Courtney Capital DECEPTION AND CHARTS. Written and presented by David William Paul

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1 Courtney Capital DECEPTION AND CHARTS Written and presented by David William Paul

2 Courtney Capital In the following short presentation I will detail several simple patterns for short term swing trading They are all traded with the trend and should be applied to shares that can grow earnings strongly and safely for a 80% hit rate. If the fundamentals are technical position are not in sync the hit rate will fall markedly. I want to be long undervalued stocks and short of overvalued stocks. My undervalued stocks have not budged in this market blues.

3 Courtney Capital I am looking to build a hit list of undervalued shares that have high earnings growth potential These shares must have a good track record of growing earnings safely and consistently. The VectorVest software does this automatically If you wish to be a position trader the you need nothing more. If you wish to be a short term trader over a few days with leverage use the following concepts with undervalued safe stocks. The results will surprise you.

4 Courtney Capital I use a 21 period average and a 89 period to determine the trend on all my charts In addition VectorVest measures the short term trend and the breadth of the advance of the total market A chart of Bidvest is shown next which looks at a typical layout.

5 Courtney Capital BIDVEST DAILY

6 Lost Motion W D Gann in his published work talks about the merits of trading double bottoms. A double bottom that s not perfect he called Lost Motion In the slide below notice how the share takes out the low and then reverses. Trade it with the trend and with the fundamentals

7 Lost Motion

8 Lost Motion-against the trend

9 Supergroup

10 Pinnacle Lost Motion preceding a 10/40 cross

11 Euro $ this morning Trend is up. Market nails the obvious stops This is where the liquidity is sitting

12 GOLD Trend is down market stops all and then falls Deception and Charts

13 Lost Motion Lost Motion is the basis of a lot of my trading. The following pattern is Lost Motion in disguise.

14 Bar Chart patterns I have spent years researching bar chart patterns and have largely kept to myself. In my opinion they have a better hit rate than candle patterns but I appreciate that is a controversial view. I use them every day in my trading of stocks, stock indices and forex. I will include examples from all asset classes. With the trend the trader needs little more.

15 Multiple Outside Bar This is where a bar completely engulfs the highs and lows of the last three bars. Its a very strong formation. I include a trade on the Dow cash which happened recently. Let the market close above the range of the outside bar and Buy/Sell at the open of the next. Stop is a long way away at the low of the outside bar. This means that a small position will need to be traded as the stop is large.

16 Multiple Outside Bar This This bar engulfs the previous three Buy this open

17 Courtney Capital Multiple outside

18 Courtney Capital Top in AGL

19 FT100.. today Short at the open Nice quick loot

20 Two Bar Outside Reversal This is the most amazing little pattern Its simple. The markets makes a new high and then reverses and closes below the last two closes. The market makes a new low and then closes above the last two closes. The pattern happens frequently. On the Jse-Alsi40 future there are two of these a day on the 30 min chart. In forex define the trend and take 2 bar outside reversals in the direction of the trend.

21 Two Bar Outside Reversal (long) Enter on the next bar New Price Low Close higher than previous two closes Initial Protective Stop Low of key reversal bar

22 Two Bar Outside Reversal (short) Initial Protective Stop High of key reversal bar New Price High Close lower than previous two closes Enter on the next bar

23 Two Bar Outside Reversals Cable makes a new high. Then it reverses and closes Below the last two closes

24 Two Bar Outside Reversals Text book

25 Two Bar Outside Reversals Short trade BUY Two bar outside reversal at work

26 Popgun (long) Close above high of Outside bar Enter on the next bar Initial Protective Stop Low of Outside bar Inside Bar Outside Bar

27 Popgun (short) Inside Bar Outside Bar Initial Protective Stop High of Outside bar Enter on the next bar Close below low of Outside bar

28 Multiple Inside Bars The pattern is simplicity its self. The market trades inside a bar for a minimum of 3 bars Its breaks and closes above the range of the formation as shown in the next slide. Enter on the open of the next bar. Place a stop below the low of the bar prior to the breakout or setup bar. The formation does not supply any information on targets.

29 Multiple Inside Bars (long) Close above high of bar that encompasses the inside bars HIGH Enter on the next bar Initial Protective Stop Low of bar preceding breakout or setup bar. LOW

30 Multiple Inside Bars (short) HIGH Initial Protective Stop High of bar preceding breakout or setup bar. Enter on the next bar LOW Close above high of bar that encompasses the inside bars

31 Multiple Inside Bars Trades inside for 5 bars Short here

32 Multiple Inside Bars Sell this open

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