The chart shown in the December S&P500 Index plotted with the Presto System. The Presto Trading Method called the $15,000 break two days before it happened. From the low drawn upward as of 346.85 on Wednesday, September 27, the 45 degree line is outlined according to the Presto Seven Principles. As each day’s trading range is plotted, you stay long (as long as the 45 degree angle is below the price structure). You look for the 4th day for a correction. The 4th day makes a low below the 3rd day, but closes strong. The 5th day is next important for a high, closes very strong. The next day to watch is the 8th day for a high and sell off.
This also closes strong. Now the 10th day is important. 1-3-5-8 days are all harmonic days. Pathagoras laid out the musical scales and those notes when played on the piano will harmonize making a major chord. The 10th day will be a #3 again and also will harmonize. The 364.50 price was hit on the 10th day after opening above the previous day’s close and closed lower. Wednesday, the 45 degree major trend line was broken at 360.80 and closed at 359.80. This was a solid break at 360.80. The range for Thursday was all below the 45 degree line and Friday opened with a down gap; has a weak recovery, and fell to 328.85 limit. Monday, October 16th S&P opened at 323.85 – 500 points lower and rallied from there.
Read Book: The Gartley Trading Method
This S&P Presto plotted price structure is encased by the dotted lines with the 45 degree line as the main trend line. Each day’s price action is plotted according seven Presto principals. The Presto 5/4 Angle Trading Method is a plotting method of equalization of price action and price movement. The larger the daily price ranges, the more sideway space is consumed when angle plotted. The plotted area is now kept in proportion to the daily ﬂuctuation of the price. Likewise, the small daily price ranges will consume a smaller sideway area. By this method, space is consumed until the price trades out of square (THE CROSSING OF THE ESTABLISHED 45 DEGREE LINE), thus give a reversal in trend.
Look again, this S&P chart shows:
You could stay long all the way up!
You would reverse your position to short breaking the 45 degree line!
There was no guessing as to where you took proﬁts! As the price rallied, had you followed this chart, you needed no advice from anyone.The squaring of price with time has been a subject of long discussion, can this be it? Did this trader make a good proﬁt? Did he get out in time? Could that trader be you? This new discovery is for your consideration as a new way to trade.