Presented by: Dale Wheatley

Presented by: Dale Wheatley

MOMENTUM PRESSURE(MACD divergences) bearing on the PRICE We CAN SEE this PRESSURE bearing upon the price! Using leverage to get the greatest % returns Recognizing the best chart patterns Designing your trade

Basic Laws of Physics A body in motion stays in motion until something interrupts it A body at rest stays at rest until something puts it into motion

SEEING the Forces How MUCH pressure is bearing on the price by the MACD?? The MACD represents the foundation under the price. Weak foundations=weak price stability, strong foundation=strong price stability STRONG and CLEAR high time frames exert the most pressure and are easiest to validate and trade even SHORT term trades Using LOWER time frames will determine entry and exit points

LEVERAGE for greatest % LEVERAGE is the KEY to early retirement or a life without financial worries! What % returns are possible with OTM(out of the money) options for high leverage? Can these returns be repeated with confidence? The best patterns will yield returns well OVER 500% even early in expiration weeks! We have all seen OTM options with true returns well into the TENS of THOUSANDS of %!

Designing a Trade EXPECTATIONS of price change(macd-vs-price) of ticker you are buying the options on Time left until options expire(how many days, hours, etc)?? Distance(in price) from next strike price. The MACD level should ALREADY determine where the price belongs! Precise Entry points for greatest % return occur when LOWER time frame MACD, fast line, turns in SAME direction as high time frame DIVERGENCE Exit points are when the EVEN lower time frame MACD, fast line, STOPS fueling the direction of the divergence of higher time frames, so SELL! PRACTICE THIS!!!!!!

Summary What REALLY makes the price move so that you can SEE IT BEFORE it happens? Using ONLY Chart patterns to buy and sell securities. NO NEWS or FUNDAMENTALS required!!!! FOCUS on details of proper entries and exits for CONSISTENT and REPEATABLE results

You can now use this info to make SHORT term trading decisions that can make hundreds of %, EASILY as the lower time frames MACD fast lines, turn DOWN, in the SAME direction as this divergence! These can be as low as even 15 min charts if it is near expiration and the next strike price! The ACTUAL price highs were around $115, But, the MACD only supported a price of $105

This weekly chart MACD is moving down as it is being FUELED by the daily MACD, so watch the daily for signs Of continuing or signs of stabilizing(when PRICE is @ DB and DAILY MACD is higher on 2 nd price bottom). This can create a CALL Buying opportunity when confirmed by hourly or below! Be AWARE!

Confirming signals when this daily MACD fast line Turns DOWN in SAME direction as MONTHLY divergence Be AWARE of STABILITY forming and POSSIBLE REVERSAL in price!!

NO clear upside divergences on any higher time frames Than this daily, so, that means that if the RT(real time) Chart MACD s turn UP, the VXX will move up, but only SHORT LIVED each time, until weekly charts shows an UP divergence, which will add durability to the strength.

SPY should move in OPPOSITE direction of VXX, so expect A SERIES of SHORT DOWN moves until the VXX shows higher Time frame(weekly) divergences! Short moves are validated by RT MACD moves DOWN!

UUP moves OPPOSITE the FXE and USUALLY GLD, so Therefore, look at each of those for OPPOSITE Patterns for great options trades on THOSE, NOT UUP! Use UUP for INSIGHT, not trades! What information do we see HERE?? DEVELOP Your EXPECTATIONS from this chart, based on What I stated above!

Based on the UPSIDE technicals in UUP, Expect DOWNWARD move, which could be STRONG, Based on the UUP price-vs-macd!! If the DAILY pattern is not CLEAR enough, Look at hourly and lower for great entries!

Can you see the CLEAR ENTRY point Based on the understanding of the UUP being opposite of GLD??

In case you are wondering what the % return is, so far, On the GLD OTM puts that expire on Friday May 4 th, 2012, It is near 500%! The 158 puts were only $.11 on May 1 st, When the hourly pattern with the downside divergence formed And was confirmed by both the UUP moving UP and GLD RT charts turning DOWN! Those SAME 158 puts are now near $.60! THAT is how we DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! NO MYSTERY! Just plain and SIMPLE CHART FACTS!!!!!!!!!!!

Besides the tickers I have discussed in this presentation, look for tickers in the Dow 30 Industrials(only 30 tickers) To determine, which, if any, are LEADING the DIRECTION of the DIA and SPY indexes. Use the VXX info that I described In the slides above to determine IF the SPY and DIA(which is Usually the same pattern) are showing CLEAR signs of strength Or weakness to warrant options activity. You should be looking for the VXX patterns to be as clear or Even stronger than the UUP patterns I highlighted, so you will Have CLEAR EVIDENCE of IMMINENT price movement!! See how the UUP UPSIDE DIVERGENCE was influential ENOUGH on GLD To give EVERY SINGLE TRADER 500%???? Now, don t forget to RELAX and HAVE FUN while making these great trades!!