tear is present, it is a dissonance that corrupts the matrix into an incongruent set of energies. These energies cannot easily form into stable structures that you want to experience. You are experiencing an incomplete and unwanted structure and as long as you hold the tear generating thoughts. the underlying stable platform for creating what you really want is not available. To access the position for creating everything you want you must let of the tear generating energies. and focus on the compatible vibrations that match your desire. Combine this chapter with the Law of Vibration and you \vill tind a very easy solution to this age old nemesis "fear'". It is very simple in nature and yet hidden from most of us who are used to looking from an ancient view point. Chapter 11 on Anatomy of a Trade is a very specific trading system with all the information provided to reproduce it and trade it. Of course you can add to it or take away from it and I would suggest if you are going to use it that you do personalize it. It is also a template to use with other forecasting and indicator tools. It is included in the book because it's an easy to follow and easy to see method of trading GE stock, a bellwether market that retlects many other markets. It could be any other stock or commodity, but this one is quite reliable over time to give us predicable results. What you must remember also is that you need to include a good money management system or even the best trading system will fall short. It is much better to have a great money management system and a poor trading system than to have a great trading system and a poor money management system. A good money management system will always make money, but a trading system isn't complete without the money management aspect. All of the charts are very straight forward and easy to follow, but if you have only read it once, you probably can't remember the system.

..

You need to actuallv trade the system for a while. or read over it enough times that it becomes a part of your memory and belief system. Then you wi II have it available to use in trading or in creating another system that may use some of the elements or concepts. ~

I would suggest you go back and figure out each trade and where you would have entered and exited. where your stops could have been and tally up the result. Then do the same with the current GE chart, unfolding in real time and see how it fits your trading style. Do you need a different time frame so you have more time to think or a shorter time frame so you aren't bored and have enough action to keep you interested?

31

These things are important in any trading system you create. You must match your personality to the timing and risk level of the market. Once you have a clear view of who you are as a trader and what you want to do, you then can shape your system to tit your style, not forcing your style into a predetined rigid box. You could get a computer to do all this work for you. in figuring out entry. exit and stops, but you will not learn, you will not find the information about yourself that you need to set up the "internal"' system you are really looking for. Both are needed and will determine how successful you are as a trader. so give them both all the attention you need in your creation of a personalized trading system .. Don't skip over chap 12 if you don't feel real confident with mirror images yet. Mirror images are great tools to use when you find one that is working with the time frame and price bars. Sure it can invert and do seemingly crazy things at times, but that is just because \ve don't see the whole picture. But we can see enough of the picture that this tool can be very useful. Use it as a source for possible trend changes and continuations and then trade "with other tools that confirm or give us a trigger for entry and exit. The last half of the chapter gives us our tirst look at using a very simple trend system, with just 2 bars. It is so simple that it may be disregarded. but the "simple system" for trading is usually the most easily implemented and when it has a realistic win loss ratio and can be coupled with a good money management system. it becomes the profitable system we are looking for. It can be tweaked and shaped in many ways. but starting with a solid simple system that is repeatable and gives positive results is the base \ve are looking for in our development of our own system. I would suggest you start with the discussion of what a trend is on pages 121-123. Re­ read this until you finally see \vhere a trend comes from and why it is so important to know the time frame. Then go through the examples in each chart set for gold and tor the S&P 500 and see what I'm talking about. Then go through them again with your O\vn ideas and different parameters tor this kind of system. It lends itself to many possibilities and some will work better on some markets than others. Once you get it. then you use a similar technique on any market and by retining it into a viable system. applying money management and diligent back testing and practice, you will come out with a system that makes money. Yes. it will make money. When you have mastered this approach. then move into chapter 14 and see the value ofjust using trading techniques to be profitable. This example ofjust flipping a coin to get entry is how we see it really doesn't have to be important to have the most sophisticated torecasting system that gets us into the market at the right time. It is more important to manage the trade after we get in. This example has a lot in it. and it could be seen as too complicated. Thafs fine, just take out what you don'1 want to use, because all the parts are independent. I wanted to

32

provide a lot of different tools here. so read it slowly and follow each chart until you see the whole thing. It is adaptable to many markets and time frames. and can be a possibility for your particular personality if you choose. It will take some time. so be patient. and be willing to get it. Once you get it. it is always yours and you can go from there anyway you want .This works: many derivations of it also work! It just depends if you ,vant to do this sort of thing. The addendums are great additions to this kind of trading system and provide some ideas you may want to consider. Make your own offshoots from what is in the book and play with your ideas. You will be surprised how easy it is to find a system that works, and it ,vill be "your" system.

33

Chapter 4

Keys to Forecasting

YOll

must lit'£' ill tlte present

Launciz yourself

Oil every wal'e

Find your eternity

In each moment

Hellry Dm1id Thoreau

I

Now \ve have come to where it all began. These last two forecasting books were the first to be written and contain a wide variety of forecasting methods. We look at many tools and many ways of using them. We have read in the previous two chapters that forecasting may not be all that important if one understands and uses the Law of Vibration effectively or if one can trade and use money management etlectively. But on a different note. we would be losing a lot of the fun in trading if we eliminated the forecasting experience. If s a great experience to think we can see into the future and tInd what is coming next. Sure we can create it \vith the Law of Vibration but we are still in a body here having a human experience and it can be fun to think we are intelligent and po\verful and adept at figuring out what this world is all about even from an ego standpoint. So to throw out forecasting as an unessential element in trading is to thro\v the baby out with the bath water. We love forecasting in trading, that is if we can forecast accurately. So re-read these books often and allow the many possibilities to come into your creative matrix. You will not remember them until you are willing to call them yours and be willing to use them. Here is the table of contents for the First Book:

L

34

Secrets of Forecasting Book 1 Table of Contents Preface ......... .

. .3

. .....6

Chapter 1

The Buck Starts Here.

Chapter 2

Static Time Counts ...

Cllapter 3

Finding Harmonic Interval:; - Bar Counter.

Chapter 4

Finding Cycles from Scratch ..

. .. .30

Chapter 5

Surfing the Channel

... .44

. ... ll

... 19

Andrews Pitchfork.

Cliapter6

Following Impulses.

Chapter 7

Master Gann Fan .

..70

Chapter 8

Fibonacci Vort.:x·- Parting the Veil.

.. 84

Chapter 9

Building a Grid - Fibonacci Vortex ..

Appendix A Following th.: Fork

.. .. 60

. ... JOO

.. ..... 121

An ExerCIse ..

Appendix B Gann's Tunnel.

. .137

Appl'lldix C hbonacci Vortex ..

[40

Appendix D Squanng a Chart ..

. .... 147

Epilogue .. ..

t.

1._.

. ...... 152

1 am going to talk about some of the chapters, not all of them. Perhaps this discussion will rekindle a desire to look again and start creating again. Change is needed to move forward. Being unwilling to change can feel like stagnation and leave us stuck in the old unsuccessful experience. Be willing to do something new again, move into the next possibility and see how many new paths show up. Forecasting is an external activity. Everything we look at is outside of our self and contained in the real world around us. In the present moment or we could say it is really from the past, because the present moves instantly into the past. Did you ever notice that the present moment doesn't last? It is gone as soon as it arrives and a new present shows up.

r

"u.•

35

Forecasting is a look back to what has happened and formulating a scenario of what we think \vill happen sometime in the future. Forecasting is like playing the game that what goes around comes around, or that cycles are realiy present in this universe and that we can depend on them to bring about something \ve anticipate. lfv/e were to look at this from the Law of Vibration. we would see that we are really using a core belief system that cycles exist. that energy patterns we are calling the past are being used to create our desired future. When our own vibrational patterns match this belief system. then we create the outcome we desire. On the other hand. when we are not sure about cyclic action. or using the past to create a present experience. or anything not in alignment with this core belief of cycles, then we would not be able to bring into our experience the outcome we expect. We would think \ve can't forecast and would not have a clue \vhy it is so hard. So \vhen we go through these chapters in these t\VO books, remember to look at what your core beliefs are about forecasting. trading. creating, receiving, and allowing reality to be. We are playing a very interesting game in life. and we seldom take the time to notice what is really happening. Knowing what is happening and that we have choice. and that we can create allows us to move with volition on our journey. These chapters hold the building blocks for creating any forecasting system we want. They all will work when we are in sync with nature, in sync with the rules and laws of this universe. It is cause and effect. it has to "be", it will be when we align with it. The fIrst chapter is a reminder to take a look at our self and see what we see. I talk about this a lot. It is important and needs to be brought in front of us regularly because we tend to get lost in the external and lose our power. The external is a result of our internal clarity. Chapter 2. 3 and 4 are all about numerical cycles and the tools we can use to find them and follow them. Numbers are one of the simplest tools to follow a markets journey, and these linear cycles within a charts time and price frame. identify very clearly cyclic patterns. These patterns are easy to see. easy to find and easy to trade with. The simple method is always the more productive method in any trading system. There is less chance of things going \\Tong because we got confused and lost. Linear numeric cycles with a good money management system are the bread and butter method of many successful traders. Static time counts are about as simple as it gets but they are very effective in trading because we believe them. To win, we must have a core belief that matches our desire (to win). If the belief system is shaky we aren't clear and we don't end up with \vhat we want.

36

.

Many complex forecasting or trading systems are hard to believe at times. They aren't simple and easy, they are complicated and full of additional possibilities that sometimes get in the way of being able to see clearly. If you are going to use a complicated system, you had better know it through and through until it is simple or it won't work. Keep it simple.

.

..

Chapter 3 and 4 are great examples in understanding the underlying cycles in every market. They are easy to see when you know what you are looking for, so the more you become familiar with these kinds of cycles the easier they are to recognize in other markets. Once you identity these vibrational cycles, they can be used for a period of time, sometimes for the life of the market entity. Finding the vibrational number for a stock or commodity will give you a key into following it no matter where is goes for its lifetime. Pay particular attention to these chapters and notice the numeric relationships that are uncovered. See how numbers are an excellent clue to what is going on and to where it can and can't go next. For those of you who playa musical instrument or sing and can read music, you know that only certain notes and harmonic spaces are possible in a song. You can't playa discordant note that is too far off and still call it music. A market can't go across a chart in price and time and be too far off. it wouldn't be a market. It must abide and be in alignment with the rules of the game. When you can see the places it can go and can't go, you can compose your own music and play the market. Starting with chapter 5 we look at the Andrews Pitchfork. I have my own way of using the fork and it's outlined in the book. This too is a simple and etIective tool and w-ith a little guidance is very easy to use successfully in a trading system. If you have gone through the examples, go through them again. You'll learn much more the second, third or tenth time through than on the initial reading. But we usually judge if we like it or not on the first reading and that is based on the least knowing. If it is worth reading once, it is worth reading again until it becomes valuable to us. It becomes valuable to us when it is ours. It is ours when we say so and use it. This tool can be used very rigidly or by the book so to speak, or you can have a great deal ofleeway and flexibility in using it. If you choose to venture out and be flexible in its application, remember to stay in sight of where you want to go. Don't get lost. Know what you desire to get from it and pay attention to see if you are getting it. When you are lost you know it because it is not working. Keep this one simple too, until you know more and can go a little farther out there. The rest of the chapters in the book are about using the wave59 tools: Gann f'an, Fibonacci Vortex, Log Spiral and Andrews Fork. The chapters are very detailed with lots of charts and examples and so I won't go through then again here. I do want to say that to become proficient with any tool you want to use. you need to practice wit it. It does help if you have some direction in the beginning so you don't spend too 37

much time going in the wrong direction. Build on what I have given you. You don't even have to do that. because what is contained in this book is tar more than you need to develop an excellent forecasting system. One suggestion I will oiler again here about the Fibonacci Vortex, that when you are first learning. start with only the spokes or a spiral and not the whole tool. You can place on the chart just part of the tool to find its place of titting the bars. and then add more. Like I suggested in chapter 8, start with only the spokes because they are linear and only move in a spatially defined manner. This is a much simpler task in aligning the tool to the chart than \vhen we add both spirals. After you are comfortable with placing the spokes. then add one of the spirals. You '11 learn a lot taster with less to confuse you. When you feel comfortable with that much. then add the other spiral and so forth. Start simple and keep evel)1hing under control. You could just use the spokes and not the spirals at all and develop a very effective forecasting pattern with the grid. Studying the grid examples may give you some ideas on how to use other tools or parts of tools that may seem too complicated at first. Break things down into the simple if they are confusing. start with the easy tlrst. One of the most asked questions about charting and using the tools effectively is how do I "square the chart". The term probably came originally from W. D. Gann in the early 1900·s. But there have been many variations of what he was talking about, so for us today, we \vant to keep it simple. The examples in the appendix of the book are easy to see if you are the one creating them. I made the circles and set them and found them to be right on. You didn't set the pattern on the chart and so you have to go with what I did and that can be confusing at times because you didn't do it. The way to learn how to square a chart to tIt your patterns is something you will have to practice and learn how to do it. The wave59 program will square a chart: you don't need to worry about your chart being square. But you may have to adjust the squaring to fit the time and pattern you are working with. This will require your time and expertise so plan on working with this until it comes easily. In addition to t1tting your patterns properly. another reason to square your charts is that once the square is set. the wave59 program will maintain the spatial dimensions and ratios of time and price in tact. It is important to not have your chart changing as it updates new bars coming into the picture and old ones going out. In looking at a market we want a stable picture that will reflect spatial relationships because we are fitting geometrical patterns over the chart area. When the dimensions of the chart are constantly changing it is like some one randomly moving a target we are shooting at. \Ve never know where it's going to be when we shoot and we will seldom hit it. A chart that is not stable will not shmv us where the market really is in relation to our tools. 38

Don't get too uptight if you don't think you know how to get the right squaring. There are many right ways to square a chart and the easiest way to see if you have one is to see if it is working with the tools you are using. If it isn't, then you need to re-square it or change tools. Be flexible and willing to change until you find the thing that works. Then use it and be willing to adjust it as the external changes.

I

I

Everything is in motion and we can easily follow anything if we are paying attention and move within the framework we are experiencing. If you get lost. then you need to realize your internal and/or external experiences are off and we need to move back into sync. (I'll give you a clue here: it is the internal that is oft~ the external is a done deal. already made. so it is real. The internal hasn't become real yet. it hasn't created the external to go along with it yet so there needs to be more clarity and focus on its manifestation. )

Things do not change vVe change HennJ David Thoreau

Now we can look at Book 2 which is a continuation of Book 1. Review the Table of Contents and ask yourself. if you have already read the book. how much do I remember and what do I remember. If you haven't read the book. then see where your interest is as we talk about its contents.

39

....--=;:~~~~~=====-----------------------------------------------------~

Secrets of Forecasting Book 2 Table of Contents

"",,',, '" ,. ,,,,,.3

Pre/ace"

Chapter I

\Vinning The Name of the Game, .. ,

Chapter 2

Retraccmcnt Level Resonance.

Chapter 3

Channel Harmonics",

Chapter 4

!\,lirror Image Foldback.,

.60

Chapler 5

Placing Fibonacci Vortex using Rings of Price Time..

,.81

Chapter 6

Start-Stop '1 ime Frame"

.... ,.. ",96

Chapter 7

Zero POint Projections"

,,,]04

Chapter 8

Glitches or Signals

Chapter 9

Combing Tools - Creating a S}stcm"

Appendix A

Gann'5 Tunnel Revisited ..

." ..5 ,.,12

,"""",,.. ,.47

.124

Emhedded PoinK

154

. .. 159

Epilog/Ie, .

" .. 162

Let's start with a review of chapter 2. Retracement levels have been around for a long time~ but as we see in the chapter there is more than one kind ofretracement level. Arcs are a very effective tool when we are looking at a market who's vibrational pattern is resonating to a curvilinear ratio (these are complex numbers like square root of 2. pi. phi etc.) Linear ratios are usually whole numbers or hannonic intervals of whole numbers. Kno'vVing what a market vibrates to will help detennine what tool you use to follow its patterns. If it is a complex number then curves work well and if it is a whole number you may want to focus more on linear patterns (straight lines). If you have read through the book several times you may have stopped on page 15 and taken a long look at Figure 2.2 in depth. Usually the first few readings ofa new book will only scratch the surface of what is there. It takes time and repetition to

40

implant new ideas into our mind. The Ch31i at first glance appears to be easily understood, just a series of ratios of Fibonacci retracements and how they line up with each other.

..

...

.

But if you look again and pay attention to how this represents mUltiple cycles working on an individual time frame. you will come to see this layout works extremely well in defining support and resistance in many markets. It becomes a tool for identifying embedded cycles and when they are going to end and begin (CIT's). Using just one Fib retracement on a time frame will only shovv one cycle's potential. But when you lay this particular grid over the chart area and learn to see the other cycles at \vork, you then become the master ofknO\ving what will happen. not just the lucky guesser. After spending some time learning the inherent cycles of the market you are trading, you can know when each one will be active and \vhen it will be subservient to a stronger cycle. Figure 2.2 is easy to reproduce on the wave59 chart. Just use the Fib Retracement tool and layout multiples as indicated. You \\~ilI find that some markets require their own specific multiples and they will reveal the hierarchy ofyvhcn cel1ain cyc les are dominate and others subservient. They will reverse at times and you will know when to use the new dominate cycle arId not be fooled. The market has a very definite script it runs on, and identifying it is the key to expanding your ability to know with surety. Use this Fib Retracement %'s chart to begin your search for your own key to seeing the market.

.

The charts in this chapter are all pretty straight forward and easy to understand if you take your time and look at one thing at a time. Don't move on to the next one until you are clear what is happening. The channel harmonics chapter could have used several tools to indicate the channeL but the underlying characteristics are the same and you can forecast with channels and trade with channels very effectively. Just as efTective are mirror foldback images. Chapter 4 should have given you a great start in using this great tool but you will need to experiment and find how you see the chart. Just like there are many cycles happening on a chart there are many ret1ections of cycles or mirrors working on a chart. Pay particular attention to the section on time frames and seeing mirrors. Learn to be t1exible and move the chart around until you see something. One view of a set time frame may not show you anything but moving the chart parameters to one side or the other a certain space oftime will reveal the perfect pattern. It's like looking in one direction for something that is really in another direction. You can look all day in the sky for a fish to swim by but it isn't until you look in the water that you will see one.

41

What you have on the screen is all you're able to see. so add more to the picture or change the dimensions or the angle of something that will help these clues to start showing up. Keep it simple and keep it flexible too. Chapter 5 is a great introduction to using multiple tools to help place patterns that aren't easily set by them selves. When we set the Fib Vortex by the rules so to speak. we have a high or low we use to place the spirals or spokes. But not everything starts at a high or low. There are many continuation points on the chart that are just as valid as reversal points but we have a harder time seeing them. There are many points of equal or greater value that are never hit by the price bars but are very instrumental in identifying balance points and harmonic ratios in time and price. Using the tool - Rings ofPrice/Time with the Fib vortex gives us many points to choose from to find the pattern we want to follow. These two tools arc curvilinear in nature and resonate to complex numbers. Multiple Rings of Pricenime create the pattern of the Vesica Pisces on the chart. The Vesica Pisces has a relationship of 1 to the Square Root of3. It brings together on the chart both linear and curvilinear relationships and the result is, it tInds points for the Fib Vortex to be placed on. The Fib Vortex is a tool with both curves and straight lines (spokes and spirals) and so has both numerie ratios working. The Rings of Price/Time with its Vesica Pisces relationship shows these related points. Review the charts and you'll see what I mean. The next two chapters show ways of finding these off the chart points that are very efTective in projecting points to place a pattern from. Zero point projection is a great tool if your chart time frame and price scale permit its proximity being on the chart. The chapters on glitches or embedded points identify these off the chart points that are harmonically balanced and well suited to project from. The example in the book used linear lines but remember that you can use arcs and curves just as well if the market moves to that vibration. This chapter is a great introduction to Clear Path Trend Lines and how valuable they can be in projecting into the future. This is all new material I have introduced here and very fe\v are aware of the implications of these points and lines. If you find an interest in this material you will be among as vel)' small community of traders. It is extremely responsive and easy to use a very simple trading system with. Entry. exit and stop points are easy to find and risk is very low. Combine this with a good money management system and you have a very fine system. You don't have to wait to see a Wild Tic to identify these points beeause you can project Clear Path Trend Lines and at the vertex of the crossing angles find these points. I have included two chapters in this book that specifically address the CPTL. The examples are great food tor thought as to what you can do with this tool.

42

Chapter 5

Money Management Keys

IVe cannot soll'e our problems

~Vitll the sallie thinkillg

~Ve

Tv7u.'11

il't'

Ilsed

crented the11l

Albert Einstein II

.~ 'I~

I think the easiest way to understand money management is to look at who is doing it welL Rich people, successful businesses. governments or countries who are managing money well are enjoying a life style and experience that is stable. peaceful and abundant in resources to do what they desire. Tf you are enjoying your life style and can have all that you want: then you are managing your resources (money and all other things) well. If you aren't, then you may want to change something. There are many books that tell us how to better manage our money, but few of us read them, or if we do, even fewer follmv them. They are not "fun" and exciting things on our lists of what we want to do. So let's do something here that may be fun and also give us some ideas about how we want to enhance our trading experience (mainly by making a lot more winning trades and a lot more money). Most of us have spent a lot of time learning how to forecast and figure out where the markets are going. A fe,,' of us have learned how to trade, but f would suspect far fewer of us have spent much time at all or very little effort learning how to use realistic money management techniques.

43

So why would 've now? Well ihve make it fun. \vould you be interested? That's the problem, "we" detennine what we want to do by how much joy it will bring (how fun it is). There is nothing wrong with that. except \vhen we have a preconceived idea that we aren't interested in it: 've never get around to liking it enough to do it. How you decide to like it is your job. You need to do that. But I will talk about it from several directions and perhaps something I say may interest you and that will start the process of doing it. How about a guarantee that if you investigate a viable money management system for your style and personality and you "do i1": you will make all the money you want! You will have no problem trading successfully. or doing anything else successfully if it has to do with money.

If you had that kind of guarantee would you do it? If the answer is yes. then you are ready to change and make this thing happen, because you are the one who gives the guarantee. As soon as you agree to focus on something and be open to it happening, it's on its "vay. The Law of Vibration is an amazing gift to us when we realize its purpose and power. Everything we have received in this lifetime has corne because we were willing to align with the energy patterns needed to bring it to us. Even the things we say we didn'1 really want, we had to align with those patterns or they wouldn't have been able to show up in our experience. We get what we agree to align \vith and when we say yes to money. we get it. When we say yes we want to trade successfully. we get it. If you \vonder what it means to say yes, then read the Secrets of the Law of Vibration again. This isn't a corny line or some thought I'm blowing out my rear end. It is the natural \vay creation happens; it is nature abiding a law as simple as cause and effect and we get the benefit every time. It is how the markets show up on a screen as balanced patterns interacting pertectly in sync with mathematical and geometrical law. It is a balanced universe just doing its thing and we are either saying yes to it or trying to say something else. When we are saying something else, the universe just waits and when we are ready to align, it is there. Might as well start saying yes now, we've been bucking the system and paddling upstream for far too long. Let's review some of the things we've already talked about or read in the books. The external examples of money management are in Secrets ofTrading and Making Monev and the internal examples are in Secrets of the Law of Vibration. We need both, but lets start with the external because it is probably the easiest to see.

44

Go back and read the first half of chapter 3 in this book. it is about money management (from the Secrets of Trading and Making Money book). Get your own idea of '''ihat money management is for you. What does it mean? \Vhat are you looking for when we say we ,vant a good money management system? If you can write it down, do it. This is a sure way to know. and in fact I would write it down in this book so you won't lose it and you can look at it often. Change it when you want and keep it current with your present desires. Without a money management plan working in your trading experience, you be very limited in fulfilling your goals of accumulating wealth.

,,,,ill

[fyou are thinking you will find what you need by reading the pages of this book (or any book for that matter) you are wrong. J am writing this for me. and you can read it and see what it does for you, but you need to write your own story. You need to see your own path unfolding before you. Sure these pages give you many ideas and possibilities, but you have to choose them and write them into your plan, into your wish list of what you want and how you are going to do it. Since you have been reading this book, what have you written down? That stuff you have written down is what is important to you. The more you write. the more you read what you write. will start giving you what you are really looking for. Are you hearing what I have been talking about for a long time? That "you" are the one you want to get excited about and talk about and listen to and emulate and trust and support fully with your attention. When we get through reading this book. then what? Go to the next one? Or perhaps when you get through reading this book you have also written one of your own. Usually we do this in our heads as we go and by the end, sure we have accumulated all these thoughts that seem to feel so good and we are excited to use them and change, but a few days, weeks, months later we have lost most of what we had. Writing it down keeps it from getting lost. This book isn't going to get lost, the words on the pages are there to stay and we can return often if we want. Start creating your own way to remember. to change and stay changed. Jf it isn't writing it down, then what is it? Give yourself what you really want by being willing to want it.

I

Don't give up and fall back into the old rut or the old familiar way. You are here to expand and enjoy the opportunity of having everything you want. Everything is more than just the old easy way. That one is done and long over due for a rest. "Give it a rest" is a pretty good saying or mantra for us right now. Step out into the newness we are really wanting. Get a pen or pencil if that will work for you, or whatever, just do it. This is how I talk to myself and it motivates me to move in the direction I want. J don't have to worry about moving fast or doing it a "right" way, J only have to start

45

moving and the rest works itself out. I get there. If I don't start, I don't get there. I love the quote by Gandhi:

Action expresses priorities Gandhi

When we do something, \ve are expressing our most important desire in that moment. Ifwe had a higher priority desire. we would be doing it: we can't trick our selfby thinking we don't want to do what we are doing. Yes vve do want to do it. we have to want to do it or we don't. Now I'm sure you can think of hundreds of things you have done and you thought you didn't want to do them. But look closely here, how can you do something you don't want to do? This isn't a trick question. It is a very simple observation that most of us have never taken the time to see. We only do \vhat we want to do, and so underneath the surface of our conscious thinking we must have another desire that is stronger than the one we are thinking that says we don't want to. Let's take for example the desire I want to make money trading. We can think these thoughts and be very convinced that it is true for us, yes I really want to make money trading and we can even list many good reasons why. But the end result at the end of the day or week is that we have not made money, in fact we have done the opposite -­ we have lost money. Money management is about managing money. We have to have money coming in and going out to be able to manage it. If we can see our self as the lord of our money, it is much different than seeing our self as a pauper trying to keep the measly portion I have allotted to myself. I manage my money. I manage myself and I am the one who sees how the money I am managing works for or against me. How can money work against me? I can have money in an account and I can have a belief that I can't lose it. This seems like a great belief: but what happens when I do lose some? It is a normal part of trading to win and lose. If my money management plan is to never lose money, I will experience some stressful times when I lose, and I will lose. So I am guaranteeing myself a stressful trading experience because I have a poor money management system. Money can flow naturally to and from me, I can acquire all I want or give it back. I am successful winning and losing. Money management can be the number of shares or contracts I risk, or where I place my stops or it can also be my attitude of how I interact with my money. If it is like air or water, it is very abundant, all over the place and I can have all I want. I can let it come in and go out and it is a pleasant experience. I enjoy the freedom to breathe

46

when and how 1 want. and not having enough is never a concern. or is having too much. It is just there, and I am the one who decides what 1 want to do with it. Could money management be as simple a.;; managing water or air? Sure we have specifics of "doing", but the general attitude and nature J interact with it is what is much more relevant in my experience. Ok. we can play with it anyway we want what \vould that look like? Let's look at a few ways money is made and see how it fits into our desire to make money in trading. HO\v about lefs be a doctor. Everybody thinks doctors have it made. after they get established. the money just rolls in. Well that's pretty much true for most. because there was a long learning process of becoming prepared before they get to receive the money. There is a great role model in nearly every doctor around, that doctors make money. and so if! am one, J will too. There are reasons doctors make money and these same reasons could apply to trading if we were to apply them in our experience like the doctors do. First there is an expectation founded on real evidence that most doctors make money. Do traders have the same expectation? Or is there a lot of information saying that 90% of the traders will fail in the first 6 months. If doctors had the same beliefs going around when they start medical school, hmv many do you think would make it through the 8 or more years of higher education? Probably 10%, because we get what we believe we will get. and you would have to think you were better than 90 % of the competition to either make it in trading or medicine if that were the expectations you held. Doctors don't hold those thoughts but traders do. What would you have to do to think like a doctor? That you are in a sure thing to make money and all you have to do is do what everyone else is doing. To do the plan and you will be sure to make it. Interesting concept, do you want to entertain it? How about being a professional athlete? They make a lot of money, at least some do. What do the successful pros do that gives them such a great in flow of money? Well there is a period of time when they acquire the skills of their sport. Then they become better than 99.9% of the other people trying to become one too. There is a benefit if your physical body is built such that it fits the profile of that particular sport you are training for. If you \vant to be a professional basketball player and you are 5 foot 3 inches tall and weight 109 pounds. it may be a very tall order for you to make it into the elite ranks of professional basketball. but you may consider being a profession racehorse jockey. There doesn't seem to be this same limitation for a trader. but perhaps the same need to acquire skills is important. How about we work for a wage in a business, say we are a retail clerk at WalMart. Do these people make money? Yes they do but do most of them make a lot of money? 47

No. the wage scale for a retail clerk at WalMart falls in a fairly predictable range and it is not one of the higher paying opportunities. Ifwe were to adopt this as a business model for a trading business. then \ve would expect to go through some minor training and make a set amount of money \veekly or bi-weekly and have some perks like insurance and maybe a 401 K.This is the model for the majority of average Joe workers in most industrialized countries today. Now we could get a better paying job, maybe we work for a high tech sofhvare company. or we may get hired by a University to teach college kids. but \ve still earn our money by getting a weekly check. Same old, same old, and we are limited to that range of income. Not what we want? Welliefs keep looking. Governments seem to always have a lot of money. what kind of model do they use to get money. Well they set up a system where they deliver to the public certain services that the people say they want. They are \villing to pay the government. mainly through being taxed for the services and it seems to work. Oh ya, the government is the one who gets either itself or someone else to print the money and pass the debt on to the people, So when they get a little low. somehow by a certain. "hard to figure ouf' magic, they are able to print more money. OK, this maya little beyond our imagination to tigure out so that it works as our business model for trading. but so far it seems to work for them. Trading is a very unique business opportunity. It is not directly limited to a certain level of income like a wage. It isn't like the "print your own" kind of world some governments may be in. but trading is only limited by the margin requirements of our trading account and our willingness to trade successfully. Ifwe see our trading business as a 90% failure business, then we better be very good. If we see it as a simple process of managing risk and accumulating money by going with the trend of the time frame we are trading in, keeping our actions consistent and aligned with our intentions. then we are on the right road. Money management is the process of not only managing the money in our physical trading account but in managing our creation of what \ve are wanting to experience; managing the future creation we are in the process of manifesting. It is a part of the whole process we desire to develop of knowing what we really want and creating it into our experience. It is the specific things we do and the specific things we are wanting. The combination of these two in harmony with our environment brings us peace and happiness. abundance and joy. all the good stutl' we are wanting in life and in our trading experience.

48

Chapter 6

Gravity Centers

What we have to learn to do

We learn by doing

Aristotle

Now I want to divert for a couple of chapters into the external world we are so accustomed to and talk about charts and what we can find in them. Then I'll go back for a few chapters as we get near the end of this book and talk some more about internal. You can decide where you want to be and how much you are willing to hear and change. It takes both sides to see the whole. Many years ago, I was charting the markets on large pieces of butcher paper. You remember that stuff the local butcher would tear off a large roll about 3 feet wide and wrap pieces of meat that you wanted to buy for dinner. I had one of these large white rolls, and I would tear off a piece, usually 3 X 4 feet, lay on my large drafting table and scale out a grid, and start recording price bars. I liked the large size because the patterns were more accurately fitting the bars and revealing a subtle exactness that wasn't as easy to see on the smaller graph paper, or later on the monitor of a computer. Now with the large screens and fme lines and accuracy of the computer it is much faster and I don't feel as responsible for killing so many trees. But then, there was a certain connection of drawing lines with my hands on the paper that seemed to focus my attention and I noticed things that may be missed (if everything is computer generated so quickly on a screen). Because it took time to 49

draw everything out, I had ample time to think about what else may be there and interesting things started showing up. I remember spreading out several 3 X 8 foot pieces of paper covering a whole wall and drawing all the price bars for several years and then drawing in accurate trend lines. What I noticed, as I extended these TL' s out to the edge of the sheets was that they intersected each other. The more trend lines I drew, the more they ended up crossing at these intersections. Because of the size of the chart, these lines were very accurate and made exact crossings at these intersections. I started drawing from these intersection points back to the price bars and aligning these as vectors between the bars. It was amazing that so many were perfectly aligned to fit through all the bars without touching them. I started experimenting with these points and found that they could be used to project potential trend lines as bars were being formed in the present. I started calling the trendlines that passed through all the bars without touching any of them "Clear Path Trend Lines". Other trendlines could have a semi clear path, where the lines passed through the open, or close of the bar instead ofjust the high or low. These semi clear path trendlines I called "Path Trendlines". The trendlines that were passing through bars at places other than OHLC I just called Trendlines. The strength of the different trend lines as to how valid they were in projecting a forecasting possibility was directly proportional to the kind oftrendline it was. The Clear Path Trendlines were by far the more responsive in identifYing market movement in relation to the trendline. These I started to pay more attention to and as I saw how they had a higher possibility of remaining a clear path, if the price bars were to return again to the trendline. As such, I could predict the next bar would jump over the trend line or retrace and never touch it. There were also a high percentage of odds that the bars wouldn't cross it again. I started to keep track of these possibilities.

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Another discovery I made, was that these clear path trendlines were the ones that seemed to be the ones that intersected with other ones. I discovered that I could start at this intersecting point and draw potential trendlines back toward the forming bars and in many cases start a trend line with only one point instead ofthe usual 2 or more. H became a great place to start other pattern tools too. I didn't know a lot about squaring a chart back then, except what I had read from W. D. Gann, which really wasn't much about squaring. I set up the charts and experimented with ratios of time to price on the chart. But drawing them by hand, took a lot of time and I couldn't change them easily or try different squaring techniques, without redoing the whole chart. So for a long time I missed one of the most important keys to what I was looking at. After I started doing them on the computer it became a lot clearer what squaring a chart could do. I looked at a lot of chart ratios just by trial and error and "looking for the best fit". Then I began to see that these intersections I had found long ago were important points to draw patterns from and they would fit the bars very precisely when I had a squared chart. This combination of a squared chart and a pattern fitting the bars became a very significant tool when the intersection point was to the right of the last bar (the present bar). These intersection points were in the "future" and the patterns I could draw from them were also in the future. As the bars were formed and approached these patterns they would interact with an amazing precision. Many of the rules I had discovered about bars jumping over, crossing or not crossing the lines started to form a predictive system. It was as if the pattern was already on the chart and the bars knew it and would find its way across the lines in a predictable way. Because this was all in the future, there was a possibility to know what the bars would do and once they committed to a pattern they would continue to follow it. Like watching a train going down a certain track, once on the track it stayed on it, until there was a switching point to change tracks. These switching points on the chart were the lines of the pattern being used. In Secrets of Forecasting Book 2 - Chapter 8, this whole chapter is talking about a spurious tic (a wild tic) but another underlying key of this chapter is to recognize that this is all about a Gravity Center and how the market reacts to it. Even when it is identified by a spurious tic on the chart that may be gone in few moments or perhaps in some cases a few days, no matter how it gets there or how long it may stay, it is important to know that this point is valuable for placing patterns that extend into future. Look at page 125 in Secrets of Forecasting Book 2 (chart 8.1). As innocent as this chart may look, except for the spurious tic on the 15 th , the next 30 pages in the books unveils the underpinnings of this particular point (the apex of the spurious tic), and shows how when tools are placed on it, that they create an amazing harmonic ratio with the bars and as the future bars unfold they are in perfect sync with it. 51

Another place to look is at page 93 chart 5.13 (Secrets of Forecasting Book 2). Now spend some time and see how this vortex, that has it's center out in the white space of the chart, is a perfect placement of the pattern for the price bars. Before you look at the previous page, take a pencil and mark on the chart where the bars are hitting perfectly with the Vortex. This is an example of a Gravity Center that we found by placing a Vortex and then finding a proper grid with the spokes and from that we find the GC and set any pattern we want. In this case we set another Vortex. Now that we have this point we can reset the squaring of the chart if we want. If a circle drawn from the GC isn't matching the bars, then we can change the ratio of time to price and bring the chart into square. Remember a circle will fit perfectly within a square; a rectangle will have an ellipse. We are looking for circles, so start with the ratios first and get all the bars showing up on the time frame we are looking at. Don't let the bars extend beyond the top or bottom ofthe chart. Once the bars are covering most of the chart, then try to round the numbers into whole numbers that have a harmonic relationship to each other. Like 2 X 4, 12 X 3, 1 Xl etc. It isn't absolutely necessary to find the perfect numbers, because many will work, but some will be easier to adjust to the square we want. Experiment and see how this works. Nowthere are two ways to further adjust the chart. One is to change the size and shape of the chart itself (the outside borders) but you will need to turn off "squaring" on the settings window.

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Grab the edge of the chart and pull it longer or shorter while you have a pattern tool on the chart. A circle will do, and then see if you can fit the circle or pattern to the . bars. The shape of the chart is changing from a rectangle to a longer or shorter rectangle, or it can be a square frame that changes to a rectangle, etc. The physical dimensions of the frame are changing. This process is an easy way to bring the chart to the pattern instead of trying to make a pattern fit on a chart. It is also a good exercise to practice seeing how a chart changes its shape. It becomes easy to start finding the intervals within this changing, and this is what we are trying to lay our pattern tools on. You'll see that as you move the chart, you begin to see these intervals, and how the patterns move into and out of them, like into phase and out of phase. The more you experience this, the easier it becomes to "know" when a chart is in sync with its harmonic ratios. We learn more about what a chart really is and when it is a representation of its natural spatial rhythm and when it is being displayed in an un­ natural way. Most charts showing the markets today have no relationship to this spatial rhythm and will not match the many pattern tools traders are trying to make work on them. Once you have this understanding and are able to tie into the underlying matrix, your tools will start showing you the results you have been looking for. Another option is to change the chart inside the frame. Do this by grabbing the time line and pulling more time into the chart or reducing the amount of days or minutes on the time axis. Tills compresses or expands the bars on the chart, and will change the ratios of the chart if you have left the settings tab on Automatic or Manual, instead of Square. The same benefit is available as in moving the borders as described above. The more you practice with manipUlating the chart to do what you want it to do and less with trying to learn how to run the chart the way it tells you, then you become the master here and tell these tools what you want and they do it. The chart tells you what you want to see because you are tuning it to the natural matrix it is moving across. The bars will confirm whether you have the chart tuned or not. Gravity Centers will become apparent, because they are the focal points embedded in the chart and patterns will key off of these points with amazing accuracy. Let's start looking at a real example of how to locate a Gravity Center and how to combine other tools to trade it successfully.

53

Here is a chart of the ES (S&P E-mini 200806). It is not squared but is automatically set by the program to fit the bars on the screen with a margin of space at the top and bottom that uses the most space possible, allowing for some movement to go higher or lower. Look at the chart and see if you can find a GC? Mark the points you will use and sketch in a possible GC. Go ahead and trust you intuition, this is how you get to know that part of you that may know more than you ''think''!

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OK here is the same chart and I have marked three points that I am going to be using. They are the high and two lows. If these are different than the ones you chose, see if you get the same results or if something else comes up. I'm not saying these are the "right" ones, or that they are the only ones. They aren't. But these are the ones we will be using and if you want to go along with this example, which I suggest you do, then go ahead and do these too.

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This is only one tool but it gives us a circle with three hits on the circumference. The swing arm shows us flestOfeDefauh where the center is (which is a possible GC). It may take some practice moving the Concentric Circle around, but just place the first point (the center) out in ~J the white space somewhere, and then put the other point on one of the three points we have chosen (A,B,C). The middle point usually works better (B). Then drag the center point around with the mouse until you get all three points on the circle. Sav&
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Now to check and see how square our chart is and how it will react to other tools, I am going to add Clear Path Trend Lines from the center out through all the bars and see how we do. Ifthis is a good GC then there should be a fair amount of these present on the chart. Before tuming the page, draw as many in as you can. Remember that there must be at least two hits to a high or low and not touch any other bar, including open or close parts of the bar or candle.

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As you can see in the above chart, there is only one "Clear Path Trend Line". This is not a really good indication of finding more tools that will work on this chart. But we knew we were starting with an un-squared chart. So let's move on and square a chart and see if we can get closer to what we are looking for.

57

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On this page we are going to square our chart to Scaling 3 X 2 points / day and see what we get. Instead Automatic of placing the Concentric Circles Tool on the Manual three points (ABC) we want to try something High: 1581.3 Low: 1195.4 new. We are going to place any "Clear Path Trendlines" on the bars and see if they show us • Square a potential intersect point that could be a GC. X '2 points per: On the chart below start laying out CPTL's Month- 'Year oj Day (Clear Path Trend Lines). As a suggestion to keep the number of CPTL' s to a reasonable amount, look for the CPTL' s that vector toward the center point of the three points we are looking at. .

Remember they have to hit at least two or more high or lows on the bars. Some CPTL 's will go through the bars without hitting them but we get our vector direction from the alignment ofthe Trendline hitting highs and lows o/the bars.

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Here are CPTL'S for this chart. They are all valid, but what we are looking for is a common intersecting point we can use to apply tools. Looking for a common intersecting point is one way. Look at the chart below, and before studying it to thoroughly, go to the next page where an empty chart is available, and draw some lines on it. Then come back to this one if you want and see what else you can see. It is the process offmding what we are looking for that is important right now. It is finding our own way, and practicing that until we have an easy and natural way of finding these things. Looking at mine will add possibilities, but you are looking for your own.

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Here is the same chart without the CPTL'S. This book is to learn from and not to save. Go ahead and draw on it, make notes and see what happens when you begin to make a connection with the market through the hand instead of always just through the head. There is additional awareness available when we are willing to use more of our self. Let your hand and eyes tell you more about what is going on here and see if you find a nice surprise. You may even hear your self saying "ah ha"!

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After you are satisfied with your practice, go ahead and go back and see what is on the past pages and then go ahead to the next. The journey is wherever I want to go, it is ready to tell me more when I pay attention and it is in all of it, not just the next new thing.

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On the next page is the chart filled in with all the CPTL'S. If you are done working with these charts then turn the page and go on. If you want to take the time to really study what we have been looking for on your own first, then go back and spend the time before seeing what I do. Once you see "my way" it will bias yours. Not that mine is not ok, but you are looking for the "ah ha", your way.

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There are "nine" on this chart as compared to the fIrst chart we looked at (chart 6.4) which had only one. This squared chart has a better likelihood of overlaying multiple tools that will "work" with each other. These squared charts are what we may caIl tuned harmonicaIly. They are an ideal underlayment for harmonic ratios of time and price to respond to. By respond I mean the movement that time and price makes across the chart will have many changes in direction, usuaIly we look at the changes in up and down, and call these changes in trend (CIT). These movements make their CIT's in accordance with lines on the patterns we are overlaying the chart with. Ifwe choose the right patterns and notice it's working weIl with this movement of bars, then we have a high degree of reliability in trusting our trading technique. This kind of a squared chart will accommodate many tools, and when used in conjunction with each other and a proven set of trading indicators and rules, one has the ingredients for success.

62

Let's add some other tools to this chart and see how they can add to our market understanding. I'm going to add Andrews Pitchfork and a Fibonacci Vortex. We already have the GC Circle with CPTL's so I will take then off for a while so the chart won't be so cluttered. Let's set the Andrews Pitchfork on major highs and lows, starting with the comer of the fork on B and the other comer on the high at D. When we pull the handle over to align the forks with the high at E and low at C we see that it lines up with the bottom of the long red bar (the one just before the gap down). This Fork is fitting very well and if you have read the Secrets of Forecasting chapters on Andrews Forks, then you see this is a very stable pattern with 4 hits on the walls. We have a lot we can do with this tool because it is very responsive to the bars.

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Now let's add another tool- a Fibonacci Vortex. Because this is one of the harder tools to master, I will explain one way to set it, but a much more detailed explanation is found in the Secrets of Forecasting Books, if this is one of the tools you want to use. This is a remarkable tool and when you acquire the skill to use it. First let's just place the Spokes on the Chart at a significant high or low. We'll use the low at C because it is further to the right of the chart and will give more opportunity to use the pattern into the future where the bars are going to be. This is the advantage ofthe Vortex; it projects into the future where the bars will "run into it". We are just using the spokes right now, because it is a simpler part of the tool, and we will add the spirals next. When we place the Spoke Center at C and rotate it until we fmd a matching hit for a high or low or perhaps a set of bars all aligning with it. It isn't necessary to fmd Clear Path hits with every spoke, but if you can it is one of the better placements for the Vortex. Not every chart will have a Clear Path pattern to set it to, so just spin the spokes and see what the best fit is.

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Here we see that this Vortex is hitting at B, C, the last bar on the chart so far, and the diagonal spoke going up to the left from C has all the bars following it in its major direction. This is a good fit so far, so let's set the spirals.

64

It's interesting, that when we have squared a chart that other tools are working on, it is easier to set the Vortex. Trying to set a Vortex on a chart, which has a skimpy underlayment (not many harmonic ratios aligning with the market because the squaring isn't optimal), makes it difficult to use it successfully. Let's start by adding both spirals (you can start with only one ifthat's easier for you). We will start the set with the smallest and work outward. Remember there are three axes with different spiral patterns we need to look at them all. So rotate each set out through the bars and watch for hits. Here is the first set of spirals. They are rotated out to point F where both the blue and red spirals cross (apex of the pattern) on the spoke and where it has a bar hit. Many times when the chart is squared well, this is a default position that will work quite often. Even though the bars going down into point F fit well and the spiral ends under point E work well, the pattern is too small and doesn't extend into the future (to the right ofthe last bar). This pattern isn't going to help project where the bars "will go".

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Let's rotate the Spirals again and this time line up the apex of the red and blue spirals on the spoke at point B where the low bar hits. Study this chart and see what you think about it being a good or bad match for the vortex. After you have decided, then take a pencil and mark on the chart where you think it is good and where it doesn't seem to work well. Also take into account that because this is a projection into the future, mark what you think the pattern gives or doesn't give for projecting a possible direction.

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After you feel you have practiced with this chart enough, then tum the page and see what I have done. Take one more look at the chart and see if you want to spend some more time, this is the last chance before you become biased with my ideas of what I think is going on.

66

Here is the chart with some arrows on it showing the major direction the bars are taking and how they are responding to the Vortex ' s spirals. They are actually doing quite well and leaving a line that is almost a Clear Path. These are what could be called curvilinear trendline and they have an amazing reliability at times of following the path of the bars when they are drawn on a well squared ,chart.

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The last arrow to the right is suggesting the bars could go down again at this spiral if it makes it up to there again. So if the next bar on the chart bounces on the spoke at F, then it has a possibility to move up to the next blue spiral and then follow it down. Looking over at D and E, this price area is a resistance level and could add weight to the possibility of a CrT at the Blue Spiral. If you go back to the Chart 6.10 where the Andrews Fork is projecting over into the same area of the chart, we see that it can allow this upward movement also without breaching the walls of the fork. Another possibility is that the next bar falls through the spoke and follows the red spiral down. In this case the drop appears to be very steep until it exits the confines of the red spiral.

67

Now let's put all the tools we are looking at back on the chart and see what we have? I'm going to leave offthe Clear Path Trendlines from the GC center to the bars except for the last one, because they are past indicators and won't help with the new bars. However, new trend lines drawn from the GC center to the new forming bars can be very helpful. Here is the chart with all the indicators so far.

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Take some time and study this chart. Assume you are trading it. What will you do? There are three possibilities. It will go up, down or sideways. What would you do in each case? Where would you set stops, or how would you enter and where would you take profit. When you have written it down, yes, written it down, then you can go on to the next page. Take this seriously and see what comes from it, write it down and in the next few pages we will let each new bar come onto the chart and you trade it. Write a scenario for each possibility, up, down, sideways.

68

If you wrote it down, good for you, you are on the path to "your way". If you didn't; then you are still looking for something I'm going to tell you. Well, you missed it. I already told you. Go back and read it again and do what I said to do. That is what I said. I'm not going to give you my way, it is impossible. All I can do is help you find yours. It actually is very easy, all you have to do is pay attention and it is already in front of you. If you did write down three scenarios, good for you, you are there and the rest of the story is unfolding before you. Continue and you'll fmd the whole story, your story. Here are some more ideas you may want to consider before going on to the next page where you' ll see the next bar and will never be able to do this again this same way. You will know forever, what that next bar is and it will totally change what you think and you can't learn what you can now. Because you don't know right now, it's a real situation, just like trading and you will have a real experience. Look ahead and see what that bars does (goes up, down, sideways) and it's not a real situation anymore. You have cheated so to speak and it isn't the same. The market won't let you cheat; it will make you play the real game. You need to make your self play the real game if you are serious about learning. Are we all on the same page? We are going to trade this situation like it's real and then go on? I'm giving each of us this whole page to get our mind in alignment with what we are reading this book for. We are reading this book so we can gain something new, not just information, but something new in the way we are going to trade and be successful. In order to do that we each must change from the old way to anew one. For most of us the new way is to stop reading and do the work of looking at what we personally are doing or not doing. Reading a book is usually to find out what the author has to say. But that isn't going to help us in our trading. We need to hear what we are saying and change ourselves to become something new and successful and prosperous or whatever it is we each want. Have I gone on long enough for each of us to stop and do what is really the value we will find in this book (to get our self to change). Go back and notice the last bar is in the middle of Andrews Fork and is also resting on the Vortex Spoke. It has also been coming down along the red spiral and the Clear Path Trendline from the GC. It is also resting on the circumference of the GC circle and as we look back to all the other places a bar came to rest on this circumference, it bounced and went back up. If it bounces, what will it do? If it falls through what will it do? Can it go sideways, and if so what will it do? Go back and look and while you are there use a pencil and do a little writing, you will be glad you did. (GO BACK before you see the BAR on the next page).

69

-

-

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Ok here it is. Now what did your trading plan say to do? Are you in or out? Where is the stop and will it still work? Are you making money or losing it right now?

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The bar did just like it did at B and C, it bounced. This is a harmonically balanced chart that is revealing an underlying matrix that we can utilize and have a certain amount of confidence in. That is great in trading, to have confidence. Now that we see it has jumped up and has jumped up quite substantially, what are we going to do now? The next page has the next bar, so get ready for it and be prepared. What do I change? Add to, take away, just let it unfold more and then make another decision? Am I proactive or reactive? What do I want be as a trader? I'm practicing what I will become right now.

70

Here is the next bar. What do you think?

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The next chart will have three new bars on it. If you want to do each bar separately, then insert a piece paper on the next page before you open it and pull it slowly across the page from the right to the left until it reveals the next bar, then the next, etc. Be willing to be realistic with what we are doing here. If real money is on the line, what am I going to do?

71

This is the next three bars ...

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If we have confidence in this set of tools telling us something, what do we see now?

What are we going to do light now? Or have we already done it because we had a plan before the bar even showed up and our plan traded it as it unfolded. The bar is up against the forks wall, it is up against the blue spiral, there is room to go down into the spoke and circumference of the GC or to jump over the fork and blue spiral into the white space. What is the more likely with what we have been watching for the past many bars unfolding on this chart? Decide what you are doing and then go to the next page and see the next couple of bars.

72

Here are the next two bars.

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What is the plan now? The bars are up against the spoke, on the circumference of the GC circle. The last three times it was on the circumference, it bounced back into the circle, but here we are near the edge and if it bounces back up it will have to go straight up to stay in the circle. If it comes out of the circle what will I do? Think about stops, profit targets etc. When you are ready, go to the next page and see the next bars.

73

Here are the next couple of bars, how did we do? What did we do? What will we do now?

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The next bar didn't go up or down. It went sideways. So what did that tell us? Well if we look closer, we can see the bar is an inside bar, next to the red bar that is resting against the spoke and GC circumference. The new bar came out ofthe GC circle and is still resting on the spoke. But the important change is that it came out of the CG Circle. The more you watch CG circles, you'll see that there is a very high percentage/likelihood that once the bars exit the CG Circle, and it will very seldom go back into it. So the Odds for the next bar are good that it will not go up, back into the CG circle. There are also good odds that it will jump over the spoke, and treat it like a Clear Path and so the likelihood is that the next bar is down. In fact it was down and it gapped down. These are great tools to work with, when the chart is squared and the underlying matrix is supporting them. These kinds of charts and tools are what make trading fun.

74

Chapter 7

First Trade Harmonics

The obvious

Is that which is never seen

Until someone

Expresses it simply

KahliZ Gibran

Remember the example of looking at a car driving by and that all we can ever see is just one side ofthings. If we are standing on the west side ofthe road and a car is heading north, we can see the driver side of the car but the passenger's side is not in our view. Ifwe go over to the east side ofthe street and watch the same car drive by, then we can see the passenger side ofthe car. We can't stand on both sides of the street at the same time and so we can never see both sides at once. We are always limited to a 2 dimensional view of a plane that only reveals a 3D image because of our two eyes. And this is really only a stereoscopic view; remember like the old fashioned stereoscopes of the early 1900's. They were handheld viewers you looked into and could see two images superimposed to appear 3D. Well we are presented with the same kind of dilemma; we can see it as external or internal, but most of the time we are myopic and fail to see them both. So let's take a few chapters of external then come back to some more internal and see if we can't start seeing again.

75

In Secrets of Forecasting Book 1,chapter 4 - Finding Cycles from Scratch, there is the example of finding the harmonic vibration the stock A WE is moving to. It is a very revealing chapter as to what happens at the birth of a stock. The more you investigate what is available at the time of birth (and it isn't limited to stocks ...everything really) the more one can see what the entity is likely to do. In trading we are looking for what our trading market is "likely" to do, in fact we want to know as much about what it is likely to do as we can. So this information at the birth of a stock, commodity, option ... is worth our time figuring out. It is also worth knowing what "we" are likely to do and this is also found in our birth process. Astrologers look at the natal date of a person and figure out what that person is inclined to do and in most cases it was very accurate. Financial astrologers look at stocks and commodities and determine what the nature of that particular market is from the birth (first trade date, date of incorporation, date of binding legal entity, or 77?). There may be several choices as to what is the best birth date. In a person, it is limited pretty much, to when the body is born into the world on its own. So there aren't a lot of choices perhaps, but in a stock or commodity it may be questionable as to which one is more valid. One thing that is not questionable is the birth of the "chart" of the stock or entity. A chart begins with a first bar and that is the beginning. So looking at a chart of a stock or commodity is a very reliable way of knowing what the birth of the chart is. This is good, because we use the chart to trade from. Not the legal business entity itself but the chaIi. So the natal of the first bar on a chart is available but we also can have more information from the first few steps the market takes on the chart. The chart tracks the footprints of the bars as time passes and we see what kind of trail we are following. Remember on page 16 of the Secrets of Trading and Making Money book, we looked at one of the earlier meanings for the word trade. Trade = track, trail or way. Trading was more akin to tracking - for fmding the way or trail of a person or animal. So these first steps a stock or commodity takes from its birth on the chart is indeed part of trading. But it is a part we may have not remembered. We may only be looking at a part of the trading process and missing something very important that could tell us the WAY to trade. We are going to look at the first steps of a new chart. It is the stock Visa (V) and it has left its tracks for us to follow. We can look at what it did and see if it tells us something about knowing where it may be going and what it is going to do. This is looking at the external past and from that we are projecting into the future the possibility of something new. Seeing what that new is will be part of our trading experience.

76

Here is a daily chart of VISA (V). Its ftrst trading day was 3-19-2008. This chart begins quite differently than the A WE chart in Book 1. Study the chart and see what you can see.

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Here is the chart with a couple of price lines. Draw your own lines on it, measure it and think about what you see Visa doing in the first month or so of market action. What are its footsteps doing as it crosses the chart and what kind of foundation is it standing on? Is there a hidden matrix underneath that is beginning to show itself?

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On the next page I will add some more tools and indicators but before going on make sure you have spent enough time on your own and are satisfied with your investigation.

78

Here is the next chart and I have added a couple of lines to indicate changes in trend (CIT's). There are two higher lows on the chart and the dotted arrow indicates the price movement as the stock is moving up in price. The candles stay within the first (initial) candles high and low, a price range of 14 dollars and then breaks out just after the second CIT low.

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Look as what you see, and now look again, what more can you see? Each time we look, we are adding to our view point and we will see it differently. We will see something we didn't see before and as it adds to the picture, it becomes a much more revealing. We can start to see the chart joining with our ideas ofpattems and possibilities. These are what we are looking for. Practice it and more will come.

79

Here is the next chart and I have indicated how much time is between the CIT' s.

From the Initial candle to the first CIT is 14 days, and from the first to the second CIT

is another 14 days. We see that there is a pattern developing here of 14 dollars and 14

days. Time to price is an equal ratio.

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With this new information look again at the chart and see what else you can see. When you are ready turn the page and go on.

80

Here is the next chart and as you can see I have drawn a Clear Path Trend Line on the chart. It is a very good fit and seems to indicate that it may have more information to tell us if we are willing to explore and see what else is here.

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Spend all the time you need working with this chart your way before turning the page. See what else comes to life as you make lines and study the first steps of this new baby. Where will it go next and why?

81

Here's the next chart and I have added another trend line. There are many trendlines and a lot of them are Clear Path Trendlines. You notice the one I drew isn't Clear Path, so why would I draw this one? As we look at it, we can notice it is a good trend line, it has 4 hits even though there are two candles that the trendline passes through at a place other than an "Open, High, Low, Close" (ORLC). Notice that the new TL is a mirror of the first one we drew. It starts at the top of the initial candle and moves down at the same angle as the first TL. It is a balanced pattern and it is fitting the candles very well. This is a great sign that our chart is squared well.

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What else is on the chart that you can see now? Tum the page when you have found something new. Make your self look at everything and write it down or make a record of it before going on.

82

On this chart I have added the amount of price between the trendlines at the CIT lows we found earlier. Notice that the first is $7 and the second is $28, both multiples of our 14. We are getting more evidence that this newborn is a number 7.

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Where are the rest of the sevens? Look for some more before going on. This chart is ready to tell us everything if we will ask it and pay attention to what is in front of our faces. The next logical step could be to add another 14 days to the two we have been seeing as CIT's and even though we don't have candles there yet, we could we find something? See what you fmd then go on to the next page.

83

~-

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Here is the chart with another 14 days added to the last CIT. This is a total of 42 days from the initial first days candle. We see that it is a ratio of 42 to 49, days to dollars. This is a 6 to 7 ratio in the 7th harmonic vibration.

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Because we are working on a 7th harmonic grid there should be points that patterns should intersect and form Gravity Centers. If we find these points we can place other pattern tools and start unfolding the matrix that is underlying this stock and how it will move across it. Where will we look for a Gravity Center? Mark on the chart your choices then turn the page and we will continue with this adventure of discovery.

84

On the chart below I have chosen the point above the 42 day line and on the Clear Path Trend line. I choose this area because it will allow ample time to project from into the future to set pattern tools for bars to cross over. If we set the GC too far to the left of the chart on past bars it may be harder to use it on new bars that are coming onto the chart to the right. I put a concentric circle pattern on the GC because on a squared chart circles will be round and will be easy to match other circles to. I want to start it on the first day candle and measure the movement across time/price as a spatial circular vector. Because we're working on a squared chart this should be easy.

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This pattern set at the GC is working very well. Candles are moving to the shells boundaries. So if this one works what would be the next logical thing to try?

85

Let's put the opposing point on the mirrored Trendline at 42 days and $49. We' ll set another concentric circle with the same dimensions and pattern.

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.Jun

Chart7.10

This one fits just as well as the first; of course we sort of suspected that, because everything else is matching on this chart. Let's add some more tools and see how they show us more. I'm going to take some of the tools off so it doesn't get so cluttered. If you want to choose your next tool before we go on now is the time to do it. See you on the next page.

86

I'm going to add an Andrews Pitchfork to the initial impulse candle. It's a 14 dollar candle so it's in line with our 7 vibration and should work. As you are looking at it, watch your thoughts and see what comes up as the next logical tool. This chart has a pattern of balance and mirrOling along the holizontal axis with the 14 dollar channel.

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~=================================== ~=-=-==============~

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This chart has a lot of white space on it so far, you might want to take advantage of it and draw some of your ideas before it gets filled up with mine. There are lots of tools and patterns to try and only you can say what you want. Be my guest, this chart and book are for your use, and so sign in your name and ideas here, you'll be glad later on when you come back and remember what you are learning and where you' ve been and where you are now.

87

Here is the Mirrored Fork from the original one we put on. It fits the bars pretty well but you may ask why would we want to put this Fork running the wrong way from the trend? The Trend may reverse and go back down into the fork but it doesn't really look likethat is a big possibility. Why would we put it on? Think about it as you study the chart and see if anything comes to you?

The )firror fork

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How you doing? Write down your ideas, and then go on. My ideas may be new but yours are much more valuable to you. Find them and see what I am talking about. Tum the page when you are ready.

88

Here is the same chart but I have duplicated the Mirrored Fork with a Parallel Drawing Object Tool. Just click on the Fork and drag the duplicate up onto the top of the original. We are just extending the walls ofthe Fork outward at the same ratio we drew it at.

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The bars are responding really well to the added Forks. This angle is part of the matrix underneath the chart and the bars work across it in a mathematical precision we wouldn't know about without the help of these lines and patterns. Let's go back and look at the fust chart we started with. Chart 7.1 on page 77 and now see what you see. If you made drawings or marks on it, look at those and see what you may want to add now. You have come a long way in just a short time and now you see Visa a little differently. If you want to do it again now, I'll put a clear chart on the next page and now take advantage of your learning and see what else you can see.

89

Here is the Original Chart, just like we will pull up every new chart we want to look at. It won't have any lines or patterns on it, you will have to put them on. If you don't learn how, you won't have any way of seeing where it is going. If you become proficient in finding these underlying patterns, "Your Way", you'll see a whole new world open up to you. You will have an advantage, because most traders don't want to do it, they want someone or something else to show them. We can only see what we know. Ifwe only know what everybody else knows, then it is not an advantage, we just have to learn how to pull the trigger faster or be more willing to do something they aren't. That could be more risk! We don't need to risk more to win more,. We need to know more and then it is an effortless activity we love, because we are doing what we do best. Not what someone else does best!

Here is the chart ...happy hunting ....

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90

How did you do? I'm going to put up another chart and just show the Clear Path Trend Lines from the two GC points. You have probably already found many more and perhaps more Gravity Centers and ... well there is an unlimited amount of information we can find and use. Just hang onto to what you can find easily and what works for you. That is what you're looking for.

Here are some more ideas, if they work, great...ifyou don't want them ... that's great too!!!!

~ Y_SlK_SMART (Daily Calendar) [Y _STK_SMARTJ [FlATJ VlS.e.. "rst t,ad" dille: 3·19·2008

Clear Path Trl'udlines from fbe "'0 GC points

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Chart 7.15

Think about putting back the tools we have been playing with here and how they can be used to project patterns into the future and how I can come to trust them so I will want to trade from them?

91

Here is a chart with all the stuff on it we have been playing with. What do you think? Not really a lot is it!!! Because we looked at it one part at a time and now we understand it. Visa has started its life on the chart and will travel across it. We know how it responds so far and should continue to do so. So we will learn more, but even right now we know a lot, perhaps a lot more than most traders who look at their charts and watch the same bars going up and down and across from left to right.

.Jun

Apr

Cbart 7.16

(If this is too much on a chart, take it off... You need to use what works for you, and "too much" doesn't work!!!) It's a nice feeling to know where we are going when we start a journey. Since we are trading markets we are going to be following them and where they go. Knowing a few of the places they are likely to stop at is a big advantage when we are competing with others who want to know too.

92

It's a few weeks later and I wasn't going to say any more about this chart, but as it unfolded and showed us where it was going, it brought up a point we need to cover. I will show you the same chart 2 and Y2 weeks later with just the concentric circles at the GC points. Look at it and decide what you would do before going on.

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As you looked at Chart 7.17 I'm sure you noticed that price made it up to the top circle and bounced back down. It is resonating very well with this pattern. Did you draw any new clear path trendlines from the two GC points? If you did, you noticed that the lower point is in a good position to draw many trendlines as price moves to the right, but the top point is not in a position to draw many trendlines because price moved too close to the point with a couple of bars and this limits most of the vector angles we would like to draw into the future. Notice on the same chart below the clear path trend lines drawn in and the area where they can't be drawn into the future from the top GC point. .

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It would be nice if we could have two sets of Clear Path Trend lines working to the right if we could. Can you fmd another one at the top?

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Here is another point above the top GC that looks like it might work. There are a lot of interesting things happening at this point too. What can you find?

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After you have spent all the time you want with this chart, go to the next page and see what I have done and then add to that if you want.

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Here is the chart with some more Clear Path Trend Lines. Also note that the distance up from the original GC point is $3.50 or Yz of7.00 this is the half harmonic of our base vibration and as we go up we see that it is also in sync. Does this give you more ideas?

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Also look at the vertex points of our underlying pattern or multiples of the geometric patterns and not just the harmonics of 7. The above new point is on the arc of the original concentric circle from the high of the very first bar. There are other arcs and intersections of arcs and multiples of arcs, etc. All these are worth looking at and will give us either more information or not, but we need to look. The reason I added these charts from 2 Y2 weeks later is to remind us that we can't get too focused on just one way. We need to remain flexible and keep looking for what will give us what we are looking for. This chart will continue to unfold and we need to follow it, not just what we thought we originally saw.

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Now here's an additional key to using GC's and their hannonics. Remember a chart is always balanced and it will have a perfect mathematical relationship to what is going on. It is just being willing to look for the points that will provide us with some vantage point to project into the future and use it as a probability to forecast from. Clear Path Trend Lines are great tools because if there is indeed a clear path then we know the bar will not penetrate the line and we can assume it will either stay above or below it. That provides an excellent place to enter and have a very close stop. Creating a trading system using CPTL's can be a very effective way to reduce risk when we enter (which is the riskiest and most critical phase of trading). Here is the same chart a few weeks later and I am going to add the quarter and half hannonics between the GC's. It may appear a little cluttered until you spend some time and see what is happening. Take some time and follow each line and prove to yourself that this is really working and can be a productive tool for forecasting. On the chart below add some Clear Path Trend Lines and see what you find. f.H V_STK_SMART (Daily Calendar) [V_S"TK_SMARl] [flAl] !

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Now we will draw in the upper harmonics with CPTL's projected from the upper portion of the chart. Our present chart is out of space on the top and that is where the current bars are being made. It is good to enlarge our free chart space around where the current bar is working. So I will shift the chart to a lower place on the screen and give us some more room at the top to expand our harmonic ratios.

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Here is the chart a few days later with the next set of higher harmonics and notice how the bar for today was trapped between the CPTL' s. This move was over $4+ and is easy to trade because these trendlines have a very high probability of the bars not penetrating them. When price hits the CPTL it will stop or reverse, it won't continue. If one is in a trade, this is a great exit point, if not in the trade yet, it is a low risk entry with a close stop on the other side of the CPTL.

99

Now we come to this chart a few days later. The bar for today moved through a range of high to low, exactly between the CPTL's. When the bar opened in this wedge formation, it is easy to trade when we believe in our CPTL's. Even if price breaks through the CPTL we still have an easily managed trade because we can be out of it with a profit stop or a protective stop on the other side if we have reversed our trade. What else do you see?

Chart 7.24

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Chapter 8

Action vs. Alignment

It is not enough to be busy.

So are the ants.

The question is:

-wJzat are we busy about?

Henry David Thoreau

I am going to talk about a key to success that we seldom hear about. In fact we've heard a lot more about this thing that I am suggesting takes a backseat to what "is" the key. We are going to talk about action and alignment and most of our source for success is or has been channeled through action. What we "do" determines what we get is usually the mantra oftoday's formula for getting what we want. The action we do is an external experience and the alignment is something different. Alignment is the internal aspect of getting what we want. We could say that another word for getting what we want is creation. We create what we want. This chapter is a direct offshoot of the Law of Vibration book. If you have read it, you will have a better understanding of what I am talking about. If you haven't, then keep an open mind and see where it takes you. You can always go back to where you were if you find you don't like the new place you are trying out. Be willing to change and you give yourself an expansive experience to live in. Keep yourself contained to the familiar and safety ofthe old way and you limit what you get to do and be. In the past I would venture to say that 99% of how we pictured accomplishing something or creating something would fit into the realm of action. Like Nike's slogan "Just do it". The "DO IT", theme is one we have heard over and over since we were a small child. We were not told to go off and sit somewhere and day dream; we

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were told to get to work and make it happen. We probably didn't know at the time what we were supposed to be "doing" though. But over time we figured out that we better be doing what every one else was doing so we'd fit in and be like everyone else. We figured this out because we wanted to be ok. We lost the idea that we are unique and are much better prepared to do what we are built to do, whatever it is. We don't tit in a square hole if we are a round peg. But if everyone is fitting in the square hole and we go out around all these people, it feels a little lonely to be all by our self. But we didn't notice that a lot of these people fitting in square holes were really round pegs and they were having an uncomfortable time in there square holes. The few that did what felt good to them, that was different than the norm, were labeled as radicals or weird or something that the square peg people thought up to sustain their comfort. Little did we recognize that no one here is going to take care of us except our self. Everyone else has to take care of them because only they know what they want and only we know what we want. It is our job to do our life, and when we do, we can be an example to others, but not to do it for them. They do that. We do us. So what does all this have to do with Action and Alignment, external and internal? If we grew up learning that the way to be happy was to do what the "normal" person does, then we were misguided, we were shown a path that wasn't our own, we were lead to a path that went a different direction than our natural peace and joy would have been. Is it time to take a look and see if any of us want to make a correction in our course, to make a change? The path we were all encouraged to go down was the external path, the action path, the one based in the present moment. This is fine and a wonderful path. We've done it a long time and it has served many of us really well. The only question to answer is-­ do I want something else, do I want more? If you say yes, you want more; then one option is to investigate the internal. Instead of relying on action with what is already existing, the present; we start looking at creating with what isn't present, with the so called future. The present moment is already done, it can't be changed; it already is what it is and passes immediately into the past, because that is what it is now. A "has been", a thing without possibility of change, it is done. The thing that still has possibility for change, for something new to come from it is the future. It has what we call life. The past is what we call dead. Where do you want to create from? Taking the old and reshaping that lifeless form into something or taking the energy of the life force and creating newness. The internal is going down the path of creating with all possibility, not the limited resources we fmd in our present moment or our past. Our internal is this unlimited 102

possibility and awaits only our agreement to venture into it and play. The external is and has been a tunnel we have been walking through in life, limited to what we have been around. Our local area is our only source of resources because we require the real stuff, the hard stuff we can hold in our hand so to speak, the stuff that is in the present moment around us and close enough that we can grasp it. The internal is a world without limit. It offers anything and everything and we have the opportunity, always at hand, to easily grasp it. That is if we are aware of it, if we know what it is and how to get it. This internal stuff is energy not stuck in a pattern, not hard and frozen to its cyclic nature, but available to align with a new one. This internal is what the external is made from. It is energy in its pure moving form, awaiting a creator to offer a pattern for it to join, and dance with in a cosmic ballet of unlimited perfection. It is our creative matrix joining with our desire, our intent to give our unique gift to the present moment and let it move into the everlasting past. A part of our self we were willing to live and share with all. It's the dance of life to its fullest and it is our heritage we leave for the past to record and hold. Aligning energy is how this Universe is able to present itself as space/time and form. Cyclic energy patterns are what we are experiencing here. This is one of the reasons for our interest in forecasting and looking at these patterns in a market, that we may fmd the rest of our story. Who we are and what we are doing is a side effect we gather from our trading adventure - if we want to look .. We can realize again a part of our internal nature that is very powerful and creative. It brings to us all possibility. It allows that which we truly desire to come. We get to experience our round peg in the round hole. We get to have what we want, when we want it and as often as we want it. (This is quite a silly thought to the external way of thinking). Let's talk about alignment vs. action. Action is what we do, with what we have to do it with. It's hard to take action - like row the boat out to the island - if we don't have a boat, or if the water is rough, or foggy or a million other things that could be in the external environment that is not in alignment with what we want; --- to row the boat to the island, or to trade and make money, or to ???? I'm going to say something and I want you to think about it before you read on. YOU just get this one chance, so take it. Think about this:

Action cannot compensate for misaligned energy.

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If yo are goig on with ut stoiping and yur reding ths, yuu ar nt givn yurslfwht yuu relly want ar yi , itss lik reding somtihg that is't quit rit, butt gu ahed and doit unttl yu ar wilngto du somthg dreff ernt »>ok, go back and read it again and think about it--- you aren't done yet-give yourself more, give yourself all of you, even that which you hesitate with, especially with what you hesitate with, thank you, thank you, thank ...you, thank ''you'', gently go to the rest of you» » > The reason 10 people can take a proven trading system, trade the system by the rules and at the end of a period of time there will be 10 different results. Some will lose, some break even and some win. It isn't just the proven trading system that wins or loses; it is the system and the person that together create the result. It makes sense that if someone is running in the wrong direction, it doesn't matter how they run (fast, slow, zigzag, straight, with one eye open or two) they are going in the wrong direction and the action will not compensate for the misaligned direction. The action and alignment must match or one will not get to where they want to go.

There is an old saying that 2000 sheep jumping off a cliff doesn't make it right. What matters is that I decide what I want, and if it isn't falling off a cliff, then I better not follow the 2000 (the crowd). I better follow myself and know where I want to go. In all the other Secret's Books I have said over and over again, do you know what you want? It isn't a rhetorical question, it demands an answer and without one, you are like a feather in the wind, blown around at the whim of external events. If you really want to take control of your life and give your self what you want, then it is time to clarifY your intended path. Again I will say, now is the time to stop and look closely at your plan for the future. Do you have one? Is it "extraordinarily" clear to you and are you consciously moving toward it? Do you know where you are and where you will be tomorrow, next week and next year? If you do, then read on. If you don't, stop and get it. To keep moving in an uncharted path is to set sail in a boat without a rudder. You are very unlikely to be able to steer your way to a port of call. Especially when the weather gets rough, you are at the mercy of the storm and though we can call it exciting, we usually call it "not ok". Going over the cliff with the 2000 isn't ok! It takes only a few moments to decide and be sure where we are going, but we can wander aimlessly for a life time when we haven't made up our mind clearly. Take the time now, even if you see your path. Revisit it and see it again. Write it down if that seems helpful, but do it. Give yourself a way to steer through the currents oflife, through your trading world, through your personal and public actions, all ofthem. Align your actions and the outcome is certain.

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Ok, we are bouncing up and down here, what is all the bouncing about, where is it taking us? Action without aligrnnent is what the Borg would say to Jean-Luc Picard except they called action - resistance. It is FUTILE, in vain, it just doesn't work. This Universe requires aligrnnent, it requires perfect balance and harmony between parts and until that happens nothing getsto show up here, it must match, it must agree with the rules, the laws. So to create with just action, to go out and build a house without aligning it with current laws; laws like gravity, nature, local goverrnnents, etc; the house may not tum out very well or last long. Aligning our action with proven ways of building and getting approval will result in a house we want. To just go and "do it", may have us trying to build the roof fIrst, or the underground plumbing later and we would probably be creating a lot more action to correct that action and make it right. Having a plan, a blueprint drawn up of what we want, is an aligning technique that helps focus the action to get it done. This is also helpful in trading. When we align our entry, exit, stops and money management with proven methods we generally accomplish more with our action than when we haphazardly jump in and out without any aligrnnent to what is. We can dig a ditch with a shovel all day, day after a day and never get water to run down it to bring us water if we haven't dug the ditch in the right direction. We need to dig toward the water and make sure there is a declining slope to let it run down. It won't run up, it won't run in the wrong direction and get there. It must obey nature's law. These examples are fairly easy to see and we all agree with them. Whether we do them or not is up to us. But there is a more basic internal creation law of aligning thoughts in our mind that may not be so easily seen. Because we are using our mind to see with and it is biased and sometimes stuck in a familiar pattern that isn't the one we want to see. Aligrnnent in the mind is the basis of whether we are successful at bringing to our experience what we want or to bring in frustration and confusion. Without clarity we won't get the house we want, we won't get across the lake to the island; we won't be profItable in trading. Aligrnnent in the internal creative matrix, within us is found in the core belief structures we are utilizing and the new desire energy pattern we want to bring in to our experience. Without repeating everything that is written in the Law of Vibration again, let's just say that this is the key to it all. When we understand this natural aligrnnent of energy and vibrational patterns, we unlock the door to our creative nature. We open the way to realize what we want and the action needed to get it is determined by us, not the square peg people, or anyone else. It is each of us that draw the blueprint in aligrnnent

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with our core beliefs and they come into our experience naturally. They cannot be kept from coming unless we change our alignment, we change our mind. With this said, I would encourage all of us to take another look at what we are doing with action and alignment. Action can be a great distraction from looking at what is and isn't working. Stop and look, then change what needs to be changed. Clarify and draw the blueprint to align the action and see what happens then. Find the way to rearrange old core beliefs that are not supporting your new desires. Until we do, nothing will change. When we do, everything will change!

Let the future tell the truth

And evaluate each one

According to his work and accomplishments

The present is theirs

The future

For which I have really worked

Is mine

Nikola Tesla

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Chapter 9

Secret of the Key Note

There is geometnj

In the humming of the strings

There is music

In the spacing of the spheres

Pythagoras

Before we begin, I want to encourage each of us to keep an open mind because this chapter is going to be somewhat esoteric. It is going to be written in a way that can lead to many interpretations. TIlls can be good or bad, depending on where each of us goes with it. We could find a great new discovery that moves us to a place of sublime interest or we could get confused and lost in a tangled web of disjointed ideas. We don't want to get lost, so relax a little and remember we don't have to understand or believe any of this if we don't want to. We always have our "familiar" to come back to, but we are reading this book to find more. To find some newness, so we must move a little into the unknown and see if it is what feels good to us. The more we stay in the new stuff, the more it becomes familiar. So take all the time you want to find what that new is and let the change be a pleasant movement. What makes one animal do one thing and another does just the opposite? Why does a predator seek out a prey and a prey runs away from the predator? Of course we say, because that is what they do. Yes, that is what they do, but why? Why is the cow eating grass and the wolf chasing the rabbit? Why is the mouse eating cheese and a

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cat waits outside the mouse hole for dinner? What makes one naturally do one thing and something else do the opposite? The wolf in its natural habitat is strong, aggressive, predatory and territorial. What makes him what he is? We could call it a vibrational signature or a key note if you will. All organic and inorganic entities have a unique vibrational pattern that identifies it from all others. If something has the same vibrational signature it would be the same thing. But everything is unique and so everything has its own signature, its own key note that holds it separately from all other form. All things have unique notes, tones and chords that are held together by a key note, a dominating force that all phenomena adhere to. A directing energy pattern that holds components into a functioning system that allows individualized motion within a greater whole. It makes up the constitution or foundation of this unique thing and hence determines the nature of it. The nature of something is its key note. A key note guarantees the integrity of the object or being. This dominant force governs its vibration and preserves the unique systematic arrangement of its sympathetic oscillations. For us as humans, this key note is the basis for all form from which all our perceived virtual holographic cinematic matter comes, that our physical senses translate into our reality. A vibration is an energy pattern and when this energy pattern aligns with a similar energy pattern it forms a sympathetic resonance. The two join into a new whole and the result is a new pattern that can exist in our little movie house in our mind. The reel is running through the projector properly and we can see the projected light on the screen and it makes sense to us. When the reel of film is not wound on the projector properly and it isn't going in front of the projectors lens at the compatible speed and distance, it isn't in focus for us to . see it. The only way we get to see it is for everything to be in proper order. The law has to be exact or it isn't going to be clear. So when two vibrations are within a compatible range of similarity, then the sympathetic resonance creates a standing wave of a new energy pattern, it sustains its form as long as there is a structure to hold it in resonance. This structure we call the key note. It is the dominate pattern of vibration, it is the stable energy pattern that is present in our space/time frame. It is the basis for holding what we are calling reality or the real world. Most of what we call reality is the physical dimension and forms in here are in sync with physical law. The natural key note of physicality is simple and straight forward. It has been around for a long time and only changes with compatible physical energy patterns interacting with it. In addition to our physical reality, humans have an additional realm to play in. We call it thought, imagination, dreams etc. This other realm is a little more complex in 108

its nature, because it has a set of key notes operating for each individual entity (mind). Nature is one mind so to speak, but humans each do their own thing in their own way. The dominating force within me is channeled differently than the dominating force within you. This channeling of energy or governing of energy patterns is what the key note signifies. It is the individual law orchestrating the action of the person. It is a particular set of vibrational harmonies that are available to form sympathetic links to other vibrational patterns. As a generalization, if we were to label these key notes as numbers; say one person would have a 4 and another person would perhaps be a 7. These are different numbers and have different vibrations. A 4 wouldn't harmonizes or connect to a 5 but it would to an 8 or perhaps a 2. The 7 wouldn't form a sympathetic connection to a 5 or 6 but would to a 14 or 28. When these numbers match up with a harmonic number, they are easily recalled, because they are a part of the harmonic sequence of the original number. But when a number is aligned with a different number that doesn't have a close connection to the original, then it is harder to connect them later, they have no common place where they both meet. 7 and 14 both meet at 14 and 28 but for 7 and 6 to meet, they can only go to 42. They both have to leave a stable position (themselves) and meet in a new unstable one. This doesn't support the new creation. If one stays in its key note then another can move out of its and be sustained by the one that is stable. A key note is stable and will support form in time/space. When 7 and 14 come together, they support each other because 7 is within 14. It is a mutation from 7 to two 7's. So the leap to 28 is just a continuation of this change in form. They are still supported by the stable 7's. When the 6 and 7 try to leap into a new form, neither remain in a stable position and so they have no sustaining pattern within that holds the new creation, the 42. It will resolve back into its parts of 6 and 7. Now over time we know that the 42 did become stable, but for this simple example, it shows the need for a stable key note, a governing force that holds the vibration intact until it can re-member itself. There are many key notes, and they can change and evolve into different and new key notes. What is important to know, is that it is the key note that must be present and compatible with a new energy pattern for a new one to show up in our experience, or in the broader Universe for that matter. Being aware of what the key note is makes it much easier to create within the mental dimension of our experience. We need to match the "dominate key note" to our new desires we want to bring into our experience. How we match the key note to the new desire will determine if it is going to manifest. Our key note on a mental level is our core internal belief system. It is thoughts we are holding in our mind that we are calling true, that we totally believe in. Doubt is not 109

apart of a key note or core belief system. The saying that "faith can move mountains" is a good example of aligning a key note with a desire. When one believes (has a core belief that mountains can be moved and then has a desire to move a mountain, the natural law of alignment of energies or vibrations will produce an outcome of vibrational patterns that create a mountain being moved. It is like a perception in the mind is in alignment with a stable structure. The movie

projector is feeding the film properly in front of the lens and the picture is being shown on the screen for the person to see, to experience. It is the same as adding 2 and 2 and getting 4. It is going to happen because it is being created from an established position in reality and the new vibrational pattern fits the established one. It connects and forms a lasting new form and it remains in time/space as long as the pattern is stable and being supported by a key note. You can transfer this process to a trading experience. What is the key note that supports a successful trading experience? This key note, this inherent nature of a trader and the present mental state of mind, or set of core beliefs are what any desire must connect to. If this key note is compatible to the desire it will create. If this key note is not a match, there is no way the trading experience can become the manifested desire. Either the desire must change or the underlying key note must move to a new pattern that is compatible with the pattern of the desire. Traders come in many shapes and sizes. Like animals are very different, from predator to prey, fast to slow, hyper to calm, etc. So are traders very different. So if one was more like a mouse than a cat, he may be a very different trader than if that was all he had to go from. But because one has a mind that can think, he can choose to do something different than just do what the physical nature offers. A mouse isn't going to be able to stand up against a cat unless the mouse has something more than the natural physical attributes of each. The cat will win; it is a fact of life and nature. The cat will win. But if the mouse has another possibility to use, another key note, another governing force to direct desired creations, then the mouse could "think" something different and have a different outcome. But mice don't think and so cats still eat mice. A little man walking into a ring with a very large man will have a hard time defeating the large man physically. The large man has much more physical strength and will defeat the small man. But the small man could go into the ring with a larger mental strength and could use that to defeat the larger man. So it isn't just large men defeating small men on this planet, it is smarter men winning. A trader may have the physical or emotional make up that isn't particularly strong in the trading arena. But that same trader can have a mental strength that allows him to be very successful. Most of us know that physical stature is not a dominate factor in trading, but we have heard that emotional weakness can bring down the best. Like I 110

mentioned before, there are many key notes, but let's take a few minutes and just talk: about three. If we can call one a physical key note, that is the dominate structure you are vibrating to physically. Your physical body will reflect this structure and you are probably a lot like your parents or grandparents. Your physical make up is passed down through your DNA. We have an emotional key note; it is our dominate nature emotionally. How we express our self in certain situations is a reoccurring pattern we have developed from birth. It is different than the physical key note, because it is a learned expression from our past experiences. This emotional key note is very important if we become confused or unclear mentally. Emotions are the reaction of combining a thought with either another thought or a physical experience in the body that is not a match. When we are thinking one thing and experiencing something else the body is not in alignment with the mind and so this dissonance of energy is unbalanced. To balance it, the body will release chemicals (hormones), or it may physically readjust its position. It can jerk or move itself until it finds a compatible position in space/time to be balanced again. This unbalance of energy is felt as fear, worry, anger, frustration, etc. Until it balances it cannot be efficiently working to bring us what we want. We can't trade this way. The third is called a mental key note. Since we humans are the only entity here that uses a mental key note, we have both an opportunity and a disadvantage. We lose our simple animal nature for a more complex conscious nature. We can use the governing power and aspect of mental key note energy to give us what we want, or we can be lost in its powerful influence and be a victim of its misuse. Like holding a powerful wand in our hand that will give us anything we want as long as we know how to wield it. Shake it the wrong way and we accidentally end up in a lot of the stuffwe don't particularly want. It will create, so we must be aware of "how to" create with it. The mental key note energy is as willing to connect with similar vibrational patterns as the other two, but we must be aware of what is internally functioning as our source of power. We must pay attention to what we are thinking and what we believe or we will be shaking a wand that is creating what we don't want. It doesn't mean we need to be "afraid" of what we think; we just need to be "aware" of what we think. Seeing that we are not creating the experience we are wanting is a clue to pay attention to what we are thinking. To look at what we have been thinking, and seeing them as "true", are what we call beliefs. These beliefs are working for or against us. Do these thoughts (beliefs) about trading work in the real world of trading? Are my thoughts of what I want, matching my beliefs of what I know to be true? Truth is merely what I say it is. A person can look at the clouds in the sky and see a dragon and another can look at the same cloud and see a clown. Both are true, but 111

they will work differently in the matching game we are playing in this universe. We must match vibrational energy patterns before they will show up on our movie screen. We won't see what we want to see because the film is not aligning with the projector lens. Our beliefs are not aligning with our key notes, our aligning core beliefs. Gann and many esoteric thinkers of the past have called the key note many things, but for us, it is enough to know that to get music in this wonderful universe, the notes must align harmonically. The key note determines what other notes can be in our music. It is possible to fashion this key note into what we want. It is our job to choose to do it if we want to make the music we are saying we want. We must change to be something more.

If you done it

It ain I t bragging

Walt Whitman

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Chapter 10

Magic and Miracles - the Secret Key

Miracles

Are a re-telling in small letters

Of the '(len) same stan)

INhich is written across

The wlwle world

In letters too large

For some ofus to see

c. S. Lewis

I look forward to this chapter and to see what I will write. I think we all have an attraction to the magic in life. Whatever we are calling magic. It has a fascination and allure that brings us those warm fuzzy feelings of life being really good, magical. To let go and allow this state of being to come into our life is a sign we are in sync with our natural self and the Universe around us. We are aligned in the present energy and moving to the music of the spheres; dancing in tune with all of our self and all of that stuff outside of us. Along with the magic we can enjoy the miracles too. Miracles being those things we are finding to be true, but previously we weren't quite sure. It is the unfolding of newness in all of its forms and our opportunity to play and work with it as we come to call it "ok". It all becomes available to us, to embrace as readily as we do that which we call our familiar. Let's talk a little about these two words and what they can mean in our new path we may be considering. Our new life is ready to change and allow us to have all that we really want, without the effort and hard work we may have been going through in the past to get it. This new life we may be considering, this change to another kind of "me", could be filled with this miracle and magic stuff. How would it look for you?

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How would you like a new you to be? Let's be open for awhile and explore the possibility of adding some of this magical energy into our experience. There are two ways to live

Yau can live As ifnothing is a miracle

You can live As if everything is a miracle

Albert Einstein

First we would have to be clear what it is that we want to add to our life. What is magic to us? What are miracles? Being as specific as possible, right now start thinking of some new stuff you would like to play with. You can work with it too, but if it is effortless like magic is, it would be called "play" I think! Have you decided to do it, to think about it? It's easy to stay in the old external stuff but if we just start in the direction of the internal, it will show up for us perfectly. Any fmID will be the right form and we can move through as quickly or slowly as we want. We can leave it for awhile or come back to it at any time. We can orchestrate our life like a conductor leading a grand symphony. Every instrument will do what we say, and the music we make will be from the alignment with our inner nature and the universe. Sound like fun? Ya, I think so too. I think I want to and now is the best time to do it. In fact it is really the only time to do it. The present moment is the only place we are in time, so if you're saying yes or even just a kinda yes, then let's do it. We can start at any place in our experience but because we are focusing on trading in this book, let's look at where we can bring magic and miracles into our trading experience. First it may be easier to look at where we aren't having a magical experience. Where in our trading adventure do we take a wrong tum and end up in an uncomfortable, unprofitable, undesirable place? I think the key word here is "undesirable" . What are we not desiring, and yet we are getting it. When we are in sync with our internal and creating our experience, we are getting what we desire, we have a desirable experience. But when we notice our life experience, our trading experience or whatever is not desirable, then something is off. Something is out of place in our alignment mechanism of matching internal and external energies into a form we desire. We are literally holding energy patterns in our energy field that forms into what we call an external experience. When we fail to align matching patterns, core beliefs and new desires, the result is a non-creation, a non event. The resultant patterns of dissonant energies are not stable and will not maintain their form in space and time. They dissipate 'fl!c~~1y, but many

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times we feel the residue of the dissonance. It feels uncomfortable, undesirable. It isn't what we wanted. When we align energy patterns of our core beliefs and new desires and they are compatible, they are sympathetic in nature and form a standing vibrational pattern. Then we experience the new desire, the new creation in time and space as new form, as new experience and we call this desirable. It is the magic of creation, but is such a simple and natural process; we may overlook its magical qualities. We may take it for granted and fail to realize how we did it. We may not realize how we can do it again and again with volition. This subtle aligning of energies and vibrational patterns, into a new form or experience, is the key that is hidden from most people, yet they are all doing it without being aware. Awareness of the creative matrix we are experiencing on a daily basis is this key to unlocking our path to self realization, to self actualization. So when our trading experience is not desirable. It is off a little (or a lot). We are just not aware of what we are doing, because we "are" creating it. Weare not a victim of the outside world and its events. We are a victim of not knowing how we create our present moment. We are an innocent result of how we are aligning current vibrational patterns within our conscious and non-conscious creative platform. Until we realize how we are doing it or not doing it, we will continue to have our life unfolding in a mysterious yet often uncomfortable way. The mystery is just our naivety of not knowing what to look at when we veer off course and end up in a place of discomfort or confusion. The mystery if we were to really look at it and understand that what we are creating is coming from our internal creative platform, which is based on our core beliefs we have accumulated over our lifetime. Those patterns with the most energy are the ones we will use to align with our current desires. When the two patterns are close enough; they then create what we want. When they are too far apart, they create a dissonance which is felt as uncomfortable or they create a hybrid of the desire that mayor may not be close to our original one. This mystery can be solved very easily when we know what to look at and how to change what is not working. This is the essence of the internal nature of the Law of Vibration for us humans. Non-thinking entities create with the Law of Vibration without the aligning of the mental constructs of core beliefs and thoughts of desire. These other entities still create but with an alignment of energy patterns within their internal and with the external of the surrounding Universe. It is a natural law that if we pay attention to how it works in us, we can be assured of the cause and effect nature of its outcome.

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We always get what we are aligning with. We always get what we desire when our core belief and the new desire are a similar match in vibrational pattern. It is like magic, when we wish for something (have a new desire) and that wish comes true (it creates in form in our experience). This magic is always here. It can be used at will, when we are familiar with its operation. We become magicians of a sort. We create it.

Now let's go back to our trading experiences and perhaps we have noticed some of them are not what we thought we wanted. We wanted to win, to make money and to have a lot offim doing it. What happened? Well, we lost, we didn't make any money and it is far from fun. So what could have gone wrong? Why didn't we get what we wanted? First we must realize that the new desire must be very clear. Vibrational patterns appear in unique forms and must align with their matching base matrix; to join and to become a new form. (There is an excellent geometrical example of this in chapter 12 of the Secrets of the Law of Vibration.) When our initial picture of what our desire looks like is vague and not clearly defined, the end result will exactly reflect this picture (when it has a compatible forming matrix to build on). So if we start out vaguely and expect a clear creation, we are off course. We can also be off when we don't have a stable platform to build on. If our core beliefs say: "trading is hard, very few traders will make it, the good traders are out to get me, I need more experience to be able to win, I get too afraid when I risk my money, I have been wrong so much in the past it would be very hard for me to win" ....etc. With these core beliefs resting in our consciousness, they will not support what we are wanting. They will not create winning in think I will lose. Nor will I be good enough to trade when I believe others are better and out to get me. These are the vibrational patterns we are using to match our new desire -- to be a good trader and to win and make money. They are not aligning because they are too far a part; in fact they are opposites and will create the maximum dissonance and undesirable result. So either an unclear desire or a non-matching belief system will result in a creation we are not expecting. Like the lone sheep who thought it wasn't the best idea to go off the cliff with the 2000 but because there is such a strong underlying belief of following the herd, he realized he just jumped off the cliff. We can have all the right intentions and desires but without the aligning structure to match it to, it can't be sustained as the vibrational pattern we desire.

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Now this may seem like a formidable task, to change all our non-aligning core beliefs into aligning positive ones that match our new desires. But that wouldn't be how nature works. Nature uses the least complex (simple) and the most efficient means of creating. So remember what you read in the Law of Vibration and focus on clarifying your desires and aligning core beliefs. If you need to re-read it, do it. You will be fighting yourself your whole life until you start following the simple laws of nature and allowing the energies to form and manifest within the laws that they work in. It is unbelievably simple, or it is a maze we are lost in our whole life. I promise that once you find the easy, effortless path to aligning energy and vibrational patterns into your clear desires, you will never choose to go back into the old lost way. Once you learn to trade with clarity and focused intent, you will never go back to your old undesirable ways. You will be the magician, the one who does what others may call miracles, because they don't see yet. You will be leading your personal symphony and you and everyone else can enjoy the beautiful music, for it is your music. I have included in Appendix A of this book some Aligning Core Beliefs. These are examples of the mental constructs (vibrational energy patterns) we use in our creative · process. Because they are mental patterns they are not as easily seen as the physical patterns. We can see a tree or a picture of a house and know what they are and know what we want our creation to be. We can see it clearly and can know when it is formed or when it isn't. When we are using a mental pattern, it is not as easily seen, it is an intangible form not sensed with our physical senses, but residing as a conscious mental possibility. Without this grounded awareness in physical form, it is like a vapor or cloud trying to form in a vacuum; it requires a matrix to align with a stable structure in the environment it is forming in. For a mental construct, this matrix is an established vibrational pattern already in the mental environment. It is a cyclic pattern within the mind ofthe individual, a core belief that is true and held in alignment with other core beliefs. It is like trying to form water into a particular form or shape. Say we want to make water into the shape of a cube. Because water is very fluid and mobile, it moves a lot, it's a little tricky to get water to be in the shape of a cube on a table in front of us. We put the water on the table and it spreads out and runs off onto the floor.

But we all know we can do this, because we have done it before. Do you remember how you did it? You poured the water into an ice cube tray, a square mold, and froze it in the freezer. Then you could put it on the table because it had become stable in the shape of a cube. Everything is like this; energy is poured into a mold, into a pattern, a

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matrix that holds it until it becomes stable for a period oftime. It then can be in space/time as that shape - as that form. This is going to be an abbreviated version of understanding how this works, but just follow along as best you can if you haven't read the Secrets of the Law of Vibration. If you have read it, you may want to review again if this is hard to see. It may take some time and effort to change old concepts that aren't supporting this new one. Just allow it to "be" and it will. This mental creating process is what we as humans get to do. Animals and plants and rocks and all that other stuff do it in a more simple way (pour water into an ice tray and freeze it). We just, as humans, have the added opportunity to mentally fonn patterns that can become established in this space/time stuff a lot quicker than the old way that takes eons to become. Look at what man has done to the earth in the past few millennia, and then compare that to how plants and animals have changed things. It could be called magic if we don't understand how simple it really is, or it isn't even noticed at all and there is no connection to how it is happening. Watch closely how the magician does it and you can do it too. Listen to what I am saying and you will know too. Plants and animals don't think like we do. They live their lives in an environment actuated mode. They are moved to action by outside stimuli or inward instincts, behaviors or habits. The external stimuli would belike a tree falls down on another plant and the other plant now has to grow around the fallen tree. An instinctual movement would be like a leaf turning toward the sun to capture the most direct rays. This movement is the same in all similar kinds of plants, because over millions of years the ones to survive were the strongest and had the most energy. These kinds of behaviors in plants are what make them grow and live in a certain fashion until they die. Animals are quite similar but have more mobility and thus have learned a larger range of instinctual behaviors. The animal will react to external stimuli just like the plant, if a tree falls on the path, the animal will change its course to go around or over the tree. If the animal is hungry it will hunt for food in its usual pattern for hunting. A cow will eat vegetation, a wolf will find a rabbit, and a fish will eat a bug or another fish. This is creation on a repetitive mode basis. Two similar patterns of energy come together. There is a learned or internalized pattern within the species and a new pattern that presents it self. The old pattern is say the need for food, hunger, and so the plant or animal has a system that looks for a similar matching pattern to complete it. In an animal there is a movement toward certain established patterns like a bunch of grass for the cow, a rabbit for the wolf, etc. It's hard wired, in a sense, within the species and it automatically moves the physical body toward the complementary pattern.

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In us humans we have added an interesting step. We've created a process of moving the body and creating another kind of movement (mental) with what we call our mind. We are moving energy within our mind in a similar fashion as we see the movement of energy in a plant or animal. We also react to external stimuli (jerk our finger back from a hot flame), or satisfy our hunger or need for survival mechanisms, but we also add to this an aligning of energy patterns unique to our own mental library. We fashion thoughts to fit with new thoughts within our mind and then hold the matching energy patterns in a creative matrix (our core belief system). When new patterns (our new thoughts or desires) match these creative core beliefs within our mind (a creative platform) and hold these patterns in a cyclic vibrational mold, they become the environment we project into the external matrix. We then live these patterns as a space/time structure of form and movement. When we are creating matching beliefs and desires we are happy. When we are creating dissimilar beliefs and desires we are not happy, we are fearful, confused, angry, frustrated, and all the other negative emotions we can experience. Negative emotions are a result of dissimilar patterns trying to align but they are too dissimilar and become a dissonant form in a standing vibrational energy wave. They dissipate and become a residue of energy we "feel" in our body, an emotion we are experiencing as it reverts back to a neutral energy state. It's like we try to create a positive form by using a positive and negative one, but they will eventually cancel each other out. Where as two similar positive energy patterns will form a sympathetic bond and if one of them is stable in the environment the other will join and become stable too. It will create a new stable form that can exist in time and space as part of our reality. If this is kinda far out, don't worry about it. You don't need to know any of this stuff to use the Law of Vibration, but ifit's interesting then enjoy. What is important is that you allow a change to come into your way of doing things if you want something more or better. Read until you have enough to trust the new way, then go with it and let it be the tool you use to create in harmony, that which you want. Once you understand how this works, you will automatically be able to know when something will create. Ifit doesn't, you will know why and be able to change so it will. Life is absolutely ready to give us anything we want, when we are in alignment with the natural process of creation. The rain will fall out of the sky when the temperature and humidity is exactly right, not before or not after, right at the perfect alignment of what the law says it is. Trading is exactly the same. It has another level of creation in it though; it has the element of thought, where it must be in alignment within our self to happen. It must be harmonious and balanced with an aligning core belief that is stable in our environment and close enough to match a sympathetic belief pattern. 119

We must pay attention to what we want and what we are willing to believe we can have or do. Until we have an alignment within our creative platform, we can't bring into form the desire we are wanting. Even if we had the best trading and forecasting system, a Holy Grail if you will, we can not win with it unless we already have a place within us that will support a "winning" creation. The first step to building a profitable trading experience is to develop a winning platfonn within our self to sustain the external fonn that will come. Expanding your awareness to know that all things are possible including the capacity receive all that the universe offers me. Magic and miracles aren't as mythical as we may have believed. Or maybe they are just that. .. they are what we have believed them to be. It is possible to believe something else, or something more, because we do it all the time. We change our minds about things nearly every day, and some of the beliefs we had in childhood are very silly to us now. We have changed to another belief, a belief that serves us better now. So if the old beliefs about trading aren't working as well as you wish they would. Then change them, go to another beliefthat will support the new desire, your new you, the you that you are willing to become. Take all the time you want, but it really doesn't take much time. The only thing about taking a long time is that we are reluctant to change; to let go of the old familiar constructs that really don't work any more. The ones that work are easy to know, because they are very similar to what we want. The beliefs and desires are close matches, or they don't connect and form a cyclic pattern. They won't sustain the new form without a stable base to anchor to. The Law of Vibration is very easy to understand when we see it working in our life everyday. When we see it is the way nature has made everything we are experiencing in this wonderful Universe. When we "really" desire to have what we want; then we are willing to allow it, and to believe it within a simple structure that is in all of nature. The plants and birds and animals and eventhe smallest microbe or molecule do it the · same way. We as a sentient human being just have a little more to play with and sometimes we get a little lost or confused. It's ok, we can start right now and the universe is always waiting to give it to us. We just have to line up a couple of things so that it can.

Our truest life

Is when we are in dreams awake

Henry David Tlwreau

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Appendix A

Aligning Internal Vibrations

A man is but the product

Gfhis thoughts

What he thinks

He becomes.

Gandhi

This is an opportunity to look inside your personal creative platform. To see what kind of machine you are using to make your life what it is in every moment. To see what you are using to think and know with. These internal vibrations (core beliefs) are what make you unique and different from everyone else. You can't do your life like everyone else does. You must do it like you do it. To be in control and able to direct your life you must know what you are using to do it with. Let's look at our thoughts and see what we can see. Following is a list of core beliefs. Read through the list with a pen in hand and notice which statements cause a reaction with you. If it sounds good and like you would say it and believe it then write a small "ok" at the end ofthe statement. If you feel a negative reaction, then make a small "x" at the end. Read through them all and make appropriate marks as you go. The list is double spaced so there's room to write between the examples. On the ones that you have made a small "x", see if you can re-write it into a form that works for you. Put it into a statement that reflects your truth, your core belief. If you can't find one that resembles it, then write a new one that is your truth, your core belief.

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When you have gone through the list a second time, you should have a complete list that reflects many of your major core beliefs. These are the building blocks for creating the new experiences in your life. In the trading section, make sure to spend ample time, writing what you want to have as a basis for trading. Even if you aren't fully sure that they are working within you yet, write them down as a "what I want" list. These will be the ones you will acquire and start using as your creative platform in your trading experience. Take all the time you need to form this list, and to remember it often. Use more paper if you need, it. The more you use it, the more it becomes your effortless way of creating what you want. These beliefs must match the desires you want. You can't have a belief of "I am a terrible trader" and then want to be a great trader. You must create the base first, the core beliefs, and then you create the new desires. Like the 3 little pigs building their houses to keep the wolf away, if you are building with straw, you're only going to get a straw house. If you build with bricks you're only going to get a brick house. If you are only building a trading experience with core beliefs of success and abundance, then you will only get success and abundance. It is a great law. Use it!

Examples of Aligning Core Beliefs Read each ofthe settlements slowly and think about them. Notice what youfeel as you read them and write an "ok" or "x" at the end ofeach statement. When you have done this, re-read the entire list and write your own statements in you own words. Put this list somewhere where you can refer to it often. Add to it and continue to change what isn't working for you. It is your internal engine that will run you life.

Self

My life is a perfect expression of the Law of Vibration I am an indispensable part ofthe Universe My body is perfect and capable of doing all I desire I know who I am in the big picture I experience the fruits ofthe creative seeds I plant 122

My higher self supports and loves me Every one of my experiences brings me closer to my higher self I anticipate miracles as a natural part of my experience I make a positive difference in the world Wherever I am is always perfect for my life to unfold naturally Life is unfolding perfectly and on my schedule I am whole, complete, connected and absolutely loved by all I am an open channel for creating my desires into reality My inner voice speaks clearly and freely and with ease My higher self works through me; no problem is too big for it to solve I open my heart and mind to receive all my desires I co-create my reality with a willing Universe and higher self I love this universe and my place here My life is an experience filled with magic and miracles I listen confidently to my Inner Voice and act upon what I hear I am the source of my contentment and joy When I trust the laws of nature anything is possible The universe supports and nurtures me

Confidence

I deeply value and accept myself My confidence comes from knowing I am in charge 123

I forgive myself for all negative things I thought I did I unconditionally love myself I love all aspects of my body, mind and soul I know I am creating my experience I totally love and support myself in all things I accept my imperfections as opportunities to learn valuable lessons in my life I do my best and my best is good enough I deserve to be happy I am proud of who I am and what I do I deserve to love others and have them love me I am my best friend and supporter I am compassionate and curious when others disapprove of me I am positive and self-assured I enjoy my uniqueness I love all parts of my physical body I always am willing to change and be more I trust myself I am confident I enjoy my own company I take responsibility for my life I am a champion for my own path I am proud of my results and contented with my successes and failures

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I deserve all the love I want I like myself and I have fun I am a genuine person I deserve all that life has to offer because it is all me

Person~l

Power

I make good decisions I trust the Law of Vibration and all of Natures Laws I accept my desire to make a positive difference in my life and in the world I am excited for my personal dreams and ambitions I have magical gifts I use in my life I give my gifts to all who desire them I am willing to take the risks I never run out of my gifts, they are an unlimited supply I am proactive in creating my life the way I want it I am a clear channel for inspiration to come to me I am committed to manifesting my life purpose I recognize my potential I proceed confidently with my life I express power in everything I do I accept what I create in my life as it takes form in definite, concrete experiences I allow my visions and dreams to happen

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I am committed to speaking my personal truth with passion It's okay for me to make mistakes; they are telling me what I really want to do I embrace my opportunities with excitement I accept others when they have a different opinion I am committed to my life work I see that my fears lead me to wisdom and power I have all the time I need I live my life openly and honestly I am responsible for myself I give myself permission to do what I love I am assertive in meeting my own needs I accept the timing ofthe universe I use time efficiently and creatively I am ready, willing, and able to be all of me

Physical Health

I care for my physical body in healthy and loving ways

My body heals quickly and naturally

I choose my life to be vibrant and alive with energy

My body is a perfect mirror of my healthy thoughts

I am happy and healthy and free

I am a harmonious balance of mind, body and spirit

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I treat my body like my best friend I accept health as being a natural part of my life I release all unnecessary stress from my body and it is filled with peace and comfort I am calm during my healing process I choose beliefs that sustain and promote perfect health I willingly release all myoId thoughts of dis-ease

Every day I am getting better and better. I see beauty in all of my body I have all the energy I need to accomplish my goals and to fulfill my desires

My body is filled with energy I am healthy in my mind and body I love and allow my body as it is and as it changes I am in control of my mind and my body I enjoy taking care of myself physically. I allow healing energy to flow through me I sleep relaxed and refreshed

Unhappiness and Loss

I let go of the painful past and look forward to the fulfillment of my desires I release my previous expectations when they no longer serve me I know I am guiding myself to my next step I can grieve for what I lost, I know that more will follow

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As I let go I can hold the new that is coming I let go of the past I didn't want and I am free I forgive myself for being angry at myself and others I accept my past shortcomings and see them as positive lessons My painful experiences in life are important knowledge to me now I release all guilt from my past thoughts and actions I face the future confidently, knowing that I am the one making it The death of a person or a relationship is a natural cycle in life I fill my mind with positive, nurturing and healing thoughts I accept myself as I am I accept others as they are I am doing the best I can and I enjoy doing it Everything in my life brings me closer to happiness I trust my future My feelings are an important part of my healing process A new door always stands open before me I can feel the sunshine through the clouds As one door closes I open another one

Relationship

It' s easy for me to receive love from others I express my truth in a relationship

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I am free in a relationship I am worthy of an intimate, passionate relationship. I am a considerate and powerful companion I have the intimate relationship I want in my life now I am willing to risk fully loving and other and being loved I maintain my individuality in my relationships I release relationships when it is time to "let go" It's okay for me to set boundaries in relationships and I do I enjoy the uniqueness of myself and others I allow myself to be vulnerable and sensitive I allow others to have their own experience in a relationship It's okay for my partner to disagree with me I accept that my relationships change I grow and change in a relationship I allow others to be them selves in a relationship I express myself with confidence I have clarity in my relationships I express my true feelings in a relationship I allow myself to learn from others I am able to function independently in a relationship I learn from my past relationships and create even better ones in the future I am clear about what I want in a relationship

I am responsible for my actions in a relationship.

129

It's easy for me to love others

Prosperity and Wealth

I like the feeling I have when I am abundant I allow money to flow into my life effortlessly I am ok with what I have and am ready for more I am calm and confident when I have money I am calm and confident when I do not have money I am worth the money I receive It is okay for me to want money and I do want it Money is my close friend, we like each other I feel relaxed and confident when I ask for money I receive and accept money with love and gratitude It is okay to have more money than I need I enjoy making lots of money I love the feeling of having a lot of money I enjoy being creative with money It is safe, fun and easy to make lots of money Money is a magnificent tool that I use to create with I am comfortable with my success There is plenty of money for everyone I can make all the money I want by doing the job I love 130

---------------------

--

-

I take time off to relax and take care of myself I enjoy my results and deserve my rewards I deserve to have all the money I need I like earning and spending money I trust myself to manage money efficiently It's okay for me to have more money than others It's ok to make mistakes with money because I learn from it I Know Who I am around all kinds of people The universe provides whatever I want and need

Trading

I am clear and focused when I trade I put aside distractions and clearly pay attention to my plan I stick with my trading plan diligently and it pays me well I feel eager and alive to start my trading day I trade when it makes me happy, not when I have to My trading day is full of wonderful surprises I get to play with Nothing can go wrong because I am creating it I can change anything I want I am aware of my energy level and how to match it to a market I am in sync with the markets I trade and know what is happening right now I easily see when I need to get out of a losing trade 131

I willingly get out of a trade going the wrong way I willingly stay in a trade going my way I can see which way a trend is going and trade that way I enjoying seeing my account get larger and larger I feel very relaxed when I enter a trade because I can always get out if I want I am relaxed and happy to take a profit I am relaxed and happy to take a loss because it is all part of the game I breathe in and out just like the market goes up and down, all is well When I feel upset or out of sorts I don't trade as a distraction I trade because it makes me happy and a lot of money I am not competing against other traders; I am trading with the flow of the market I can share my trading experience with others because they have their own There is plenty of money for me to be successful I can trade a time frame that fits my personality, not someone else's Life is so free now that I trade successfully I am willing to be a successful trader right now

(It 's a good time to write your own too ....)

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Appendix B

A man may fulfill the object ofhis existence

By asking a question he cannot answer

And attempting a task he cannot achieve

Oliver Wendell Holmes

In this Appendix B, I am including some past posts to the wave59 forum, in the event they become inaccessible in the future. They can be preserved here in the book for future reference or study. Each topic lends itself to further investigation if you so choose and the outcome will be your individual discoveries. Prepare your self to be willing to see more than is just here on the pages of this book. Allow your mind to welcome the rest of the story you want to see and use in your trading experience. There are unlimited possibilities when we allow them to show up. So don't find fault or something wrong with things, look for more and it will certainly show up. (A.)

Astro Triggers on the SPX

Here is a chart of the SPX showing 4 days worth of bars. I am identifying astrological occurrences that happen at or very near key changes in trend in the market. The Ascendant and Moon are very quick moving points on the zodiac and can be used as triggers to enter or exit a trade. Study what is happening here and then decide if it is something you may be interested in. Be sure to thoroughly test whatever you decide to use in trading. I have also included some astro geometry on the zodiac to show some of the patterns that are showing up at these same trigger times. We can look at numbers to show us where a market is going or we can look at patterns like geometric shapes or symmetrical patterns to signal important points in the time and price.

Here is the chart: It is a key to work from to go into other tools to see more and to add tools and indicators to enhance the picture you are seeing. Let this be only a beginning and much more will show up.

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On this chart are symmetrical geometric patterns of the antiscia points of the Pluto opposition to Mars and AC conjunction. This is a somewhat involved pattern but worth knowing about if it is triggering a price move in the market you are watching. Start off simple and be sure you know what you are doing before moving into something that is complicated and may confuse you. Don't play with tools you haven't mastered yet, they will cause you much more harm than they will help. Each simple step adds a strong foundation to build more on. Starting off in the unknown makes it hard to keep your balance when things get exciting. Be stable in the platform you're working from.

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Cycles

Post: There are many ways to talk about cycles, and what I say doesn't have to be the direction we follow. What you think and what you want to find is what is important. Cycles (circles) are things that go around and come back again, they repeat, recur, happen again, persist, and stay around for another time. Vibrationally, cycles are the things that allow form to remain in space-time. On a chart, cycles are the geometrical or numerical pattern we look for to predict what will happen again. There seems to be an unlimited number of cycles, they are in every time, form and possibility. The important thing to consider when looldng for one in a chart is to pay attention to how we do it. Are we looking for something unknown or something familiar? When I look at a chart, I can have several agendas going on in my head. Unless I know what I'm doing, I can become confused and lost very easily. If! am looldng for something I have seen before, I know what to look for and if I have seen it in this market or in this time frame, I can know it is here somewhere and all I have to do is look. If I am looldng for something new, I may not have the clarity to see it or the basis within to support it. I then venture into an unknown. I'm lost until I find it. Looking at a chart and not knowing what I want to find is a sure way to frustrate myself and when I am experiencing the feelings offrustration, I am not clear, I can't see past the haze of frustration. So I must relax and look again, and this time for something that is easier to see. Once I see something then the next something comes into view and the next and so on. Soon the chart blossoms into an array of sublime patterns. They are always there, they are only waiting for my undivided attention to focus on them and they spring into view. (Specific questions have specific answers so focus on something and you will see something ... ).

Question/rom Forum member: ...Cycles are circles, never thought of it that way. But it makes sense, especially in a chart pattern. How is it then that some of the patterns are linear like a trend line and some curved - vortex, concentric circles, etc? Is there more to know here? It seems there is more we could know about the

137

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relationship of curve to linear patterns? The Vortex has both and they both work to price bar action. How can a cycle be linear?

Answer: ........ I like your question of how can a cycle be linear? I guess we all have our own answers but what comes to me is - that in a linear back and forth motion, like we equate to vibrations in many things, we assume a forward motion comes to a stop and reverses, goes in the other direction and stops and returns, over and over and we would call this linear. I have some questions if this really is what is happening in this constantly moving Universe we are in. When something is moving and comes to a place where it stops and starts moving in the other direction, there is a mathematical problem here (and most of it has to do with how we consider the number zero). If the motion is from A to B then we could assume it reaches the halfway mark, then the halfway mark of the remaining one half and so on to infinity. We can halve the distance to "some point", an infinite number of times and so we never can reach it. We are always only half way there. So our concept of zero is not really the same kind of number as all the other ones we use, because we can never really get to it, unless everything stops, and we never know that. So a linear motion from A to B seems to go into a Void (zero place) and then returns and we really don't know how it does it, unless we imagine it may go into this dark hole thing and curve around somehow and come out where it went in. But we don't play with black holes much yet, so we have a hard time understanding how a linear vector can ever return to where it started (shoot an arrow in a straight line?), unless it somehow follows a curvilinear path at some place in its journey. See, this is like a stereogram of a picture of a train. (Stereograms are computer generated pictures with hidden images in the design and when we relax our conscious vision enough we can see the image, it sticks out like 3D). We get too caught up and lost in the possibilities and unlimited thoughts of how it can be. So maybe we just relax again and come back to something we do know. Here are a few charts of the DOW with some cycles (circles). I'll use a circle that is the size of one day on the chart, so the diameter of the circle is one day of time. I'll add a half day circle in the middle and a 2 day circle (2 day diameter) around the outside. Then I will set the one day circle to fit the most price bars into this circle or the most logical fit for the price bars to go into the circle. (I think you'll quickly notice that this isn't as hard as one might think.

138

You can set the circles to fit from the beginning of the day to the end, or you can set them from mid day to mid day, or any harmonic ratio that is in sync with the pattern. If you are interested, take some time and play with this exercise of fitting natural cycles, because you can add more diameters or outer circles and project responsive lines into the future to monitor how the price bars respect them. You have to be sure you have squared the chart, so time and price can fit into a circle (not into an ellipse).

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1

Squares and Square Charts

The following charts show 2 sets of squared charts, 4 min and 8 min. A square pattern is identified in both and a Fib Vortex is placed to show the relationship of the tools on both chalis. It is a harmonic that shows up in repeating ratios and tools reflect it. Even though the time frame is different the bars are in sync with the patterns. The first two are 4 min and the second two are 8 min charts.

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(D.) Charts Post: I am going to put up a current US Bonds daily chart and go through several steps to show some of the underlying structure that this market follows. I will post a chart here and let anyone who wants to do their own discovery play with the chart, and then I'll post some additional charts. Everyone is welcome to post their findings ....

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Ok let's dig in and see what is underneath these candles ... Ifwe can find what the market is moving on, we can understand where it can move to easily and where it may be more difficult to move to.

144

Here is the chart with two impulses identified, AB and CD. They are very similar and suggest a repeating pattern of some sort. Forecasting is usually done by finding repeating patterns so let's see what we can uncover here. I repeat this next statement many times in my books: "Before you go on to the next chart, see what you see, because after you have seen what I (or John or anyone else) have posted, you will see things now with a bias, and what you are looking for is what and how you see, not how someone else does. So if you choose to accept, go back to the first chart with just candles and look again, pay attention to how you do it and what you see." Then look at. ... this one below, then form an idea of what you think before going on. The purpose here is to fmd how to fish not to find a fish (a fish will get old and rot and soon we throw it out, our way to fish stays around and serves us).

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Here is the next set of charts with 2 concentric circles added.

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Next let's see what adding an Andrews Fork would look like ....

Then before going on~ you may want to decide where more forks could fit?

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Here are two more forks added from the ends of the impulse AB to the secondary impulse EF These two forks are support and resistance for secondary impulse GH There are more if you want to experiment a little.

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149

(E.)

Plato's alJegory of the cave

Throughout this book and the others I have written, I have encouraged you the reader to change. To do something new and move into a better place if that is something you would desire. I have been saying this because it is what I want, it is what I see and want to tell others. I want to share it if anyone is interested. Plato wrote many things he wanted to share many years ago. I want to pass one of his along to you (and me). Consider Plato's allegory of the cave. All these people are sitting in a cave and they have been in it so long and watching these shadows on the wall they aren't aware of anything else in their reality. Then one guy gets brave enough to turn around and look the other way and he sees a light. It is so bright that it takes awhile for him to adjust to the light, but eventually he sees it is an entrance to the cave he is in and he walks outside. He sees all these people walking by and they are the cause of the shadows on the wall inside. He notices all this wonderful experience outside the cave and goes back in to tell everyone. You would think everyone would be so happy to know what he found but instead they want to kill him. They are not willing to leave what they think is their place in life and to see the possibility of what else is really going on. How often in history have seers been killed by the unknowing masses? Is it time to tum around and see what else is possible? Is it time to let go of our shadows and see something light and fresh and full of life and joy? Do I dare let go and trust that the walk to the opening of the next moment is revealing the light of truth. It's not just staying in myoId ways and being shrouded in the darkness of my past beliefs. Is trading an activity of watching shadows on the screen and I am unaware I can tum around and see the light and what is really happening, not just shadows? Underneath the tirade ofthe ego whispers another possibility, can it be seen and heard? Can I walk into the brightness of my fear and the unknown until it becomes my known, my world of beauty and light, abundance and joy; full of all my imaginings and dreams coming true. My experience in my life unfolding the way I want it to.

150

L

Epilogue

Nay, be a Columbus

To w1wle new continents

And worlds within you

Opening new channels

Not of trade

But of tlwught

HennJ David Thoreau

We are at the end of the book, but it is only the beginning of what we do next. This book is like many things in our life. We experience something new and add to our collection of information and knowledge. What we have read is a possibility and can be visited again or once is enough and we never return. What we do will have an effect on our life, everything we do has an effect. The effect can be a continuation of what we are safe with, satisfied with, familiar with and so change is not great. Sometimes we decide to really do something and we open to allowing more of our self to show up. We expand and experience more of life in a new me. Now that we are through the book and can look back. What is interesting to us? What do we want more of, or less of? What is our desire in this moment that will carry into our future to determine what that will be? This is a never ending question we will be asking the rest of our life. What do I want to do now? What am I willing to change? When will I say yes and do it? I can tell you what I would do but that is not what you want. You must come to the place where you are willing to be quiet for a moment and decide what is for you, the new you. You started this book with an intention to gain something from it. Did you know what you wanted to gain? If you didn 't, then you probably don't know if you got it. You must know your desire prior to trying to get it. That is why it so important to know what you truly want, because until you know you can't get it. You won't know when you do get it.

We talked about the internal and external. They are always present, do we recognize them? Do we know what we want? Some of the book is external oriented and has a tangible cause and effect experience in our life. Trading from an external perspective is a way used by most traders and for some it is very profitable and enjoyable. For the majority it probably isn't. Without knowing how to interact in this external realm without enough knowing, can be a frustrating and uncomfortable experience. It is possible to take the time and effort and learn enough to interact in the external world of trading and be successful. You must focus on what is already there (or what has been there because it passes quickly into the past). With this perspective it is easy to become bogged down with all the minutia because it is a very vast arena we are playing in. When we are focused internally, then we narrow down what we are playing with and our path to what we want is only dealing with what we say. The external path is dealing with what the external is presenting and this entails the vast sea of past creation. We must deal in that sea to fmd away of navigating to the place we desire and most don't have the skill to know how to do it. We sometimes float around in the many winds and currents of this external trying to fmd our way. But the external presents us with it's way not ours. The internal presents us with what we want it to, we get to say what it is we are going to do and with what we want to do it. We choose the when and where; the what and how and they all fit into our natural time line and are in sync with our innate abilities. Abilities we already possess and know how to use. It is the natural way to create what we want as opposed to a way we have to figure out and then acquire enough skill to do it. Are you ready for magic in your life? Many are afraid of magic because they know nothing about it. It is a mystery and because it is unknown it is somehow feared. A fear that is not something we can really be sure of, but we give it space and make it real so we won't change. Fear keeps us from changing, yet change is what makes life worth while. Life without movement and newness would be death. We must keep moving to remain alive, and we must find more than the old safe path to realize a growing zest and desire for life~ The old will slowly fade away and it must be replaced by new. This change we may fear is what we really want in life. We can learn to trust and embrace more of us by being willing to move into that change. The trading we have been doing in the past may not be all that we want. It probably isn't or you wouldn't be reading this book. So let some change happen, choose what else you want to do and start doing it. A long journey begins with a first step. Ifwe aren't walking through life into what we want we are wandering around in the stuff that we may not want. It isn't that hard to tum into the direction you want to walk (if

152

you know which direction it is.) Say to yourself what you want to do and then start walking that way. The rest will take care of itself. Thank you for coming along with me. I have enjoyed writing this and look forward to reading it again. I see many new things as I listen to what I am saying and as I see these new possibilities they become a part of my life and it is a joy to play with them. May we all play in life to our hearts desire. May our life be as full and rich as we are willing to let it be. May trading become the friendly experience we desire to bring to us the wealth and satisfaction, the smiles and laughs, the times that move us to allow more of us to come out and the times I get to relish the awe and magnificence ofthis magical universe and the part we get to play in it. Peaceful journey my friend.

Imagination is everything

It is the preview

Oflife s coming attractions

1

Albert Einstein

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