7-Step Trading Process

1. Select tickers you want to track. 2. Review the ticker indicators in your Trading Journal for the weekly and daily charts. 3. Use multiple Indicator Causal Sequence Diagrams to determine the overall direction and confidence level based on the indicators. 4. Determine the direction and hold period for each time period. Indicate market type: choppy / fast, smooth, bull, bear, battleground 5. Based on the Causal Sequence Diagram indicate the recommendation for the ticker. 6. Add any tickers with an immediate opportunity (within the next 5 trading days) to your Immediate Action Trade Card. 7. Watch the tickers on the Trade Card using the hourly and 15 minute charts for optimal entry, and take action! 8. Act with Full Assurance & Confidence in your process and checklists. If you are patient and stick to the process you will not doubt or question choices.

Evaluating Indicators:
y y y y y y y y y y y y y y y y y y y y y Price Line: price, trend, pattern Support / Rxx / Trend Lines SMA(200): Price above / below / in between SMA stack; price line bounce / break through SMA(SS,MACD): dominant cycle pattern on daily MACD: value, mouth, direction, trend of bottoms / tops SS: value, mouth, direction ADX: value, trend, DMI crossover under/above DMI(blue, red): value, trend, inflection, DMI blue/red crossover RSI: value, previous major bottom/top, slope of bottoms / tops from last major bottom / top Volume: volume vs. average, spikes prior to MACD x-over Candlestick Pattern: Race the ticker against comparable tickers & baseline Dividend: yield and price action at dividend payments DMI -> MACD -> Up; RSI -> SS -> MACD -> Up; SPT(50) -> Up Cycles Synchrony: match the indicators in the cycles Weekly & Daily Cycles Aligned (C/A): [Y/N] Direction vs. Trend: Is current price direction with or against the trend? Counter-trend rally? Confirmed market bottom? Trade Style: day trade / cautious (trade only on hourly chart), long-term rocket ride, medium-term hold, transitionary Short Covering, Dead Cat Bounce, News Driven Market Market Type: Bear, bull, battleground, trend reversal Buy Strategy: Buy if touched on the way up, Buy at limit, Buy at market
Long U/D C/A Y/N Short Next 4 weeks Next 5 days Dir vs. Trend Trade Style Mkt Type Add to Trade Card Y/N Long Next 8 weeks Next 2 weeks

Interpreting Indicators:

Short U/D

Weekly Daily

Market Psychology: CAUTION: Cognitive Dissonance When the market doesn t respond in ways that we find consistent with our analysis, choices and expectations, we tend to either ignore that reality or distort it to fit our expectations. So we end up sticking out a bad trade to justify our original choice, instead of adapting to the new environment freely in the present moment. Why do we all have expectations, and why do we hold on to them with such great confidence, or such strong belief? The financial markets, as anyone familiar with them knows, have a logic of their own, which is in a way the opposite of normal logic. Hence the market adage 'sell on the news' applies to good news not bad news. Hence other bits of market lore like 'a bull market climbs a wall of worry: A bear market flows down a river of hope.' Markets do whatever they need to do to confound the greatest number of people. This happens because prices reflect expectations. If everyone expects unemployment to rise, or a trade balance to fall, or inflation to remain steady, there is no intrinsic reason why they should be wrong: The expectation doesn't affect the outcome. But if everyone expects shares to fall, or the dollar to rise, there is every reason why they should be wrong: Because current share price levels already reflect the expectations of lower prices, and the current level of the dollar already discounts a rise. In other words, the expectation cancels the outcome. Expectations adjust share price ahead of the news. When the news gets out the share price is already adjusted to the dominant expectation. If the news is a surprise then you will see price movement one way or the other.