Delta Trading - The Foundation Of
Predicting Market Turning Points
The Delta trading Phenomenon was discovered by a man named Jim Sloman who then sold his idea and contributed more to Welles Wilder, founder of technical analysis indicator Relative Strength Index (RSI).
Basically, they discovered the market behave in a predictable repeating orders/patterns having roughly the same numbers of major high and low turning points in that time frame (except inversion where there is an extra point). You can then use these delta turning points to predict where the next turn is due.
See whether you can guess where the next turning point is on this gold chart (a snap shot of the delta society introduction web page) just like when Jim Sloman presented this to Welles Wilder.
......Yes, that's right. Point 2 is just to the right of the green line. How about point 3 and 4 ?........Yes, that's right. Point 3 is half way between green and red line. Point 4 is just to the left of red line. You have just predicted future market turning points. You can repeat this exercise and project it to even further dates. This cycle or time frame, is known as Intermediate Delta Term based on daily traded bars.
This delta time frame is ideal for swing trading or short term momentum trading for a few days.
Higher Time Frame
Delta has other time frames based on weekly, monthly & yearly. You basically repeat the above exercise and plot the points on the chart. If you overlay all the time frames together onto a chart, you can then see which direction the market is heading and trade in that direction for long term or trade the small market turning points like this example.
Once again, it's a snap shot of the delta society introduction web page.
Looking at the above chart, the blue, green (higher time frame) and the dotted vertical lines with red numbers are predicted Intermediate Delta turns dates and predicted well in advance. The red circled numbers are the actual IDT turn dates.
See how powerful this delta phenomenon is. When a few time frame cycles came together, the market turned down hard. If you were shorting this, you would ride it all the way from the top to the projected turn where green 4 and red 9 appeared.
Shorter Time Frame
Delta turning points can be used in intra day trading as well. I have noticed S& P500 index repeat it selves a few times every few days in a predictable repeating orders! Combine this with Elliott waves and technical analysis can be very profitable day trading! Ooh La La!
Want To Learn More About Delta Trading Technique?
Sorry, I can't discuss in great details as they are not my discoveries and copyright act.
However, you can learn more about trading delta techniques from a book called The Delta Phenomenon: or The Hidden Order in All Markets (Book Package)
(the gold chart example is in the delta phenomenon book - it's slightly cheaper from this amazon.com link).
You can also watch Delta Video training CD from http:www.deltasociety.com
Steve Copan who authored the cd ( also inventor of market matrix) explains delta trading and also explains how to trade using 4-7 technique.
You can either do the analysis yourself after you learned from the book or cd or become a delta society member from www.deltasociety.com
.They will provide you with a piece of software and have all delta solution market turning points worked out and projected a year into the future. These are mainly commodities, currencies as well as stocks.
Rosen Precious Metals Timing Newsletter
If you want to sample what it's like to trade metals based on delta and elliott waves/ ganns without becoming a delta society member , then this newsletter is ideal.
You can follow Rosen trading method as he produces the turning points out on a monthly subscription newsletter from deltasociety.com
My Delta Trading Findings
Although I do not use their trading systems, I applied the method as I have
which is based on Delta trading and slightly more advanced.
I mainly use the shorter time frame (15 minutes) and a few useful and good trading tips for my entrance and exit of the delta trading turning points, from the DELTA PHENOMENON book that came with Market Matrix education Cds.
Click here to see my short term delta trading example.
I knew a man whom I met on my stock trading course award presentation a while back (what? don't ask?!)who used this stock trading system. He said he had not had a losing month yet! He joined the member of delta society and used the software and the solutions worked out already to do his delta trading.
I would love to hear your feedback on the 4-7 trading technique if and when you decide to purchase the delta training cd and also delta society member so I can update this page and inform other readers.
Please use this
link to contact us.
Good luck with your delta trading if you decide to go down this road.
Update - Delta Trading Phenomenon Turning Points Software
I have a few readers asking what is the current S&P point and /or how do you progress after reading the book and or CD. Well, you need software to work out your own solution.
You will struggle like me earlier if you use cheap software like sharescope and telechart as these software are good for normal technical and fundamental analysis only.
I now use Dynamic Traders which is geared towards Market Matrix.
However, having looked at Delta, they have a trading software called
One Day At A time
which is a lot cheaper than dynamic traders and have some similar functions including fibonacci time and price, elliott wave study.
As mentioned earlier, sometimes you can combine elliott wave with delta to give you a better trading opportunity.
You can watch
elliott wave crash course
if you are unfamiliar with this wave theory.
You can use this One Day At A Time software to draw your red, blue, yellow, green lines to work out your Intermediate, Medium and Long Term Solutions as explained in The Delta Phenomenon book and Delta Trading CD.
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