Dharmik Team

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In this article we will talk about what we should trade and how we should do it. What financial products are more convenient for trading? Why do some traders prefer the futures version of S&P 500 and others like trading CFD for the same index? We will study and compare prices, margins, commissions and spreads. We will not talk about brokers, brokerage houses or other companies offering financial services because these can be easily found on the internet. We just want to present a comparison between different financial products and advise you what to choose when starting trading. Lets take this one at a time: 1. What is the difference between CFDs and futures contracts? What are CFDs? Contracts for Difference (CFDs) are contracts between a trader and a CFD provider, who will at the close of the contract, exchange the difference between the opening price and the closing price of the underlying index, share, commodity, per the number of specified CFD contracts. A CFD differs from the traditional trading methods as it is not a purchase of the nominated investment, but trading on its speculated price movement. The main idea of CFDs is the ability to be able to trade higher volumes than traditional trading while using less initial capital. The buyer of the contracts is required to pay commission to enter the contract, plus fixed interest on the remaining value of the borrowed amount, until they decide to end the contract, at which time they are paid the price difference. The buyer may opt on either side - high (buy) or the low (sell), which means that if the contract was a low trade the buyer could still turn a profit it that was the initial investment. Advantages of CFDs versus traditional share buying The key distinction between traditional share buying and CFD buying is that buying a CFD is done on leverage (typically between 5% to 35% for actively traded stocks), both shares and CFDs participate in all corporate actions, both buyers receive dividends but only the buyer of the share is able to vote and receive the franking credits. With CFDs one is not entitled to these rights, which enables CFD sellers to sell with ease. This makes CFDs an excellent trading product. The leverage and ability to short sell gives power and flexibility. Unlike futures, CFDs do not have an expiry date, so one can hold on to them for as long as they desire. CFDs open up a whole new trading world, with the ability to trade shares, indices, foreign exchange, and commodities. CFDs are the flexible new way to trade. One can trade Singapore Stock Exchange (SGX) listed shares but you have access to worldwide markets, such as the United States (DOW, NASDAQ, S&P), United Kingdom (FTSE), Japan (NEIKKI), Hong Kong (Hang Seng) and many other countries. What is futures contracts In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized at a certain date in the future, at a price (the futures price) determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract. The future date is called the delivery date or final settlement date. The official price of the futures contract at the end of a day's trading session on the exchange is called the settlement price for that day of business on the exchange. 2. Trading terms for DOW and S&P 500 The mathematical relation between DOW and E-mini S&P 500 futures continuous is 1:9.8, which is almost 1:10. One DOW point represents 10 S&P points. This is a chart highlighting the differences: 3. Conclusions The chart helps us draw clear conclusions: a. If your portfolio is small (10.000$ - 30.000$) it will be very expensive to trade futures contracts. The margin for this type of contract is high, the lever being the same. You will not be able to control the risk and profit as the rules of a classic money management say. The CFDs would be more appropriate. The CFDs for S&P 500 are cheaper and are recommended for portfolios under 2000-3000 $. The traders with more money can efficiently trade Dow Jones. b. When the portfolio is exceeds 30.000 $ the trader can choose futures contracts. The trading of futures contracts is more advantageous regarding the costs (commissions and spread). The effect of a single S&P 500 e-mini contract is 50 times bigger than the one of a CFD. So when you have enough money it is wiser to trade futures contracts. c. Both financial products are efficient but they address different types of traders. Dharmik Team.

In this article we will discuss about the correlation between DOW and EUR/USD. We will see if this correlation exists. We will try to find if it is true that both markets share the same money and people. We will find that all these are true. Some chart examples will help us understand why. We will start first with the type of relation between DOW and EUR/USD (directly or indirectly proportional) and with the degree of correlation. We will see how to come up with a strategy valid for both DOW and EUR/USD or for any other pair of currencies. We will see that it is enough to analyze one chart and then know everything about the other charts (to know what price should have any other financial product at a give moment in time). At the end we will of course draw the conclusions. 1. Is there any correlation between DOW and EUR/USD? Let’s look at the next charts: The firs chart is for Dow in January – August 2007. The second one is for EUR/USD in the same period. Are they correlated? It doesn’t seem to be any correlation when looking at the details. The degree of correlation varies from a period in time to another. When looking at the big picture there seems to be a correlation, right? First we have a strong increase until May, then a short decrease, then a High in July and an abrupt downward slope in August. This is the same for both charts. Let’s observe an earlier period in the past: This is the time period between January and July 2003. Again we can not find a valid correlation between short time spans, but when observing the monthly trend, we can! After the month of January when the charts are different, we see a neutral February trend, a Low in March, an ascending trend until June and a small decrease in July. There is the same big picture on both charts. Correlation or not? 2. What kind of correlation is there? The correlation is directly proportional. Every time Dow raises, EUR/USD grows as well. Every time Dow has a period of descending, EUR/USD goes downwards too. The long time span charts are very clear but they do not offer enough support. More appropriate are the charts on shorter time spans. The intraday charts are the best. Study the period between 2007 and 2008 with the help of daily charts! When the trend is neutral you will find differences, but when the trend is strong and the money is moving from one financial product to another within seconds, you will find the correct correlation. 3. Is there enough to analyze the evolution of just one financial indicator to know everything else? We think so! The logic is simple. When Dow is going up it means that American economy is going well. If the economy is rising, it means that the American currency should be stronger. If the currency goes up, then EUR/USD will go down. This is why the intraday charts show an indirect proportionality. Dow and EUR/USD are in direct proportion on medium and long time spans When, in 2007, the FED began reducing the reference interest, USD became the carry trading currency. That point forward the correlation became directly proportional on short time spans also. 4. Conclusions: If an intraday analysis of Dow and S&P 500 shows that these indicators will go down, we can assume that EUR/USD parity will also decrease. Having this information and the information provided by other elements of technical analysis you will find the correct signals for entering and leaving the market and for closing in profit. Dharmik Team.

Our opinion is that they do! Let’s find out if we are right… We will tell you what moon phase means and what new moon and full moon is. We will find out when these events happened last year. We will analyze each graphic and understand the influence these moon phases have on the evolution of the market. Finally we will draw some conclusions to help us make financial predictions. 1. What full moon and new moon is? A lunar phase is in fact the appearance of the illuminated part of the Moon as seen from the Earth. The lunar phase varies as the moon orbits the Earth accordingly to the positions of the Moon, Earth and Sun related to each other. Every 28 days the Moon comes between the Sun and Earth. This means that the Moon is in conjunction with the Sun. At this specific moment the Moon is not visible to the eye, but the original meaning of “New Moon” refers to the first visible crescent of the Moon after conjunction. The Moon can be now seen over the western horizon and each night, the illuminated part gets bigger until, after 14 days, almost a whole hemisphere of the Moon can be seen. This is in fact the moment of the Full Moon. The Moon is now on the opposite side of the Earth from the Sun. This means that the Moon is in opposition with the Sun. The Full Moon rises over the horizon after the sunset. During the next 14 days the illuminated part decreases until the Moon is again in conjunction with the Sun (the next New Moon). The exact time for the Full Moon and the New Moon is determined using a mathematical formula and can be found in the ephemerides. The first 14 days of the lunar month represent the period when the illuminated part of this celestial body raises and is considered the best part of all 28 days. It is a benefic time for new, important and complex things, for making new plans and for starting new projects. It is exactly what the elders said: the right thing at the right time! The time between the 15th ant 28th days represents the decreasing period of the Moon and is considered inauspicious. During this second half of the lunar month we should continue the things we have already started working on and avoid making mistakes. It is not recommended to begin new actions because they are meant to fail. If we apply this new information to the financial market we can find new rules: during the new moon and the first 14 days, people are driven to put into practice new plans (buying stocks for example); during and after the full moon there is a tendency towards waiting and even selling. There is a strong correlation between the period when the seen part of the Moon increases in size and the price of the stocks going up; and between the last 14 days of the lunar month (visible part of the Moon getting smaller) and the price of the stocks going down. 2. When did these lunar events happen in the last years? This is a table with the times of the Full Moon and the New Moon in 2007 and 2008: You are shown the year, the month, the day and the hour for each astrological event. As you can see the time period between a New Moon and a Full Moon is of 14 days, so an entire moon cycle lasts 28 days (a lunar month). During a year we will have 13 lunar months. 3. How did the financial market act at these specific moments in time? Let us analyze the graphics for Dow Jones in 2007 and 2008. We have marked the points corresponding to the two lunar phases. DOW: January – June 2007 DOW: July – December 2007 DOW: January – June 2008 DOW: July – December 2008 The mathematical relation between DOW and E-mini S&P 500 futures continuous is 1:9.8, almost 1:10. This means that one Dow point represents 10 S&P points. The graphics will show an almost perfect correlation between these indices regarding the moon phases. This is why we decided to analyze only the Dow index. A mathematical study was made to compute all the lunar cycles for DJIA between 1915 and 1994. The conclusion was that there is a correlation between lunar phases and the market evolution. It also revealed some more detailed aspects very useful for trading. The study came to the conclusion that a few days before the New Moon, the market registers the lowest point of the 28 days interval. After that the market goes up for 14 days and a few days before the Full Moon goes down. The descending trend continues almost half of the next 14 days and after registering a Low, raises until the next New Moon. This is the graphic to explain what we have said. 4. Conclusions a. The graphics worth a thousand words, as it is easier to understand what you have been told after looking at a graphic. b. in most of the cases the Full Moon relates to a High, and the New Moon to a Low c. if the rule does not apply (in less that 25% of the situations), we can be certain that these astrological events relate to a strong reversal point of the market d. We have also analyzed many past years and the rules apply. You can verify the correlation also if you are attracted to this kind of research work e. By showing you this study we are not trying to convince you that astrology is perfect. We just want to highlight the fact that there are correct ways of predicting the local High and Low and the reversal points. These kinds of studies helped us along the years build our trading system, the system we are basing our analysis and forecasts on. Dharmik Team

In this article we will discuss about a widespread, well-known key element of technical analysis. Why do you think technical analysis especially some elements work so well for financial markets? Why do you think Fibonacci levels are usually strictly followed? Because thousands and billions of traders and computer programs for trading use these elements. This way everybody acts the same at the same time… This is why we decided to present in the category of technical analysis, the most used and well-known methods of predicting financial evolution. These methods are easy to understand and are very efficient. We will discuss about pivots. We will find out what pivots are and how they are calculated. We will use them in our charts and we will see how they act. We will discover how useful they are and, at the end, we will draw the conclusions. We will use pivots daily in our analyzing and trading system. 1. What are the pivots? Pivot points are a technique used by professional traders and market makers to determine entry and exit points for the trading day based on the previous day’s trading activity. It’s best to use this technique after determining the direction of the trend. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change. Pivots can be extremely useful in Forex since many currency pairs usually fluctuate between these levels. Pivots can be used as well in indices’ market, DOW and S&P being trade by the same people, so the same methods are used. 2. How are the pivots calculated? The pivot point and associated support and resistance levels are calculated by using the last trading session’s open, high, low, and close. The calculation for a pivot point is shown below: Pivot point (PP) = (High + Low + Close) / 3 Support and resistance levels are then calculated off the pivot point like so: First level support and resistance: First support (S1) = (2*PP) – High First resistance (R1) = (2*PP) – Low Second level of support and resistance: Second support (S2) = PP – (High – Low) Second resistance (R2) = PP + (High - Low) S3 = S2 – (High – Low) R3 = R2 + (High – Low) Don’t worry you don’t have to perform these calculations yourself. We will automatically insert these values in our analysis. Also keep in mind that some charting software also provides additional pivot point features such as a third support and resistance level and intermediate levels or mid-point levels (levels in between the main pivot point and support and resistance level). We presented the classical method of calculating pivot points. There are also some newer alternatives such as: Woodie, Camarilla, DeMark. For a deeper view into these methods you can find them on the internet. We don’t recommend spending time with this because only a few traders actually use them. So it hardly counts in market’s evolution 3. Chart examples for Dow and e-mini S&P 500. Let us study a few days in market evolution and see how these indices acted: a. We will first discuss about the day before Dow Jones reached the highest point in its entire evolution. Based on last trading session’s data, we calculated the pivot points. During the first part of the day Dow tried twice to grow above 14.150 and each time bounced back. The price is going down towards the day’s pivot. After the accumulation zone, the price descends roughly to the first support (S1). After another accumulation zone, the price goes down until it meets the second support. The Low of the day was 14.000 points. The price will grow to S1 and the day closes in that area. We can see how precise the market evolution was regarding the two estimated values. b. This is the analysis for the day of June 19th 2007. The price bounced back from the pivot and descended to S1. After an accumulation zone it goes up to the pivot and even reaches R1. Here, the prive bounced back three times and descends subsequently towards S1. The trading session closed at a value near the pivot. We can observe now that the three zones of support, resistance and accumulation overlap the mathematical points we calculated. c. In the next example there is the date April 5th 2007. DOW descends to S1, bounces back, goes up to the pivot and then passes a long accumulation zone and ascends to R1. After another short accumulation zone the price goes up to R2 where it bounces back. The day closes at R1. 4. Conclusions a) As the charts show, these mathematicaly calculated points are extremely useful, the market’s evolution overlapping them. Most of the traders use this method. b) Trading methods based only on pivots analysis can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete and complex trading system approaching financial reality. c) We often use these pivot points amongst other various methods of analysis that we will describe later. Dharmik Team

In this article we will discuss about a widespread, well-known key element of technical analysis. Why do you think technical analysis especially some elements work so well for financial markets? Why do you think Fibonacci levels are usually strictly followed? Because thousands and billions of traders and computer programs for trading use these elements. This way everybody acts the same at the same time… This is why we decided to present in the category of technical analysis, the most used and well-known methods of predicting financial evolution. These methods are easy to understand and are very efficient. We will discuss about the MACD indicator. We will find out what MACD means is and how it is calculated. We will use it in our charts and we will see how it acts. We will discover how useful the MACD indicator is and, at the end, we will draw the conclusions. We will use the MACD indicator daily in our analyzing and trading system. What is MACD? Developed by Gerald Appel, Moving Average Convergence/Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero, without any upper or lower limits. MACD is a centered oscillator and the guidelines for using centered oscillators apply. 1. How is it calculated? The most popular formula for the "standard" MACD is the difference between a security's 26-day and 12-day Exponential Moving Averages (EMAs). This is the formula that is used in many popular technical analysis programs, and quoted in most technical analysis books on the subject. Appel and others have since tinkered with these original settings to come up with a MACD that is better suited for faster or slower securities. Using shorter moving averages will produce a quicker, more responsive indicator, while using longer moving averages will produce a slower indicator, less prone to whipsaws. For our purposes in this article, the traditional 12/26 MACD will be used for explanations. Later in the indicator series, we will address the use of different moving averages in calculating MACD. Of the two moving averages that make up MACD, the 12-day EMA is the faster and the 26-day EMA is the slower. Closing prices are used to form the moving averages. Usually, a 9-day EMA of MACD is plotted along side to act as a trigger line. A bullish crossover occurs when MACD moves above its 9-day EMA, and a bearish crossover occurs when MACD moves below its 9-day EMA. The histogram represents the difference between MACD and its 9-day EMA. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA. MACD measures the difference between two Exponential Moving Averages (EMAs). A positive MACD indicates that the 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing, indicating a bullish period for the price plot. If MACD is negative and declining further, then the negative gap between the faster moving average (blue) and the slower moving average (red) is expanding. Downward momentum is accelerating, indicating a bearish period of trading. MACD centerline crossovers occur when the faster moving average crosses the slower moving average. 2. Chart examples for Dow and e-mini S&P 500. a. In the next imagine we have the evolution between March and July 2006. After analyzing the histogram step by step, observing he histogram going below and above zero and correlating the new information with the ones about the trend lines we realize that we could have performed numerous positive transaction in this period. Analyze each setup… b. Another example is for the time period January – April 2005. we have the same setups and resembling profiles. c. We have here 5 clear patterns to follow and make profit. 3. Conclusions 1. Correctly used and followed, the MACD along other technical analysis and astrological analysis methods can offer complex and correct information for profitable transactions. 2. Trading methods based only on MACD can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete and complex trading system approaching financial reality. 3. We often use MACD amongst other various methods of analysis that we will describe later. Dharmik Team

In this article we will discuss about one of the many methods of analysis William Gann used. He revealed some of his methods to be used by those patient and wise enough to study and understand them. We will present you William Gann’s Square of Nine: idea of conception, special properties and the characteristics for bull and bear market. We will then find some specific and less known geometrical and mathematical proportions between the numbers in the square. We will then look on the charts for the numbers in the square. We will discover that between a High and a Low there is a specific ratio. This ratio has an explanation and we will find its origin and use. We will end with having a powerful tool that gives us clear targets for the trend to reach. 1. How was William Gann? William D. Gann was a trader of the early 20th century. His abilities for profiting from the stock and commodity markets remain unchallenged. Gann’s methods of technical analysis for projecting both price and time targets are unique. Even today, his methods have yet to be fully duplicated. Known as “The Master Trader”, W.D. Gann was born in 1878, in Lufkin, Texas. Gann netted over 50 million $ from the markets during his trading career, averaging a success rate for trades of more than 90%. It has been said that Gann could very well have been right ALL the time. Any losses incurred by him were only there by his own design and not because of any faults with his methods. His successes are legendary. Gann literally converted small accounts into fortunes, increasing their net balances by several hundred percent. There are numerous examples of his trading successes, among which are these: 1908 – a $130 account increased to $12.000 in 30 days. 1923 – a $973 account increased to $30.000 in 60 days. 1933 – 479 trades were made with 422 being profitable. This is an accuracy of 88% and 4000% profit. 1946 – A 3-month net profit of $13.000 from starting capital of $4500 – a 400% profit. The following paragraph appeared in the December 1909 issue of “Ticket” Magazine. It was written by R.D. Wyckoff, the former owner and editor of the “Ticket”, and describes Gann’s proficiency for projecting price targets forward in time: “One of the most astonishing calculations made by Mr. Gann was during last summer (1909) when he predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o’clock, Chicago time, on September 30th (the last day) the option was selling bellow $1.08 and it looked as though his prediction would not be fulfilled. Mr. Gann said, ‘If it does not touch $1.20 by the close of the market, it will prove that there is something wrong with my whole method of calculations. I do not care what the price is now, it must go there’. It is common history that September Wheat surprised the whole country but selling at $1.20 and no high in the very last hour of trading, closing at that figure”. Gann’s trading methods are based on personal beliefs of a natural order existing for everything in the universe. Gann was part of a family with strong religious beliefs. As a result, Gann would often use Biblical passages as a basis for not only his life, but his trading methods. A passage often quoted by Gann was this from Ecclesiastes 1:9 - 10: “What has been, that will be; what has been done, that will be done. Nothing is new under the sun. Even the thing of which we say, ‘See, this is new!’, has already existed in the ages that preceded us.” This universal order of nature also existed, Gann determined, and we have the same opinion now, in the stock and commodity markets. Price movements occurred, not in a random manner, but in a manner that cat be pre-determined. The predictable movements of prices result from the influence of mathematical points of forces found in nature… And what is the cause for all this points of forces? Right… cosmos..universe.. all planets around us. This Gann could say at that time. These points of force were felt to cause prices to not only move, but move in a manner that can be anticipated. Future targets for both price and time can be confidently projected by reducing these mathematical points of forces to terms of mathematical equations and relationships. The mathematical equations of Gann are not complex. They result in lines of support and resistance witch prices invariably will follow. Gann held that time is the most important element of trading. Time is the factor that determines the length of a commodity’s price trend. When time dictates that trending prices should react, prices may stabilize for a short period, or they may fluctuate within a tight range, but eventually they will react by reversing direction. Time is the element that will determine WHEN prices should react. Certain price reactions are found to occur during specific times. The actual TYPE of price reaction can be anticipated, and pre-determined, by using Gann time rules. Gann time periods lat not only days or weeks, but months and even years. Gann’s trading year is first divided in half, equivalent to 6 months or 26 weeks. The year is then divided by eighths, and then by sixteenths. And then, after you think you understand all of this, you find that Gann’s year is also divided by thirds. There are also important time periods within the Gann year. For example, since a week is 7 days, and 7 times 7 is 49, Gann’s work found that 49 is a significant number too. Important tops or bottoms may occur between the 49th and 52th day, although an intermediate change – in – trend may occur between the 42th and 45th day, because 45 days in 1/8 of a year. Other time periods that were important to Gann, at which a price reaction could be expected, are: - Anniversary dates of major tops and bottoms - 7 months after a major top or bottom for a minor reaction. - 10 to 14 days is the length for a reaction in a normal market. If this period is exceeded, the next reaction should be expected after 28 to 30 days. If you’re not already confused, understand that Gann’s year may not only be calendar, but “fiscal” as well; starting from major tops or bottoms. Gann’s time rules consider many periods, including seasonality, Biblical references, and astronomical events. Lets see a little example. This is an examples of astronomical correlations on a Gann chart. One of Gann’s beliefs, stemming from his “natural order” concept, is the influence of planetary movements on earthly events, such as the moon’s perceived effect in tides. This “cosmic perspective” of Gann is unlike conventional astrology, in that planetary influences, like units of price, are unique to each market. 2. What is Square of Nine and how is it constructed? We will analyze Square of Nine from William Gann’s perspective. Here is what it’s about: The basic form is a square. The principle of making this square is very ingenious. The numbers are arranged in increasing order, in a specific pattern, starting with number one set in the centre. We can arrange as many numbers we wish. The numbers can be arranged starting from the middle, to the right and up, in a counterclockwise manner, or to the left and up, in a clockwise manner. When setting the Square of Nine we have to consider the trend’s direction. If the trend is ascending we will arrange the numbers clockwise, if it is descending we will arrange the numbers counterclockwise. After arranging the numbers we can observe some special similarities forming. For example on one diagonal we have the numbers 1, 9, 25, 49, 81, 121, 169 and so on. These numbers are the square of odd numbers 1, 3, 5, 7, 9, 11, 13 etc. On the same diagonal with 4 we have the numbers 16, 36, 64, 100, 144, 196 and so on which are the square of even numbers 2, 4, 6, 8, 10, 12, 14 etc. Is there a coincidence or is it harmony? The same principle of arranging numbers can be used for other values as well. With the help of the square presented above we will analyze the value for some financial indicators. We can also input instead of numbers some calendar dates to help us calculate the day for the High and the Low. This is how such a square looks like: 3. Examples for Financial indicators and explanation 1. We will explain first the February 2007 High for S&P 500. That month the indicator had a High of 1.460 points. Let’s identify this value on Gann’s Square of Nine. The next month S&P 500 had a Low of 1.360. We will look for this value in the square also. This is the index’s chart: We can see below the two values on Gann’s Square of Nine. Between the centre of the square and these points there is an angle forming. This angle is about 250 degrees. This is Gann’s mathematical equation: Square root of High – 1.4 = Square root of Low Why 1.4? In trigonometry 360 degrees is defined as 2; 180 degrees as 1; 90 degrees as 0.5; and 250 degrees as 1.4. In conclusion we have: Square root of 1.460 - 1.4 = Square root of 1.360 (correct!) Let’s see now why the indicator has fallen 250 degrees. During the period of time we are referring to, on the sky we had two major astrological aspects: Saturn opposition Uranus (this means 180 degrees) and Sun square Pluto (this means 90 degrees). If we add them: 180 + 90 = 270 degrees. This value is very close to the actual fall of the index. The forecast would have been as it follows: When analyzing the market at the end of February, after the 1.460 High, we would have looked at the astrological aspects coming the next month. These are the opposition and square presented above. The sum of the aspects was 270 degrees. Using Gann’s Square of Nine and the mathematical equation: Square root of 1.460 - 1.5 = square root of the value of next month’s Low The result is 1.350. So the forecast would have said that the S&P 500 would have fallen to the value of 1.350 – 1.360 and than rise. 2. The second example is about the abrupt fall in the summer of 2007, more exactly, in August. We present the steps of the forecast: Step 1: S&P 500 has a High of 1.550 Step 2: For the months of July and August 2007 we have the following astrological aspects: Mars square Neptune, Mars square Saturn, Saturn trine Neptune, Sun opposition Neptune. All these aspects have a negative influence. We are expecting a declining in the evolution of the index with 90 + 90 + 120 + 180 = 480 degrees utmost. Step 3: 480 degrees means 2.6 in trigonometry Step 4: we apply the equation: Square root of 1.550 - 2.6 = square root of the value of next month’s Low Step 5: Next month’s Low is 1.355 Step 6: We would predict that in august S&P 500 will fall from a High of 1.550 to a Low of 1.355 -1.365 The facts were that S&P 500 had a Low of 1.370 and then started rising. Nice, isn’t it? 3. This is the last conclusive example: This example present the forecast for S&P 500 which had a historic High in October 2007 and a decline in January 2008. Step 1: The historic high is 1.576 Step 2: in the period October 2007 – January 2008 we have the following astrological aspects: Saturn opposition North Pole, Sun square Uranus, Sun square North Pole, Sun square Saturn, Sun square Uranus, Sun opposition Mars, Saturn trine Mercury. All these aspects are negative. We will expect a fall with 180 + 90 + 90 + 90 + 90 + 180 + 120 = 840 degrees. Step 3: 780 degrees is 4.6 Step 4: We apply the equation: Square root of 1.576 - 4.6 = Square root of the Low’s value Step 5: The Low equals 1.260 Step 6: the conclusion is: S&P 500 will fall after the historic High to a 1.260 Low in January 2008 The facts were that S&P 500 had a Low of 1.250 and then started rising. Is there a coincidence or is it harmony? 4. Conclusions: a. This method of prediction is incredible exact and has a special harmony in it. It offers us correct ways of assessing future Lows and Highs for financial market’s indicators. b. Although it seems a complex and hard to handle method, it is a useful tool in our system of analysis. We have come to these conclusions after long years of thorough research. There are a lot of details to consider until a full understanding of the phenomenon but it can be done. We have understood Gann’s method. We give you simple and easy to apply analysis, but these analysis are the result of hard and meticulous work. c. We have also analyzed many past years and the rules apply. You can verify the correlation also if you are attracted to this kind of research work d. By showing you this study we are not trying to convince you that astrology is perfect. We just want to highlight the fact that there are correct ways of predicting the local High and Low and the reversal points. These kinds of studies helped us along the years build our trading system, the system we are basing our analysis and forecasts on. DHARMIK TEAM

1. Who was William Gann? William Delbert Gann was born June 6, 1878, in Lufkin, Texas, to Sam H. and Susan R. Gann, immigrants to Texas from the British Isles. Lufkin is midway between Houston and Texarkana. This part of Texas is cotton country and Gann’s parents lived on a Neches River bottom cotton ranch near Lufkin. He grew up around the cotton warehouses in Angelina County where cotton was king. W. D. Gann was raised in a very strict Methodist church family. His mother, a very religious person, encouraged him to read the Bible at a very early age, and in fact, wanted him to become a minister. Gann was not sure he wanted to become a minister, but studying the Bible was certainly easier than working in the cotton fields, as was his father’s wish. He attended church every Sunday with his parents and as he listened to the sermons found his interpretation of the Bible scriptures to differ from the minister’s. In the Bible he discovered time cycles, repetition of important numbers, and references to the wise men following the stars. Also, that it was written in veiled language that made interpreting the real meaning difficult. Since Gann had a photographic memory, by age 21 he had nearly memorized the Bible. During his school years Gann excelled in mathematics and was generally called as a gifted mathematician. His tremendous appetite for knowledge and his open-minded attitude led him into many different fields of study that eventually resulted in discoveries in the markets that would otherwise have been overlooked. He completed high school in a time when most children were only able to attend school through the third or fourth grade. As a teenager, Gann liked to be called W. D., and he used these initials the rest of his life. W. D. pestered his parents until they relented and signed a minor release form that he needed to obtain a job. His first job was that of a News Butcher on the passenger train between Texarkana and Tyler, Texas. This job required him to be quick-witted, aggressive, and able to deal with all kinds of people. During his teen years, he worked in the cotton warehouses in Lufkin and Texarkana, Texas. While working in the cotton warehouse, he was introduced to commodity trading. In 1902, at age 24, W. D. Gann made his first commodity trade in cotton, the market he knew best. The small profit from that trade marked the beginning of what was to become one of the most remarkable and legendary careers the speculative markets have ever known. Over the next 53 years, Gann took over $50,000,000 from the markets. It has been reported by a man who worked for Gann the last eight years of Gann’s life, that approximately 1/3 of the money he made was for himself and the other 2/3 was for the accounts he supervised for clients. From that very first trade, it is believed Gann was using principles and techniques he continued using throughout his trading career. The notations on some of his early charts substantiated this belief. As time progressed, his trading methods were refined. In 1906 W. D. went to Oklahoma City. He worked as a broker for a brokerage firm, trading for himself while handling large accounts for clients. He studied the cause of success and failure in the speculation of other traders. He found that over 90% of traders who enter the markets without knowledge and study usually lose in the end. Gann also lost a significant amount of money and admitted his trading was based on hope, greed, and fear. Later on, in his books and courses, he cautioned all traders about these emotions. Early on, Gann began to note the periodical recurrence of rise and fall in stocks and commodities. This led him to conclude that natural law was the basis of market movements. He then devoted ten years to the study of natural law as applicable to the speculative markets. During that time he traveled to England, Egypt, and India to gain knowledge in ancient mathematics and astrology. In the British Museum in England he conducted extensive research on market cycles. In an Egyptian temple it is believed he found the basic construction of what was to become known as his Square of 9 Chart. After exhaustive research and investigation of the known sciences, he discovered the Law of Vibration enabled him to accurately determine the exact prices to which stocks or commodities would trade within a given time, and that each stock or commodity had its own rate of vibration. At age 27, Gann was a well-known name in the Southwest. His views on the analysis of cotton prices were so well respected that a Texarkana newspaper, The Daily Texarkanian, ran a story on Gann’s cotton predictions. In 1908, at age 30, Gann moved to New York and opened his own brokerage office at 18 Broadway. He began testing his theories and techniques in the market. On August 8, 1908, he made one of his greatest mathematical discoveries for predicting the trend of stocks and commodities. This was “The Master Time Factor.” Within a year, it became clear to others that his success was based on more than just luck. No one researched time cycles as extensively as Gann. His charts show the cycles with which he worked, went back to history’s beginning, and bore no resemblance to other researcher’s time cycle studies. In October 1909, Richard D. Wyckoff, Owner and Editor of The Ticker and Investment Digest asked Gann for an interview to document his trading ability for one month. The interview was granted, and Gann’s trades were monitored for 25 market days during the month of October in the presence of a Ticker representative. At that time the markets also traded on Saturday. Gann made 286 trades in various stocks, both long and short. There were 264 trades that resulted in profits and 22 in losses. 92.3% of the trades were profitable. The capital used doubled ten times resulting in 1000% gain on his original investment during those 25 trading days. What makes this even more phenomenal is that Gann did this with an average time between each trade of about twenty minutes. In one day Gann made 16 trades in the same stock, 8 of which were in either the top eighth or the bottom eighth of that particular swing. Such a performance is unparalleled in the history of Wall Street. As stated by James R. Keene, the famous speculator of that era, “The man who is right 6 times out of 10 will make his fortune.” It seems a foregone conclusion that Gann was picking tops and bottoms with a high degree of accuracy. At this point of time, in 1909, he was only 31 years of age, so whatever methods he was using had already been discovered. This biographer believes that after his sensational performance Gann regretted having granted the interview, as it was stated in the printed article that he did not know the results were to be published. When the article was printed in The Ticker Investment Digest, Gann was besieged with people asking how he was able to pick tops and bottoms as he had demonstrated. His only answer to them was he used The Law of Vibration to make all his calculations. At this conjuncture there were only two choices: l) to give away his secret discoveries and risk destroying the markets, or 2) to detract from his method of picking tops and bottoms by writing books and courses about mechanical trading systems, the use of geometrical angles, the use of Time and Price Charts, such as the Octagon Chart (Square of 9), Master 12 Chart (Square of 144), Hexagon Chart (the cube), Square of 90, Square of 52, 360 Degree Circle Chart, and many other trading techniques. If Gann had continued trading using only his method of picking tops and bottoms, without a doubt he would have become one of the wealthiest men in the world, and in so doing would have attracted too much attention. He would have been asked too many questions by traders and would have been compelled to explain. However, at certain times, he probably used his method to advantage. Gann had a profound understanding of natural law, so rather than place himself in an embarrassing situation, he chose to trade using his mechanical systems and other techniques he had developed. Also, having more capital than was required for a good living was not important to him, as he was more interested in the knowledge possessed by ancient civilizations and the occult sciences. Gann understood how the Laws of Nature controlled human beings and, therefore, he understood the markets, because the markets are nothing more than an expression of the actions of human beings. The two previous paragraphs are my belief. You may agree or disagree, but before you arrive at a conclusion, carefully study Gann’s 1909 trading demonstration. He made 286 trades in 25 days, which is 11 trades per day. To do this, you must pick the tops and bottoms on a short intraday time period. If what I believe is true, it is very sad to think that a genius individual such as W. D. Gann, had to disguise the truth throughout his life, with a smoke screen of many trading methods and techniques. In 1918 his office address in New York was 81 New Street and in the early 1920’s was at 49 Broadway. Over the years, Gann maintained several offices in New York all located on Wall Street with the address numbers of 78, 80, 82, 88, 91, 93 and 99. At the height of Gann’s career, he employed 35 individuals who made charts of all kinds, did analytical research at his direction, and performed many duties involved with his various publications and services. The name of one of his businesses was W. D. Gann Scientific Service, Inc., and the other, initiated in 1919, was W. D Gann Research, Inc. The firms published the following Supply and Demand Letters: Daily Stock Letter, Tri-Weekly Stock Letter, Weekly Stock Letter, Daily Commodity Letter, Tri-Weekly Commodity Letter, and Weekly Commodity Letter. Telegraph Service was all offered as follows: Daily Telegraph Service on Stocks, Daily Telegraph Service on Cotton, Daily Telegraph Service on Grain, and Telegrams on important Changes Only, on Stocks or Commodities. Published under Annual Forecasts were: Annual Stock Forecast, Annual Cotton Forecast, Annual Grain Forecast, Annual Rubber Forecast, Annual Coffee, Sugar and Cocoa Forecast. Supplements to all Forecasts were issued and mailed on the first of each month. Special Forecasts on stocks or other commodities were made on request. Also offered were daily, weekly, monthly, quarterly, and swing charts on stocks and commodities. Gann taught advanced courses of instruction entitled Master Forecasting Method, at a cost of $2,500, and New Mechanical Method and Trend Indicator, at a cost of $5,000, to those who want it for their own use and will not publish, sell, or teach it to others. It is too valuable to be spread broadcasted. The cost of these courses and personal instruction in today’s economics would be $25,000 to $50,000, or more. As early as 1923, Gann offered a service entitled “The Busy-Man’s Service.” This was a service for professional and businessmen where Gann supervised their trading accounts by advising them what and when to buy and sell. In later years the name of this service was changed to “Personal Service.” The cost of this service was on a 1 month, 3 months, 6 months, or annual basis, or on a Part-of-Profit Plan where the monthly fee was smaller and Gann received 5% of the net profits. Under the Part-of-Profit Plan it was required that a minimum of 100 shares be traded. The clients were advised by telegram or letter. An article in The Evening Telegram dated New York, Monday, March 5, 1923, used the words “prophet” and “mathematical seer” to describe Gann. It also stated his followers declared he was 85% correct in his forecasts. He predicted the election of Wilson and Harding using fortunate numbers and fortunate letters combined with cycles. He predicted the abdication of the Kaiser and the end of the war to the exact date six months in advance. His predictions were based on mathematics. He stated if he had the data he would use algebra and geometry to tell exactly by the theory of cycles when a certain thing is going to ocur again. He further stated that there is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things. The article pointed out that Gann received calls every day from prominent persons asking him to cast their horoscope. It also said he told politicians whether or not they would be elected and solved problems for clergymen, bankers, and statesmen. In another article in the Morning Telegraph, dated Sunday, December 17, 1922, the Financial Editor, Arthur Angy, stated that “W. D. Gann had scored another astounding hit in his 1922 stock forecast issued in December, 1921, I found his 1921 forecast so remarkable that I secured a copy of his 1922 stock forecast to prove his claims for myself. And now, at the closing of the current year of 1922, it is but justice to say I am more than amazed by the result of Mr. Gann’s remarkable predictions based on pure science and mathematical calculations. ” W. D. and his wife, Sadie H. Gann, had one son and three daughters born to their marriage. Their son, John L. Gann, was in partnership with his father for several years in the late 1930’s and early 1940’s, operating under the firm name of W. D. Gann & Son, Inc. Apparently, the two personalities were not always compatible, as their association was ended in the mid 1940’s. This writer has been told one of their main differences concerned astrology, as John did not believe astrology had any effect on market movements, or human behavior. This probably upset W. D. as he knew well the effect of planetary motion on the markets and the individual. Following the association with his father, John served as a broker for many years for the firm Sulzbacher, Granger & Co. in New York City. It is believed that John passed away in 1984. For many years Gann maintained a home in Scarsdale, New York, which was, at the time, the estate bedroom community for New York City. In an article that appeared in the May 26, 1933 New York Daily Investment News, it was reported that Gann left New York in the first 1933 model Stinson Reliant airplane, piloted by Flinor Smith, a woman aviator, to conduct an extensive tour of the country analyzing cotton, wheat, and tobacco crops, and business conditions. The airplane was equipped with navigation instruments, radio receiving equipment and extra-large fuel tanks that gave a flying range of 750 miles. It was powered with a Lycoming engine and cruised at 135 miles per hour. Gann was the first Wall Street advisor to se an airplane for studying market conditions so he could advise clients much faster of changing market conditions. During his trip he was a speaker to members of Kiwanis, Rotary, Chamber of Commerce, and other business organizations in various larger cities throughout the United States. In 1935, Gann made an airplane trip to South America for studying crop conditions, and to gather information on the increase and production of cotton in Peru, Chili, Argentina, and Brazil. He logged 18,000 miles by air and another 1,000 miles by automobile. In July of 1936 Gann purchased a specially built all metal airplane, which he named “The Silver Star,” and used in making crop surveys. In July of 1939 he purchased a new Fairchild airplane for the same purpose. Gann was a member of the Commodity Exchange, Inc. of New York, the New Orleans Cotton Exchange, the Rubber Exchange of New York, the Royal Economic Society of London, the American Economic Society, the Masonic Lodge, the Shrine, the Chicago Board of Trade, and was a devout Christian in the Methodist Church. Gann had a winter home in Miami, Florida, and in the 1940’s moved there on a full-time basis. His office was at 820 S. W. 26th Road in Miami. While in Florida, he continued his advisory services as well as teaching his commodity and stock market courses, either in person or by mail. By the late 1940’s he had a recommended list of Books For Sale that included the subjects of numerology, astrology, scientific, and miscellaneous. He was involved in real estate holdings, and enjoyed large automobiles, especially Lincolns, which he purchased new yearly. In 1954, after making several successful coffee and soybean trades, Gann purchased a fast express cruising boat that he named “The Coffee Bean.” It was reported that Gann wore the same type of suit throughout his life, and that his home was filled with items collected in his world travels. He vacationed often in South America. But, in the opinion of his peers, he did not live beyond his means. W. D. Gann wrote some of the best books ever written on the stock and commodity markets. The following is a list of the books written by him and the year they were published: Speculation a Profitable Profession The Truth of the Stock Tape The Tunnel Thru the Air Wall Street Stock Selector Stock Trend Detector Scientific Stock Forecasting How to Make Profits Trading in Puts and Calls Face Facts America. Looking Ahead to 1950 How to Make Profits Trading in Commodities 45 Years in Wall Street The Magic Word How to Make Profits Trading in Commodities Gann was a prolific writer. His style of writing was unique. Readers of his books considered him to be a poor writer with a limited use of the English language. Not so! Upon methodic study of his work, the reader will discover in time the Gann method of teaching. He will inspire the reader to research everything from the origin of numbers to the musical scale and vibrations. W. D. Gann, in my estimation, was a genius. He was born a Gemini with a high intellectual capacity, and a dual personality that caused him to be both genial and obstinate. He was a gifted mathematician, an expert chart reader, and had an extraordinary memory for figures. Take away his science and he would beat the market on chart reading alone. One of Gann’s most important technical tools was his charts and no one kept up as many as he did. Gann’s charts encompassed 55 years, from 1900 to 1955. During this time thousands of daily, weekly, monthly, quarterly, yearly, and other various charts, were made with great care, each a work of art. He believed charting was an art and if you understood everything the chart was showing, it would aid in forecasting the next day, week, or month’s, price movements. Gann was a workaholic, at times working 17 hours per day, 6 days per week. He was very demanding of those who worked with and for him, and expected the same effort from them that he himself put forth. He expected to issue instructions only once and did not feel it should be necessary to repeat them. Gann was deeply analytical and studied price actions of various stocks and commodities back through the years. He spent nine months in the British Museum working day and night researching stock and commodity prices and dates from 1820, and wheat prices and dates from 1200. He also spent long hours and long days in the Astor Library in New York City researching stock and commodity markets. He was a student of numbers, number theory, progressions, and the progression of numbers. His trading system was based on natural law and mathematics. Since time progresses as the earth rotates on its axis and in its order, and time is measured by numbers and progression of numbers, and prices in their movement upward and downward are also measured in numbers, it is understandable why Gann had an intense interest in numbers, number theory, and mathematics. A keen understanding of natural laws and their effect on mankind have a direct effect on the markets. The markets are only extensions or reflections of man’s actions. In Gann’s time there were no calculators. He used a slide rule and the various master charts he developed, such as the Square of 9, for his calculator. He kept an open mind to any trading ideas to achieve perfection. When making his forecasts, he used many methods to arrive at the time for a trend change, and all of them to confirmed he was correct. In his early trading he made thousands of dollars. But, by listening to false rumors and other people’s ideas, he also lost thousands of dollars. In 1913 and again in 1919, he lost small fortunes when the brokerage firms he was trading with went bankrupt. One of these firms was Murray Mitchell and Company. In those days the client’s funds were not protected by exchange regulations in case of a failure, as they are today. During this time he was also involved in two bank failures. Regardless of these losses and misfortunes, he was always able to rely upon mathematical science to aid him in making a financial comeback. This is why Gann states that knowledge of the market is more important than money. Today, people believe “times are different,” but Gann’s time saw its bull markets and panics in the stock market, bull markets and panics, in the commodity market, wars, inflationary periods, depressions, bank closings, etc. In 1921 the rate of inflation was 100%. Strikes were rampant, jobs impossible to find, and productivity at very low levels. The Great Depression of 1929 to 1932 and the outright confiscation of the citizen’s gold that was exchanged for printed money, left deep scars on the country and it’s citizens. W. D. Gann was avidly against the New Deal and Roosevelt’s creeping socialism. Therefore, to learn from other people’s past experiences, people today should understand Gann’s famous quotation, “The future is but a repetition of the past, or as the Bible says, the thing that hath been, it is that which shall be; and that which is done, is that which shall be done; and there is no new thing under the Sun.” Gann said, “The average man’s memory is too short. He only remembers what he wants to remember or what suits his hopes and fears. He depends too much on others and does not think for himself. Therefore, he should keep a record, graph, or picture of past market movements to remind him what has happened in the past can, and will, happen in the future. Panics will come and bull markets will follow just as long as the world stands and they are just as sure as the ebb and flow of the tides, because it is the nature of man to overdo everything. He goes to the extreme when he gets hopeful and optimistic. When fear takes hold of him, he goes to the extreme in the other direction.” The following is taken from 45 Years in Wall Street and is very good advice and very true in today’s world. “Every man takes out of life just exactly according to what he puts in. We reap just what we sow. A man who pays with time and money for knowledge and continues to study and never gets to the point where he thinks he knows all there is to know, but realizes that he can still learn, is the man who will make a success in speculation or in investments. I am trying to tell you the truth and give you the benefit of over 45 years of operating in stocks and commodity markets and point out to you the weak points that will prevent you from meeting with disaster. Speculation can be made a profitable profession. Wall Street can be beaten and there is money operating in commodities and the stock market if you follow the rules and always realize that the unexpected can happen and be prepared for it.” In How to Make Profits in Commodities -- Gann made the following comments regarding knowledge as he believed knowledge is power. All who read this should heed and always remember his advice. “The difference between success and failure in trading in commodities is the difference between one man knowing and following fixed rules and the other man guessing. The man who guesses usually loses. Therefore, if you want to make a success and make profits, your object must be to know more; study all the time; never think that you know it all. I have been studying stocks and commodities for forty years, and I do not know it all yet. I expect to continue to learn something every year as long as I live. Observations, and keen comparisons of past market movements, will reveal what commodities are going to do in the future, because the future is but a repetition of the past. Time spent in gaining knowledge is money in the bank. You can lose all the money you may accumulate or that you may inherit - that is if you have no knowledge of how to take care of it - but with knowledge you can take a small amount of money and make more after time spent in gaining knowledge. A study of commodities will return rich rewards.” Sometime in 1947, Gann sold W. D. Gann Research, Inc. to C. C. Loosli, a San Francisco attorney. He became disenchanted with the business and on February 14, 1948, W. D. Gann Research, Inc. was transferred to Mr. Joseph L. Lederer of St. Louis, Missouri. The office for W. D. Gann Research, Inc. was maintained at 82 Wall Street in New York until 1952. Then it was moved to Scarsdale, New York, and in 1956 relocated to St. Louis, Missouri, where its only business was that of investment adviser. In 1950 in Miami, Florida, Gann and a partner, Ed Lambert, founded Lambert-Gann Publishing Co. Ed Lambert was an architect who designed the Inter-State Highway System in the greater Miami area Lambert Gann Publishing Co. published all Gann’s books and courses. W. D. Gann passed away in the Methodist Hospital in Brooklyn, New York, on June 14, 1955, at the age of 77. He was survived by his wife, Sadie, three daughters, and a son. That day the world truly lost a market legend. After Mr. Gann’s death in 1955, Ed Lambert continued to operate the business that included a chart service of updated Gann style charts. He was not as active in promoting Gann’s writings as when Gann was alive, so for the following twenty years Gann’s work became quite obscure. In 1976 Bill and Nikki Jones of Pomeroy, Washington, purchased Lambert-Gann Publishing Co. and the Gann copyrights. In the purchase were all of his personal researches including thousands of his charts, papers, books, and writings he had collected through fifty years of trading and research. There were also tables and miscellaneous office furniture used by Gann. The largest Mayflower moving van available was required to transport this purchase to Pomeroy, Washington. Following Billy Jones’ death in September 1989, Nikki Jones continues to operate Lambert Gann Publishing Co., carrying on the Gann tradition with the sale of his books and courses. In this biographer’s opinion, W. D. Gann was the greatest market researcher of all time. His trading career spanned more than a half century. During that time he devoted his total life to market research and trading. He researched every possible aspect of natural laws in conjunction with variables of price and time in market movements. This study became an obsession to find the cause and effect of market fluctuations, which he did. The trading techniques Gann developed work the same today as they did when he used them. His library contained volumes of books and manuscripts on harmonic waves, proportion, growth, gravity, electricity, nature, and natural phenomena. However, there were no books on open interest, volume, stocks, or commodities. The only books and courses on commodities and stocks were his own. He was a humble man who stated, at age 75, that he had not learned all there was to know, and yet, he knew more about the markets than any trader who ever lived. There is an important lesson to be learned from the study of his life and his work. For those of you who have diligently studied his writings, you will understand my statements. Hopefully, for those of you who are not familiar with Gann, this writing will inspire you to begin. (presentation after Halliker) 2. Some other details William D. Gann was a trader of the early 20th century. His abilities for profiting form the stock and commodity markets remain unchallenged. Gann’s methods of technical analysis for projecting both price and time targets are unique. Even today, his methods have yet to be fully duplicated. His successes are legendary. Gann literally converted small accounts into fortunes, increasing their net balances by several hundred percent. There are numerous examples of his trading successes, among which are these: 1908 – a $130 account increased to $12.000 in 30 days. 1923 – a $973 account increased to $30.000 in 60 days. 1933 – 479 trades were made with 422 being profitable. This is an accuracy of 88% and 4000% profit. 1946 – A 3-month net profit of $13.000 from starting capital of $4500 – a 400% profit. The following paragraph appeared in the December 1909 issue of “Ticket” Magazine. It was written by R.D. Wyckoff, the former owner and editor of the “Ticket”, and describes Gann’s proficiency for projecting price targets forward in time: “One of the most astonishing calculations made by Mr. Gann was during last summer (1909) when he predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o’clock, Chicago time, on September 30th (the last day) the option was selling bellow $1.08 and it looked as though his prediction would not be fulfilled. Mr. Gann said, ‘If it does not touch $1.20 by the close of the market, it will prove that there is something wrong with my whole method of calculations. I do not care what the price is now, it must go there’. It is common history that September Wheat surprised the whole country by selling at $1.20 and no high in the very last hour of trading, closing at that figure”. Gann’s trading methods are based on personal beliefs of a natural order existing for everything in the universe. Gann was part of a family with strong religious beliefs. As a result, Gann would often use Biblical passages as a basis for not only his life, but his trading methods. A passage often quoted by Gann was this from Ecclesiastes 1:9 - 10: “What has been, that will be; what has been done, that will be done. Nothing is new under the sun. Even the thing of which we say, ‘See, this is new!”, has already existed in the ages that preceded us.” This universal order of nature also existed, Gann determined, and we have the same opinion now, in the stock and commodity markets. Price movements occurred, not in a random manner, but in a manner that cat be pre-determined. The predictable movements of prices result from the influence of mathematical points of forces found in nature… And what is the cause for all this points of forces? Right… cosmos…universe...all planets around us. This Gann could say at that time. These points of force were felt to cause prices to not only move, but move in a manner that can be anticipated. Future targets for both price and time can we confidently projected by reducing these mathematical points of forces to terms of mathematical equations and relationships. The mathematical equations of Gann are not complex. They result in lines of support and resistance which prices invariably will follow. Gann held that time is the most important element of trading. Time is the factor that determines the length of a commodity’s price trend. When time dictates that trending prices should react, prices may stabilize for a short period, or they may fluctuate within a tight range, but eventually they will react by reversing direction. Time is the element that will determine WHEN prices should react. Certain price reactions are found to occur during specific times. The actual TYPE of price reaction can be anticipated, and pre-determined, by using Gann time rules. Gann time periods last not only days or weeks, but months and even years. Gann’s trading year is first divided in half, equivalent to 6 months or 26 weeks. The year is then divided by eighths, and then by sixteenths. And then, after you think you understand all of this, you find that Gann’s year is also divided by thirds. There are also important time periods within the Gann year. For example, since a week is 7 days, and 7 times 7 is 49, Gann’s work found that 49 is a significant number too. Important tops or bottoms may occur between the 49th and 52nd day, although an intermediate change – in – trend may occur between the 42nd and 45th day, because 45 days in 1/8 of a year. Other time periods that were important to Gann, at which a price reaction could be expected, are: - Anniversary dates of major tops and bottoms - 7 months after a major top or bottom for a minor reaction. - 10 to 14 days is the length for a reaction in a normal market. If this period is exceeded, the next reaction should be expected after 28 to 30 days. If you’re not already confused, understand that Gann’s year may not only be calendar, but “fiscal” as well; starting from major tops or bottoms. Gann’s time rules consider many periods, including seasonality, Biblical references, and astronomical events. Let’s see a little example. This is an example of astronomical correlations on a Gann chart. One of Gann’s beliefs, stemming from his “natural order” concept, is the influence of planetary movements on earthly events, such as the moon’s perceived effect in tides. This “cosmic perspective” of Gann is unlike conventional astrology, in that planetary influences, like units of price, are unique to each market. Conclusions a. Gann was a master of his time, a personality not easy to match any time soon. No matter what others say, his secrets have not been fully discovered yet. b. Gann managed, with the methods of his time, and this is quite remarkable, to create an almost perfect system. After a general view some might consider that his system is entirely based on technical analysis and numerology. At a closer look we discover that Gann discretely refers numerous times to elements of astrology as an important part of his system. c. Gann admitted one time, when talking about astrology, that he can not reveal all aspects of his work because people are not yet prepared for this kind of information. Talking about astrology as a method of financial analysis wouldn’t have been wise in the time of 1910-1930, d. Nowadays the society acknowledges the value of astrology as a science and appreciates it. This recognition is possible because of the hard work of many people that dedicated their life to researching this domain. e. Gann had a complex system: the basis was astrology; at a higher level he used fundamental analysis and numerology; the outer layer was technical analysis. What remained to the successors was the outer layer. The depths are for those patient and courageous enough to walk his path. f. After five years of research we have also managed to develop a complex system of analysis. We don’t claim to have reached Gann’s perfection. We use although the same methods of analysis, we work with the same indicators but we have the advantage of the amazing improvements in informatics, mathematics and technology. We are a team that worked hard and that is still looking for ways of improving the system. We believe we have managed to offer analysis many people are very satisfied with. Dharmik Team

In this article we will discuss about a widespread, well-known key element of technical analysis. Why do you think technical analysis especially some elements work so well for financial markets?Why do you think Fibonacci levels are usually strictly followed?Because thousands and billions of traders and computer programs for trading use these elements. This way everybody acts the same at the same time… This is why we decided to present in the category of technical analysis, the most used and well-known methods of predicting financial evolution. These methods are easy to understand and are very efficient. We will discuss about the Stochastic Oscillator. We will find out what the Stochastic Oscillator is and how it is calculated. We will use it in our charts and we will see how it acts. We will discover how useful the Stochastic Oscillator is and, at the end, we will draw the conclusions. We will use the Stochastic Oscillator daily in our analyzing and trading system. 1. What is the “Stochastic Oscillator”? The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure). The idea behind this indicator is that prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average. Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price. %K is the same as Williams’s %R, though on a scale 0 to 100 instead of -100 to 0, but the terminology for the two are kept separate. 2. How is it calculated? This is the method of calculating the stochastic oscillator, and the values for %K and %D. A 14-day %K (14-period StochasticOscillator) would use the most recent close, the highest high over the last 14 days and the lowest low over the last 14 days. The number of periods will vary according to the sensitivity and the type of signals desired. As with RSI, 14 is a popular number of periods for calculation %K tells us that the close (115.38) was in the 57th percentile of the high/low range, or just above the mid-point. Because %K is a percentage or ratio, it will fluctuate between 0 and 100. A 3-day simple moving average of %K is usually plotted alongside to act as a signal or trigger line, called %D. The %K and %D oscillators range from 0 to 100 and are often visualized using a line plot. Levels near the extremes 100 and 0, for either %K or %D, indicate strength or weakness (respectively) because prices have made or are near new N-day highs or lows. There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate. In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D.Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price. In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. On the theory that the prices oscillate, many analysts including George Lane, recommend that buying and selling be timed to the return from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). The third way that traders will use this indicator is to watch for divergences where the Stochastic trends in the opposite direction of price. As with the RSI this is an indication that the momentum in the market is waning and a reversal may be in the making. For further confirmation many traders will wait for the cross below the 80 or above the 20 line before entering a trade on divergence. The chart below illustrates an example of where a divergence in stochastics relative price forecasted a reversal in the price's direction. 3. Chart examples for Dow and e-mini S&P 500. In the following examples we will use as parameters other values than the standard ones. We decided to do that because our research proved that these new values are used more and numerous well-known traders agree with them. This way the indicator has a higher precision. We will use the values of 5, 5 and 3 for %K, %D and the third parameter respectively. Here are some examples where we also used other elements of the technical analysis already explained. 1. First we have a daily chart of Dow Jones for the firs three months of 2006. On the chart we have marked minitrends lasting 1-2 weeks. Each trend follows the previsions given by the stochastic oscillator. During these three months there have been at least seven correct sets to be followed that could generate profit. 2. This chart presents the evolution for the period August- October 2003. We can find the same setups and models. Follow closely the logic for each possible transaction. 3. The evolution of the market during June – August 2001, before the tragedy in New York: we can find nine correct sets to be trade and obtain profit. 4. Conclusions a) Correctly used and followed, the stochastic oscillator along other technical analysis and astrological analysis methods can offer complex and correct information for profitable transactions. b) Trading methods based only on the stochastic oscillator can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete and complex trading system approaching financial reality. c) We often use the stochastic oscillator amongst other various methods of analysis that we will describe later. Dharmik Team

In this article we will discuss about “important aspects” in astrology. These are astrological aspects between planets lasting a long period of time (at least 3 or 4 months) and having a strong influence over people, economy and of course over financial markets. These astrological aspects form usually between strong planets (Jupiter, Saturn, Uranus, Neptune and Pluto). Because these planets move slower, the aspect lasts longer. This is why financial evolution or any other activity on Earth is influenced strongly. We will discuss what an astrological aspect between two planets means and we will find out how each planet influences ones life and actions. We will present some examples of astrological aspects within the years after 2000. We will then analyze each aspect aside regarding financial indicators. At the end we will draw the conclusions. 1. What is an astrological aspect between planets and how do they form? When we view the planets from Earth, they all rotate at different speeds around the Sun. Aspects are the various geometric angles, measured in degrees, minutes and seconds that are formed between planets, or some other point in the horoscope, as they move through the 360 degrees. Simply put, the horoscope circle is 360 degrees, and if we divide it into 12 sections (the Signs) they equal 30 degrees each. We put Earth in the centre of the circle, and then we can see in the natal chart (a snapshot of the position of the planets at the time of birth) the relative positions of the planets to each other at that time. Transits refer to the current planetary positions, and these also make aspects to the natal planets. For example, at age 14 Saturn will be opposing its natal position in the chart. Depending on the speed of the planet's motion, you can calculate the aspects as it moves around a chart, for example it takes a month for the moon and 29 years for Saturn to complete a circuit of the entire chart. There are some aspects that are traditionally considered major. They are called "classical" or "Ptolemaic" after the Greek astrologer Ptolemy (Claudius Ptolemaeus). These are: The aspects indicate the energies between the planets and houses, and traditionally the "easy" aspects of Sextile and Trine indicate a more harmonious or beneficial energy and the "important" aspects of the Square and Opposition considered to represent challenges and balance needed to be found. A Conjunction is a very dynamic aspect and can be considered either positive or negative depending on the planets involved. However, aspects, like planets are merely representations of energy and it is what we do with it that is either beneficial or not as we all have free will. Aspects are given an Orb of influence, and there are various differing opinions amongst astrologers as to the exact degree, ranging from 10 – 6 degrees for major aspects. It’s a matter of finding what you are comfortable with, but it would be safe to say that the closer the planets are to each other, the stronger the aspect's energy, as they "apply" and "separate". Minor Aspects that are often used are semi-sextiles (30 degree separation between planets) and quincunxes (a 150 degree separation). Other minor Aspects are considered if their angles are very close. It is important to remember that Signs, not houses, are used in determining aspects, as depending on what House system is used, a house may be more or less than 30 degrees. 2. What are the influences each planet generates? Sun The Sun indicates the psychological bias that will dominate your actions. What you see, and why, is told in the reading for your Sun. The Sun also shows the basic energy patterns of your body and psyche. In many ways, the Sun is the dominant force in your horoscope and your life. Other influences, especially those of the Moon, may modify the Sun's influence, but nothing will cause you to depart very far from the basic solar pattern. Always keep in mind the basic influence of the Sun and remember all other influences must be interpreted in terms of it, especially insofar as they play a visible role in your life. You may think, dream, imagine, and hope a thousand things, according to your Moon and your other planets, but the Sun is what you are. To be your best self in terms of your Sun is to cause your energies to work along the path in which they will have maximum help from planetary vibrations. Moon In astrology the Moon stands for emotions, instincts, sensitivity, and the unconscious. It is often called the feminine principle. The Sun signifies your individuality and the Moon signifies your personality. In essence, the Moon represents the side of you that reacts before you have time to think. The distinction in astrology between the influence of the Sun and the Moon is a forerunner of Sigmund Freud's theory of the ego and the id in human personality. According to Freud, the ego is a person's consciousness (in astrology - the Sun), and the id represents a person's instinct (the Moon). The Moon tells the desire of your life. When you know what you mean, but can't verbalize it, it is your Moon that knows it and your Sun that can't say it. The wordless ecstasy, the mute sorrow, the secret dream, the esoteric picture of yourself that you can't get across to the world or that the world doesn't comprehend or value-these are products of the Moon. When you are misunderstood, it is your Moon nature, expressed imperfectly through the Sun sign, which feels betrayed. Things you know without thought-intuitions, hunches, instincts-are the products of the Moon. Modes of expression that you feel truly reflect your deepest self belong to the Moon: art, letters, creative work of any kind; sometimes love; sometimes business. Whatever you feel is most deeply yourself is the product of your Moon and of the sign your Moon occupies at birth. Mercury It is a planet of intelligence and the mind. It is associated with speed and agility. It rules over intelligence, perception and reason, memory, speaking and writing. Reflects the way you see, hear, understand, and assimilate information. Day-to-day travel, short trips, and the various means of transportation are under its dominion. It controls functions of the nerves, arms, hands, and fingers. Also rules the voice. Negative side produces tendency to be critical, sarcastic, argumentative and sly. Mercury is the sensory antenna of your horoscope. Its position by sign indicates your reactions to sights, sounds, odors, tastes, and touch impressions, affording a key to the attitude you have toward the physical world around you. Mercury is the messenger through which your physical body and brain (ruled by the Sun) and your inner nature (ruled by the Moon) are kept in contact with the outer world, which will appear to you according to the index of Mercury's position by sign in the horoscope. Mercury rules your rational mind. Venus Planet of love and pleasure. Rules capacity to express affection and to enjoy beauty. Rules over love affairs, art and beauty, adornment and decoration, the social graces, affection, harmony, and friendship. Governor of the higher emotions, Venus makes life beautiful. Rules ability to love and to share with another person. Another side of its influence is that it encourages pleasure, ease and luxury than self-discipline. A strong streak of narcissism and a lack of will-power indicate negative side is stressed. Venus is the emotional antenna of your horoscope. Through Venus, impressions come to you from the outer world, to which you react emotionally. The position of Venus by sign at the time of your birth determines your attitude toward these experiences. As Mercury is the messenger linking sense impressions (sight, smell, etc.) to the basic nature of your Sun and Moon, so Venus is the messenger linking emotional impressions. If Venus is found in the same sign as the Sun, emotions gain importance in your life, and have a direct bearing on your actions. If Venus is in the same sign as the Moon, emotions bear directly on your inner nature, add self-confidence, make you sensitive to emotional impressions, and frequently indicate that you have more love in your heart than you are able to express. If Venus is found in the same sign as Mercury, emotional impressions and sense impressions work together; you tend to idealize the world of the senses and to sensualize the world of the emotions, to interpret emotionally what you see and hear. Mars Planet of physical energy. Governs sex drive, forcefulness, and aggression. Governs energy, boldness, the will to win, the ability to turn ideas into action. Planet of passion, sexuality, and force. Signifies ambition, desire, courage and strength. Governs the sex organs. Influence also brings strife and conflict, tension and anger, accidents and destruction. It rules heat, fire, earthquakes, violence, and war. Negative side can cause sudden injury or illness. Represents unleashed energy and human will. Mars is the energy principle in the horoscope. Its position indicates the channels into which energy will most easily be directed. It is the planet through which the activities of the Sun and the desires of the Moon express themselves in action. In the same sign as the Sun, Mars gives abundant energy, sometimes misdirected in temper, temperament, and quarrels. In the same sign as the Moon, it gives a great capacity to make use of the innermost aims, and to make the inner desires articulate and practical. In the same sign as Venus, it quickens emotional reactions and causes you to act on them, makes for ardor and passion in love, and fosters an earthly awareness of emotional realities. Jupiter Planet of good luck, optimism, success, and generosity. Brings joy to life. Identified with idea of expansiveness and abundance. Jupiter's kingdom is luck, health and happiness, wealth and worldly goods, power and high position. Rules over knowledge, higher learning, breadth of vision, and honesty. Influence bestows a willingness to partake of life, to gather new experiences. Influence can make you extravagant, lazy, luxury-loving and blindly optimistic. Planet of blessings. Jupiter is the feeler for opportunity that you have out in the world. It passes along chances of a lifetime for consideration according to the basic nature of your Sun and Moon. Jupiter's sign position indicates the places where you will look for opportunity, the uses to which you wish to put on it, and the capacity you have to react and profit by it. Jupiter is ordinarily, and erroneously, called the planet of luck. It is "luck" insofar as it is the index of opportunity, but your luck depends less on what comes to you than what you do with what comes to you. In the same sign as the Sun or Moon, Jupiter gives a direct, and generally effective, response to opportunity and is likely to show forth at its "luckiest". If Jupiter is in the same sign as Mercury, sense impressions are interpreted opportunistically. If Jupiter is in the same sign as Venus, you interpret emotions in such a way as to turn them to your advantage; your feelings work harmoniously with the chances for progress that the world has to offer. If Jupiter is in the same sign as Mars, you follow opportunity with energy, dash, enthusiasm, and courage, take long chances, and play your cards wide open. Saturn Planet of responsibility, and symbolizes the ethic of hard work. Influences that a person's character is strengthened through trial and difficulty. Planet of diligence, self-control, and limitation. Domain is patience, stability, maturity, and realism. Influence is stern and restrictive, cold and severe. Effect is to delay rewards until they are earned. Bestows an ability to wait. Planet of courage, steadfastness and integrity. Negative influence is over-ambition, calculating and selfish, solitary, inhibited, and unhappy-associated with inflexibility, cruelty, humorlessness, and pessimism. Represents illness, handicaps, and misfortune. Our destiny. Rules fate, things we cannot escape, and payment that must be made for what is received. Saturn indicates the direction that will be taken in life by the self-preservative principle which, in its highest manifestation, ceases to be purely defensive and becomes ambitious and aspirational. Your defense or attack against the world is shown by the sign position of Saturn in the horoscope at birth. If Saturn is in the same sign as the Sun or Moon, defense predominates, and there is danger of introversion. If Saturn is in the same sign as Mercury, there is a profound and serious reaction to sense impressions; this position generally accompanies a deep and efficient mind. If Saturn is in the same sign as Venus, a defensive attitude toward emotional experience makes for apparent coolness in love and difficulty with the emotions and human relations. If Saturn is in the same sign as Mars, confusion between defensive and aggressive urges can make an indecisive person-or, if the Sun and Moon are strong and the total personality well-developed, a balanced, peaceful, and calm individual of sober judgment and moderate actions may be indicated. If Saturn is in the same sign as Jupiter, the reaction to opportunity is sober and balanced. Uranus Planet of change and originality, symbolizing the element of surprise. Brings sudden events and opportunities. Awakens, shocks, revolutionizes. Responsible for the flash of human genius that creates something new. Planet of the future, associated with modern science, invention, electricity, humanitarian movements, and revolution. Planet of sudden upheaval and swift, unexpected happenings. Domain is all that is new, original, different, and unorthodox. Relates to inner will and secret power. The guiding force behind the visionary. Tends to make one eccentric in behavior, undisciplined, reckless and perverse. Brings change, new situations, and new people into our lives. Gifts are sudden and ephemeral; take immediate advantage before they flash by. Message is to move with change and not be afraid of the future. Uranus in a general way relates to creativity, originality, or individuality, and its position by sign in the horoscope tells the direction in which you will seek to express yourself. In the sam sign as Mercury or the Moon, Uranus suggests acute awareness, a quick reaction to sense impressions and experiences, or a hair-trigger mind. In the same sign as the Sun, it points to great nervous activity, a high-strung nature, and an original, creative, or eccentric personality. In the same sign as Mars, Uranus indicates high-speed activity, love of swift motion, and perhaps love of danger. In the same sign as Venus, it suggests an unusual reaction to emotional experience, idealism, sensuality, and original ideas about love and human relations. In the same sign as Saturn, Uranus points to good sense; this can be a practical, creative position, but, more often than not, it sets up a destructive conflict between practicality and originality that can result in a stalemate. In the same sign as Jupiter, Uranus makes opportunity, creates wealth and the means of getting it, and is conducive to the inventive, executive, and daring. Neptune Planet of mystery and illusion. Power is that of the imagination. Represents your dream life and your mystic qualities. Planet of bewitchment. Planet of idealism and spirituality. Realm is the subconscious world, hidden memory, intuition, and clairvoyance. Positive side of influence represents glamour and mystery, artistic imagination, dreams and visions. Negative side is characterized by deception, confusion, fraud, treachery, and sham. Rules over a wide domain of human activity, from motion pictures, drama, dance, and poetry to hypnosis and anesthesia, hospitals, institutions and prisons, poison, and drug addiction. Brings one into contact with a higher plane of consciousness. Symbolizes perfection. Represents unselfish ideals, your spiritual quest, and search for the Impossible Dream. Neptune relates to the deepest wells of the subconscious, inherited mentality, and spirituality, indicating what you take for granted in life. Neptune in the same sign as the Sun or Moon indicates that intuitions and hunches-or delusions-dominate; there is a need for rigidly holding on to reality. In the same sign as Mercury, Neptune indicates sharp sensory perceptions, a sensitive and perhaps creative mind, and a quivering intensity of reaction to sensory experience. In the same sign as Venus, it reveals idealistic and romantic (or sentimental) reaction to emotional experience, as well as the danger of sensationalism and a love of strange pleasures. In the same sign as Mars, Neptune indicates energy and intuition that work together to make mastery of life-one of the signs of having angels (or devils) on your side. In the same sign as Jupiter, Neptune describes intuitive response to opportunity generally along practical and money-making lines; one of the signs of security if not indeed of wealth. In the same sign as Saturn, Neptune indicates intuitive defense and attack on the world, generally successful unless Saturn is polarized on the negative side; then there is danger of delusion and unhappiness. Pluto Planet of awesome power, but is still found largely inexplicable and difficult to understand. Brings to light things hidden in the depths of your subconscious, releases dormant forces, and causes suppressed energies suddenly to erupt. Signifies death and rebirth. Planet of regenerative forces, of destruction and annihilation, and then complete transformation. Keyword is elimination; Pluto wipes the slate clean. Influences masses of humanity, enormous groups of people, and large organizations. Rules over disruptive elements in nature as earthquakes and volcanoes. It's power has been likened to that of nuclear fission, which both destroys and creates. Governs the uncovering of secrets of the past in order to clear ground for the future. Force is felt as an undercurrent of turbulence and uncontrolled energy. Strong negative power may cause one to be cruel, sadistic, treacherous, or even lead a life of crime. Represents the highest and lowest of which mankind is capable. Governs impulses in our secret psyches that we do not yet fully understand. Pluto is a planet of extremes-from the lowest criminal and violent level of our society to the heights people can attain when they realize their significance in the collectivity of humanity. Pluto also rules three important mysteries of life-sex, death, and rebirth-and links them to each other. One level of death symbolized by Pluto is the physical death of an individual, which occurs so that a person can be reborn into another body to further his or her spiritual development. On another level, individuals can experience a "death" of their old self when they realize the deeper significance of life; thus they become one of the "second born". In a natal horoscope, Pluto signifies our perspective on the world, our conscious and subconscious. Since so many of Pluto's qualities are centered on the deeper mysteries of life, the house position of Pluto, and aspects to it, can show you how to attain a deeper understanding of the importance of the spiritual in your life. 3. Important astrological aspects in the 21st century a. The first example is Pluto opposition Saturn between July and November 2001. During this period this aspect happened twice: once Pluto was retrograde and Saturn direct and the second time Saturn turned retrograde and Pluto was direct. This is how the sky looked during the summer of 2001: What can we expect from this opposition? This aspect generates a strong feeling of fear and negativity. People tend to restrict their normal activities, they shrink their lives because Saturn is the planet affected by the astrological aspect. New and unsuspected misunderstandings and worries appear. What was the effect on the financial markets? That period the biggest American financial crash this century happened. After that came the horrible events in September 2001…This is the chart and the possibilities of trading in profit if we would have paid attention to the planets: b. The second aspect presented here is Jupiter trine Pluto. This time instead of opposition we have trine and instead of Saturn we have Pluto. After we have read the influences of the planets presented above, we can expect something positive from this astrological aspect which lasted 3 months at the end of 2002. This is the sky map: A trine dominates the sky in this time period. The trine lasted from October until December 2002 and had to stages. The planets first turned direct and than retrograde. It is obvious that this aspect comes with positive influences: expansion, trusting oneself, courage, inspiration. All these feelings embraced peoples’ hearts. So what happened? After the month of October when the market registered the lowest Low this century, the beginning of the trine turned the market up. In only three months Dow increased 1.500 pips! Amazing, isn’t it? c. This is the last example. Of course we chose another remarkable event: the crazy period of October 2008. Let’s see how the sky looked back than and what could we have expected with months before: The sky is dominated by Saturn opposition Uranus. In 2001 the opposition was with Pluto. The effect this type of opposition has is the same. We can not expect anything else but something bad to happen. The earthly cause of the abrupt downward slope of financial market does not interest us so much. Astrological analysis showed us that the market will go down and that a successful transaction could have ended with over 3.000 pips in profit. 4. Conclusions a. The main conclusion is very clear…the important astrological aspects, especially those between farther planets and lasting more than 2-3 months, have a strong influence on Earth in every field of activity. b. These astrological aspects generate major financial trends…they can be positive and make the market grow in a sustained manner, or negative and create and abrupt down slope…these movements of the market can be easily predicted by those who can read astrological maps. c. We have also analyzed many past years and the rules apply. You can verify the correlation also if you are attracted to this kind of research work d. By showing you this study we are not trying to convince you that astrology is perfect. We just want to highlight the fact that there are correct ways of predicting the local High and Low and the reversal points. These kinds of studies helped us along the years build our trading system, the system we are basing our analysis and forecasts on. Dharmik Team

In this article we will discuss about a widespread, well-known key element of technical analysis. Why do you think technical analysis especially some elements work so well for financial markets? Why do you think Fibonacci levels are usually strictly followed? Because thousands and billions of traders and computer programs for trading use these elements. This way everybody acts the same at the same time… This is why we decided to present in the category of technical analysis, the most used and well-known methods of predicting financial evolution. These methods are easy to understand and are very efficient. We will discuss about Fibonacci levels. We will find out what Fibonacci levels are and how they are calculated. We will use them in our charts and we will see how they act. We will discover how useful Fibonacci levels are and, at the end, we will draw the conclusions. We will use Fibonacci levels daily in our analyzing and trading system. 1. What are Fibonacci levels? The truth about Fibonacci levels is that they are useful (like all trading indicators). They do not work as a standalone system of trading and they are certainly not the “holy grail”, but can be a very effective component of your trading strategy. But who is Fibonacci and how can he help you with your trading? Leonardo Fibonacci was a great Italian mathematician who lived in the thirteenth century who first observed certain ratios of a number series that are regarded as describing the natural proportions of things in the universe, including price data. The ratios arise from the following number series: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 This series of numbers is derived by starting with 1 followed by 2 and then adding 1 + 2 to get 3, the third number. Then, adding 2 + 3 to get 5, the fourth number, and so on. 2. How are Fibonacci levels calculated? The ratios are derived by dividing any number in the series by the next higher number, after 3 the ratio is always 0.625. After 89, it is always 0.618. If you divide any Fibonacci number by the preceding number, after 2 the number is always 1.6 and after 144 the number is always 1.618. These ratios are referred to as the “golden mean.” Additional ratios were then derived to create ratio sets as follows: The first set of ratios is used as price retracement levels and is used in trading as possible support and resistance levels. The reason we have this expectation is that traders all over the world are watching these levels and placing buy and sell orders at these levels which becomes a self-fulfilling expectation. The second set is used as price extension levels and is used in trading as possible profit taking levels. Again, traders all over the world are watching these levels and placing buy and sell orders to take profits at these levels which becomes a self-fulfilling expectation. Most good trading software packages include both Fibonacci Retracement Levels and Price Extension Levels. In order to apply Fibonacci levels to price charts, it is necessary to identify Swing Highs and Swing Lows. A Swing High is a short term high bar with at least two lower highs on both the left and right of the high bar. A Swing Low is a short term low bar with at least two higher lows on both the left and right of the low bar. Fibonacci Retracement Levels In an uptrend, the general idea is to go long the market on a retracement to a Fibonacci support level. The price retracement levels can be applied to the price bar chart of any market by clicking on a significant Swing Low and dragging the cursor to the most recent potential Swing High and clicking there. This will display each of the Retracement Levels showing both the ratio and corresponding price level. Let’s take a look at some examples of markets in an uptrend. The same points made by these examples are equally applicable to markets in a downtrend. 3. Chart examples for Dow and e-mini S&P 500. 1. In the first example we have an ascending trend and a Fibonacci retracement of 38%. After the price went down 38% of the entire going up value, it returned to an uptrend. The 38% retrace is the best moment to initiate long positions. 2. Here the image is reverse. We have a downtrend, a 38% pull back and then the price continued to go down. 3. The price had a 50% retrace during an ascending trend. 4. The ascending trend had a 61% pull back. 5. The last example shows a good moment to enter long after a 50% retrace 4. Conclusions a. Correctly used and followed, Fibonacci levels along other technical analysis and astrological analysis methods can offer complex and correct information for profitable transactions. b. Trading methods based on Fibonacci levels can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete and complex trading system approaching financial reality. c. We often use Fibonacci levels amongst other various methods of analysis that we will describe later. Dharmik Team

In the section of technical analysis we have presented the stochastic oscillator. We have talked about what it is, how it is calculated, what its graphic representation is and how it influences trading decisions. We have also showed some examples of charts and we have explained the correct signs for entering and leaving the market in order to make a profit. We will present here the material again but we will also add some new information to give a new perspective on this indicator. We will create a relatively simple system of interpreting financial evolution. With the help o a harmonious method we will be able to find out, step by step, in every moment, the direction of the main trend, and the most probable patterns to appear. This way we will have all the information needed to make a profitable transaction. 1. What is the “Stochastic Oscillator”? The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure). The idea behind this indicator is that prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average. Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price. %K is the same as Williams’s %R, though on a scale 0 to 100 instead of -100 to 0, but the terminology for the two are kept separate. 2. How is it calculated? This is the method of calculating the stochastic oscillator, and the values for %K and %D. A 14-day %K (14-period Stochastic Oscillator) would use the most recent close, the highest high over the last 14 days and the lowest low over the last 14 days. The number of periods will vary according to the sensitivity and the type of signals desired. As with RSI, 14 is a popular number of periods for calculation %K tells us that the close (115.38) was in the 57th percentile of the high/low range, or just above the mid-point. Because %K is a percentage or ratio, it will fluctuate between 0 and 100. A 3-day simple moving average of %K is usually plotted alongside to act as a signal or trigger line, called %D. The %K and %D oscillators range from 0 to 100 and are often visualized using a line plot. Levels near the extremes 100 and 0, for either %K or %D, indicate strength or weakness (respectively) because prices have made or are near new N-day highs or lows. There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate. In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D. Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price. In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. On the theory that the prices oscillate, many analysts including George Lane, recommend that buying and selling be timed to the return from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). The third way that traders will use this indicator is to watch for divergences where the Stochastic trends in the opposite direction of price. As with the RSI this is an indication that the momentum in the market is waning and a reversal may be in the making. For further confirmation many traders will wait for the cross below the 80 or above the 20 line before entering a trade on divergence. The chart below illustrates an example of where a divergence in stochastics relative price forecasted a reversal in the price's direction. 3. Chart examples for Dow and e-mini S&P 500. In the following examples we will use as parameters other values than the standard ones. We decided to do that because our research proved that these new values are used more and numerous well-known traders agree with them. This way the indicator has a higher precision. We will use the values of 5, 5 and 3 for %K, %D and the third parameter respectively. Here are some examples where we also used other elements of the technical analysis already explained. 1. First we have a daily chart of Dow Jones for the firs three months of 2006. On the chart we have marked minitrends lasting 1-2 weeks. Each trend follows the previsions given by the stochastic oscillator. During these three months there have been at least seven correct sets to be followed that could generate profit. 2. This chart presents the evolution for the period August- October 2003. We can find the same setups and models. Follow closely the logic for each possible transaction. 3. The evolution of the market during June – August 2001, before the tragedy in New York: we can find nine correct sets to be trade and obtain profit. 4. A harmonious system All the charts above (daily) present the daily evolution of Dow Jones; each candlestick represents a day. On these graphics we have marked various possibilities of entering the market and closing in profit. The harmony of our systems refers to: a. We start with the longest existing time-frame…let’s say we start with the weekly chart. We insert the stochastic oscillator; we analyze the aspect of the market at that point and the possible patterns beginning to form. Let’s say a LONG could form b. We decrease the chart to a daily one. We identify the moment in time where we are, we make the same observations and try to find what the pattern is. Let’s assume it is also LONG c. We now go to a four hours chart. We identify the moment in time and try to find a LONG signal to enter the market. If we will find a short signal or an undetermined one, we will wait. Why? We want to enter the market respecting the main trend. We look for the moment when the stochastic oscillator indicates the same thing on as many time-frames possible. So we will enter only when the four hours chart also shows a LONG signal. d. We will study the one hour chart and also the 30 minutes chart. We wait to see a LONG signal forming. When we will find here the correct pattern we will know we have the same LONG signal on all time-frames (weekly to 30 minutes graphic). At this point all the chances are that a nice upgoing trend will start, that could last even weeks. This way we have managed to identify the trend from its starting point. e. How will we trade? It is simple! We take the signals on the 30 minutes chart and we close step by step. The market develops in waves… up and down. The market will most certainly not go straight up. We enter long and wait until on the next time-frame (four hours chart) the direction changes. We partially mark the profit and we move the rest of the quantity on BE (break even). At this point we are relatively tranquil regarding our loos and profit. We wait on the four hours chart for the correction to take place and when the long signal appears we start looking for the same signal on the 30 minutes chart and enter again. We will close again when the 4 hours trend changes direction. We repeat the steps until the biggest time-frame we started with (in this example, the weekly chart) shows the situation has changed. f. At this point we look for SHORT signals on every time-frame and repeat the procedure. g. It looks easy, right? It is easy but you need a lot of patience and also some ability of reading and understanding charts. Here are some charts to illustrate our example: 5. Conclusions 1. Although this system looks a little simplistic, it can get you a lot of pips. You only need patience and some experience in reading financial charts. Our daily analysis will of course give you step by step the direction of the day’s trend and will help you with a lot of information to support your decisions. 2. We often use the stochastic oscillator amongst other various methods of analysis that we will describe later. Dharmik Team

Hello, Please find our Today's Analysis for DOW JONES attached in a PDF file. http://www.futureanalyzer.com/Analysis/Dharmik%20Daily%20Indices/2011/July/Dharmik%20Daily%20Indices%20-%2021%20July.pdf Have a green day! ------------------------------ ------------- DHARMIK MARKET TIMING Dharmik Market Timing

This is the link: http://www.futureanalyzer.com/Articles/PHP/William%20Ganns%20Square%20of%20Nine.php

Hi, In this article we will discuss about one of the many methods of analysis William Gann used. He revealed some of his methods to be used by those patient and wise enough to study and understand them. We will present you William Gann’s Square of Nine: idea of conception, special properties and the characteristics for bull and bear market. We will then find some specific and less known geometrical and mathematical proportions between the numbers in the square. We will then look on the charts for the numbers in the square. We will discover that between a High and a Low there is a specific ratio. This ratio has an explanation and we will find its origin and use. We will end with having a powerful tool that gives us clear targets for the trend to reach. Check it out at http://bit.ly/bvLBym Hope it will be useful for someone…