Table Of Content

Dynamic Trading™ Dynamic Concepts In Time, Price and Pattern Analysis Robert C. Miner Dynamic Traders Group, Inc. Tucson, Arizona Dynamic Trading By Robert C. Miner Contents Chapter 1 - Introduction To Dynamic Trading What You Will Learn In This Chapter 1-1 Where We Are Going and What We Will Accomplish 1 -2 It's Time You Made A Change 1-3 Chapter 2 - Getting Started With Dynamic Trading The Three Dimensions of Market Activity 2-1 The Objective of Technical Analysis 2-3 What A Trader Must Know To Be Successful 2-7 Waves or Swings of Similar Degree 2-12 Chapter 3 - Pattern and Practical Elliott Wave Analysis What You Will Learn In This Chapter 3-1 Elliott Wave Basics 3-5 Wave Labeling and Notation Conventions Used In This Book 3-6 A Summary Of The Elliott Wave Principle 3-10 The Rules and Guidelines Illustrated 3-11 Trading Implications of the Rules and Guidelines 3-19 Impulse Waves 1, 3 and 5 3-23 Impulse Wave One 3-24 Impulse Wave Three 3-26 Impulse Wave Five 3-28 Corrective Waves 2 and 4 3-30 Corrective Wave Two 3-44 Waves A, B and C 3-48 Parallel Channels 3-50 And Now For Another Opinion 3-51 Elliott Wave Chan Examples 3-59 Wave Structure Checklists 3-88 Chapter 4 - Dynamic Price Analysis What You Will Learn In This Chapter 4-1 Be Prepared In Advance For Support and Resistance Price Zones 4-4 Price Retracements 4-6 Internal Price Retracements 4-7 External Retracements 4-14 Alternate Price Projections 4-20 Price Projections By Percentage Change 4-37 Price Projections By Close-Only Data 4-38 Price Projections By Three Degrees Example 4-42 Intraday Data Examples 445 Individual Stock Examples 4-60 Price Overbalance 4-66 Dynamic Price Projections, Summary 4-70 Review of the Most Important Price Ratios 4-71 A Summary of the Most Important Price Projections Ratios By Wave 4-72 Chapter 5 - Dynamic Time Analysis What You Will Learn In This Chapter 5-1 Market Timing Based On Reality 5-4 Projecting The Time Of Trend Change 5-8 Time Cycle Ratios™ 5-9 Time Retracements 5-10 Other Time Cycle Ratios 5-26 Anniversary Dates 5-51 Short-Term, Fixed-Length Time Cycles 5-52 Dynamic Time Projections, Summary 5-61 A Summary of the Most Important Time Ratios and Counts By Method 5-63 Chapter 6 - Trade Strategies and Trade Management What You Will Learn In This Chapter 6-1 Trading Strategies 6-2 Entry Strategies and the Initial Protective Stop-Loss 6-5 Trend-Reversal Entry Triggers 6-6 Reversal Day 6-7 Signal Day 6-8 Snap-Back Reversal Day 6-9 Reversal-Confirmation Day 6-12 Trend-Continuation Entry Strategies 6-18 Inside-Day Trade Set-Ups 6-18 Outside-Day Trade Set-Ups 6-23 Outside-Day Plus One Entry Set-Up 6-24 Gann Pull-Back Entry Set-Up 6-28 Protective Stop-Loss Adjustment-Protecting Unrealized Profits 6-34 Three-Day High or Low 6-36 Trading Log - An Important Key To Success 6-49 Trade Preparation and Initiation Worksheet 6-51 Trade Management Worksheet 6-54 Closed Trade Critique Worksheet 6-56 Chapter 7 - Putting It All Together What You Will Learn In This Chapter 7-1 Organizing The Dynamic Trading Technical Analysis Information 7-3 Trading Philosophy, Plan and Rules For Chapter 7 Examples 7-5 Bond Trading Example 7-9 Chapter 8 - The Real World of Dynamic Trading Trade Market Behavior, Not Forecasts 8-1 Dynamic Trader Reports Format and Examples 8-3 S&P (July 1996 - March 1997) 8-5 Nikkei (June 19%) 8-23 Strait Times (Nov. 1996) 8-25 Cattle (Nov. 1996) 8-27 Gold (Nov. 19%) 8-30 Bonds (Sept. 1996 - Jon. 1997) 8-33 Corn (Dec 19%) 8-50 British Pound (Jan. 1997) 8-51 Crude Oil (Feb. 1997) 8-53 Orange Juice (Aug. 1996) 8-55 Copper (Feb. 1*97) K-56 Gold (March 1997) 8-5S Appendix - Dynamic Trading Guidelines Glossary Bibliography Short-Term, Fixed-Length Time Cycles 5-52 Time Overbalance 5-55 Dynamic Time Projections, Summary 5-61 A Summary of the Most Important Time Ratios and Counts By Method 5-63 More Time, Price and Pattern Examples 5-64 Time Rhythm Zones 5-72 Chapter 6 - Trade Strategies and Trade Management What You Win Learn In This Chapter 6-1 Trading Strategies 6-2 Entry Strategies and the Initial Protective Stop-Loss 6-5 Trend-Reversal Entry Triggers 6-6 Reversal Day 6-7 Signal Day 6-8 Snap-Back Reversal Day 6-9 Reversal-Confirmation Day 6-12 Trend-Continuation Entry Strategies 6-18 Inside-Day Trade Set-Ups 6-18 Outside-Day Trade Set-Ups 6-23 Outside-Day Plus One Entry Set-Up 6-24 Gann Pull-Back Entry Set-Up 6-28 Protective Slop-Loss Adjustment-Protecting Unrealized Profits 6-34 Three-Day High or Low 6-36 Multiple Contract Positions 6-41 Trading Log - An Important Key To Success 6-49 Trade Preparation and Initiation Worksheet 6-51 Trade Management Worksheet 6-54 Closed Trade Critique Worksheet 6-56 Trading Philosophy, Trading Plan and Trading Rules 6-59 Chapter 7 - Putting It All Together What You Will Learn In This Chapter 7-1 Organizing The Dynamic Trading Technical Analysis Information 7-3 Trading Philosophy, Plan and Rules For Chapter 7 Examples 7-5 Bond Trading Example 1-9 Chapter 8 - The Real World of Dynamic Trading Trade Market Behavior, Not Forecasts 8-1 Dynamic Trader Reports Format and Examples 8-3 S&P (July 1996 - March 1997) &-5 xii Chapter 1 Introduction To Dynamic Trading In Dynamic Trading, you (cid:127) Learn what it takes to be a successful trader or investor. (cid:127) Learn how to understand the pattern position of the current trend of the market including the conditions necessary to signal when a market is reaching the completion of the trend using the practical application of Elliott Wave analysis. (cid:127) Learn how to project well In advance the price zones which have the greatest probability of support, resistance and trend change. (cid:127) Learn how to project well in advance the time periods with the greatest probability of trend change. (cid:127) Learn how to integrate the time and price projection techniques and pattern analysis into a practical trading plan. (cid:127) Learn how to distinguish the high probability trade set-ups that will provide you with the best opportunity for success. Introduction To Dynamic Trading Where We Are Going and What We Will Accomplish Dynamic Trading will teach you how to confidently consider a market position and make a trading or investing decision. Every financial and commodity market is constantly in a process of dynamic change. When you have mastered the material in this book, you will not only be prepared for trend change before it happens, but will be prepared for the probable time and price extent of each trend and counter-trend swing. One of the important objectives of Dynamic Trading is to project the extent of trends and the time and price of trend reversals in advance. The chart below is an example of the power of dynamic market analysis. A bond top was projected to be made in the Nov. 20-Dec. 9. 1996 period, ideally Dec. 4-9. The top was projected to be in (he price zone of 115.29-117.05. The top was made Dec. 3.1996 at 116,28, precisely within the time and price zones projected for the termination of the rally. After-the-fact analysis? Absolutely not. The exact projections described above were made weeks in advance and published in the Dynamic Trader Report prepared by the author. By learning Dynamic Trading analysis and trading strategies, you will be prepared in advance tor the extent of trends and counter-trends, the time and price with the greatest probability of trend reversal and low-risk trading strategics. 12 Dynamic Trading - Chapter 1 It's Time You Made A Change Are you ready to make some changes? To do something different than the majority of traders and investors who are unsuccessful? The majority of futures traders loose money. Some say the percentage is as high as 90%. The majority of stock and mutual fund investors under perform the stock indexes, year after year. How can this be when publi- cations teaching trading, investing and technical analysis have flooded the market in recent years? How can this he when powerful technical analysis software is available for for a few hundred dollars? In the past twenty years, since the flood of technical analysis and investing books, newsletters, trading workshops and software have overwhelmed the market, the percentage of traders and investors who succeed has not gained at all! How can this be when the knowledge and tools seem to be so easily and cheaply available? I believe it is because the vast majority of traders and investors have bought into the helief that the same overused and abused technical indica- tors actually provide an accurate assessment of market position. If the majority of traders and investors continue to loose or, at best, vastly under perform the market, it must be time for a change. It must be time to look at the market from a new perspective and put into practice new analysis methods and trading strategies, My favorite definition of an insane person is someone who continues to do the same thing but expects different results. Are you insane? Are you approaching the market with the same popular analysis tools and trading techniques that have been used by the majority of traders and investors for more than the past twenty years'? That same group of traders and investors who have consistently lost or under performed the market year after year after year? It's time to stop the insanity! It's time to do something different. Dynamic Trading provides both new techniques and new twists on some older techniques that are integrated into a comprehensive analysis and trading plan. If you want to be different than the 90% of unsuccessful traders and investors, you must do something different than what the 90% are doing. 1 have taught these techniques to new and experienced traders in over a dozen countries for almost ten years. It is rare that someone involved in the business of market analysis and education has any trading experience. In order to demonstrate the value of these methods, in 1993 I entered and won first place in the Robbing Trading Company World Cup Champion- ship of Futures Trading with a return of over 118% on account for the year. This annual trading contest is real-money, real-time. Not some silly 1-3 Introduction To Dynamic Trading hypothetical trading contest. In case you didn't know, less than 5% of trading and investing authors, newsletter writers and software developers have ever successfully traded ot invested. All of their information is strictly from an academic or hypothetical viewpoint and is usually not applicable to practical analysis, trading or Investing. While I continue to trade futures and options and invest by mutual fund switching, my primary occupation is as a trading and investing analyst and advisor through my monthly and weekly Dynamic Trader Analysis Reports. These reports and their predecessors have provided a comprehensive analysis of the major financial and commodity markets since 1986. Each report is an education in itself with regular tutorials on dynamic technical analysis and trading strategies. The monthly and weekly advisory reports have provided a ten year record of the value of the analysis, forecasts methods and trading strategies taught in this book. Throughout this period I have become especially known for my comprehensive and unique timing methods, A three year period of reports was examined and it was found that 89% of the trend changes made by the markets that were followed in the report were made within one trading day of any Projected Turning Point Periods, I´m sure you can see how valuable this kind of dynamic time analysis can be to you. Of the hundreds of market analysts and newsletter publishers, the 1997 Supertraders Almanac named me the 1996 "Market Guru of the Year", primarily for my technical analysis of market position and time and price projections for the stock indexes. The same analysis techniques that allowed me to so accurately determine the position of the stock market and time and price targets for the bull trend are taught in this book. The techniques are not difficult to understand or apply, but it will take work on your part. This is the first comprehensive book 1 have offered to the public in ten years. In the past, a trader or investor had to either purchase my $900 home study course or attend a weekend workshop at a similar price to receive this information. Why have I put this information together in a book and made it available for less than $100? You're probably expecting me to humbly say it's for the benefit of the little guy or something like that- Not at all I hope to reach a much wider audience of traders and investors who are ready to make a change. Some of you will want to continue your studies by subscribing to my monthly or weekly advisory service. Others may be interested in the unique software I have developed for traders and investors. Whether you continue your study and application of Dynamic Trading beyond the material in this book or not, I promise you this: You will get 1-4