THT's Methods that WIN

[THT]

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

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

So why not USE it, to OUR advantage?

Well we can

Add these to your analysis and you will be surprised

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

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

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

This is another Sentiment Index from Investors Intelligence:

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

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

CNN have put together a few fear readings

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

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

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

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

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

 

[THT]

Think about everything that is going on here

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[THT]

That's 5R for these 2 trades

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

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

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

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

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

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

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

 

[THT]

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

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

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

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

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

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

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

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

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

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

 

[THT]

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

All you have to do is be prepared

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

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