What is the Most Important Principle in Trading? SYNERGY! The principle of multiple factors - cycles, indicators, etc. - converging while providing very similar conclusions. After all, as Solomon observed: “A cord of three strands is not easily broken.” In early-Feb. ’20, a remarkable convergence of daily, weekly, monthly, yearly and even multi-decade cycles collided in the stock market - reinforcing multiple bearish signals and triggering what was termed: A ‘Perfect Storm’ of Sell Signals.…

A ‘Perfect Storm’ of Stock Market Sell Signals? That is how the action of Feb. 7 - 14, 2020 was described in INSIIDE Track Publications - warning of a ‘terminating uptrend’ that would trigger the largest decline in years, from mid-Feb. into late-March ’20. How could the outlook be that precise? First, there is synergy - the holy grail of technical and cyclical analysis. Second is an ominous trading pattern named a ‘4-Shadow Signal’ that triggers the onset of a very dangerous period in a…

Fractals and Elliott Wave continue to provide prescient guidance to the movement in Gold and precious metals, as well as many other markets. They helped pinpoint decisive moves in recent years and reveal what to expect in 2019 - 2021, with Gold surges projected for Jan. & Feb. ’20 - leading into a decisive peak in early-March ’20. Part of that is due to a unique principle - the 90/10 Rule of Cycles…

In early-June ’19, Gold triggered a bullish breakout signal that projected an accelerated advance to follow. What led to that conclusion? A critical indicator in that analysis was the weekly 21 MAC and 21 MARC. One of the premier ways to utilize the 21 MARC & 21 MAC together is to look for times when an abrupt transition is most likely. How is that accomplished? Simple… by looking at what transpired 21 days or weeks or months ago…

The problem that most cycle analysts and cycle programs have is that they are constantly searching ONLY the lows or ONLY the highs for a consistent cycle. The futility of this exercise forces most novice “cyclists” to give up in desperation. Cycles are a dynamic entity -- they keep progressing and changing (direction--not amplitude)

This pattern carries much more weight if the trigger (fourth) day also closes below the third day’s low (outside day reversal) and/or the second day’s close (two closes prior). The latter of these filters — closing below the close of two days prior — leads into a very effective short-term pattern.

This pattern appears commonly in the S+P — at significant turning points. One occurrence appeared in the S+P two weeks before the early-August 1997 high (and the largest correction in over 7 years that followed this pattern). It also occurred in early 1997 in the Silver market and identified a critical low in mid-January.

There are several price patterns to which I pay special attention when they arise. Some of them, like the 2 Close Reversal, are very common and are useful to know at any point in time. Others, like the topic of this discussion, appear with far less frequency even though they are extremely effective when they do appear.

This pattern is used to judge the validity of an outside-day reversal. Most outside-day reversals (a high above previous day’s high AND low below the previous day’s low) are more significant than a plain key reversal. This gives them a higher probability factor, right from the start.