Since there seems to be an interest in the research of Carl Futia, I have the following information to share from his work. This is related to the outer calendar of the Square of Nine, which is why I am posting thematerial:
Because my books really do not provide any exact “trading systems”, I have received posts from a certain skeptics regarding whether I know how to trade or not. The bottom line is, “It does not matter whether I know how to trade, because that will not improve your account balance”! The only thing that matters is YOUR bottom Line. That said, I feel that I owe my readers and course owners something a little extra. Especially for those that have purchased all of my works. The following is an attempt to say Thank You for your loyalty and patronage. Please do not share this with others, or post it on any other board. I will eventually find out, and will probably not make any future posts of this type again if this happens. Instead, I would prefer referrals to my books, as anyone that purchases any of my books, would have access to this information.
There are seven openings in the head – two eyes, two ears and two nostrils, equally divided, three on each side. From this we get our Law of Three and know the reason why the change comes after two and in the third period. The seventh opening in the head is the mouth and everything goes down. Study your seven-year periods and see how your markets go down and make tops and bottoms.
Most traders have heard the advice KISS–“Keep It Simple, Stupid.” As trite as it may sound, there is a good deal of wisdom behind the phrase. Similarly, everyone has heard the expression that the three most important rules in real estate are location, location, and location. From my perspective, the three most important rules in trading are focus, focus, and more focus.
Short-term traders don’t have the luxury of analyzing news or fancy indicators in the heat of battle. To prosper, you must have a framework from which to react quickly and ask questions later. For me, keeping it simple means focusing on price action, either on a daily, weekly, or intraday basis. The tale of the tape lies in listening to stock speak through the patterns created by buyers and sellers.
W. D. Gann traded for over 50 years and reportedly made $50,000,000.00 trading from the early 1900’s through the early 1950’s. In his Trading Course published in the early 1950’s, he said Geometric Angles were “the basis to his forecasting method”. Gann used many diverse complex and exotic techniques but angles and squaring seem to have been his primary methods. Therefore, this article concentrates mostly on the angles and squaring methods.
Live Cattle futures are one of the most difficult markets to trade. Bruce Babcock, who has done extensive testing of mechanical trading systems, has noted how few of them respond successfully to cattle data. What is the secret of this ancient market that has been an interest of traders since time immemorial? This article will attempt to suggest trading techniques combining heliocentric astrology, sidereal or Indian astrology, cyclical timing, and traditional technical analysis to improve your live cattle trading score.
The system I am going to demonstrate is based on some of W.D. Gann’s works. For those of you who are not familiar with Gann, he was a legendary stock and commodity trader who purportedly made over 50 million dollars in the markets using his unique mathematical trading techniques. The trading method I have developed is based on two of Gann’s most basic tools—his 1×1 or 45 degree angle and his trend line indicator. Refer to examples 1 and 2.
In The Elliott Wave Principle — A Critical Appraisal, Hamilton Bolton made this opening statement: As we have advanced through some of the most unpredictable economic climate imaginable, covering depression, major war, and postwar reconstruction and boom, I have noted how well Elliott’s Wave Principle has fitted into the facts of life as they have developed, and have accordingly gained more confidence that this Principle has a good quotient of basic value.
One of W. D. Gann’s methods to determine major trend changes is the “180 Degree” or 180-calendar day trend change. 180 degrees of the cycle of a year is equal to 180 days. Gann said to watch all markets that have been up or down that period of time. Let us look at a couple of markets on this basis. The December S & P made a contract low on January 7, 1985. Gann would be watching the area of July 7, 1985 for indications of a change in trend.
In Goodman Wave Theory an Intersection is a price where the points of two or more matrices or a matrix and a swing meet. The intersection of two swing points is not an intersection. To understand the Intersection Principle consider the 50% point in the 1-2 component in Diagram 2. ‘At the 50% point all the buyers and sellers in the swing are – in the aggregate – even. Half of the buyers and half of the sellers have profits; half of the buyers and half of the sellers have loses.’ The TP is an important equilibrium point. In the standard 50% component of two swings the EP of the secondary swing intersects the TP of the primary swing.