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  Examples #2

 

My Little Secret

In this section, we're going to concentrate ONLY ON WEEKLY CHARTS. Why?? Because this is what I try to teach my clients to "start with". When a traders trades frequently - the "law of averages" catches up with them. How many of you are trading daily charts and finding that you are barely making a profit, or your monthly "costs" have eaten up most or all of your profits? These are an example of the "law of averages" working against you.

What if I could show you a way to trade only 10~30 times a year (based on your equity) with potential annual results of 50% to 150+%. Would you be interested in learning how to accomplish this?? What if I told you anyone is able to achieve (potentially) at least 30% per year taking less than 6 trades per year. You probably think I'm crazy - huh?

Let me show you how to do this....

YHOO Weekly Chart

WEEKLY charts are GREAT for the overall market trend and in most cases price action moves 40+% in 8~12+ weeks. Take a look at the YHOO Weekly chart above and concentrate on that last move (roughly started at $30 and ended at $40 - a 33% move in 11 weeks). Is there a trick to doing this?? No - not really. Traders just have to learn to have PATIENCE and "wait for the opportunities".

The Japanese Candlestick theory teaches us there are three types of trading..

Buying
Selling
WAITING

The Japanese Candlestick theory also teaches us that we'll be WAITING most of the time we're trading. This is because the Japanese Candlestick techniques provide us many opportunities to trade (with thousands os symbols available) - so we need to "fine tune" our abilities to "pick the best opportunities" - and not fret over the missed ones. Remember, new opportunities appear every WEEK.

So, you are beginning to understand "my little secret". The first section of these examples taught you the following...

  • Find the Opportunities
  • Plan your Trade
  • Investigate 'Strategies' to improve your returns
  • Leave enough room in your Stop to allow the trade to continue.
  • How to trade your Profit Targets.
  • WAIT for the opportunities to come to you
  • Follow the major market indexes as further confirmation of major market trends.

Now, let's look at some examples of trading strictly off the weekly charts. As traders, we still need to follow the same guidelines stated above. There is nothing really different in our approach. The only major difference is we are going to make most of our decisions using ONLY the Weekly charts. This means we are going to resign our trading to allow for a little greater risk in the attempt to attain greater profits.

We don't have to catch exact market tops and bottoms. We're simply looking for charts that are trending or have a potential for a sustained trend. We're using the same types of anlaysis (candlestick, historical chart data, trend channels, technical indicators). One of my favorite "scans" is..

Bottom Reversal BUY Scan
  • All BUY Signals
  • Where Sto%K < 20.0
  • and Sto%D < 30.0
  • and STOs hooked UPWARD

Simple enough - eh? This scan (using the PFP 2.0) will normally result is many potentials for me to review. I don't take all of these trades. I visually review the signals to determine the "absolute best opportunities", then I develop my strategies to trade. If this scan does not result is a good number of candidates, I might modify it a bit to include other potentials. This type of scan is looking for "bottom reversal BUY signals"

Another type of scan I would look for is "Bullish Trend Runners" or "Bearish Trend Runners". These are sometimes bit more risky, but when you adopt a proper strategy you can still profit from these trades.

Bullish Trend Runner Scan
  • All BUY Signals
  • Where Sto%K > 65.0
  • and Sto%D > 40.0
  • and Sto%K is moving higher
  • and Sto%D is moving higher

Let's look at some charts to see some examples

BRCD - Brocade Communications - Weekly chart.

BRCD Weekly Chart

This Weekly chart shows about 10 months of data. You can see from this chart, there are/were THREE MAJOR TRENDS over the past 10 months. The smallest price swing (about $1.50) results in a 25% price swing. The last move (the uptrend) resulted in a 60% price swing and the upside swing does not appear to be over yet.

So, three trends in about a year and over 85% potential return on investment. I think you can see it is not difficult to attain a 30% return annually if you know what you are looking for - right? The one thing I want to suggest is finding charts that trend consistently. This is a good example of a "trending" chart.

Also, notice all the GREEN ARROWS through the up swing? These are potential "add-on" or "continuation" signals. Let's assume you took this trade with a target near $6.50. Each one of these "continuation" signals could have allowed you to "add-on" a bit extra to you continued trade. So you could have pulled profits at $6.50, then added some back when these extra signals appeared.

CHIR - Chiron Corp - Weekly chart.

CHIR Weekly Chart

You've just gotta love charts with great trends. Look at this chart and you'll see what I mean. Uptrends are mostly filled with WHITE candles and downtrends are mostly BLACK. This chart also shows very good price swings ($50 to $27) - nearly 50%. Notice the recent double-top at $50.

This chart is about 14 months of data and I can see 5 unique trends (just look for the RED and GREEN arrows). Let me review these price swings for all of you.

CHIR Weekly Price Swings
Swing #
Direction
Percent %%
1
Long
17%
2
Short
46% **
3
Long
44%
4
Short
15% **
5
Long
40% **

** These trends actually were smaller than reflected in the table above. The entry signals came later in the trend - thus, I would assume a 10~15% decrease in the overall trend %% - for example 46% would drop to 39.1%. Now, this deduction in trend %% does not include different strategies you might deploy for your trades. Thus, then actual results (of your trades) may vary these results.

All I'm trying to show you is "the Weekly Trends". All you really need to take away from these examples is - the price trends are clearer and present increased opportunity using the Weekly charts. Imagine having this knowledge and letting the PFP applications find the opportunities for you (every week). The PFP 2.0 can scan thousands of charts for Weekly signals - which makes it easy to find the best opportunities.

Now, imagine we've only looked at two charts and both have presented opportunities for 60+% equity growth with only a "hand full" of trades. If you were to be aggressive, you could have potentially seen returns in excess of 100% - TRADING ONLY TWO SYMBOLS. Are you ready for the next example..??

NVDA - NVidia Corp - Weekly chart.

NVDA Weekly Chart

All I can say is - WOW. Look a this Weekly chart - another series of great opportunities. Two major trends with two "counter-trend" signals - that would have resulted in small losses. These losses would have resulted in (roughly) $1.00+ loss per share. Trading 1000 contracts - or about 4~10% of invested equity. Now, let's take a look at the winners.

The gains from this charts signals (only two of them) were a TOTAL OF $16.00++. So, we risked $2000+ to potentially make $16000+ - an 8:1 risk/reward ratio. Can you live with that - making only 4+ trades a year?

Remember, these opportunities happen all the time in the markets. My PFP applications will teach you to understand and recognize the price patterns. Your job is to find the best opportunities and execute your strategies. Plan your trade, then execute it.

Why am I showing you my "little secret"? Well, it's not really a little secret. I've been telling people about the "Weekly Charts" for over 10 years. Some listen and others don't. The point of this exercise was to show you how you can profit by using my applications. I want you to become a very successful trader using my applications - so I'm showing you the "best trick" I can offer you for "Easy Money".

Everybody wants returns like these (30+ to 100+% annually) and they struggle to try to find out how to get them. I'm not telling you it is "super easy" - just pick a few stocks and start trading. But it does not have to be overly complicated either. You will learn to find the "best opportunities" and to develop "strategies" that improve your chances of success. If you use my PFP applications, these tools will help to teach you many of the techniques I've discussed herein.

At this point, if you have not already ordered my PFP applications, I strongly suggest you consider buying my PFP 1.0 Lite or PFP 1.0 products to investigate these opportunities on your own. If you are really serious about making these type of trades, then you might consider my PFP 2.0 application. Otherwise, feel free to browse my web site for more information and use the links below to explore further.

The PFP 2.0 is the "Professional's Choice" - includes advanced pattern libraries, back-testing and scanning of thousands of charts for trading signals. This feature alone will save users thousands of hour of analysis and quickly identify the best trading opportunities. This app includes a library of over 1100 patterns. This product is designed for any trader following more than 50 charts each day. The enhanced scanning features makes scanning thousands of charts only a few minutes work. Learn More...

The PFP 1.0 is the "Personal Trader's Choice" - includes advanced pattern libraries, interactive analysis, pattern identification, stop placement/trailing levels and much more. This app includes a library of over 1100 patterns. It is perfect for any equity trader or commodity trader that focuses on specific markets. This product is designed for any trader following less than 50 charts per day. Learn More...

The PFP 1.0 Lite is the "Starter's Choice" - includes advanced pattern libraries, includes advanced pattern libraries, interactive analysis, pattern identification, stop placement/trailing levels and much more. This app includes a reduced library of over 850 patterns. It is designed as our "starter package" - for anyone just getting started with Japanese Candlesticks. Learn More...

Learn more about our PFP products by Taking The PFP Tour or reviewing our Training Information. These tools are designed to assist every level of trader and will quickly provide you with information about our products. You can also view our PFP Brochure for a quick glance of our products.

 

 
 
     
 

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