Publishing details
HARRIMAN HOUSE LTD
3A Penns Road
Petersfield
Hampshire
GU32 2EW
GREAT BRITAIN
Tel: +44 (0)1730 233870
Fax: +44 (0)1730 233880
Email: enquiries@harriman-house.com
Website: www.harriman-house.com
First published in Great Britain in 2012
Copyright © Harriman House Ltd 2012
The right of John Piper to be identified as the Author has been asserted in accordance with the Copyright, Design and Patents Act 1988.
ISBN: 9780857192820
British Library Cataloguing in Publication Data
A CIP catalogue record for this book can be obtained from the British Library.
All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior written consent of the Publisher.
No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher or by the Author or by the employer(s) of the Author.
About the Author
John has been trading markets since the mid ‘80s, mainly writing options but also trading futures, spread and binary betting. The highlights have been trading right through the ‘87 Crash (mainly selling put options – hence the lack of hair!), annual turnover exceeding £2m of option premiums on his personal account, managing money in excess of $1m, winning a TV trading contest, and generally spending far too much time glued to screens.
Whilst abusing himself in this way he also decided to help other traders and started The Technical Trader in 1989, which has become the leading trading newsletter in the UK. The newsletter filled a void, has helped many traders over the years and is now on the web.
Over the years John has developed a number of trading techniques; he summarises his approach as Psycho-Trading – meaning getting into the mind of the market.
John spends his time in the Sussex Hills but makes frequent trips to warmer climes with the Hash House Harriers – a club for those who like a drink but who have a running problem!
John runs a market service looking for the BIG calls. His business partner Mark Austin runs a shorter-term service on FTSE.
Other books by John Piper:
The Way to Trade
The Fortune Strategy
Profit Before Work
Binary Betting
Binary Trading
Tunnel Trading
The Business of Trading
The KrautGap Modules
If you would like to receive John’s free news sheet send a blank email to jptt@aweber.com.
The author welcomes feedback and can be contacted at john@john-piper.com; his website is www.johnpiper.info.
Introduction
In 2012 everywhere in the markets were triangles. Great big triangles. On the US DOW, on the German DAX, on the UK FTSE Index, on gold, and USD/GBP.
This number of triangles is unprecedented and, rather usefully, the triangle is one of the easiest patterns to trade. Perhaps most importantly, on most of these markets we have yet to see breakouts. But they will come.
In fact this short book may prove highly valuable to you. Not only am I going to show you the triangles and explain why they form and what they are but I am going to show you how to trade them.
The main concept here is:
BIG triangles are liable to lead to BIG moves and if you get the trading right that = BIG Profits!
I’ll spare a long introduction and cut to the chase quickly here, as I am keen to get this book out into the market as soon as possible as it would be a great shame to miss these massive opportunities. However, first just a brief note on how this book came to be:
I was interviewed by Dominic Picarda of the Financial Times and Investors Chronicle on 16 October 2012 and, of course, I talked about these triangles. My publisher, Stephen Eckett, happened to watch the interview and suggested I write a book on the subject.
Voila, the book is here!
If you would like to see the interview, go here: www.youtube.com/watch?v=xHmPCZgDVis
You will also find a transcript of the interview in Appendix 1.
If you just want the audio, go here: www.johnpiper.info/domaudio.mp3
Finally, I want to say that I have written this book so you have all you need to trade these potentially massive moves but I have assumed you already have a basic knowledge of what trading is about.
If this is not the case then you may want to try out my BIG CALL trading service. The first month is charged at a 50% discount and you get a free copy of my bestselling book The Way To Trade.
Now it is time to get down to it.
The best of luck with trading the triangles and nailing those big gains!
All the best,
John Piper
P.S. I plan to update the triangles in this book as the price action develops. These updates will be free to readers and you can sign up by emailing triangles@aweber.com. Please note this is not a trading service and updates will follow key action.
Section One – What is a Triangle?
Technically a triangle is market action that is moving in a narrower and narrower range.
I cannot do better than illustrate this with a chart; I will use the triangle on £/$ which is shown in Figure 1.
Figure 1 – triangle on £/$
