Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
My research confirms the fact that, prior to a price top or bottom, the market announces it intentions regarding price direction loud and clear to any trader willing to listen. Specifically, the market forewarns the trader whether it is predisposed toward a price top or toward a price bottom. In other words, the market’s environment or inclination to top or to bottom is first defined by this setup phase. Because this entire approach is mechanical, as are the additional filters required to actually generate the buy and sell signals, I developed a checklist to simplify the process. The feature of this approach is its design to buy into weakness and to sell into strength. Once all the prerequisites are satisfied in the order required, a signal occurs. Hence the name Sequential was given to the system.
The procedure followed to establish a Sequential buy or sell signal is straight forward and uncomplicated. In fact, the simplicity associated with its implementation concerned me at the time I developed the technique. I was puzzled that no one else had previously discovered and integrated the same time series and price relationships. Continuously, I checked and re-checked my studies to make certain that I had not overlooked some key element. Keep in mind that the period of development and testing was not by any means recent – this all took place in the 1970s. It was conceived and researched prior to the era of computers. Since that time, this technique has had universal application to various markets, including stocks, futures and indexes. As a result of additional research, I have developed enhancements to the original Sequential, but the core of the method still exists and thrives. How many other definitive market timing approaches designed to anticipate price tops and bottoms have endured and have withstood a similar test of time? Not many, if any at all.
Setup
To generate a sequential buy signal, the market environment must first be predisposed to rally. My research determined that a prerequisite to buy is a particular relationship among closing prices over a period of nine consecutive days. Specifically, once a period of at least nine consecutive trading closes less than the close four trading days earlier is recorded, then the buy setup is complete.
The first day of the nine-day buy setup must be preceded by a close on the trading day immediately before it that is greater than or equal to the close four trading days earlier. It is not uncommon to witness a short-term bottom or even a price reversal upon completion of the nine-day setup. Unless the market is in a free fall or in a short-term correction within an uptrend, this short-term price hiccup is just a reprieve in the downtrend and the decline should resume.
In order to generate a sequential sell signal, the market environment must be predisposed to decline. The prerequisite for a sell setup is exactly the opposite of the prerequisite for a buy signal. A buy setup requires a series of nine consecutive days’ closes less than the close four trading days earlier; a sell setup requires a series of nine consecutive trading days’ closes greater than the close four trading days earlier. For example, if the close of trading on Friday is greater than the close of trading on that same week’s Monday (assuming trading occurred on Thursday, Wednesday, and Tuesday), one day of a possible set of nine has been defined. Had the close on Friday been less than or equal to the close of Monday, this day would not have qualified as one day of a nine-day sell setup. The first day of the nine-day sell setup must be preceded by a close on the trading day immediately before it that is less than the close four trading days earlier. Similar to the buy setup, a derivative benefit of the nine-day sell setup is the identification of a short-term high once the setup is formed. Unless the market is in a blow-off phase or the overall trend is defined as down, this pullback should be temporary, however, and the advance should resume.
As you can see, the setup is very simple to establish. Either it requires nine consecutive trading days’ closes less than the trading days’ close four days before each for a buy signal, or it requires nine consecutive trading days’ closes greater than the trading days’ close four days before each for a sell signal. It is important that:
Each of the three days between the current trading day and the trading day’s close four days ago is a trading day;
The trading day’s close of the day prior to day one of a buy setup is greater than the close of the trading day four days earlier, and the trading day’s close of the day prior to day one of a sell setup is less than the close of the trading day four days earlier;
If the close of a trading day is equal to the close of the trading day four days before it, the setup series is interrupted and must begin anew;
The series of consecutive closes may exceed nine but the required period for a valid setup is satisfied once the requirement of nine consecutive closes is met.
There is a natural rhythm defined by the setup series of nine consecutive closes greater than or less than the close four days earlier. Generally, the market will experience a reversal or a stabilization in price at that time. In some instances, price will record a significant turn at just that point. These observations are universal and apply to all markets and to all time intervals.
I made an observation several years ago regarding the comparison between the most recent price setup and the most recent price setup in the other price direction. As the current price setup is being formed, I compare (1) the extreme price peak or low – depending on whether the movement is up or down – recorded from the first day of the most recent setup through its completion with (2) that of the most recent “inactive” setup through its completion. An inactive setup is defined as one in which the series of consecutive closes versus closes four days earlier has numbered at least nine but has been interrupted and one in which the trend contradicts the current setup. By definition, this must be the case because the current setup occurs in the other direction. Although, technically speaking, the setup is comprised of a series of nine consecutive closes greater than the close four trading days earlier for a sell (and less than for a buy), the comparison of the two setups does not necessarily require the completion of the entire current series of closes because the peak or trough can exceed the trough or the peak – depending on whether the current setup is up or down – of the inactive setup before the setup is completed. In fact, it may not be formed at all. This particular technique has enabled me to define the trend of various markets on numerous occasions, and it is a valuable derivative benefit of a Sequential setup.
A vital element is required to validate the Sequential setup. Its absence underscores the fact that the market is in a runaway phase. For example, if price is declining in a waterfall manner, it is important that a retardation of the decline occur to prevent premature entry. Conversely, to avoid the problem of early entry in an upside blow-off, an indication that the price brakes have been applied is a necessity. The setup qualification process, called “intersection”, is very easy to understand. Simply stated, intersection requires that the price range of either the eighth or the ninth day of the setup overlap the price activity of any setup day three or more days earlier. In other words, intersection for a buy setup takes place once the high of either day 8 or day 9 of the setup is greater than or equal to the low three, four, five, six or seven days earlier. On the other hand, intersection for a sell setup occurs once the low of either day 8 or day 9 of the setup is less than or equal to the high three, four, five, six, or seven days earlier. Intersection can also take place in the other instance: if intersection does not occur on any subsequent day, regardless of whether that day is a continuation of the setup or not. All that is required is that the price intersect the price low three or more days earlier in the case of a buy setup or intersect the price high three or more days earlier in the case of a sell setup. However, in both instances, the countdown phase is postponed until intersection is satisfied.
There are two instances in which the setup can be canceled. They are very simple and straightforward. The most common is a phenomenon called “recycling”. It does not require additional time to form a new setup, but it does recycle (start over) the countdown phase. In this case, a subsequent setup is formed simultaneously as the countdown process is taking place. This new setup replaces the original setup and is in concert with the original setup, not contradictory. This occurs often and is a function of the market’s reevaluating the supply and demand equation and reestablishing the path and the time parameters to the ultimate top or bottom. The other is related to the closing prices recorded at any time between the completion of the setup and the generation of the signal. More precisely, should a subsequent closing price exceed either the highest intraday high – in the case of a buy setup – or the lowest intraday low – in the case of a sell setup – the setup phase is canceled and it must be reinitialized.
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