Ollio's Gold - Supply and Demand

Using signal (4) Low 8:00, 1/19/2017 generated by the FIA on the 8 Hour chart above, we have the following trade:

Long @1200.12, Stop Loss @1197.91 (or slightly lower - no lower than 1196.91)

Once again, a beautiful trade with a flawless entry and great profit with a very good risk reward ratio!

Using the FIA, traders need only "Sell the Highs" & "Buy the Lows".

Below are the basic concepts and guidelines with a complete set of rules traders must learn in order to trade using the FIA:

(1) Long Market Cycle (LMC): is a market cycle during which the market increases Demand. In a LMC, the FIA will generate one or more higher Lows and one or more higher Highs.

1. the Strategy is to Buy the Low signals. On the charts, Low signals are indicated in BLUE,

1. your Long entry is the value indicated by the RED line,

1. your Stop Loss is the value indicated by the BLUE line or slightly lower, however, no less than 1.00 below the BLUE line,

1. for your Take Profit, the optimal strategy is to exit your long trades when the market completes the LMC and reverses back to a SMC. Alternatively, you can set your Take Profit at the value indicated by the RED line of a High signal on the reference timeframe or on a higher timeframe.

(2) Short Market Cycle (SMC): is a market cycle during which the market increase Supply. In a SMC, the FIA will generate one or more lower Highs and one or more lower Lows.

1. the Strategy is to Sell the High signals. On the charts, High signals are indicated in RED,

1. your Short entry is the value indicated by the BLUE line,

1. your Stop Loss is the value indicated by the RED line or slightly higher, however, no more than 1.00 above the RED line,

1. for your Take Profit, the optimal strategy is to exit your trades when the market completes the SMC and reverses back to a LMC. Alternatively, you can set your Take Profit at the value indicated by the BLUE line of a Low signal on the reference timeframe or on a higher timeframe.

(3) Breach Signal : a High signal is breached when the market closes above the RED line and a Low signal is breached when the market closes below the BLUE line.

(4) Market Cycle Reversal: a LMC is reversed to a SMC when the market breaches a Low signal and a SMC is reversed to a LMC when the market breaches a High signal. When a Low signal is breached, the new signal will read High and the technical levels are to be used for Short entries only. A High always indicates the beginning of a SMC. When a High signal is breached, the new signal will read Low and the technical levels are to be used for Long entries only. A Low always indicates the beginning of a LMC.

The FIA makes trading extremely simple for all traders, ranging from novice to professional and institutional traders.

With the FIA, the learning curve to become a successful trader is dramatically reduced. Traders do not have to waste their time having to learn Technical Analysis (TA) or Fundamental Analysis (FA). The FIA does it all reliably, accurately and consistently for the trader.

In fact, most traders are able to successfully trade Supply & Demand using the FIA and become profitable traders within a week or so as opposed to the many months or even years of training and practice required when using other methods.

Thank you, Jack. I'll get in touch with you as soon as I'm over the flu.

Good luck with the flu!

Take care.

The FIA is the trader's edge!

With the FIA, traders never have to worry about missing a signal since the FIA always generates Low and High signals several periods ahead of time giving traders more than enough lead time to enter their pending orders.

Furthermore, knowing when market cycles begin and when market cycles reverse or end, traders know how long to hold their trades and precisely when to scale (add) their original positions.

For instance, during a Long Market Cycle (LMC), traders need only enter pending orders for Long trades each time the FIA generates a Low signal. All Long trades are closed when market reverses to a SMC (see (4) Market Cycle Reversal in Post #1,370 above).

If the FIA generates 10 Low signals during a LMC, traders should have opened 10 Long trades each one corresponding to the Low signals generated by the FIA. This technique is referred to as "scaling" and is used to optimize your profits. Various strategies and techniques are used to scale your positions and optimize your profits. Personally, my strategy is one based on a linear scaling algorithm.

Similarly, during a Short Market Cycle (SMC), traders need only enter pending orders for Short trades each time the FIA generates a High signal. All Short trades are closed when market reverses to a LMC (see (4) Market Cycle Reversal in Post #1,370 above).

Trading with the FIA makes traders more profitable since it enables traders to confidently open and hold multiple trades through entire market cycles. Closing trades when market cycles reverse ensures traders will secure optimal profits on all their open trades.

Market Cycle Reversal

The chart below illustrates a Market Cycle Reversal (MCR) going from a Long Market Cycle (LMC) to a Short Market Cycle (SMC) on the Daily timeframe.

Notice the High signal depicted in BLUE on the Daily chart to the right. When a High signal is BLUE, it indicates a Low signal has been breached and that we are at the beginning of a SMC.

Also important to notice, at the bottom of the Daily chart on the left, the Low signal indicated in RED. When a Low signal is RED, it indicates a High signal has been breached and it signals the beginning of a Long Market Cycle (LMC).

The Daily chart on the left is the same as the one we had previously in Post #1,368 above.

Market Cycle Reversal

The chart below illustrates the same Market Cycle Reversal (MCR) as the one in the previous post seen on 8 Hour timeframes.

The first thing you will notice is that the technical levels of the (0) High 1/24/2017 reversal signal indicated in BLUE on the Day timeframes are lower than those on the 8 hour timeframes.

The same would be true if you were to compare the same reversal signals between 8 hour timeframes and 4 hour timeframes. The technical levels on the reversal signal (i.e. High signal in BLUE) of the 8 hour timeframes would be lower than those on the 4 hour timeframes.

In other words, the lower timeframes will always give you the highest (optimal) price level of reversal for a LMC and the lowest (optimal) price level of reversal for a SMC.

Market Cycle Reversal

SMC to LMC:

For the market to reverse from SMC to LMC, the market must close above 1204.81 which is the price level indicated by the RED line of signal (1) High 1/25/2017 on the Daily chart on the left-hand side (see chart below).

Market Cycle Reversal

On the Day chart on the left-hand side, the signal (0) High 1/24/2017 confirms the following:

(i) the End of the Long Market Cycle (LMC) which began with the signal (0) Low 12/20/2016,

(ii) the beginning of a Short Market Cycle (SMC) (see chart on the right-hand side),

(iii) the signal (1) High 1/18/2017 is the first high in the new Short Market Cycle (SMC).

On the Day chart on the right-hand side, you see the first two high signals, (1) High 1/18/2017 and (2) High 1/25/2017, of the new SMC. During a SMC, the FIA will generate one or more High signals and one or more Low signals.

Hi Jack,

I really like the way you have simplify the guidelines and conventions. Posting the signals directly on the charts help so much to understand and visualise the market cycles.

I encourage everyone to take a few minutes and read from post 1370 and down... You can read the whole thread but I think the key is right there.

Thank you so much, Jack, for having taken the time to make a condensed version but yet so useful guidelines. I am sure you have invested countless hours to come up with such a tool.

Ciao!

I'm glad you like it!

The few last posts demonstrate the simplicity of the method and the power of the accuracy and reliability of the FIA.

The FIA is the result of millions of dollars and tens of thousands of hours invested in R&D over many years. The result speaks for itself!

Trading with the FIA is highly intuitive and extremely effective.

The FIA truly empowers traders with a solid trading plan enabling them to consistently "beat" the markets knowing what the markets are doing!

The format you saw in my last post, is the format in which subscribers receive the information. Nothing new here.

Basically, for each instrument and for each timeframe subscribers receive a snapshot of the instrument indicating on the left-hand side the Long Market Cycle (LMC) and on the right-hand side the Short Market Cycle (SMC). The status at the bottom indicates the one that is "Completed" and the one that is "In Progress".

Obviously, the timeframe which is "In Progress" is the one subscribers need to refer to when trading the market.