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SHARP SHOOTER

Wyckoff / Volume Spread Analysis

Scalping Strategy for

Futures

Written By Gavin Holmes

Head Trader Wyckoff / Williams Investment Portfolio
Author Trading in the Shadow of the Smart Money
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TradingStocks,Commodities,Futures,OptionsonFutures,andretailoff exchange
foreign currency transactions involves substantial risk of loss and is not suitable for all
investors. You should carefully consider whether trading is suitable for you in light of
your circumstances, knowledge, and financialresources. You may lose all or more of your
initial investment. Opinions, marketdata, and recommendations are subject to change at
any time.

ImportantDisclaimer

TradingStocks,OptionsonStocks,Futures,Optionson
Futures,andretailoffexchangeforeigncurrency
transactions(FOREX)involvessubstantialriskofloss
andisnotsuitableforallinvestors.Pastperformance,
whetheractualorindicatedbyhistoricaltestsof
strategies,isnoguaranteeoffutureperformanceor
success.Thereisapossibilitythatyoumaysustaina
lossequaltoorgreaterthanyourentireinvestment
regardlessofwhichassetclassyoutrade(equities,
options,futuresorforex);therefore,youshouldnot
investorriskmoneythatyoucannotaffordtolose.
TradeGuiderLtdisanauthorizedrepresentativeof
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TheWyckoff/VSASharpShooterScalpingStrategy
ForFutures

Background
WhenIfirstmetTomWilliamsintheyear2000andbegantotakeaninterestin
thefinancialmarkets,TommadeastatementIwillneverforget.
He said, Gav, the fact that you know absolutely nothing about trading and
investingandhavenopreconceivedideaswillmakeyouanexcellentstudent
formetoteachandonedayyouwillbeagreatsuccessinthisbusiness.
Lookingback,ithasbeenagreatjourneyanditcontinuestobeso,butbefore
Tompassedawayin2016hehadonewish.
He said, The biggest danger to a human being trading and investing in the
marketsisactuallythemselves.Weneedtocreateanautomatedtradingsystem
that takes much of the analysis away from the human being and let the
computerdothework.Acomputerdoesnothaveflawsinitslogic.
Tomwasdescribingtomewhatwasonhismind.AnautomatedVolumeSpread
Analysistradingsystemthatfoundtradesetupsbasedonthekeyprinciplesof
WyckoffandcomputerizedbyTom.
ForfurtherdetailsontheVolumeSpreadAnalysismethodologygotoAppendix
one.
Thistradingsystemwouldintuitivelytradealongsideandinharmonywiththe
SmartMoneyplayerswhomoveandmanipulatedallmarkets.
For further details on Market Manipulation and the Smart Money go to
Appendixtwo.
Itwasduring2016thatourHeadofTechnology,GrigoryMargolin,showedme
thelatestdevelopmentofaproducttobeusedinourfund,calledSMARTCenter
Pro.
Theconceptwassimple.FindtradesetupsbasedonWyckoff/VolumeSpread
Analysisthatareinharmonywiththetrendofmultipletimeframesusingthe
proprietarytoolsintheTradeGuidersoftwaretoolset.
At the launch of SMART Center Pro, live at The CME Group Headquarters
(ChicagoMercantileExchange)indowntownChicagoinOctober2016,wewere
abletodemonstratelivetradingwiththesystemusingtimeframesstartingwith
weeklycharts,dailycharts,fourhourcharts,hourlycharts,fifteen,fiveandone
minutecharts.
ThiswasbyfarthemostsuccessfullaunchofanyTradeGuidersoftwareproduct
inthe16yearssincewestartedthebusiness.
Thenewscalpingstrategydevelopedbyourteamwasbasedonfeedbackfrom
customers. They traded in smaller timeframes and like me, observed that
accumulationanddistributionhastobegininthesmallertimeframesfirstand
wouldthenbeobviousinthebiggertimeframes.Waitingforthebigtimeframes
toalignwiththesmallertimeframesoftenmeantalargepartofthemoveinthe
market was underway before the trend alignment system triggered a trade.
WhilstthiscouldbechangedinSMARTCenterProtousesmallertimeframes,
werealisedthataspecificstrategytestedforspecificmarketswithwrittenrules
andlessrequirementtolearnalltheVSAsignalsmayprovetobeawinneand
sothestrategybelowwasdeveloped.

TheTradingConcept

This trading strategy is built around the Tradeguider core trading

process:SCANCONFIRMTRADE
TheConcept
Scan
Toshowvisuallycleartrendalignmentinmultipletimeframes.
Toallowatradertomonitorandscanhundredsofchartsatonetimeso
thesystemissniffingouttradingopportunitiesforthetradertothen
analyseonthecharts.
Toshowwhenthemarketisincongestionusingtheproprietarytrading
toolsdevelopedbyTradeGuiderSystemsInternational.
Whenthescannerismisalignedinmultipletimeframes,notrade.
Whenthescannerisalignedinmultipletimeframes,possibleVSAtrade
setup.
Confirm
To alert the trader when a major VSA principle has been found in any
timeframebeingmonitoredbythesystem.
Toidentifytradingopportunitiesbyfindingunusuallyhighvolumeona
chart (climactic action) followed by low volume (No Demand or No
Supply)atthesamepricelevelorwhenatrendhasbegun.
Visualandaudiblealertswhentradesetuplocated.
BarinformationwindowforbarbybarVSAanalysis.
Each VSA indicator has a number and a detailed description of market
conditionsthatcausedtheindicatortoappear.
Trade
Stop management techniques for managing the trade through to the
closeposition.

TheTimeframes

Timeframesbeingmonitoredandscannedbysystem.
30minutechart
15minutechart
9minutechart
7minutechart
5minutechart
3minutechart.
6timeframestotalinFuturesstrategy.

Beforegoinganyfurther
Ensureyouhaveoneofthefollowingtradingplatformsinstalled:
InfinityAT,MT4,NinjaTrader,SierraChart,Tradestation
EnsureyouhavetheWyckoffVSASharpShootertradingsoftwareinstalledon
thetradingplatformyouhavechosen.
Donthaveitinstalledyet?
GototheTradeguiderwebsiteandlogontotheCustomerareausingthelogin
tabonthemenubar.

TheTradingProcess
Rule1.
LIVEACCOUNTS
Do not trade a live account until you have made 100 trades on a trading
simulator,recorded theresultsandtakenscreenshotsofeachtradewithrisk
amount,profittargetandactualresultsachieved.

TRADINGSTEP1
Checkthemajornewsbulletinsandstoriesconnectedtothemarketsyouare
interestedin.Thestrategywouldrecommendyouuseareliableeconomic
calendar/newsfeed.Wewouldrecommendthefollowing:
https://www.financialjuice.com/
https://www.bloomberg.com/markets/economiccalendar
Rule2.
BEWAREOFTHENEWSBEAPREDATORANDNOTTHEPREY.
Donottradeatornearmajornewseventsunlessyouwanttodoso.Thebig
volume happens at the events, whip saws the markets and catches stops. Be
cleverandwait.Youarepaidtobepatient.Thetrendoftenstartsdaysaftera
bigannouncementsuchastheBOEorFEDannouncement,butnotalways,so
watchthecharts,theCHARTSDONTLIE.

TRADINGSTEP2
SCAN

StartupyoursoftwareandrightclicktheTGIcon
SelecttheSwitchtoVSASMART
Centeroption

TheSMARTCenterProdisplaywindowwillappear.
Nowyouwaituntilyougetanaudiblealertsayingtrendalignmenttotheup/
downsidehasarrived.Thiscouldtakeuptoanhourtoappeardependingon
marketsconditions.
Whilstyouarewaitingyouarefreetodootherthings.
 Whenyouhearthetrendalignmentalertleft
clicktheflashingblackbox.

Whenyoudo,theboxwilldisappearanda
crosswillappeareitherinthegreenboxonthe
leftortheredboxontheright:

Ifthecrossappearsinthegreenboxweare
lookingforalongtradetosetup,onthereda
shorttradeisexpected.

Nowyouhavereceivedatrendalignmentalert.Youneedtofollowtheserules:
 Rule3.
THETRENDISYOURFRIEND.
This strategy is optimised for trend
alignmentinsmalltimeframesrather
than investment trades, swing trade
positions or longer term trading
strategies.
The strategy identifies the beginning
of big accumulation and big
distribution caused by the Smart
Moneyorflattradingandcongestion
(designated by grey boxes in the
scanner), when no trades should be
taken.
NotethattheSharpShooterstrategyis
finding trend trades not market
turning points. However the 8 key
principlesthatwillmarkamarkettop
or in bottom are included in this
strategyandyoushouldpayattention
whenthesesignalsappear:
SignsofWeakness
EndofaRisingMarket
BuyingClimax
Trapupmove
Possiblehiddenselling
SignsofStrength
Bagholding
Shakeout
DemandovercomingSupply
Potentialprofessionalbuying

Rule4.
CONGESTION
Whenthescannerisshowinggreyboxesoramixofgreenandredboxes,this
indicatescongestionsonotrade,soensurethatasmanyoftheboxesaspossible
arethesamecolour

TRADINGSTEP3
CONFIRM
Forashorttrade
WaitforaVSAConfirmationsignalalert.Youwillgetanaudiblemessage
sayingSignofStrength/weaknesshasarrived.TheSMARTCenterProbox
willbeflashingpinkwithanaudiblealertconfirmingaVSAindicatorhas
appearedinthetrend.Thisshouldnowbeconsideredasaserioustrading
opportunity.

Whenyougetaconfirmationsignal,followtheserules:
Theconfirmationsignalwillbeaboveaparticulartimeframebar.
Next,gotothecharttheconfirmationsignalhasappearedin(theexample
shownabovea3minutecharthasidentifiedsignofweakness26inadown
trend.)

Rule5.
ThebiggerthetimeframetheVolumeSpreadAnalysissignalappearsinthe
biggerthemoveislikelytobe.
Rememberforasignaltobeconfirmedthenextbarneedstoclosebelowthe
closeofthebaronwhichthesignalhasappeared
Ifitisnotconfirmedthesetuphasnotbeentriggeredandyouneedtolookfor
thenexttrade.
Ifitisconfirmedyoucanplaceyourtrade.
Foralongtrade
WaitforaVSAConfirmationsignalalert.Youwillgetanaudiblemessage
sayingSignofStrength/weaknesshasarrived.TheSMARTCenterProbox
willbeflashingpinkwithanaudiblealertconfirmingaVSAindicatorhas
appearedinthetrend.Thisshouldnowbeconsideredasaserioustrading
opportunity.

Whenyougetaconfirmationsignal,followtheserules:
Theconfirmationsignalwillbeaboveaparticulartimeframebar.
Next,gotothecharttheconfirmationsignalhasappearedin(theexample
shownabovea3minutecharthasidentifiedsignofweakness26inadown
trend.)
Rule6.
ULTRAHIGHVOLUMEBARS
PayparticularattentiontoyouranalysistoanyULTRAHIGHVOLUMEbars.
Startwitha30minutetimeframeanduse200pricebars.VisuallyidentifyTop,
BottomandClosingpriceonthesebarsandWHENPRICEACTIONREACHES
THESESAMEAREASASYOUARETRADINGNOWORINTHEFUTUREwatchhow
themarketreacts.REMEMBER,ULTRAHIGHVOLUMEISACTIVITYOFTHE
SMARTMONEY.Ignorethesepastareasofpriceactionatyourperil(thewords
ofTomwhenhewasteachingme).

Rule7.
LOWorVERYLOWVOLUMEBARS
PayparticularattentiontoyouranalysistoanyLOWorVERYLOWVOLUMEbars
atorneartothesamepricelevelastheULTRAHIGHVOLUMEbars.Thiscan
causepricedirectiontochangeandbeatriggerforSharpShooterasitmoves.
Thismaysoundcontradictorytorule7butitthemostimportantlessonIEVER
LEARNEDfromTom.

VOLUMEISACTIVITY
Volume is the activity of Smart Money. Massive volume at a price then
followedbylowvolumeinthefutureatthesamepriceisamassivesignalfrom
the Professional Smart Money players. Wyckoff recognised it as vitally
important, Williams recognised it as vitally important and Sharp Shooter has
beendevelopedtofindthesekeyareasofprofessionalactivityandalertyouto
theopportunitiesavailableattheselevels.

TRADINGSTEP5
Takethetradeandfollowtheserules:
Rule8.
MANAGEYOURMONEY
Whenitcomestomanagingandgrowingatradingorinvestmentaccountthis
isoneofthemostimportantandoftenleastunderstoodtopicsforatraderand
investor,especiallyifyouarejuststartingout.
TRADINGINVOLVESRISKOFLOSSASDETAILEDATTHEBEGINNINGBELOW
ARETHERULESTHATIFOLLOWBUTYOUMUSTADAPTTOTHEACCOUNTSIZE
YOUTRADE.
Whenyoufundyourtradingandinvestmentaccountoneofthefirstthingsyou
mustunderstandisthenatureofRISK.
Icouldwriteawholebookonthissubjectbutfortunatelyanexcellentbookon
thisverysubject,calledAgainstTheGodsTheRemarkableStoryofRiskby
PeterLBernsteiniswhereIlearntmuchofwhatIapplytoourHedgeFund
today.Inadditionofcoursetotheremarkableknowledgeimpartedtomeby
thelate,TomWilliams,InventorofVolumeSpreadAnalysisandaformer
syndicatetrader.
OneofthekeytakeawaysfromBernsteinsbestsellingbookisthatintodays
modernworldtherearesomeremarkabletoolsavailabletousallwhichcan
helpusmitigaterisktothebestofourability.
SowhenIamaskedbyanewtraderorinvestortosummarizewhatImeanby
moneymanagement,Itellthemthatthisissimplythepreservationofyour
capitalinvestmentinthemarketormarketsyouaretradingorinvestingin.To
besupportedbyawrittentradingplan,astrategyorstrategiesthathavebeen
testedinsimulationmodeandadetailedanalysisofeachtradeorinvestment.
Keepingatrackofyourequitycurveandknowingwhenthingsareworkingwell
andwhentheyarenotworkingwellallowsyoutoadjusttomarketconditions
andtodiversifyifrequired.

Awrittenandcommittedtradingplanisvitalinmyopinionandinthe
thousandsofonlineandliveseminarsIhavehostedIalwaysaskwhohasa
writtentradingplanandIamalwayssurprisedhowfewpeoplehavetakenthe
timetowriteone.
Tradingisabusinessnotahobby.Failtoplan,plantofail.Youaregoingtobe
participatinginoneofthebiggestbusinessesintheworld,tradingandinvesting,
sobeprepared.
Rule9.
STOPLOSS
Useastoplossandrememberthereisnoguaranteethatthestoplossyouput
inwillgetfilledespeciallyduringveryvolatilemarketconditions.Speaktoyour
brokeraboutthisifyouhaveanyconcerns.
The strategy does not suggest exact stop placement because of the many
markets it is capable of analysing and the thousands of customers trading
differentaccountsizeswithdifferentpersonaltolerances.

Suggestedstoplossstrategy
Forlongtrades
Onthefirstspikeofhighvolumemovethestoptothebottomofthepricebar,
repeatuntilyougetstoppedout.

Forshorttrades
On the first spike of high volume move the stop to the top of the price bar,
repeatuntilyougetstoppedout.

TRADINGSTEP6
Exitthetrade

ExamplesexplainedonYouTube
https://www.youtube.com/watch?v=ICiv4KELD1I&t=1141s
https://www.youtube.com/watch?v=dtwilGr78vw&t=66s
https://www.youtube.com/watch?v=FJw6f9RNMrI&t=9s
APPENDIX1VSAExplained

GeneralBackgroundtotheWyckoffMethodandVolumeSpreadAnalysis
IwouldliketodedicatethistradingstrategytotheMasters&Creatorsofthe
WyckoffMethod&VolumeSpreadAnalysis
InventorVSATomGeorgeWilliamsJanuary4th1929November7th2016

Ifyoucanreadachartcorrectly,youwillunderstandthemarketsdonotmoverandomly
butaremovedbytheSmartMoneyandyoucanseetheirintentionatsupportand
resistancelevelsbylookingforthetell,talefootprintshiddeninthevolumeandprice,and
youhaveachancetoprofitbyfollowingtheirfootsteps.
Volumeisvitalinyouranalysis,whichiswhytheselfregulatedexchangesaroundthe
worldwillnotreleasetruevolumefiguresuntilthedayaftertradingtookplace!!
TomWilliams,2016
RichardDemilleWyckoff(November2,1873March19,1934)

"...Thousandsofthosewhooperateinthemarketsnowrecognizethefactthatthemarket
momentarilyindicatesitsownimmediatefuture,andthattheseindicationsareaccurately
recordedinthemarkettransactionssecondbysecond,andthereforethosewhocan
interpretwhattransactionstakeplacesecondbysecondormomentbymomenthavea
distinctadvantageoverthegeneraltradingpublic...."
RichardDWyckoff,1914
ThisisabriefexplanationoftheunderlyingmethodologyofVolumeSpread
Analysis.Wewillbeshowingexamplesofhowprofessionalactivityisclearly
visibleinallmarketsandinalltimeframes,ifyouknowwhatyouarelooking
for.
VolumeSpreadAnalysis(VSA)isaproprietarymarketanalysismethodwhich
wasconceivedbyTomWilliams(ChairmanofTradeGuiderSystems).VSAis
usedtoanalyzeanyliquidmarketbyobservingtheinterrelationshipbetween
volume,priceandspreadofthepricebar(oftenknownastherangeofaprice
bar).Thismethodisparticularlygoodathighlightingimbalancesofsupplyand
demand.
Despitethefactthatfewretailtradersandinvestorsareawareofthisanalysis
methodthisisnotanewconcept,andTomWilliams,whoinventedVSAwas
oncehimselfaprofessionalsyndicatetraderwhocouldseethatthemarkets
werebeingmanipulatedandthatthekeytounlockingthetruthlayinthe
relationshipbetweenthevolume,therangeorspreadofthebarandthe
closingprice.TomspentmanyyearsstudyingtheconceptsofRichardWyckoff.
RichardWyckoffwasatraderduringthe1920and30s.Hewroteseveral
booksontheMarket,andeventuallysetupthe"StockMarketInstitute"in
Pheonix.RichardDWyckoff(bornNovember2,1873;diedMarch19,1934)
wasastockmarketauthority,founderandonetimeeditoroftheMagazineof
WallStreet(foundingitin1907),andeditorofStockMarketTechnique.
Wyckoffimplementedhismethodsinthefinancialmarkets,andgrewhis
accountsuchthatheeventuallyownednineandahalfacresandamansion
nextdoortotheGeneralMotorsIndustrialist,AlfredSloaneEstate,inGreat
Neck,NewYork(Hamptons).
AsWyckoffbecamewealthier,healsobecamealtruisticaboutthepublic'sWall
Streetexperience.Heturnedhisattentionandpassiontoeducation,teaching,
andinpublishingexposssuchasBucketShopsandHowtoAvoidThem,
whichwereruninNewYork'sTheSaturdayEveningPoststartingin1922.
Continuingasatraderandeducatorinthestock,commodityandbond
marketsthroughouttheearly1900s,Wyckoffwascuriousaboutthelogic
behindmarketaction.Throughconversations,interviewsandresearchofthe
successfultradersofhistime,Wyckoffaugmentedanddocumentedthe
methodologyhetradedandtaught.Wyckoffworkedwithandstudiedthemall,
himself,JesseLivermore,E.H.Harriman,JamesR.Keene,OttoKahn,J.P.
Morgan,andmanyotherlargeoperatorsoftheday.
Wyckoff'sresearchclaimedmanycommoncharacteristicsamongthegreatest
winningstocksandmarketcampaignersofthetime.Heanalyzedthesemarket
operatorsandtheiroperations,anddeterminedwhereriskandrewardwere
optimalfortrading.Heemphasizedtheplacementofstoplossesatalltimes,
theimportanceofcontrollingtheriskofanyparticulartrade,andhe
demonstratedtechniquesusedtocampaignwithinthelargetrend(bullishand
bearish).TheWyckofftechniquemayprovidesomeinsightastohowandwhy
professionalinterestsbuyandsellsecurities,whileevolvingandscalingtheir
marketcampaignswithconceptssuchasthe"CompositeOperator".
Wyckoffwasthoroughinhisanalysisofthetradingrange.Onetoolthat
WyckoffprovidesistheconceptoftheCompositeOperator.Simply,Wyckoff
feltthatanexperiencedjudgeofthemarketshouldregardthewholestory
thatappearsonthetapeasthoughitweretheexpressionofasinglemind.He
feltthatitwasanimportantpsychologicalandtacticaladvantagetostayin
harmonywiththisomnipotentplayer.Bystrivingtofollowhisfootprints,
Wyckofffeltwearebetterpreparedtogrowourportfoliosandnetworth.
"Atitscore,Wyckoff'sworkisbasedontheanalysisoftradingranges,and
determiningwhenstocksarein"basing,""markdown,""distribution,"or
"markup"phases.Incorporatedintothesephasesaretheongoingshifts
between"weakhands"(publicownership)and"compositeoperators",now
commonlyknownasSmartMoney.
FormoreaboutRichardWyckoff,seethesebooks:
HowITradeandInvestinStocksandBondsbyRichardDWyckoff
StockMarketTechnique,No.2byRichardDWyckoff

TomcamebackfromBeverleyhillsintheearly1980sandbegantoinvestigate
ifitwaspossibletocomputerizethesystemhehadlearntasasyndicate
trader,andsobegantheevolutionofVolumeSpreadAnalysis.Togetherwith
anexperiencedcomputerprogrammerTomcarefullystudiedmanythousands
ofchartstorecognizetheobviouspatternsthatwereleftwhenprofessionalor
smartmoneywasactive.Thismethodologyalthoughsimpleinconcepttook
manyyearstowriteandisnowtaughtasamethodologycombinedwiththe
softwarecalledTradeGuider.
VolumeSpreadAnalysisseekstoestablishthecauseofpricemovements.The
causeisquitesimplytheimbalancebetweenSupplyandDemandorstrength
andweaknessinanyliquidmarket,whichiscreatedbytheactivityof
professionaloperatorsorSmartMoney.
Thesignificanceandimportanceofvolumeappearslittleunderstoodbymost
nonprofessionaltraders.Perhapsthisisbecausethereisverylittle
informationandlimitedteachingavailableonthisvitalpartoftechnical
analysis.Touseachartwithoutvolumeissimilartobuyinganautomobile
withoutagasolinetank.
Forthecorrectanalysisofvolume,oneneedstorealizethattherecorded
volumeinformationcontainsonlyhalfofthemeaningrequiredtoarriveata
correctanalysis.Theotherhalfofthemeaningisfoundinthepricespread.
Volumealwaysindicatestheamountofactivitygoingon,thecorresponding
pricespreadshowsthepricemovementonthatvolume.Manytradersbelieve
youcannotanalyzevolumeistheFOREXmarketsbecauseitisunavailable,but
wewillshowduringthisseminarthatisnottrue.
Sometechnicalindicatorsattempttocombinevolumeandpricemovements
together.Restassuredthatthisapproachhaslimitations,becauseattimesthe
marketwillgouponhighvolume,butcandoexactlythesamethingonlow
volume.Pricescansuddenlygosideways,orevenfalloff,onexactlythesame
volume!So,thereareobviouslyotherfactorsatwork.

Furtherinformationavailableatwww.volumespreadanalysis.com

Appendix2MarketManipulationandtheSmartMoneyManipulators

WhoistheSmartMoney?
FirstofallyouhavetorealizeandacceptthattheSmartMoney,Composite
OperatororProfessionalmoneyareveryactiveinallthefinancialmarkets.
SmartMoneyasweshallrefertoithere,canbetradingsyndicates,
individualtraderswithhugecapital,largefinancialinstitutions,certainfunds
suchasTheQuantumFundoperatedbyGeorgeSoros,andlargeinstitutional
banks.

Theseindividualsororganizationsareverysecretintheirdealings,astheydo
notwantotherstoknowwhattheyaredoing.
Rememberwhenin1992GeorgeSorosmassivelyshortedtheBritishPound
forcingtheBankOfEnglandtoeventuallywithdrawfromtheEuropean
ExchangeRateMechanism,well,thisisoneverywellknownexampleof
ProfessionalMoneyhavingadramaticeffectonaparticularmarket,inthis
casetheFOREXmarket.Thistypeofactivityhappenseveryday,withdiffering
degreesofintensity,youjustneedtoknowwhattolookfor.
Allfinancialmarketsaredominatedbythebigprofessionalplayers
Thebanks,institutions,syndicatesandthespecialistshaveallthefinancial
resourcestomovepricesupordown.Trillionsofdollarsareexchangeddaily
acrosstheworld'sstock,currencyandcommoditymarkets.Hundredsof
millionsarespentanalyzingcropreports,businesssectorsandeconomic
figures.Allotheractivity,includingthecombinedtradesofthousandsof
individualslikeyouandme,representsonlyatinyfractionofthemoneyand
resourcesflowinginandoutofthemarketonadailybasis.Youmaythink
that'sprettyobvious.But...Marketsdon'treacttoprofessionalactivitythe
wayyouexpectthemto.
Ineverymarket,there'sanundeclaredunderstandingamongstprofessional
traders.Italertsthemtowhatthebigmoneyisdoing.It'sbasedaround
observationssurroundingvolumeactivityandtheeffectthishasontheprice
andthespread.
Tousoutsideobserversthisactivitynormallygoesunnoticedaninsignificant
andunexplainablebliplostamongstthe'noise'ofthemarkets.Ifyou'veever
watchedtheASX,Dow,FTSE,S&P,Nasdaqoranindividualstockpriceoverany
periodoftime,you'llknowthatpricescanfluctuatewildly.Butthereislogic
behindallthischaosandtheprofessionalsknowexactlyhowtoprofitfromit.
Theyknowwhatthevolumesignalsmean,yetonlyatinyminorityofnon
professionalsknowwhat'sreallygoingon.
Asyou'llseeingraphicdetaillater,knowinghowtoreadthemarketwillallow
youtotaketheprofessional'sleadandboostyourprofits.Understanding
professionalmoveswillallowyoutouncoverthetruemarketsentiment.Itwill
giveyouaclearindicationofwhichmarketsyoushouldholdpositionsin
whetherbuyingorsellingstocks,orgoinglongorshortonfuturesortrading
currencies,FOREXorcommodities.
Theprofessionalscanneverhidetheirtrueintentionsifyoucanlearnto
analyzeachartliketheydo.Theymaybeleadingthemarket,buttheyleave
telltalesignsforanyonewiththerightknowledgetofollow.Theonlytruly
importantconsiderationforyouiswhattheprofessionalmoneyisdoingthat
istheonlythingthatmatters,andthenyoufollowintheirfootsteps.
ByusingandunderstandingTradeGuiderandtheVolumeSpreadAnalysis
methodologyyouwilllearn:
Howtoidentifyprofitablesituationswhenmassivevolumespikesappear
followedbylowvolume.
Howtoreadanymarketlikeaprofessional.
Howtotellifamarketisstrongorweak.
Howyouaremanipulatedbytheprofessionalstomakethewrongdecisions.
Whatyoushouldconsidertobecomeafulltimetrader.
Powerfultradingtipstoimproveyourperformanceandboostyourprofits.
Howtoreacttonewsdrivenevents.
HowtoavoidHerdmentality.
Furtherinformationavailableatwww.marketmanipulation.com

Appendix3MyMoneyManagementregime

MoneyManagement
Iwillnotriskmorethan2.5%ofmycapitalinanyoneaccountinanyonetrade
Iwillnotriskmorethan6%ofmycapitalinanyoneaccountinmultipletrades.
Iwillclosealosingtradequicklyandtreatitasacostofdoingbusinessinthe
market.
Iwillnevertakealosspersonally.
Iwillnevergetangrybecauseatradewentagainstme.
Iwilllearnfromthelosingtradebutwillnotdwellonit.
IfImakethreeconsecutivelosingtradesIwillceasetradingandreexaminemy
plan.
Iwillneverrevengetrade.
IwillallowawinningpositiontorunusingthechandelierstopsandHstopsin
SharpShooteron5minutechart.
Mykeyobjectiveistogetmystoptobreakeventhensmallprofitwithout
gettingstoppedout.
Iwilluseaminimumofa2:1riskrewardratio
IwillevaluatemytradeseverySaturdayandwillidentifyhighprobabilityset
upsforthefollowingweek.

Appendix4Thebesttradesforthisstrategy

Thebesttradesforthisstrategycanbedescribedasfollows:

INADOWNTRENDINGMARKETWITHWEAKNESSINTHEBACKGROUND
NODEMANDINADOWNTREND
UPTHRUSTINADOWNTREND
TRAPUPMOVEATRESISTANCEFOLLOWEDBYNODEMAND
WEAKNESSHASAPPEAREDINADOWNTREND
HIDDENUPTHRUSTINADOWNTREND
SUPPLYCOMINGININADOWNTREND

THEKEYSIGNSOFWEAKNESSTHATHAPPENATMARKETTOPSARE:
POTENTIALBUYINGCLIMAX
ENDOFARISINGMARKET
HIDDENPOTENTIALSELLING

INANUPTRENDINGMARKETWITHSTRENGTHINTHEBACKGROUND
NOSUPPLYINANUPTREND
STOPPINGVOLUMEINANUPTREND
SHAKEOUTATSUPPORTFOLLOWEDBYTESTS
STRENGTHHASAPPEAREDINANUPTREND
TESTINARISINGMARKETINANUPTREND
NOSUPPLY/TESTINANUPTREND

THEKEYSIGNSOFSTRENGTHTHATHAPPENATMARKETBOTTOMSARE:
POTENTIALSELLINGCLIMAX
BAGHOLDING
DEMANDOVERCOMINGSUPPLY
SHAKEOUT