Books on the psychological element of the markets and trading. These works cover both how markets are influenced by the psychology of the individuals behind them, as well as the actual psychology behind trading for the trader.
Options provide many very useful benefits, like locking in the limit of your risk, since you can never lose more than the cost of the option you purchase.
With the current volatility of the market and overnight trading, many traders are afraid to hold positions overnight, but options can give a safe way to hold open positions without fear of extreme volatility.
Leonardo Fibonacci is often cited as the discoverer of the Golden Ratio or Phi, but he was not the first, The Ancients called this the Divine Proportion and used it in their art and architecture.
The Golden Ratio is the governing principle of most natural forms, and the Divine Proportion is the most dominant mathematical form in the natural universe.
In Magic Squares the addition of each of the rows and columns add up to the same number.
From Ancient times thinkers have explored these mathematical mysteries, uncovering deep ordering principles underlying numbers and geometry.
Within his esoteric market analysis systems Gann used a "Squares of Nine" and a "Square of Four".
We have a selected collection of unusual books presenting alternative metaphysical concepts and mathematics, including conceptual approaches useful for financial forecasting or more esoteric cosmological theory.
Both WD Gann and Dr. Baumring used methods of calculating universal ordering processes focused upon methods of prediction.
Space and time can be seen as the primary elements which define the container of existence in which we all function. In the financial markets we could say that Price and Time are the two primary elements which define market movement and structure.
Price is Space in the financial market cosmos, and Gann himself even referred to Space in market charts.
Eric Penicka: Gann Science
The author correlates Gann’s exact words to the science of Gann’s day to illustrate his phrase “stocks are like atoms”. Offering a system of “mathematical points of force” governing the structure through which the market moves, the emerging science of Periodic Table atomic elements provides a system of order through which to forecast.
W.D. Gann Works
We stock the complete collection of the works of W.D. Gann.
His private courses represent the most important of his writings, going into much greater detail than the public book series. Our 6 Volume set of Gann’s Collected Writings includes supplementary rare source materials, and is the most reliable compliation of Gann’s unadulterated vital work.
Dr. Jerome Baumring
The work of Dr. Baumring is the core inspiration upon which this entire website is based. Baumring is the only known modern person to have cracked the code behind WD Gann’s system of trading and market order.
Baumring found and elaborated the system of scientific cosmology at the root of Gann’s Law of Vibration.
There is no other Gann teaching that gets close to the depth of Baumring’s work.
The Polarity Factor System An Integrated Forecasting & Trading Strategy Inspired By W. D. Gann's Master Time Factor
By Daniele Prandelli
As a trader, how happy would you be if you were consistently able to pull 20-30 points of profit a week out of the S&P500 Index, which would be the equivalent of 200-300 points a week on Dow Jones Index? That would be approximately 80-130 points a month on the S&P or approximately 800-1300 points a month on the Dow! Multiply that by 12, and you’re looking at making 1000-1500 points annually on the S&P, equivalent to 10,000-15,000 points a year on the DJIA, which would be like riding a bull market on the Dow from 0 to its all-time high every year! What if you could do the same with the grains, metals, stocks and other markets?
Most traders would consider these to be quite good trading results, if not even excellent, but with this new trading course, The Polarity Factor System, results such as these begin to come into the reach of the properly educated trader. If you think these sorts of results are unrealistic, see Prandelli’s Trading Records for September-November 2011, as these are exactly the documented results Prandelli produced over his last 3 months of trading! And these results are not really spectacular in Prandelli’s experience. In fact, the month of September was the continuation of a 2 month sideways, trendless, whipsawing market, which ate most investors alive.
Obviously, it must take something special to consistently produce these kinds of trading results, and indeed it does! It takes accurate timing, precision pricing, and strategic risk management, all woven into an integrated trading methodology which consistently identifies ideal trading opportunities, and provides a working strategy for profiting from them. And that is exactly what this course does. Customers of Prandelli’s former work, The Law of Cause & Effect, have seen the accuracy of adjusted Planetary Longitude lines in determining tops, bottoms and resistance levels. Now imagine adding a timing system with an equivalent sophistication and precision to determine not just potential turning points, but the actual polarity of turning points, meaning whether a turn will be a top or a bottom in the market, and doing this consistently on an intermediate-term (meaning daily-weekly) scale. Combine with this pricing and timing system with a well-tested trading strategy, which limits losses and lets profits run, and you are on your way to producing the results mentioned above.
Like his earlier course, The Law of Cause & Effect, the time forecasting system presented in The Polarity Factor System is based upon the powerful insights of the great market master, W. D. Gann, and particularly upon his Master Time Factor, presented in one of his rarest and most secret courses. Prandelli has redeveloped Gann’s Master Time Factor and programmed it in his own proprietary software (using Microsoft Excel) to create yearly forecasts of the market of the same level of accuracy as those produced by Gann in his Supply and Demand Letter, almost 100 years ago. This timing technique, which he calls the Polarity Factor System (PFS), forecasts market tops and bottoms with an 80% accuracy, giving clear directional indications, and the confirmatory tools included in this course, when combined with the PFS forecasts, at times increase these odd even more. But this course does not only provide a time forecasting system, it also includes a sophisticated strategy to trade the forecast. Prandelli says, that to provide a forecast without clearly showing how to trade it is almost useless, and therefore he develops an entire methodology using time, price and trading strategy, to maximize trading profits in the markets.
Excerpt From Prandelli's Preface to the Course
For some time, I thought about writing this course, and in so doing, asked myself, “How would I expect the most practical trading course to be presented?”
I concluded that there are 3 critical characteristics of a trading course that I have rarely found elsewhere:
to be precise
to be realistic
to be profit-making
These are the principal points that I would expect to find in a practical trading course. Precision was one of the most difficult elements to find. I often found that I was not able to put into practise the knowledge acquired because I didn’t know exactly where and when I was supposed to enter the market. The reality of what is learned in a course is often very different from the reality presented by the market. It is useless to show 20 charts where a line perfectly hit a price, without showing how it behaved in the other 100 cases when the line didn’t govern the price trend. Reality must be shown in its entirety, both in favourable and adverse situations because nobody is infallible, but we must be able to manage both circumstances. In the end, I needed to learn something that would enable me, or at least help me, to make consistent profits from my trading.
Therefore, the venture I am about to undertake is anything but easy. In order to accomplish all three of these points, some specific requirements are necessary. First, I must know very well the market I am going to trade, and I need clear proof that the method works practically and is profit-making. The first requirement was obtained after years of practice using the same tool, specifically the S&P500, in my case. The second requirement was obtained through my Online Blog “I AM in BORSA”, which presented the trading signals and strategy through an ongoing commentary written every day before the stock market opening. The Blog demonstrates the proof that we can produce profits from market using the analysis and trading strategies presented in this course.
In this course, I am going to present to you a statistical methodology, not a fool-proof system. I will tell you when you can expect something and when not. A good trader must know when he can trade and when he must simply observe. Much of this work is based upon pure forecasting, but not forecasting alone, since it is rare to make a perfect forecast. Even Gann did not make perfect forecasts, so to compensate for the factor of potential errors, one must have a trading strategy which takes the forecast into account, but which also reads the market indications in real-time so as to allow a trader to adjust his trading accordingly. This course presents the techniques and the tools I use to make forecasts of the US stock market, with the application of the strategies on the S&P500 index. However, these same rules and techniques equally apply to other markets, and as an ongoing study, in the Online Forum, we will collect data for other markets and produce similar PFS forecasts on each market for which we can find sufficient data.
What This Course Will Teach You:
How to Determine the Yearly Trend of the Market
The first step presented in this course is the means by which to establish the general yearly trend of the market. Prandelli uses a technique developed by Gann using his Master Time Factor to first establish the directional expectations for the yearly trend.
How to Create a Directional Turning Point Forecast for the Year Using the Polarity Factor System
The next, and most important step, is to create a yearly directional swing forecast for the market defining key tops, bottoms and trends for each month. This forecast will produce the same kind of chart, though with greater detail, as the chart below, taken from W. D. Gann’s Supply & Demand Letter, showing his Forecast for the Stock Market for 1922. On the chart below the dotted line represents Gann’s forecast for the Dow Jones Industrial Averages for the year 1922, created IN ADVANCE for that year, and the solid line shows the actual movements of the DJIA for the year.
Prandelli’s Polarity Factor System (PFS) creates a future price swing model that works in exactly the same way as Gann’s forecast above. This model is based upon Gann’s Master Time Factor, and these models can be created for many years, even decades into the future. Included with the course is proprietary software created in Microsoft Excel developed to automatically generate these PFS Forecasts for any year in the past, and projecting into the future for the next decade and beyond.
These PFS Forecasts do not only project expected turning points in the future, but give the precise orientation or polarity of each turning point, meaning whether a turn is going to be a Top or a Bottom, not just a potential turning point, just as Gann has done in the above chart. It also defines the expected upward and downward trends, along with their potential strength. The polarity of these turning points has a directional accuracy of approximately 80%, and an accuracy in actual timing of turns of about 80%, making it one of the most advanced and useful timing tools we’ve seen.
Statistical Pattern Analysis for Confirmation of Forecast Turning Points
However, even when one has a directional swing forecast such as Gann’s shown above, one can see that it is never perfect, since creating a perfect forecast is almost impossible. Realizing this, and being realistic, as a trader must be, Prandelli has developed a secondary analysis process, through which he is able to develop statistical expectations of intermediate trend action and probable turning points, completely disconnected from the PFS analysis, but providing a critical confirmatory tool for interpreting the PFS Forecast.
This secondary confirmation tool provides another level of insight into the probability of the specific turning points, and the trend direction leading into and following those specific points. If further helps to clarify the likelihood of which point will be the primary turning point during times when the forecast shows a potential double or triple top or bottom, or provides alternate scenarios when the forecast is moving laterally, like in the period from May-June on Gann’s Forecast above. Prandelli has learned from long trading experience that one cannot be solely dependent upon just one forecasting tool, but instead must develop confirmation tools to improve the likelihood of identifying the key trading points in the market.
When the Forecast and confirmation tools are perfectly aligned, the probability of identifying the exact turning point can go up to as much as 95% accuracy. However, when they are in conflict, they forewarn the trader to be extra careful during these periods, and to watch and wait for the market to give the needed trading indications, which are given by key price levels defined by Planetary Longitude lines.
Once the PFS Forecast has been created and the statistical confirmations have been analyzed, it is not enough to just enter the market based upon pure timing indications. This is the essential point where the knowledge of the use of Planetary Longitude Lines, as developed fully in Prandelli’s first course, The Law of Cause & Effect, comes into play. Gann always identified TWO most important elements in the market: PRICE & TIME. While the Polarity Factor System and statistical patterning provides the TIME, the Planetary Price Lines give the EXACT indications of the KEY PRICES that the market will react to.
With these Key prices used in direct correlation with the timing element, the accuracy and efficiency of placing one’s trades with limited risk is greatly increased. Those who have Prandelli’s first course have confirmed the value of these Planetary Lines in determining exact tops and bottoms, and in providing key support and resistance levels which the market is attracted to and repelled from in all of its motions. In this chapter, Prandelli shows how to integrate this key PRICE insight with the TIME element, as the basis for a powerful trading strategy, further using these lines for entry and exit positions, trend targets and stop-loss placement.
Trading Strategy – Risk Management – Entry & Exit Points – Position Sizing – Capital Management
Though Gann may have identified Price & Time as the Key elements for trading the market, all real traders know there is one further element of the GREATEST importance: RISK MANAGEMENT! Prandelli reiterates again and again throughout this course that just knowing WHEN and WHERE markets will turn is NOT enough to allow one to be a successful trader. One MUST also have a clear, pre-defined trading strategy to trade these indications while limiting one’s risk and preserving one’s capital. One must know exactly where one will enter each trade, and where exactly to place stops so as to cut losses short, allowing the trader to lose many times without deteriorating his capital.
Further, the trader must also have clearly identified price targets, as well as a strategy for exiting the market at pre-defined locations with different segments of his positions, so as to lock in some initial gains, while also allowing profits to run with a stronger trend. Prandelli’s course is NOT just a theoretical forecasting system, but rather is an applied, long-tested, highly profitable trading strategy, incorporating PRICE indications, DIRECTIONAL TIME projections, and a simple but efficient TRADING STRATEGY that will limit losses and let profits run, to maximize one’s efficacy as a trader.
Documented Trading History
Prandelli provides dozens of real-time examples taken from his Online Blog “I AM in BORSA”, which has been recording his forecasts and trades for the past 18 months through an ongoing commentary written every day before the stock market opening. He shows exactly how he made all of his forecasts, what his logic and expectations were, and exactly how he used those Price & Time indications to place highly accurate and profitable trades. The Blog demonstrates the proof that this methodology can produce profits from the market using the analysis and trading strategies presented in this course.
Prandelli’s trading strategy produces an excellent Reward/Risk ratio of 6/1. Using his Planetary Lines in conjunction with this PFS Forecasts and confirmations, he is able to place trades with tight stop-losses, with an average risk of only 3.5 points and an average reward of 21.3 points. The average win/loss ratio is 1/1, so by limiting risk and letting profits run, this ratio produces large profits with small risk of deteriorating capital. The reason the winners to losers ratio is 1/1 is that sometimes one may attempt to enter a position 2-3 times before the market begins its anticipated move. But since the risk is limited to an average of 3.5 points per entry, the profits from one winner will be double the costs of even 3 losing entry attempts, which is uncommon.
Included PFS Modelling Software & Online PFS Research Forum Membership
Included with this course is proprietary software developed exclusively by Daniele Prandelli in Microsoft Excel, which creates the Polarity Factor System (PFS) yearly forecasts for the S&P 500 Index and Dow Jones Averages for the coming year, as well as decades into the future. Also included with purchase of the course, is membership in the Private Online PFS Research Forum, where Prandelli will answer question of course owners, and where further research, development and application of the principles presented in the course will be discussed and elaborated.
Using The PFS to Forecast Other Markets (Besides S&P)
The included software comes programmed with 100 years of Dow Jones data, but the same software will allow the input of data from any other market. You just need sufficient historical data (approximately 60 years is required to produce the proper PFS forecast) to create an equivalent yearly forecast as Gann and Prandelli produce. An ongoing project in the Online PFS Forum is to collect data for multiple markets, in order to create PFS models, do planetary line analysis, and create strategies to trade a broader range of markets. So far, the PFS Forum group has collected data for Corn, Soybeans, Wheat, and Milk, as is currently in the process of getting data for Gold, Silver and other markets. Prandelli has already completed a new PFS model for the Corn market, which can be seen on the following chart to have produced a beautiful forecast if the price action of Corn in 2008, calling the exact high within 2 days of the actual top!
Prandelli has done an initial strategic analysis of a trading system based solely on the Corn PFS model which was highly profitable in 6 of the last 7 years. Details of these analyses are provided on the PFS Forum, and will further be developed as a group as the research continues. The software will also let researchers experiment with different variations of cyclic forecasting models according to Gann’s specifications or the creativity of the individual researcher. This software is unlocked with all formulae accessible so that customers can use it to create models for any market they desire.
Customer Feedback & Reviews of the PFS Course
I believe that the new Polarity Factor System is better from a trading application perspective than The Law of Cause & Effect, which I also thought was fantastic. It has easily paid for itself already. I have been able, from this course, to replicate around 80%+ of Daniele’s personal trading blog. Given my lack of time to commit more fully, it is something even a part-timer can use quite easily and apply. This is a very tradable methodology – it is highly disciplined and enables the trader to be relaxed when setting positions. It is not wishy-washy and is not open to one’s own interpretation.
The PFS is quite impressive – particularly the background to it. I have been involved with the Online Forum group in reviewing other markets and was able to develop my own PFS for another market which Daniele has now done, and I am pleased to say I was able to arrive at the same conclusion as Daniele from what I had learnt from the course. I think if you only have the Law of Cause & Effect you have the equivalent of a car without its fuel – it may look good but won’t get you to where you wish to go. The new course certainly does. It has paid already and I love the methodology, the simplicity (now Daniele has done the hard work for us) and the high level of discipline.
Living on the other side of the world crates timezone issues, particularly when one isn’t a fulltime trader (i.e. the US market opens at 12:30am my time). But this methodology allows me to still trade the markets. I think the course is useful for everyone – the novice would be best not learning anything else bar this material and it provides someone in this position with a 10-year headstart, while the experienced trader will no doubt add additional tools to their arsenal. I would highly recommend the course!
A.J., Bridgeman Downs, Australia
I can provide an unsolicited and independent assessment of Prandelli’s work. I've watched Daniele trade for quite a while now. I've marveled at his skill with his method. I've seen him be stopped out (so he's not perfect... LOL) but he controls his risk well in those few cases where I've seen him lose. In my humble opinion, he is one of maybe seven traders I know internationally that I put on a pedestal of being masters of sorts. I'm sure there are others that I've not observed, but I've watched dozens of paid services that can't get close to the same results. I think Daniele is the "real deal"... and I don't say that lightly. Past that, he has the wonderful characteristics of being quite humble and kind. All said and done, I think he is a rare individual indeed. Yes, Daniele is a jewel. Nice and gifted guy.
I have indeed enjoyed the new PFS course. Given that I was already a studier of Mr. Gann, I had previously studied much of what Daniele presents in the new book. That said, Daniele packaged the “old material” in a logical and professionally tradable manner. In fact, that is where I think the value lies in this particular book. I got a rare opportunity to see into the mind and methods of a trading master. He lays it out bare for the student to duplicate…. with no guess work. I think that is at least part of what Daniele was attempting to do with the book, and he accomplished that goal.
Of course, I am still dissecting the course and working to build it into my other trading models. After studying thousands of trading methods and throwing most of them in the trash, I find Daniele’s work to be quite worthy of continued inclusion in my trading tool box The proof is in the pudding and I can also say that the course has already paid for itself in my case. I expect that to be the case many times over. I’m also enjoying the forum and the efforts to extend the methods to new markets. It will be fun to see what comes of all of that new research.
J.C. Harrison, TN
I am a huge fan of Daniele's stuff! His cycles in the course have worked INCREDIBLY well for me, and caught both the October 5th low and the November 25 low. Amazing! Regarding the new PFS course, I love it! It's made a huge difference in my trading. It is easy to apply and as tradable as could be ... and we all know how tough the markets are to trade! It also extends the planetary line application beyond what is presented in The Law of Cause & Effect. I think everybody should own Daniele’s 2 courses!
F.S. Foxboro, MA
I’ve bought lots of courses from you but I can tell you I like Prandelli’s the most. Beyond the theory, which is fascinating, this course is really close to everyday trading. It is not coming from trading examples many years in the past, it is coming from the present. It is acting and working in the current trading environment. That is why I found it to be the most valuable course for me from all the others I have bought from you. You know that I daytrade with a couple of hundred S&P500 lots, and beyond theory, it is very important that the course would be easily applicable for today’s environment. That could be the reason for this to be the most successful course. I ask you to push Daniele to come up with his next course as soon as possible!
Regards, J.S., Budapest, Hungary
Table of Contents
Chapter 1 – General Annual Trend
WD Gann’s Master Time Factor
Chapter 2 – The Polarity Factor System (PFS)
100 Year Data Model
Creating Yearly Directional Forecasts
The Excel Spreadsheet
Chapter 3 – Looking at the Past
Forecast Confirmation Technique
Secondary Date Projection Model
Chapter 4 – Looking for Monthly & Weekly Turns
Integrating Time Cycles into the Model
Chapter 5 – The Vital Importance of Price
The Key to Trading the System
Trading Strategy for the Forecasting Model
Chapter 6 – The Art of Trading
Trading a Whipsaw Market with Profits
Trading Major Signals & Turning Points
Appendix A – WD Gann – Master Time Factor Forecasting Course
Appendix B – Historical Yearly S&P 500 Charts 1961-2011
W.D. Gann’s original work is a critical element for any Gann researcher, but many find Gann’s deeper work challenging without help from well-seasoned analysts and traders.
We offer valuable secondary works presenting and developing Gann’s ideas: the best teachers in this field are not so much competitors, but fellow contributors to ongoing research.
Gann gave much attention to grain markets, and in particular Wheat, Corn and Soybeans. Gann had a Wheat chart back to 65 BC, which Baumring took back to 1200 BC.
Long historical data made Wheat a premier market to study long term cycles, and grain markets depend on weather, a secondary phenomenon which Gann also studied and analyzed.
Analytical systems, techniques and tools based upon the use of geometry are significantly effective when applied to the analysis of market trends.
Technical Analysis involves using technical tools and mathematical measurements in order to determine expected directional movements, reverses or changes in the market.
Advanced forms of this technique use mathematical and scientific or geometric tools to project market action or forecast future movement, looking at elements of price, time and trend.
A branch of Chaos Theory, fractals are beautiful self-similar patterns mathematically generated from non-linear equations.
Fractals apply directly to financial market phenomena, and time-periodic market charts show that similar patterns permeate each time level.
Gann and Baumring saw common patterns foreshadowing coming events within consistent structure.
Harmonics and Music
The science of harmonics is one of the most important subjects in the esoteric and scientific traditions, positing that harmonic relationships of vibration govern the structure of the universe.
W.D. Gann called his system of market order the "Law of Vibration", and used principles of harmonics and vibration to predict trends in the financial markets.
Esoteric and Pythagorean sciences love to play with the value and meaning of numbers, from the complex mathematical theories of the Platonists, via Fibonacci’s ideas, to number progressions, ratios, proportions, sequences, and chaos theory.
We specialize in the overlap of numerical and esoteric systems positing a more integrated cosmology.
There is a long tradition of the use of instruments to read subtle energy forces in nature, through the use of subtle measuring devices like dowsing rods and pendulums.
The Jesuits were famous for finding water sources, showing advanced knowledge of using these techniques.
The scientific name for this practice is Vibrational Radiesthesia.