
I would like to make a comparison between traditional charting and our techniques. Let us look at some slightly older but highly volatile situations. The Nasdaq 100 index when this index was really flying. Two key levels had been established on the weekly chart. The intermediate peak at 2070.6 and the lows around 1656, a 25% range measured from the low. I would expect that technical analysts would consider these levels as being of significance, even if they did not class them as major levels. Well we had the same levels with one major difference. We had forecast they were important levels between 8 and 12 weeks before the market traded at the prices. Our numbers were 2066 (actual high 2071) and 1656 (actual lows 1657 and 1655).As I have mentioned before. Markets are not random, they are predictable. Spotting highly profitable targets, days and weeks before the event, is normal. Spotting them months before is less common but not that unusual.
So what else did we predict well in advance? Here just a few examples of the major ones that I can remember. In 2000 we picked the High and Low of the S&P 500 plus the High of the FTSE. The major lows of most of the stockmarkets and then the tops of the bounce. The lows in Sterling in October 2000 (along with the Euro), and we really nailed the high of Sterling in February 2004, when it had rallied 5000 points from the lows . We also had this marked out as a swift initial collapse from around 1.9100 rather than a drift lower. It fell over 1200 points in 18 trading days. Spotting potential market crashes is not only fun but highly profitable. These do not occur by chance.
The Dollar/Yen top in 1998 was forecast as a major multi year top and we had a major risk level anywhere above 146.50 The high was 147.62 and it hasn't been seen since with the market having fallen around 30%. That is now over 8 years below this predicted turning point. Economists were virtually unanimous in seeing a rate of 165 to 175 within 3 months of the 1998 high at 147.62, instead it went to 101.30.
Even the WTC terrorist attack didn't create any major problems for our forecasting techniques. We had targets well below where the stockmarkets were trading before the attack and even the Nasdaq 100 only closed below our downside target for just two days before starting a major rally. Then we were ready for the major rally with accurate upside targets already in place.
Details of a more recent forecast.
At the end of 2006, the Euro rallied sharply against the Dollar and closed almost on its weekly highs after a rise of 260 points that week. This was the second week of strong gains. This move was touted by many economists as being the start of a major rally which would be extensive and immediate. Our methods showed that there was a real danger that the market could fall nearly 300 points from the highs and the danger of a fall was focussed upon a rate of 1.3350. That week's high was 1.3349. The next week saw an insignificant rally (less than 20 points) and a sharp fall. Within two weeks of touching 1.3350 (high 1.3369) we fell 300 points to 1.3053. In fact just to show you that the lower level we had forecast was really significant, the market then bounced 190 points. The level that the market pulled back to and bounced from was known by us before any of the initial downside reversal had even taken place. It was marked on our charts even as the market traded at its highs.
Intra-day highs and lows are forecast correctly every day. What do I mean by correctly? A significant change in trend takes place with an insignificant drawdown. In other words very low risk trades. Are we ever wrong? Of course we are, but making money is about recognising any mistakes quickly. As we know the levels in advance we can proactively monitor the activity, as it hits the critical levels, and not be reactive to a loss.
Making consistant profits is never easy. The methods you could learn from us just makes it much easier.