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Mikula Forecasting
Company: Strategy #22:
Planetary Lines Part 2
====================
Written by: Patrick Mikula CTA
Copyright (c)2003-06 by Patrick Mikula All Rights Reserved.
(Please to not copy or foreword this article).
Mikula Forecasting Company
P.O. Box 152672
Austin, TX 78715-2672
USA
www.MikulaForecasting.com
support@MikulaForecasting.com
====================
In this second article about planetary lines, we will
discuss how to combined planetary lines and momentum. Most
traders will look at several indicators to try and find a
high probability trade to enter. The first two charts below
shows the S&P500 with a set of Juipiter lines applied to
the chart. The market pivots identified with a yellow box
and the letters A to E have all occurred near one of the
Jupiter planetary lines. This shows a significant
correlation between these planetary lines and the
S&P500.
The next two charts show the same price data for the
S&P500. Now these charts have added the Smoothed
Stochastic indicator. When pivot "A" formed the Smoothed
Stochastic was below the lower boundary and the price bars
were on a Jupiter line. These two items together indicate a
the possiblity for a swing trade in the upward direction may
be coming. At pivot "B" the price was near a Jupiter line
and the Smoothed Stochastic was above the top boundary. THis
indicates the posssibility of swing trade in the downward
direction. The pivot at letter "C" shows the price on the
Juoiter planet line and the Smoothed Stochastic below the
lower bondary. This is the same setup seen at point "A". The
market is showing a set up at point C which indicates the
swing may tuen upward.
The chart below shows the second S&P500 chart but, now
the Smoothed Stochastic indicator is applied. The pivot a
point "D" shows the price bars on top of a Jupiter Line and
the Smoothed Stochastic is also above the top boundary. This
indicates the price may be topping and may for a swing down.
The pivot at point "E" shows the price touching a Jupiter
line and the Smoothed Stochastic below the lower boundary.
This indicates a possible up swing will come next. Finally
the S&P500 is currently touching a Jupiter line and the
Smoothed Stochastic is above the top boundary. This
indicates the market may be forming a top right now.
The next example shows the current chart for Gold futures. A
set of Jupiter lines has been added to this chart. The
Smoothed Stochastic is also in the subchart. At pivot "A"
The market touched the Jupiter line and the Smoothed
Stochastic is above the top boundary. This setup indicates a
possible down move is coming. The pivot at point "B" shows
the price reaching the Jupiter line and the Smoothed
Stochastic is below the lower boundary. This indicates a
swing up may be coming next. At pivot "C" the Smoothed
Stochastic has again moved below the lower boundary and the
price is touching a Jupiter line.
MORE:
To see more examples of Planetary Lines read the
version of this article on the MarketWarrior
owners page.
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Mikula Forecasting Company