How The Stock, Futures & Forex Markets Really Work
Whether your interest is in trading Stocks, Commodities, Indices
or Foreign Exchange there are literally hundreds of web sites
that will offer you ways to do this, on the premise of making
you money. Not one of them, to my knowledge, will actually sit
down with you and explain just how the markets really work.
There are probably two reasons for this. Firstly, there might be
a few who actually know, but in the interest of empowerment,
will not readily divulge their knowledge but meter it out
peace-meal in a very cloaked way for financial gain.
The second reason, and more probable, is that they don't
actually know themselves how the markets work, but will have you
believe they do, again for empowerment over you and financial
gain. All of this gets you nowhere in your own quest to find out
how the markets work, and until you do your level of success
will be limited.
In fact some people who have years of experience trading the
markets, have little knowledge of how the mechanics of the
markets actually work. With this fundamental knowledge at their
finger tips, future profits could be increased by a staggering
proportion.
There is an old saying which you may have heard. 'Prices are
spiraling upwards' or 'Prices are spiraling out of control' etc.
The keyword here is 'spiraling'. This is precisely what occurs
in every market year in, year out, prices spiral up and down.
The spiral is the basic mechanism by which all the markets
actually work. To have a detailed understanding of how this
mechanism works can literally transform your trading performance
whatever your present level of skill or type of market in which
you trade. Therefore, our quest to find understanding shall
begin here.
Imagine each individual market is a giant cone which is inverted
so it stands upright on its point.
Element One - Angles:
Look in from above the cone down into the large diameter. Divide
this circle into 12 equal parts. This created 12 angles which
start at the point of the cone and move outwards to the
circumference.
Element Two - Spiral:
>From the same point we start a spiral which moves up and around
the cone (just like a spiral staircase).
Element Three - Price:
This spiral is the path the market price will follow, digit by
digit, as it snakes its way up and down and around the cone.
Element Four - Time:
Go back to the 12 angles which divide the cone. We shall attach
a specific date to each angle.
The Mechanism:
When the price starts its upward journey around the spiral it
will make contact with certain angles on specific dates. This
will halt the price advance and cause it to fall back down and
around the spiral. The price will eventually strike an angle
further down the spiral which will send it back on its upward
journey.
This occurs in every market from one degree or another, every
hour and every day that the particular market works. If the
market price was falling from high levels, the mechanism would
work inversely to the above.
If we knew the date which the price would strike a particular
angle and change the market trend or direction we would have a
great trading tool. In addition, if we also knew the price level
at which this would occur we would have a formidable trading
tool.
Don't worry I am not about to disappoint. This formidable
trading tool is called a Master Spiral Chart, of which there are
several types.
To master the use of these charts in your chosen market will
explode your profit potential.