TABtE OF CONTENTS

FORFWORD

INTRODUCTION

SECTION! LAYING THE GROUNDWORK FOR SYMMETRY WAVE TRADING METHOD

Chapter 1 The Importanre of Having A Perspective.................................................1

Chapter 2 Why ihe Flliott Wave Theory Does Not Work........................................11

SECTION 2 SYMMETRY WAVE - THE METHOD ITSELF

Chapter 3 Riiles for the Symmetry Wave Method....................................................ij

Chapter 4 Tiend and Trend Reversal.......................................................................41

Chiipter 5 Trading; Using the Symmetry Wave Method...........................................53

Chapter 6 Sutxlividing Retracement Waves and Labeling Them.............................71

Chiipter 7 Profit Targets, Protective Stops and Money .......................81

SECTION 3 RELATED SYMMETRY WAVE TOPICS

Chapters Stocks....................................................................................................91

Chapter 9 Day Trading.........................................................................................104

Chapter 10 Hborracci Ratios..................................................................................133

Chapler 1 t Psychology of Troding and General Observations................................139

FOREWORD

Trading the stork O futures markets is more complex than nioM traders realize. TrndiniJ is a vast perspective made upof chart interpretation, entry methods, exit methods, protective stops, money management, diversification, and psychology. Each of these subjects reriuires the development of a perspective. The lotaf sum of these microperspeclives make up the macroperspective that we call trading.

In this book, the Symmetry Wave Method is introduced as a means to organize a market and to rally around it all other elements of trading, roibwirig is an outline to help you get .1 general idea of whats contained herein.

BROAD SUBJECT: WHAT IT DOES:

Symmetry Wave Method™

Organizes charts. Analyzes markets. Creates a new pi.rsfXctive. Becomes a trading tool. Singles out the major trend.

THE WAY IT WORKS:

Singles out waves.

Organizes waves into two categories - trend waves and retracement waves. Subdivides retracement waves.

THE GAP IT FILLS:

The first new method since the Elliott Wave Theory to organize markets: it removes many of the loopholes the Ellion Wave Theory can not explain. The Symmetry Wave Method is a complete system which organizes and analyzes all markets; il is objective and goes far beyond idle, and often untradeable, theory.

OTHER TOOLS NECESSARY FOR SUCCESS:

The method of entry.

The method of exit.

The method of protecting a position.

Money management.

Diversification.

Psychology plays its part.

INTRODUCTION

There have been many books wntlen on the stock and tutures nwrkets, trading melhods, and analysis. Mostofihcmarelikeanencyclopcdiaol various irtaas and tools currently in use. Often .someone comes along and repackages the same material under his/her own name, hrom my perspective, there lias not been any viable new idea that reali.stically organizes and clarifies how markets work in fifty years. For example, when the Market Profile™ method of chailing price fluctuations came onto the scene, many people went head over heels for it. An acquaintance of mine had attended a Market Profile™ seminar and was telling mc that t[)is was it and I should attend myself. Ai that time I was very involved analyzing five minute bar charts of the Standard & Poors 500 (as well as Treasury Bond charts). It took me just about a day to determine that Market Profile™ did not reveal anything more about market behavior than fiveniinute bar charts do. As had happened in my five-minute bar chart analysis, Market Profile™ found samet[)ing that worked for a few months, only lo be followed by a dismal trading period. In my mind thai invalidated the Maitel Profile™ theory. relatively recent craze has been candlestick charts. Here again, there is no consistent pattern which lasts long enough lo be profitable.

You see, Ive found that fundamental market beh<ivior changes approximately every live months or so. This renders even a good mechanical system profitable for only a short time, followed by a non-profitable period and an overall flat performance. (he reason for this is (hat indicators and charting techniques do not have intelligence or powers of discrimination. They merely mimic behavior up and down on horizontal axes; providing not much better than random chance for finding winning trades. Indicators do noi and cannot distinguish between a sideways or trending market, nor do they provide a perspective as to how markets organize themselves.

The best a mechanical system can do is to provide a slight edge. That slight edge has proven ample enough for a number of capable stock and futures fund managers, providing-to the very best advisors - approximately a 20% average annualized return. For institutions, this is an excellent return on investment, making futures trading a viable investment field for Ixsnks, insurance companies, 11 and pension funds, in fact, managed money in the futures Industry has grown in the past eight years from less than one billion dollars to well over twelve billion, with money pouring in at a rapid pace.

However, for many individual traders, having only a slight edge just doesnt cut it. Sweating out drawdowns that may last up to 18 months to achieve - if youre lucky - a five-year 20% annualized return is not only unacceptable, but for many, mentally not endurable. Thats where Symmetry Wave enters the picture. Its a trading method capable of providing much more than "a slight edge" and targets returns substantially above those of the best funds.

Over the past 7fJ years there have been jusi a handful of original ideas that have gained respect