Written December 20th, 2001 The purpose of this page is to announce the discovery of a Harmonic Energy Grid in the S&P 500. This energy grid pre-exists every trading day. It shows trends, swings, congestions, and significant price levels. The grid looks like this: The Moon electric field flux lines are related to the grid, in that they activate it. These flux lines are shown in yellow, as indicated at A. The main grid is shown in white, at B. It is not my intent to reveal where this grid comes from, but to demonstate it's use. As you can see, the grid forms a pattern of diamonds. These diamonds connect together to form trends. Since "The trend is your friend", then it is also true that "Diamonds are a trader's best friend." The grid has one line that is stronger than the others. It is shown with a double line at C. Inside the major grid is a minor grid, shown in green lines. They are marked at D. This grid also has a strongest line, marked at E.
Trends tend to form between parallel sets of grid lines, as shown by A above.
Fast moves tend to form inside the minor grid, shown at B.
Can you look at this chart, which shows how prices flowed through the grid, and find the trends and congestions? Maybe this will help. This was a pretty dull, choppy trading day. Use of the grid identified the early trend, and the congestion when prices "got stuck" on the Moon +M000 electric field flux line. In the afternoon, I alerted hotline viewers of this grid that the congestion was ending, and a down trend was beginning. In a practice trade I sold at 1148.5. All I did here was watch the reaction to the double white line coming down. I thought it had the energy to knock prices off the Moon flux, and it made a nice line to use to trail a stop. The downtrend stayed withn the channel. Late in the day I covered the practice trade at 1143, as prices chopped sideways in the last diamond. I did use some other information, which came for the minor grid. Durning the congestion, I traced the smaller cycles shown by the green minor grid. I could see that the congestion started with a "half cycle" near 10:30. This cycle began with a bounce off the +M000 Moon flux. Four hours later the congestion had another half-cycle, which gave the Moon flux line a "good bye kiss." At that point, it was clear the congestion was over and the trend was turning down. The ensuing decline, though modest, stayed within the diamonds of the grid. Watching the minor cycle also told me late in the day that further decline was unlikely or would be to late to cover, so the decision to cover at 1143 was easy. Going into the close, the decline did break into a new diamond, and headed lower. This is one example of the use of the S&P Harmonic Energy Grid. It is not a forecast, but a map of possibilities. It can be used to help "read the market." As time goes on, I will give more examples. As time and technology allow, I plan to bring this grid live to my hotline subscribers. |