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1. Jesse Livermores Secret To Success

2. Home page investor image explanation

3. The great crash 1929

4. Dear NewBie Investor

5. How Wall Street works

6. How to win in the stock market

7. Commandments to follow

8. 10 Rules for Investing

9. How to survive a stock market crash

10. William J ONeil, CANSLIM

11. Barry Ritholtz keep it simple stupid

12. Gerald Loeb how to win

13. Paul Tudor Jones II

14. Felix Zulauf

15. Sir John Templton

16. Jordan Belfort

17. Stan Druckenmiller

18. Warren Buffett

19. Reading the tape

20. Indicators Introduction

21. Richard Ney method

22. Richard Wyckoff method

23. Richard Wyckoff Waves of Price and Volume

24. Richard Wyckoff is a success story

25. Richard Wyckoff logic not working, this maybe why?

26. Richard Wyckoff studied Jesse Livermore

27. Bob Evans, renowned Wyckoff teacher

28. Tim Ord, Secret Science of Price and Volume

29. William Gann method

30. William Gann life story

31. William Gann Law of Vibration

32. Jim Hurst method

33. Wyckoff method improved1

34. Wyckoff method improved2

35. Original Wyckoff and Wyckoff 2.0

36. Wyckoff 2.0 vs Others

37. Wyckoff 2.0 and Volume Spread Analysis

38. Powerful Patterns

39. Elliot Waves

40. Price Action

41. Market Statistics

42. Cycles for short term speculation

43. Stop Loss methods

44. Alpha Stock Scanner

45. Swing Scanner

46. Flash Charts

47. RTT Market Timer

48. RTT Wyckoff Short Term model

49. Chart Drawing Tools

50. Standard Indicators

51. Proprietary Indicators (PI)

52. Multi Time Frame (PI)

53. PI: RTT TrendStatus

54. PI: RTT Squeeze

55. PI: RTT TrendPower OBV

56. PI: RTT On Balance Volume

57. PI: RTT VolumeWave

58. PI: RTT Rainbow Bands

59. PI: RTT Volume

60. PI: RTT MarketPulse

61. PI: RTT Steps of Cause and Effect

62. PI: RTT Wyckoff Strength Weakness

63. PI: RTT Wyckoff Price Waves

64. PI: Proprietary Indicators Caution

65. What we do - 1st

66. What we do - 2nd



         



Indicator Library
Powerful Patterns

Before you read this, you must understand that each legendary investor (Gann, Hurst and Wyckoff) had an array of more complex setups within their methodologies than we have listed here. You may need to read more on this site, before you fully understand this page. This page is worth reading many times.

Below, we see price action in a bullish mode moving from A to D. Showing higher highs and higher lows. However we can not conclude that we have higher highs until D breaks higher above B, which in our mind is a little late in the game. Therefore we must look for clues between A and C as to the likely hood of D breaking higher. Here are some patterns that we like to look for as a sign of strength.

Powerful repeatable patters



  • Wyckoff1: The rally from A to B must be on rising volume, the immediate minor sell off from B to C must be on lesser volume than A to B. The move from C to D, must be on rising volume, greater than, if not equal to that of A to B and of course greater than that of B to C.
  • Wyckoff2: The break out of A to B must punch through resistance or in Wyckoff terms 'jump the creek'. The minor sell off of B to C is to test the resistance, but not significantly.
  • Wyckoff3: This price volume action suggests that prices are being 'marked up'. The bulls are aggressively continuing to build a position. During the minor sell off of B to C they did not wish to sell, thus signaling to Mr Market that for others to acquire a similar position they will have to pay a higher price's for it.

  • Gann1: The price pullback of either A or C must not significantly break the angle (1x1, 1x2, 2x1, etc) and must remain above the angle on completion of the minor consolidation. 
  • Gann2: The angle represents the 'pace' of price appreciation. How many units of time does it require to achieve a unit of price. It is financially beneficial to select a price action that is generating adequate price appreciation.
  • Gann3: It is more bullish when price approaches the Gann angle that price does not remain within the angle zone for very long, a quick reversal shows that the bulls are impatient to buy.

  • Hurst1: Price action between A and B is inverse to short term dominant cycle. This is very bullish. This will be true as long as the price does not turn down before the bearish half cycle has completed. If price action maintains the inverse relationship past the half cycle (red shade) then it is mostly like to remain in a bullish price inversion.
  • Hurst2: The minor sell off between B to C occurs in sync with the short term cycle bottoms. After C, price must trend up before the bullish half cycle is completed (green shade). 
  • Hurst3: A very attractive bullish case is when price does not significantly pullback during the short term cycle bottom at C, and the following price action up from the cycle bottom is of significant strength to make a new high, and this price high is in sync with the short term cycle high. 
  • Hurst4: Short term cycle bottoms are more significant when accompanied by long term dominant cycle bottoms. More explosive bullish action can be expected from double short and long term cycle bottoms.

In summary, the four patterns
  1. Wyckoff: Price with higher highs and lows, volume rising on the upswing, falling on the down swing.
  2. Gann: Price bounces off angle lines.
  3. Hurst: Price inversion to dominant cycle (or)
  4. Hurst: Price swings in sync with the dominant cycle.
See if you can spot the patterns in the example of the DBA Etf (Agriculture).

DBA Power price and volume patterns


The above is a bullish case. A bearish case is simply an inverse of the above.


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Investing Quote...

..."The game taught me the game. And it didn’t spare the rod while teaching."...

Jesse Livermore


..“How many millionaires do you know who have become wealthy by investing in savings accounts?”..

Robert G Allen


.."I was educated once - it took me years to get over it"..


Mark Twain

..."There is no difference between communism and socialism, except in the means of achieving the same ultimate end: communism proposes to enslave men by force, socialism - by vote. It is merely the difference between murder and suicide"...


Ayn Rand

.."man exists for the achievement of his desires"..


Ayn Rand




Created on: 2/7/2011 1:46:40 AM   Last Update: 2/7/2013 3:05:09 AM Posted by: RTT
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We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund



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