| Markets move for real reasons, not because of | | | | market interaction. |
| technical whirling dervishes. Things happen in life | | | | For short-term trading on 15-minute bar charts in |
| because there are consequences to actions. | | | | particular, and most other time frames as well, I |
| Charts do not move the markets. Markets move | | | | then create a 5-period exponential of the spread |
| the charts. In keeping with that, I also think | | | | and subtract that from a 20-period exponential of |
| short-term swings occur because of some | | | | the spread. By so doing, we can see when one |
| external factor. Price never rallies because it is | | | | market is heating up over another and get a |
| rallying; the rally is the symptom of a cause. | | | | better sense of these inner-market influences. |
| Detect that cause and we are several light years | | | | Granted, this is not a perfect system, but the |
| ahead of the average short-term or day trader. | | | | only perfect approach to day trading I have ever |
| One of my favorite causative indicators is my | | | | seen are those myriad of ads in commodity |
| Will-Spread index, a measure of the flow of price | | | | magazines and newspapers. You can absolutely |
| between the primary market we are trading and | | | | trust me on this: those are 90 percent hype and |
| a secondary market that influences the primary. | | | | 10 percent substance. If anyone really had such |
| As you know, Bonds influence stocks, and Gold | | | | an outstanding system, he or she could make 100 |
| influences Bonds; Will-Spread allows us to spot the | | | | times more money trading without the hassle of |
| inner workings of these market relationships. The | | | | having to deal with the public. In addition, the tax |
| index is constructed or calculated by first dividing | | | | advantages of trading are gargantuan compared |
| the price of the market we are trading, the | | | | with hawking systems. I have yet to see a totally |
| primary market, by the secondary market and | | | | mechanical day trading system that consistently |
| multiplying by 100. This creates a spread between | | | | makes money. |
| the two markets allowing a basic comparison of | | | | |