Dynamic Trader Daily Report: Today's Lesson

Dynamic Trader Daily Report
Comprehensive Analysis and Education For the Serious Trader and Investor
Published By Thursday, April 20, 2000

Dynamic Traders Group, Inc.
DynamicTraders.com
dt@dynamictraders.com Prepared by: Stephen Griffiths
520-797-3668 Steve@dynamictraders.com
The analysis and trading strategies described in this report are for educational purposes only. The
commentary in this report may or may not relate to a specific trade recommendation made in the
Dynamic Trader Report. The weekday issues of the Dynamic Trader Report are prepared by Stephen
Griffiths and are primarily for trading education purposes with alerts for potential trade set -ups for
markets described in the Saturday issue prepared by Robert Miner.
Today’s Lesson
Putting it all together, when Price, Time and Pattern coincide – change is
inevitable.
For my first example, I would like to have another look at (May) Copper. We
saw earlier in the week that the Pattern was unfolding in a five Wave
sequence into the low of Apr 17 on two different degrees of swing: a lesser
degree five wave decline off the Mar 22 high and a larger degree five wave
decline off the Jan 20 high. Therefore from both these degrees of swing the
pattern was suggesting that the current trend was nearing a termination.
From the Saturday Apr 15 report, Copper was also approaching the 75.70-
74.20 ideal Price target for the termination of both the lesser degree wave 5
and the larger degree wave 5. Therefore, again on both these degrees of
swing, the current trend was nearing a termination.
In yesterday’s report, we saw how the initial broad Time target of Apr 11-19
for the larger degree wave 5 to terminate had been narrowed down to two
relatively narrow time targets for the termination of the lesser degree wave 5
off the Mar 22 high.
Therefore on Apr 14 and Apr 17 (Friday and Monday), Copper was in a

position where Price, Time and Pattern were all suggesting that the current
trend on two different degrees was in a position to terminate.
All that is required now is for the market itself to provide an entry trigger for us
to enter a new long position. This is the easy part, as trade entry triggers and
the corresponding protective stop loss are completely automatic once a
market has entered the Price, Time and Pattern for a potential trend
termination. In this example, Copper made a Reversal Confirmation Day on
Apr 18 (a reversal confirmation day is a day where the current day’s close is
above the open and above the prior day’s close – for a buy set-up). See the
Dynamic Trading book for more detail on entry triggers and stop loss
positioning.
Dynamic Trader Daily Report - 4/20/00
Page 2 of 3
In this example, using the termination of two different degrees of swing

enabled us to narrow down the Price, Time and Pattern targets for the
termination of a trend that has lasted almost three months to only one or two
days, and a decline of 15 points to only a 1.5 point range.
Now I would like to move onto the current example on Soybeans, where again
over this week’s tutorials we have seen how the initial broad Price and Time
targets for the termination of the Wave 2 or B correction were narrowed down
by using the lesser degree Wave C swing.
All that is required now is for the market itself to provide an entry trigger once
Price, Time and Pattern have coincided for the potential termination of the
lesser degree Wave C and hence also the entire larger degree Wave 2 or B
correction.
On the chart on the next page, we can see that this Wave C and hence the
entire Wave 2 or B correction terminated with an outside Reversal day. Again,
for more information on trend reversal entry triggers and their corresponding
stop loss position, see the Dynamic Trading book, chapter 6.
Copyright 2000, Dynamic Traders Group, Inc. (520-797-3668, www.dynamictraders.com).

Trading futures is risky. Past performance is no guarantee of future performance. Trade at your own
risk. This information is supplied for the paid subscriber and may not be copied or distributed in any
manner.
Dynamic Trader Daily Report - 4/20/00
Page 3 of 3
Lastly, a reminder that all the American markets are closed tomorrow. So may
I wish you all a happy Easter.
Lessons Learned
Using the lesser degree Price, Time and Pattern analysis enables us to
confirm and narrow down initial larger degree Price and Time targets. When
the lesser degree pattern terminates it also signals the termination of the
larger degree trend.
Good Trading,
Steve
Steve@dynamictraders.com
There will be no market updates in this tutorial, as this Saturday’s report will
cover the analysis and potential trade set-ups for Monday.
Copyright 2000, Dynamic Traders Group, Inc. (520-797-3668, www.dynamictraders.com).

Trading futures is risky. Past performance is no guarantee of future performance. Trade at your own
risk. This information is supplied for the paid subscriber and may not be copied or distributed in any
manner.

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Dynamic Trader Daily Report

Published By Thursday, April 20, 2000

Therefore on Apr 14 and Apr 17 (Friday and Monday), Copper was in a

In this example, using the termination of two different degrees of swing

Copyright 2000, Dynamic Traders Group, Inc. (520-797-3668, www.dynamictraders.com).

Copyright 2000, Dynamic Traders Group, Inc. (520-797-3668, www.dynamictraders.com).

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