|
Technical Investment Methods - Analyzing market trends with technical methods.
|
|
|
|
|
Posted by brucekenison1@yahoo.com on September 8, 2006, 7:50 pm
In the next 10 minutes, I'm going to reveal to you what took me
over thirty years of intensive eyeball-to-chart research to discover!
The road has been long and sometimes bumpy with plenty of unexpected
twists and turns along the way. And, guess what? It hasn't ended yet!
The more I learn, the more I realize there's more to learn. So,
fasten your seatbelt and experience the excitement I felt on this road
of discovery. It's truly been a ride to remember!
Let's start at the beginning. I made my first commodity trade in
1968 while still a college student working towards a Master's Degree in
Business Finance and Investments. I was fascinated by the leverage you
could get on your investment capital by putting up a relatively small
margin fee in order to control a much larger quantity of some
commodity. This left open the potential for substantial gains. And,
by using stop loss points you would have supposedly limited risk.
Since I was a cash-strapped student with a relatively small amount to
invest, this really appealed to me.
So, one memorable Tuesday afternoon, I skipped gym class and hiked
downtown to open my first commodity trading account. I was nervous as
a cat. But, I knew it was something I just had to do. The broker was
understanding and after about an hour of filling out forms and waiting
for an OK from headquarters, I plunked my money down and began what I
imagined would be an illustrative career as a professional commodity
trader. I just couldn't wait to get started!
Early the next morning, I was chomping at the bit and decided to
start off by trading corn futures. Then over the next two weeks, the
worst thing that could happen to a beginning trader happened to me. I
had three big winning trades in a row! I was convinced I was the King
Kong of trading. Frankly, I couldn't figure out why everyone told me
trading was so hard to be successful at. Then, as you've probably
guessed the fourth trade murdered me. I lost everything I had already
made plus $200 more than I even had in my account! So much for the
supposedly limited risk. You can guess where the book fund for that
quarter went! My trading career appeared over about as fast as air
rushing out of a balloon.
I went away from that experience licking my wounds, but absolutely
convinced there was an underlying and identifiable pattern or rhythm in
the markets. I could sense it. I knew it was there. But, I had no
idea what it was. I wrestled with questions of how such a thing could
exist. Or more to the point, since I saw evidence of it's actual
existence, how could I prove it existed? Even though initially I even
questioned my own perceptions, I just knew in my bones it was there! I
was determined to do whatever it took to identify it, pick it apart and
ultimately find out exactly what made it tick.
It was then I realized that if you could discover any sort of
regular or consistent pattern in market movements, you would have the
key to successful trading! Why? Because you then could trade in sync
with the timing patterns controlling market movement. This was
certainly a goal worth devoting a lifetime of research to. And, as it
turns out, I have!
I started my search by going to the source which was the markets
themselves! I studied charts from every market I could get my hands
on. Some charts were constructed from data going back to the start of
the Chicago Board of Trade in 1848! I knew that if there was a pattern
that repeated itself in the markets, I could find it. That is, I could
find it if I was given enough time, effort and stacks of charts to look
at.
After night after night of painstaking study, a bit of inspiration
arrived from somewhere. I surmised that by simply using daily futures
charts where each vertical bar represents a single trading day, I could
possibly detect tradable patterns as reversal points occurred in normal
ongoing markets. Specifically, I was looking for reversals that tended
to happen on the same number counts over and over again when counting
bars on a price chart forward in time from any recognizable high or low
point in the past.
It was about this time that a fellow trader related to me that W.
D. Gann, the world famous market timer, was purported to have said "if
you want to know how to time the markets, read the Bible three times!"
I had generally studied the writings of Gann and was frankly never
able to get much out of his cryptic and obscure ramblings other than to
note his focus on time as opposed to price pattern analysis.
Nevertheless, this got me to thinking. Was it in fact possible for
specific number counts to spotlight points in time where reversal
energy would be demonstrably exposed in the future? My research
indicated that was indeed the case with the number counts I had already
identified in my relentless search through endless chart examples. But
now, this new wrinkle presented itself. Was it possible as some sort
of confirming device that these same numbers are also numbers
prominently mentioned in the sacred texts?
Since it was my custom to regularly read in the Bible, I decided to
keep a notebook handy to jot down specific numbers mentioned in the
Bible as I came across them. I had no real expectations one way or the
other, but I was looking forward to comparing the numbers my private
research was turning up with the numbers prominently mentioned in the
Bible.
So what did I find? Actually, it was a head scratching puzzle.
What I noticed right away after collecting months of references was
that there were an amazing number of near misses. That is, numbers
from the Bible were in most cases off by just one number count from the
numbers I had already identified through research.
This wasn't the only thing that bothered me. I'd been in a
quandary for years over a quotation from Jesus found in Luke 24:46
which said "Thus it is written, and thus it behooved Christ to suffer,
and to rise from the dead the third day."
With my persistent mindset, I just couldn't see how Sunday was the
third day. It seemed to me that if Christ was crucified on Friday,
then Monday should be the third day. It had been a long running and
seemingly irreconcilable question in my mind.
Then out of the blue it struck me. To make the biblical order
work, you would have to count Friday as day number one! Why this had
been so hard for me to see was I suppose understandable. Counting that
way was just not how we were taught to count since grade school.
Nevertheless, this was a critical breakthrough. I had now learned how
God counts!
The next step was obvious. I would use this newly learned counting
method on the charts I was studying and see how the number counts
compared with what I was doing before. I picked up one of my trusty
old charts and started counting days forward from a prominent top
reversal point on the chart using the top day as count number one.
Immediately, it jumped off the page at me. By adjusting the number
count by just one day to reflect the new counting method, the
correlation between Bible numbers and specific number counts I had
already collected was now almost perfectly...in sync!
I say almost perfectly because what showed up was a pattern of so
called hits where actual reversal days occurring on the chart would
tend to hit (1) on the day just before, (2) right on or (3) the day
just after the counting number day.
This was heady stuff. Clearly, by using the 40 different and proven
counting numbers so painstakingly identified through research and
confirmed in most cases by biblical references, I could now exactly
pinpoint into the future perfectly defined and extremely powerful 3 day
reversal zones. Or, put another way, I could spotlight identifiable
timing windows. And, all this on any chart for any market at any time!
It's important to note that the strongest reversal energy always
resides in the center day of the 3 day zone or window. I don't know
why, but the image of Christ crucified between 2 malefactors came to
mind as I worked with this material. And, as it turns out, the idea of
a 3 unit zone or window with the most powerful reversal energy focused
on the center unit became over time an even more powerful research
concept as we shall soon see.
And, here's another curiosity. Apparently, there's no way to
determine or foretell whether anticipated reversals will be up or down
reversals until you get there. As the market starts to actually trade
up or down into the zone or window, then and only then does the market
tip it's hand to us.
And, here's the really great part. This happens exactly at the
critical moment to do something from a market timing standpoint. That
is, just before the market reverses and while concurrently pointing us
in the direction the market has just revealed it's going to go! And,
only those that know the language of the markets understand what the
markets are saying when they speak.
Amazingly, the markets literally hand us top secret timing
information at the critical moment for us to use it for positioning
trades in the right direction. This is precisely the right time to be
totally in sync with the flow of market movement.
Now, here's how it works. If a market is initially trading down
into a 3 day reversal zone, then we should expect a reversal of some
consequence to occur to the upside during the period of that reversal
zone. The anticipated reversal up is then confirmed and a buy signal
is generated on any subsequent day that sees a rally above a previous
day's high. It couldn't be more simple!
And conversely, if a market initially trades up into a 3 day
reversal zone, we should expect a reversal to the downside. The
anticipated reversal is then confirmed and a sell signal is generated
by any subsequent drop below a previous day's low.
Another major plus is that this strategy automatically generates
close-in stops and or stop/reverse points just on the other side of
these recently anticipated and confirmed reversals. This cuts our risk
to the bone while at the same time maximizing profit potential.
It was at this point that it suddenly occurred to me that what was
really happening here in this march of black bars across price charts
was the ongoing record in time of an unbelievable projection process.
This counting progression appears to be tracking some hitherto unknown
energy ripples that radiate forward in time from high and low reversal
points in the past.
My research proved this process is indeed ongoing. It's constantly
radiating energy off reversal points in the past which consequently
projects three day timing windows or reversal zones into the future.
This amazing reversal energy generates future reversal points in
reliable interval patterns falling precisely on certain specific number
counts which I had now painstakingly identified!
But, how could this be? All I could imagine was some kind of
mysterious wave energy must be radiating like a beacon off top or
bottom reversal points in the past. These waves are continually moving
out into the future in varying degrees of intensity, set in irregular
yet constant intervals and with enough structured energy to
dramatically affect directional turns in any market in exactly the same
manner and timing count sequence. And all this, at precisely and
objectively projected points in time in the future. Whew!
Sit back for a moment and think about this. The magnitude of this
discovery or literal revelation is mind boggling in it's implication
and absolutely astounding in it's import! It's almost as if the
curtain has been ripped back and we're now privileged to look
lingeringly at the fabric of space and time. We are now witness to the
framework God employs to organize time and event progressions.
Shockingly, it would appear that nothing happens by chance!
Instinctively, I realized this method of market timing could not be
called fundamental or technical analysis. It is rather an entirely new
and unique method of market timing analysis which I dubbed temporal
analysis since it is based on time instead of price. Indeed, I could
now see that one of the greatest hallmarks of the newly named Kenison
Counting Numbers is the total lack of subjectivity in producing such
valuable timing projections.
No guesswork is ever involved. The Kenison Counting Numbers
sequence is easy to use and understand. It even appeals to those who
have never traded before and need someone to show them the ropes. You
don't need a calculator, computer program or any kind of specialized
foreknowledge. The signals projected are very precise and completely
objective. It's all right there on the chart. Remember, this is
purely eyeball to chart analysis. The counting numbers pinpoint
exactly where the next reversal energy in the market will be exposed.
And correspondingly, you then know exactly where the next projected
reversal should be expected. It's that simple. And, where do you get
the charts you need? They're free on the internet!
And, here's another thing. Kenison Counting Numbers will never
become obsolete. They will continue to work with absolute objectivity
for all the years of you or your grandson's trading careers. You will
be able to pinpoint exactly within one day of specific future number
counts where market reversals of varying degrees of magnitude should
appear.
How do we know this? Simply because years of exhaustive historical
research has proven that whether you're looking at constructed charts
from the last two centuries, the 1970's or last week, the analysis
would have worked exactly the same in each era and with exactly the
same phenomenal results!
And remember, these are the very same timing count numbers
confirmed historically and through study of the scriptures to have
proven and very definite reversal energy associated with them. Believe
me, after learning the Kenison Counting Numbers market timing method,
you will never look at a price chart the same again.
I was also extremely gratified to learn through decades of ongoing
research that Kenison Counting Numbers work equally well in projecting
future reversal points in any market anywhere in the world,
irregardless of whether it's a futures, options, stock, forex or cash
market!
So, exactly how do Kenison Counting Numbers work?
This totally unique and extremely powerful method's ability to
project important market highs and lows in the future is uncanny. How
does it do it? After decades of personal research, I have identified
the irregular number sequence the market itself observes. Just count
the bars on a price chart forward from any market high or low point in
the past and the Kenison Counting Numbers will tell you exactly on
which numbers in the sequence you should expect powerful reversal
energy to be exposed in the future. And, all this is accomplished with
a very high degree of reliability! This allows traders to anticipate,
confirm and then act on potentially profitable trading turns that the
uninformed don't even see coming or have the slightest idea can be
detected in advance!
With this new life long knowledge, you can spend just moments with
a price chart and know with total confidence what your course of action
should be and with absolute clarity what the potential risks are!
There's no need to check with anyone first. You're the expert! Why?
Because when you understand this market timing method you'll know with
quiet confidence what the market itself is telling you about current
trends and potentially explosive turning points and exactly when to
expect them! Your broker will start asking you for advice. Believe
me, I know!
When you see how by simply counting forward in time you can
project important reversal points in the future, you'll be hooked!
I've been hooked now for over 30 years and I'm still fascinated on a
daily basis as I watch these turns occur like clockwork in timing
windows projected weeks and even months before!
Traders can quickly become expert in using all 40 of the
unbelievably powerful Kenison Counting Numbers.
One of the most impressive Kenison Counting Numbers is represented
by Zone 14, especially when using simple triangulation techniques in
combination with other counting numbers to project extremely powerful
conjunction and convergence reversal zones. These special amplified
reversals lead to extremely dynamic high-velocity directional market
moves! Other traders marvel at windfall profits that seem to come out
of nowhere. Kenison Counting Numbers is the tool that alerts you
beforehand allowing you the opportunity to profit from these explosive
market moves!
Traders are amazed to discover the natural and irregular rhythm
identified in the markets. It's a rhythm that is constant and traces
out exactly the same pattern for all markets worldwide! It's shocking
to see how invariably reversals occur on the same number counts in the
Kenison Counting Numbers sequence over and over again.
And now another amazing fact concerning the Kenison Counting
Numbers method. It works exactly the same no matter what time frame
chart you're looking at! As we already know if you apply the counting
numbers to a daily chart, you will project daily reversals into the
future. But surprisingly, If you also apply it to a weekly chart, you
will project weekly reversal points into the future. In fact, the same
Kenison Counting Numbers sequence works equally well when applied to
monthly, weekly, daily or intra-day charts!
At this point another phenomenal discovery was made. I discovered
you could determine the most likely actual future reversal day, week or
month within each projected reversal zone by using the Kenison Counting
Numbers to count backward in time from each of the three days, weeks or
months within each reversal zone. How does this work? Quite simply,
when you count backwards in the fashion mentioned above, you will
notice that significant high and low points in the past fall exactly on
specific number counts in the Kenison Counting Number sequence. But
this happens only if you are counting backwards from the most likely
actual future day, week or month where the market will in fact reverse!
As I witnessed this mirror image or echo effect in action, I realized
this is truly a miracle!
This is absolutely astounding when you realize by counting forward
or backwards in time that reversal energy is exposed on the same number
counts in the Kenison Counting Numbers sequence irregardless of whether
you're counting months, weeks, days or 15 minute intervals on an
intra-day price chart! Witness this market timing powerhouse in action
in real markets in real time and you'll be totally amazed at the
magnitude of this discovery. I guarantee it!
Copyright (c) 2006 Bruce Kenison. All rights reserved.
--------------
Bruce Kenison is the founder of several market timing advisory services
employing the Kenison Counting Numbers precision market timing method
and is the Editor of Bruce Kenison's Market Timing Signals ezine and
newsletter available FREE to investors and hedgers. He is also
president of a publishing and seminar company that recently published
the 5th Edition of Bruce Kenison's Market Timing Home Study Course.
For a FREE subscription to the ezine or newsletter and information on
products and services, send a blank e-mail with "Subscribe" in the
subject line to: brucekenison1@yahoo.com
|
| Similar Threads | Posted | | PRECISION MARKET TIMING...BY THE NUMBERS | January 24, 2008, 4:23 pm |
| KENISON COUNTING NUMBERS STOCK MARKET TIMING REVIEW | October 21, 2008, 9:59 pm |
| THE KENISON COUNTING NUMBERS STOCK MARKET OUTLOOK | September 28, 2006, 9:09 am |
| KENISON COUNTING NUMBERS STOCK MARKET OUTLOOK | June 30, 2007, 6:41 pm |
| KENISON COUNTING NUMBERS STOCK MARKET UPDATE | August 20, 2007, 9:48 pm |
| Market Timing the NDX | January 26, 2008, 9:21 pm |
| TIMING THE STOCK MARKET TOP | February 5, 2007, 11:59 am |
| FREE MARKET TIMING NEWSLETTER | January 29, 2008, 12:04 pm |
| FREE MARKET TIMING NEWSLETTER | September 28, 2007, 7:53 pm |
| STOCK MARKET TIMING REVIEW | October 12, 2007, 7:55 am |
|
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap