Long Term Secrets To Short-Term Trading

Figure 2.6 Comex Gold (daily bars). Graphed by the "Navigator" 
(Genesis Financial Data Services). 
Look at Figure 2.7, which shows the always volatile S&P 500 from October 1991 through January 
1992. Grab a pencil, mark off the days with smallest ranges on the chart and then note what happened 
shortly thereafter ... a large-range day or two or even three, then a contraction of ranges, small to big, big to 
small-on and on it goes as it always has. Always will. 
Our next study in speculative technique is that of Coffee (Figure 2.8), a fast-paced market, ripe with 
opportunity for the trader with an understanding of the truth. Again, mark off the small-range days, then 
observe what follows: large-range days when we can make money while the public gets all lathered up about 
these days hopping aboard only to lose patience as the ranges contract into decaffeinated days and the 
supposed opportunity evaporates. Just about the time most of the public has been bored out of their positions 
... zingo! ... away go prices, switching gears back to large ranges. 
Finally, I'd like you to take a close and hard look at Figures 2.9 and 2.10, which are for markets not 
traded in the United States, the Australian Dollar and the Nikkei (the Japanese answer to the Dow Jones 
Industrial average). 
If you are still not convinced that we have uncovered a major cycle to price movement-a cycle without 
time-I am next presenting three charts of 

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Figure 2.7 S&P 500 Index (daily bars). Graphed by the Navigator 
(Genesis Financial Data Services). 
Figure 2.8 Coffee (daily bars). Graphed by the "Navigator" 
(Genesis Financial Data Services). 

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Figure 2.9 Australian Dollar (daily bars). Graphed by the "Navigator" 
(Genesis Financial Data Services).