TRADINGCONCEPTSINC – FRACTAL ENERGY TRADING

Tools Are Failing to Accurately Predict

Today’s Market MovementHow much more money could you make if you knew – with defined certainty – what direction the market is moving at any given time?Now, of course, plenty of tools and indicators promise this knowledge.But how well are they working today?My guess is that you’ve probably noticed some problems lately.You see, with today’s stretched financial markets, trends go a long time without meaningful pullbacks.Price rises faster now than it corrects. This is a fairly recent development, as for years we saw choppy, slow-moving price action.

The shift puts a strain on popular indicators such as Stochastics, MACD and RSI, which were created decades ago for markets that are much differentthan they are today.

For example, RSI was developed by J. Welles Wilder and popularized in the 1978 book, New Concepts in Technical Trading Systems. Stochastics was created by George Lane in the 1950s.

Markets have changed considerably since this time. So why hasn’t the process for analyzing and predicting movement changed?

The fact is, the information that traditional indicators provide now isn’t always clear and is often lagging well behind the actual movement.

Sometimes it’s just plain wrong.

What caused the market shift?Today’s shifting market is the result of a measure we’ve seen debated in major media over and over the last few years …

Quantitative Easing.

Or, simply put, in an effort to lower interest rates and spur economic growth, new currency has been thrust into our nation’s money supply. The Federal Reserve is still injecting billions of capital every month in an effort to further stimulate the economy.

In fact, since September 2008, Financial Times reports the U.S. Federal Reserve’s balance sheet has expanded by $3.5 trillion!

As you can see, this financial activity has gone on for years – and shows no signs of stopping. So it was inevitable that this “new” money would hit the stock market.

And little did anyone know what kind of impact this would have on trading.

But in 2013, traders worldwide started feeling the effect.The problem, though, is that few recognized the shift when it happened.

(And if they did, since they couldn’t pinpoint the problem, they continued relying on the same strategies and tools – ones created for markets that are much different than they are today.)

I was one of these traders … looking at charts … using many of the same indicators you probably use … searching for patterns … and noting certain trendlines.

I labored over seemingly every trading resource. I noticed, though, I wasn’t getting the same results – with the same ease – as I did in previous years.

In fact, my once-reliable trading methods broke in 2013.

… and so did everyone else’s.

As much as I can estimate today, continuing to rely on traditional indicators cost me at least $20,000 in lost income.

Of course, it’s impossible to put an exact number on my lost profits. But because I was reluctant to stray from strategies that created such a successful trading and training business, I lost considerable income during this period.

I don’t want you making the same mistake – that’s why I’m sharing these findings.

Don’t wait to give yourself this advantage.You see, I should have made a change much earlier.

The fact is, a few years prior – while going over research I’d compiled for the past 10 years – I saw something different in my charts … something new.

It sort of just popped out at me. Like when you look at those autostereograms – you know those 3D images that appear once you know how to look at them.