THE SILVER STANDARD FOR PIVOTS

November 2, 2009

If you missed the webinar, we are going to edit it today and it will be available soon on the Futuresmag.com website for the next 6 months. In that seminar we discussed what may be the GOLD STANDARD for pivots. The following pivot in this Silver chart is not far off the mark. This sequence off the old bull market top held for nearly a decade. Why is that?  How do you recognize a pivot that will hold for a long time? You know they don’t ring a bell at the turn.  If you really want to know what is going on, you are going to have to look under the hood. The following sequence is one of the best I’ve ever seen. Most don’t measure up but every so often one does. As we covered in the webinar, this is how you do it as demonstrated by these 3 charts. These also exhibit under the radar uses of the Fibonacci sequence.

The first one is on a monthly so you can see the whole progression. This data comes off a monthly continuation chart. We have a top at 5036 with successive lows at 1080 and 478. The first drop is 78.55% (rounded to Fibo 78.6) and the whole drop is a Gann 90.50%.  So you can see the whole move works exactly the way we expect to work.

But here’s where it starts to really get interesting. When we scale down to the weekly chart we have a whole move in exactly 127 weeks. In this move we have a square relationship of 35.889 which when we move the decimal point we have a derivative of 359 which just misses our Gann 360 degree circle.

When we scale down to the daily chart that first leg at 78.55% is really an 88 day move of 3956 points for a 44.95 square which rounds to Gann 45.  What I couldn’t fit on the screen is the daily for the whole move which actually completes in 610.5 days!  Keep in mind that 610 day move is the same 127 week 359 square.  By the way that is a low that held for 9 years.

 

Here’s what you should take from this study. No two patterns are ever going to be the same. I’m not going to say the calculations at the low are rare because we see calculations such as these to a lesser degree all the time on the charts we work with.  The only difference is we see them on hourly charts almost every day. That’s part of the value of our newsletters.

It’s a matter of how much you want to dig, how much you seek the truth and how much of an edge do you really want. There aren’t likely many people that are aware of these calculations and even fewer who are capable of looking. But the treasure is hidden in the small details.

Of course, we don’t see setups like this all the time because we don’t get to see multiyear bottoms form very often. But this is what it takes to get one of them. To the degree you get things lining up, the longer the pivot is going to hold. What that should do for you is allow conviction to develop when you trade.

What we do at Lucas Wave International is timeless. The stuff we are doing today worked 30 years and 80 years ago. While no 2 patterns are ever alike, like snowflakes, the tendencies repeat all the time. Those of you will be good students of market history will always do well.

Some of you may not have opened your email for a couple of days so we’ve extended the sale on the new TRAINING PROGRAM at $497 until midnight Mountain time on November 5. On the 6^th it will be $697. Now everyone has had a fair shot and the pricing for the subscriber services will also change on the 6^th.

This entry was posted on Monday, November 2nd, 2009 at 6:58 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.