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paltr on lbe c. wben II M @ncal. b Op1 WgmW m
dal. pltr? 3bi wbl ww m b w W
There are many succesful traders out there. m many diplinary {or.a". who wait out
the d" .. lopment of pa"icular'panerns acros a broad spectrum of markets. and Ih.n
take them. If you are at all intereted in makins money. tben tbis is c"aily one _y
tedoit. o

lcl8 leI on \;th I.

J
1

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MmN (A0W. W ).Wmww
ym
All D Ie " yeSno. lWMW - - w'0q-0.)
P 'ye.' or 'no' is ti ce /I e to the othr
(w+g@
Thus. lhe 0flim pno 'no' .hud DV pW mvww W '
Z.

Awarne" is: not blng 8S0$.

to lt ._ks. u haVI to b conscloI5
.10 be consclous. u nave 10 coralan
l
ly be .blelo s 0.
b0/0/0 m0/0M. .e,lng 0S` & 'no' p.ttems
on ths lo_r till' pe riod.
r",.Ung M 'trth' ,bout
Mhlgh,r time period.
@ lk
e
I
he
h
im
e k
n
w I
h
e Im
r
f
m
e perio
d
.
Ths,O0 htghertme mdmz0WK0 goes.
( see ctlap!, W of 'PsycologyPaper' for '$Ieepmo'. )
U stay awake with the yes/no of Ihe lo_r time p.riod.
|Dl DUl IUSIBIDD.in em picking ,
.. use. _.kly for the hogner lime pnoc
d.ily for !he lower tlIM pllOd yeuno
Ones u ha' completed your sludy. (knowing lal taes 3 wkt o dello' ,,bt. 6 mlhS tt
maet sys'em (lee "PsyenP'PIr)1. u will h,ve BT lor yoVr libriry. ind wil contain
P1ns tn,! wil be Implan'e4 In yout btaif>.msclllf, for us. on any tr. priod. DOE
thctn,!\eetual centm. ( let alapt.6 of 'PsycPaper' )
Tne weekly WIll nave one energy pornl lI're res & ] eumple. th' _kty 59 &by ils,.

WIth a lead D0ld. sucn @ 59. WIth a 51 &Ior 52 b,eung |tup.
(hl weekly 51 y or may nOl be near !c wkjy SS, but. 11!o1is an r@
The aally will mOnl\or. Wlh yes or no p.uems. as 10 whitiS men|ny on the wq
Y0\ do u use on Ihe lower lime penoa 10 awaken with?
: reslslancIISuppor breaklrg as mOVfS 10 Ihe energy field. Of
at

plOOl pusnes Dr does nOl

: envelOPe cydf 1I0l' |6e POmlM, P,per )

LeI me gM! u an example,

00
,.:
|
&4
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L
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:
.
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C
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W

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.

^6
I10$Z4
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*9"
3W"W
^TV7"
in Ine Boove U 9ono$ al tne eno of July 1996 W have on Ine above lell a weeky 59dn,
ana laler on we nave a weely DZCH lIInese weekly energy (relas are valid rf$lstance Inen
Ine Cally 'Mil snow 'yes' paHems The aally 'yes' paHems wud reveal aaily resIstance holding,
ce II 59an's OZ005 SIan's 61an'sl o incIde1he'ulenSlOns') llhl-zones noldlng 1 mdupe
cycle Inecry from Ine 'Envelope cyde eonceol' f see PCCuU|QI$. Paper) There u have ":
{6
+
Nm, ters lock at a daily 'no' 8m. reveal sara for a _kly nel(
-1

'
-111 W
114"
-1^16

-1"P
m
Ph
l

f.+\Q%
IW

ITU^W
"M^Z
-(
-1WW
PbHN
In tIM! above U Bon(S, 1996. at alve left. W have w weekly 52 ups breaking
l1 they
b ... , tlM!n Ine Gaily wil nave a 'yes' panem. wi" IUjlylUppot1lg, m0y0
up . ne0vk 0W cy'so. amswQns lIccumul. In V0above.
!m(aity revealS a 'no' nenr C'ty 5Uln. $C as 52"$<", 59 up and their levels aking.
Thos IS Cue 10 IN\" 'Ial dnv., ,rena nns" How can aady suppen treak unlen da-.y ptdo\
IS anv",g oown" Daily pklO dnve, down If tn'$ con"nuu, Inen Caily envel bonom will
snow sIgns of poor accumulatIon., the daily dow cyd. remams strong. with litle
accurulatl:) up off daily envelool ool1om ConcluslD: daily reveals a 'no' pal1em by daily
,uopon oreaklng as goes towarCs weekly 52up, and breaks at_ekly 52up. driv'n by wekly
picot WlII cally lav,l diffIculty complellng a cn cyde. wh potenttal for daily c-wav. down.
and dilly 1110-zones wH not be exoreulng much energy
We make no mention here of the C0C0Puaspect daily was shOng mechanicl
sl9ns ,n.1 l1 weekly 52', up were oreakllS Tn.s mechanicl centre wud alen Ihe
Intellectual centre. tnal a drnken cnver was comIng doW the road, ( m 0 1 5h

P enet
The Intellectual assessment IS Inl1 the wly ptdo' IS dnvlng down. pldot' dnvf qD0Q, and
daily reSI"alC IS locted thereat ald hold"'9 _ wjq R W wmJPWMC9 1 P 1 .
wn ~enemc0 0 <&< W w=0 ^lhmmqBJ4n t$A
5
@O WOJfN-
eumpl: bJild B 0 WQ Of mnieal panems. QW ' hepens wQ$I yes ln no
on. WmW. C nur q, 59, 51.52.11.e1, pldots!stalk and live)
L in Ihl Spic D0D W wkq$9(U lld W ), U5 &lor 51 .
$ wz |O 1,-Zone, a we61 IS I ld fold. plus
159.51.52. 11-zonl (&lor)
L any Olher ;ometric 'combinatiOn J wh .
Scmlthlno el BE J &W ,01n9 10 han 10 chlek OQ#, C0DC8lU8S08K!D@, whar is th.!
BOOUHeh HD8 OfM OM? I b4W Q $ U W W 1 @W.m VW60^K1WP !
59: alwys therl
O 52: cnvenon.l line ~ 8V81ODE ehes
W 51: a 'Jie' \ID8.mpm 1,Z.3O"ctan N$nJ8l . bacup up O o\her lInes.
11's: 8V8!OD8 wMehl$llm: wrne IDO the `ZOD0 WDO.
W 6,'s: as lhey cMveiop, w8lhat coreSlion is cming utD. &m once lD. lIOB0
W pldot dres lnergy and trend rns.
PH0. C8B\E Iitrlry OWHJ W1h daily yeSJno for:
(

h D M V P W W f/ O PMPBJ
: dofted lint
biOd; Ire.
C0D[86|0P 8X!

'lin 6 mlhl l maybe . m'ybe wks if becums a habil ).

BE PEC|1BPCJD8 WI D0 OJ6.
Z1 Ihrn wen. trade. il W|J|D0 mlcnanlCI 6 thin al Inillima. & onl Inen J WJ$IZ8.
',1 dO I mun' \ mean, !h"1 W/1ED u OE. U W/fI8W UKK REC/80Kl

DC0 RB
00U Ul ewsts. Ild due I0 yOUr researh. hU CHm mDtaQeD suecen. #DO y0U
QU|QIhls. y 08D O8I8D|DII@cce|lJBQ""r 1 4U DR0. D RN.DI
fBm$ R0 lnE nlgner IrRe 8DOO$. U /DCO8 DE K/ 0Oof O/D@ O0 D8 80U BDO WRy
$nud UII and wh,r tne fUI RI0O OfO|D@ W/O8. BDO VEf&R8 BS yOU 8C. wh ye5o
RR yur DR8OQ01 lower Ie Q. u wSm wthis $Nf oceurl W
Ik,ly De /S. BDO#V0lO /B . KDOWW@ yOU W/O8 BO8ro verif &R8 WR 0WEf'RE
8DOO yE5t0 Il W|| 8I'R8IWOD Dr" W/'for OU0OW

b
& .
Caution: @ @@
Wen dOing u'r research.
do not tr to think of why the patem is holding or brllng. U Wnt record, not the
re.,on, why! Later, 0u wish. u can summare why, bm. do not remone them. since the
cnstant shifing of trme prod energ, w|| rMke your ||bgto immense and complicted.
forcing constant use of the intellect centre in tmd|ng,WlC w||8|Ou dow. (see 'Psycho
Paper') Just record the yes and no panems: d not think wy.
Wen i is all said and done, u w||then. wen tde`
L mBhanicalle y're approach ".hh!" that's a weekly S9down.' Daily IS
Showing a ys Ptem.
L then conceptualize . ahh !". no wonder that weekly 590n IS holding! B is at a
weekly pldOf .. " hmmm, .. pldots drve trnd runs,. and we ar in weekly congestion acion.,.
weekly congestion exd to downside commg up? Grat. Wonder wat the weekly taret wil
be ... mthly S9up?""" hmm. wonder_whit the weekly patem will be down ;n there .. wher's my
researh panem book? "
and ID proper balance for trading:
Intellectual
C
mecnanical is In control
L Intellect IS on standby
O 6m0!I08| re0Un0anl
Instinct on standby
Mechanical
l 5YV an8Ogy In cnaot6 `Pycn-Ppr fE dV
Emotion"
Instinct
After you have made the mechanical ness a habit. I R& 3Wk$ Wf & D&Q, NDS Wl a eImf+J8em l.
Will then find u'reself automatically. applYing It to any two time perods.
long term major positioning trading . monthly pattem - weekly yeSlno
swmglng around shon term weekly patters - daily yeSlno
more active tradlDg: daily pattems - houry yes/no, or 30mln yesJno
very achve Intraday trading houry pattems - 15min yes/no
aoesn'l matter The pattem research l> applicab|e give any two time periods.

For your research, recommend:

: weekly analysis
: minimum of five years of data , better ten
: verify lhat the patter exists on any we kly commodity or stock
: note wlC patters have the highest percentage of success
- wth success patters, u cn note wen they WD. ( conceptualie), but. restrct note takmg
: do nOI cnceptualize basic research is being done.
-
do not use 'peretual' cntracs. Use .dual trading centrad data.
: realIe 1hat u are asleep. & cnnot focs for more than a couple of minutes:sick to the task.
: every so often. abruptly stop, to renergize thru 'random arousal' l ..e
-
PI.cno
-
Pao.r,
: impliment in u're mind that u are dOing a necessar JOb
- giving at least one month 10 accomplish the task
: do nol review until u are finished.
Please nole: u're patters are yoUr Q.
They belong to no one else.
You belong to Ihe 'Scool of P&L',:no commercial repre&enatIon outside the
schoOl P&L belongs to no one else. and to the school.
Now. that u knoW aboU the mechaniclness o! Il8, get a 6fe, and mthe machine u want. Uwi l fnd
that even u're JOYs W|grow! The negabeness of 61e. wll m leR in the dust. and so will mankind. 6 u
Will aWak8n !|Om u're sleep. u will 1|nd u`m bod msponqng wh good haaRh. to inClude mind
and SPint
| cannot guarantee that U will hear new ideas. Ideas u never heard before, from the star: but.
t! u are patient. u will very soon begin to notice them, And. then ! wsh u not to miss them,
and tr no U Interpret them In the old way
The chans \O !OOw are baSIC studies as examples. wth some comments. of wat IS involved
In a patter picking research library. .O.UU DOl , O& DVeD OOCD DO Incl\o.d =ooru P Rf09
\0 0tCE U 0 \D lO EHS 5mDl O smpN4Kh DUkmg Uf 0t&kiO@ a na lD OIdO! PUlr' The conceot bu M en YMP
cYLIc COOL8D\' V POO0ODOg 1 YOUr cnOCt 'Ut P&L ACCUPUUHlLISlD0\IKD & &EOCW90 wll on W f`
"Wt'ODt Ccnce0! lOOfE 8W&@1 )
Ln0J 22 nore an example of acual wrten comments made by Drummond him$elf.
QOOf O a trading day ThiS i/ustrales first ;rem: _@H0m then conceptualizino what is dring
l8| parem and what 0 means. to Include likely target. what to look for when there. This is
wnat U may fid u',self domg. on a daily baSIS. to set up the mechanical foCUS. and then see
what | dnvmg 0 thru B conceptual baSIS Drmmond does this frst thing in the moming.
when the mind IS fresh. He ofen makes notes at end of day, but. tey are usually rdden with
conceotual holes madequacles, The mtellectual centre wors best. when i has not been
workmg I0t 8 while overorked, 0 can slow O down' that is its job! " T3/04P`
b
M* C
o
m
Ar
~ 6

*
-
| |['
_ _
W
1 '
A
u can price moved sIightl' over
tbe wky 59dn. Not tbe dally
:
dl' 51dn.
tben Ubi holding, just over W wkl'
59dn. The only way thi dly resistnt<
cn brak, is if dally pldot continues W
push up. Thi means. u bang tiht with
u'r sbor. jlSt over wky 59dn. keping
eye on dally pldot, in cae it drives prier
over dally ristnce. at which point u
wud D lOne. Wh reitnee? ", dly
51dn. Uhi's. Ir this dly reistnce holds. then the wekl' 59dn is valid. Taret for
the shon position?: ~ obsere daily suppor at wkly pldot, and if signs of accum. tke
place. then lir the short.
*
*
U
We kq00
*
b3.W
0J.
B0.00
`
_ f

* here we have a wky S9dn. that holds

almost U the tick. Note dally 59dn
bolding, "hich would be the frt sign of
distribution.,,, that at that point. the
dail)' Sldn 'level" is valid, for wkl)' S9dn.
Taret for sbor?: notice . .daily support
hold ina at weekly pleot" u cud have
lifted the short. Notice that eventually,
daily support broke at wi,. pldot." well.
so be it. if intersted in rking oaly
proft from the lcc of wkl' S9dn. (please WMto tbe 'papr': . Pedid wey
bibs aad lows". ror suetions as to wh' Obe milbt assume that weky pldOI would brak. for
reasons to hold the shor of wkly 59dD. )
SuccgIu|Week" V b1:
4b
I* UW w
V
. wkl' S9dn at wkly pldot. An ene"izod
wkly 59dn , due to wkly pJdot? If $@
then expect daily resistnce to distribute
suffciently W brak daily pklot. Tartt
":
weekJ' suppon. or if u wish. cofadtr
theor that creates wkly highs and loWS .
m"

6
-

=
O 0' 8 I6 00WH IDtU W$`U.
0Ut, D0fHt Ut 08y 5Ug0J 5 IB6 8H0 I5
D00IH@ 8H0 08y W0I 00 H0 0fl`
00YH. DtttmItt. Ztt$. W' W0I. Of
WD8 U tD 06IttH6 WD6 IR WK}
M5I5WHM 8y.
5qlWtkl,
Q

f |I~
-

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|t^

W$y Ug $ 08D` H D0UHCc. 00UHt,

00UH6. 0It 08j 30H tlgDt 8! W1 g00f.
f06 00H Et. 06@H0 00 WD6M
$5Ut W%Ky DIgD5 W g8C6.
D6fE W6 D8V6 W$y bU[ 6Ht{Z0 0j
WK g00IS. l We 00 H0 0UU UCD
IDfI` 10 IDU 5tU0}, Ut, IBMt` WD0 8C6
tDt <H6f@] 0 tD6 WKj `2-J 00V 08 U
fD8l WK bUg. /$ 8Hy IMf6. 08 bU
UH0tt WK' U W IR6W 8H0 D005 ,,. 8D0
H0f66 fDt 5f88gHt$ 0 $D6 08j &Ug , D8t
5fWH$ 8H 0$6H 06H0tt tEImH8$0H 0
6H61'` I fcj 8lH 8t@Et' 1Wj
U 6H8I@Zt0 0y W|}' g00IS. ( & 08K.
4D6 $tj W8t0H 0W$y 00L$ 8I61. ltR
V$l` gl00f l H0I 0fv6 00WH. IBU5 I86! U0 D ]6t60 WK` tM5WHO.
I
[ci|ureof W
n

C_

|
|
)_

M '`'

3t5^0
m
guess what causes the wkJ' 59dn to
fail?: - the wky pldot_ the dly pldot.
Notice. a wkJy 59dn bnak. that dail'
resitnce at wkJy 59dn strts to brak ...
the dail' 52dn. and then it 'level'. strts
U prvide suppor_ and th.n dail)' pldot
lote at wkJ' 59dn. and drives price
thru wkJy 59dn. Notice also. the dail'
59dn 'level', just over the wkl- S9dn: it
wa holding, but. also nOle the pressure
put on it. by the daily pldot: thi is the
aler that wkJy 59dn and daily 59dn level is breakng, and you are ready U get out or
the short. (Can u get long, once u senn the breakdown? Yes u can, simpl' get long
and hide behind dail' pldol. since ir wkl' 59dn breaking. then daily pldot will do the
job,)
Fci|ure f W kl V O u . 5&?5l!0
.

__ 000 .00

W0.00

630.00
ww|50up
Ob.0
.
Z00V
P' P
,
.

1
~
|H
l
wW
M
O
W
M
r
W

-
I
-

Fc|ure0 Week'" Ve_
~
nnO:
P'
l00L
M

!10*30
107"2
'1G'22


,

11
here we have the wkly S9up breaking,
bit by bU. Note the daily 59up breakng,
a moved towards the wkJ' 59up. Daily
support wa breaking as moved towards
wkly 59up the firt alert that wkJy 5Yup
ma' be breaking. Then. note how dail'
pldot does the job or pushing thru wkl)'
59
.
p
,
at wkl' S9up. a daily S2up locates
thereat. and break. Note the dai1' pldot
push, Note also that dail' pldot was
driven b' wkJ' pldol: this can be a deadl'
candidatt ror wkJ- support. daily
support, If buying the daily 52up, ho,'
do u handle it ? Stop out going thru ext.
of daily S2up? So, far. we are seeing a
reasonabl' constant theme as to how wk1'
energy breaks: daily enery break at
wkJ- tnergl. dri ...en b' daily and weekJ'
oncomio& quick mOH orr all thost 5J/51`t.
1Gt/ur or WkI, Vup - SwiS Fr ,
*.0
m
O

@ V0"0
|q ``

1.g .
.
j D .

|'`

=
I
! "
wk, 59up braks. !ott that gotS to the
. .ttnSiol or wky S9up and then rllCI
W wky pklOI. ( @I m.1 )elmUct
- 0tpatk-pickiQt qq Ucm@ o
cW.= kly 59) !ole. thai dan, 5Jup al
wky S9up brelks dlt M the 606@) of
daily pldol. Daily J1W bruks on clem. At
flt. or wkly S9up, not B the dln'
5J/51`sup. This combination of 52.
'
51'5 U
always an alcn U me of W possiblt
wldy 59up break. a dlil, Juppon
brtaks a Tm@move towlnlS I0 WK}`
S9up. Daily support bruks arund the
wkJy 59up. In tbis example. we have th .
dail" pldol pashil. but. M btin&
touehecl Ihis denote high encl)'. which
will continue or will D Bn
.
xhau5t.
d . pending on daily suppon existin& or
holding.
wkJ' 59dn breaks. a wkl' pldot
eneiud bJ' d;ily suppon. drive on up.
P move into wkJ' 59dn. dail' reistance
such a dh' 52dn U braking. and fnally
the dail' pldot moves into the wkly 59dn.
and 1MCb both wkly and daily S9dn to
bruk. How do u handle this. dpiall,
when u C daily reistance holdln,
WEll. u are ;ien. ,ince the resistance was
nOI ausing dail, congetion entrnce. a
dail, pldol moved closer ;nd dO$er 4 wldy 59dn. and wkly 59dn cud nOI even ause a
clO$t under d;il' pklot: Ihis gives a senst thai wkh 59dn i breaking. go kine orr
dail, pkol. and hide behind samt. or Mdt behind dail, suppon. if IOt to rar away. (
Drummond purel inll da, suppon for guidance. f
IZ
5ucg|WH _* _


wkqWr
|

A"

m"

zr
f

Ib/^4

buCcc80mKO' 52_- S&?0

* " @

_g- . _

I

||

,'
|'

11' _

-
|
buCcc88u V~kl 52-- .@nos
_ we got some eoergy l00 thai wkI
S24n. 10 at Iasilo to the w.I pldol Ih
foUowing wHk. Daily S2's do we
holding on c105C at wM)52do. aod finaU
a daily Sldn cughl IhC 0cQ\. PI Ihe
wkl' pldol tht foUowing wuk. Ibe dail,
S9up was localed. | brM u bV tathr
ytu10 g daIeQ tMgldot:
U U Qw Maud 1o m D
lm( + 10 10lt the possible Vldl1' olml
m & Myp|dot)
wkly 52up (plu5 61up- aooliter paHem
10 pi<k). become valid. ( nOle thai U
alo the nt. of WKV` 59up). And. at wkh'
.
S2up. u hu'c daily S9up localtd the-tul.
and this has enough tocr:' 10 cause the
dail' pklol btu". (If wa M+ Ihtn
whal wud u be sensing )
"/
|
|

0&
2
~W
YV' 5Jdn cncl'iud by 2) pldots hak.
likd' loLation of wkly bIck aa l tht goS
thai thto again! ) And. Iocaltd at wi)'
5240. Wt find dally 59dn. Target; .. dl. if u
take Ihto' into account. u WC ... hal sort of
challenge ma

MLM1 to wkly dotte llAe. V 5ec

ll wkl ' pld0t mar break. ( IheOI.)

!W TT )0
@,Cat:le

W0
_....
....
....

< W
wky 51dn in area of wkl' block area.
thus b aler to daily reitnce. Dail'
52's do were holding, and then dail'
59dn mMjust over the wkly 52n.
and thi had enough ener), to create
daily congetion entrnce.
Taret?:- will wkJy pldot brak? What ir
daily suppor W locating at wkly pldol
and boldiDg in spite of aDY analysi u
may do which wud sugget price ma' go
to wky dotted line? Daily will nOI go to
wkJ' dotted line. if daily support i holding at wkJy pldol, and also showing signs of
accumulation thereat.
SyW TT )0`
u
_+|:gf
5WM
tb Feb
...
....
....
wkly s2upt against the trend. and daily
constntly closing up a moved towards
it. tbus showing signs of accumulation as
moves towards wkly S2up. Dail)' arives
at daily S9up 'level'. plus enery of daily
S2up, whicb ha enough enery to creatc
daily congestion entrnce. which u wud
want in order to put u off an)' aler that
wkJy S2up was breaking.
Succ uW.ek" 2" 5ovhcans
M
pldot. a good suggcsled WKlj af\. I
here we have a wkJ)' S2up in the area of
a wkJy 59up 'level'. which cud b an
iteIing patter-pick. Daily supprt,
such as daily 59up were braking a
moved towards wkly 51kup, but. daily
suppon located at wkly s2up held, and
had enough energy to cause daily
congestion entrancet which is what u
want in order to tke u off tbe alert tbal
wkJ)' S2up wa breaking. Target?: in
this case. we have wkl)' s9dn at wkly
ext, or dail' S9dn holds in that area. )
14
Fci|ureof Week'" 2dn- LOl@

-
'
412 . '

Fc|urcof Week'" 2dn- S&`U
fm
_....
>.0U
.....
....
5P e
Fc|urcof Week" 2u_ .tC5
U vv>r
U5D w+v
Wexh UD
1"20
t'
J 110O8
|
112"'6
|
O,
"
=10

|q
_...
[!I
-106"01 -"
W'

both located In almost the same area.

wkly pldot i pushing up. and wkh 52dn

brak. as daily pldot moves into wkly
52dn, nen though dail' resistance was
bolding previousl. Dail' had lhrt tries
off the wkJy 52dn, and cud Dot get
congestion entrnce. which wud an
alen that wk' 52dn was breaking. If
cbasing long, off daily pldot. then doing
so, hiding behind dail. pldol. with target
being wkJy resistance. ( mth ener anyone:

wkly pldot is driving up, which ir

continues, then wkJy resistance deemed to
break. at which point. u are alen to an
daily resistanct strting to break. going
into wkly 52dn ( nott daily 52dn
breaking), and daily rtsistance will break
at wkl' 52dn. and daily pldol will do the
job. D this case. priCts does not gel close
O dai1 pldot. dtnoting high energ.
- wkly 52up brtaks. as wkly pldot drivts
energ)' orr wkl)' 61dn. & 2-3 pldolS b.k
on the wkJ. Dail)' 52up breaks as comes
off wkJ)' 61dn. and daily pldol dots the
job or pushing energy thru daiJ) 59up.
Thr)' in this case, wud suggtsl that
since wkJ) cannol obtain congestion
entrance. thai wly pldol is weak, thus
daily 59up at wkJy pldot may not be
\'alid .. in other words. wkJy pldol was
dril'ing down right into the dail)" 59up,
[ci|ureof Weekh- __z\:Ic

Wwq2
90
notice how thr wkly bar strt to close
under tbe weekly S2up. Then it gos to
the ext. or wk. Slup, & SlOpS. P it ""as
passing down thru the wkJy Slup, u wud
b wondering if u have an imrcnSt trend
rn down on your hands. Well. no rn
down until daily suppn breaks at wkly
S2up to it extension. and dail' pldot
continues to drive down. until dail'
resitnce locate in area of wkly S2up to
its extension. at which time. and if dail resistance continue to hold in area of wkJy
S2up to its txt .. that wkJy Skup to its ext. is confirmed reistnce. < < Pks mvv
paprr howmg wbcm tbc 00@ cqp
#
fmq.

P P Notice the dail' pldot drive down. thru

wkJy S2up. with daily support breaking. until lands at dl' 59up at ext. wkly S2up. and
then closes over dail' pldot. signalling that wk. lows are likely in,
Fci|ureof Weekl,- _Swjss l

fm

Wfk 52u
.800
-
-
80

.8200

.

--

l
l ' ``
'}
l|

resistance breaking. due O it.

^fBmJ` Um nclp' 7 ~
Fc|urcof Weeki, 2dn- Sohras
- in [his case. prices goes to ext. wkl'
52up, due to daily pldot push. then lands
in tons of dail' 52151 's up. and gets
caught in daily 52up at ext. wkl' 52up
and achieves dail' congestion entrance. In
this case. wkJy S2up area eventually
breaks. Ho,' ?:. by dail' resistance
locating at wkJ' pldot and wk' pldol
drives on down. (compare to L.Cattle
above wherein. dail' pldot pushes right
on up thru wkJ' pldot. with daily
. in this case. we once again. have
breakdown of wkly 52dn. due to dail)'
pldot push. until lands even past the ext.
of wk. 52dn, with daily 59dn a daily
resistance. having enough enery to create
daily congestion entrnce. as well it will, as
long as it holds. which thereby eneriz
the wkJ)- 52dn_ If the wkJy 52dn has the
energ)", then daily resisunce will hold
thereat. and if holds forever. then will

force wky coagetion eatrnce.

m
W
g

~ M

7be ezg o mmmg mm.

P P
SuQ!Week" @ iki
V
a
0

SuWeek" @n T.@5nos
daily reitnce such @ dly 52's dn. 59's
dn, ext. 61's dR.,. holding at wkl' 5Idn.
with wkJy 52dn hovering over wkJy
5Idn,,,
( the combo or 52 plus 51 can be
interting). Taret?: wkJ' pl1ot' What
wud be the 5uHested rDg ror the
ensuing wk, @ they unrold? !7be o
~m( Ao, t to Jevie,' and think.
or how tbe daily gel thru the "'kly pldot.
< < plse wk 'pr': wwy wbem
- here we have the weekJy 51 up cpturing
the wkly pldot support. How i the
daily behaving during all this? What is
daily pldot doing?
success is e'1 isn't it? Quite consistent. Dail' resistance holds. daily pldot drives
down . and that is that. The real issue is when something i unsuccessrul: how do u
deal with that' By knowing it patterns'
I
~ MW
-

Ww51 d
'

,
.
_

11^1
sr

|110^
_.
1orw
=o
P M

t
.
I

'
10
|j|
"
|

,.
.

. Daily S2d. at wly SId , tbe. daily llhi
W

d

~
__s:tir
l'

Fm N


~ ~
zn moves into place so what can u do but shor? '" since obvious ditrbution taking
place, and do so, asuming will at leat get daily congestion entrnce. Target?:. wkl'
pldol. and maybe thi will be a true taret. since i wkly pldot crest. * * tbere gq tt
IBW' spR2lail: P P
Succgu!Week'" b_up. ^w:@:
B

Wmq1Q
G
J,
qg
&80
-

|
I I .
.'(
g

Succgu!Week'" 5_d. -^vhca'

i
1b
obvious signs of accumulation the two
preceeding wks to the wkJ}' Slup. as
closed up orr wkl' S9up level. thus wud
be art to an' signs of accumulation on
the dail', or the placement of an' daily
S9up. S2ups, Slsups. at wkly Slup.
Target?:- wkly pldot crut or pldot ?
- wkl' 52dn had held on close. the wk .
berore the wkJy 5ldn. 5 there were signs
or distribution. thus dail' 59'sdn. 52's dn.
61's dn ( including their extensions). wud
be interesting & a shon. asuming that
daily will result at minimum in a
ravourable close. down or daily
resistance. off wkly Sldn. to signal
distribution tking place. Taret?:- wkJy
2-3 pldol bal or wkJ' 59up at 2-3 pldots bak? * tb romb nr 5 W are nr J-3 pIdnu
baL. p
yt anotbr tUm-pirk' that b or itrt. P P
[i|urof W CC @_

a good spot for a failure of a Sidn. is al
the bginning of a ne" trend run. up off
pldol crest. since the new enercy is
supposed to break reitance against the
pldol crest! which rpresents energy
starting in a new direction. < < tbre goe
that theor swHa,ai! P P In this case.
we have 0U a wkJy S2dn
& SIdn at the same localion. which
rtpent highly, fnt-tuned energ. So.
ho, is this supposed to break. on the daily? \Vith dail' resistance breaking as goes
tOV'ards or into wkly Sidn. and then dail' support, to include dail' pldol push. at wkl
SIdn. making the wkly SIdn into a S3up'
Fc/urcof W CC kh 5]dn- S&PSOO
WekIy1UD
@62100
620.00
J
614.00
_
60 0
whal entrgy will come from that wkl
how wud it unfold '
Fclurcof r K1 5I up- . OBCs
- here we have a wk1' SIdn. that breaks
as dail' S9dn breaks. as daily pldot
pushes up thru wkJ' Sidn. only to arrive
at likely upside target of wkl' S9dn. to
result al end of week. with the wkl' SIdn
holding on close. The wkJ' bar is not
o,'er until it is over. Thus. if chasing
long. the dail' close over wkly Sidn. over
dail' S9dn. u wud have to be aware that
u were mO"ing into wkJ' resistance at
wkJ' S9dn. and the question wud D.
S9dn'? .. suffcient to re-activate the wkl' SIdn &
- wkl y ICUl ]s dr I Ving down tl wkly rldol crest. so a caution wud Or placed on the
wkl y S l up . 0BU c5I0c5. we have a wkl y 59dn at wkly pldol for wkly pJdOl cres!.
t hus hc 0| ! dai l y pldol dr iVing down t hr u the wkly Sl up.
1V
. -
-
T m
* w
|':
%

- once aain. we have the issue or a wk

51 up aainst a wkJy pldot crest. This
continues W bring up the topic. a to tbe
@y@@@att|e
=
1

likelihood of line 59.52. 51 railing or bing succesrul. which brings rorth the concept of
theo'! ( which i nOl the bais or tbi prueottion- mwer, teoQ8mCW Qrzd1Otvr
/m ) At any rt. how is the w.y Slup to break? With daily reitnce holding
over it. and dail' pldot strting to push down?
Fcurcof W ff kl> 5]dn. Swiss fro

. 830
820

+t
Fcurcof WeekI> 5Idn Sovbe.ns
P

20
- Here we have a wkJ' Sldn breaking.
that went with the (nnd ruo down. It
wa due to what? Daily suppon. such as
resistance breaking and bcoming suppot
- see ' A' . and dail' pldot push? , and off
wkl' pldot?
- here we have a wkl' Sldn against the
trend. a De" trend . off wkJy pldol cret,
with dail' picking up the wkly pldot. via
IU support. and then pldot push .

.
b. there we ba.e iL Pauemxt that reveal the relu of I We ' S9, 5 5
%
Am, =rwthem?ymo/hothesr =eU, 5fail.
We 8. ko,'! that we bave some idea & U whetber the WekJ' line will be successful
or nDL. 1hm thr M o/theo we can asess the l'" pters that will unfold. and
we kIoY' what they shud b. oueto thuthco;.
It i suggested. thaI one can do ver)' well. financiall'. with a ruonably minimal mental
strin. b' 'patter-pickng' across a spectrum of let's s)', ten commodities or stock: out
or the ten . berl wilb a few We,' 59. 5 S1'5, and we know how the' art
succesful and hoY the' fail. Drummond also sugget that the lines tted to the fve
kinds of lnding.
Ln Ihr BcX\ J3yc. WI Ur 3B cX3mI c. Cl L|ummCC BHc!D-ICXID_.
W$ g@ M mWw 8 00m a$ to oanem. anc
mn mnm0 On D. W Wf00 Q ml. m pemng tnqt of
0B. NW w0uM m 00|to bf8hm. p m,T0 m. amaMInoImmaOe.
NW M . W MW @. & m wWfW . W mmWo h4V
W mW. MW . mM =N O w, m & mm0W Wn 4k t
@ &Tn + Wm W Ud. To `. @ W Q &OP WM
W \VW dD W M, $ W q. W QT mmo W mWmt W
1hese te_g.\ 7mW. W M 0 Mr CM)
` W mRl0), 0 . l0cyo <d: mdV elc @l lhI y bW. e0 8mm IS enfed
*bd. m
,
0 y m. fuI W. y bW. d. n dq T@QM, Wn, men o9 dq M Yf

-
@
@

'
"^^* @ ._,.,
.

|
. ~-.z
Y
X

9
\\
0
.
_

=
v

m
=+

|
W
6

=
EXAMPLE OF PRIVATE CONCEPTUALIZATION OF PATTERN PICKING
|
m@__
~ n:9o 11 !C15lO GOln9 likely lO wkly pldol . . . If holds on Close. then likely hS\ IO of dry 52's up.
our/dig. so oe aWfT to dly 61
'
s:1D wlcn "Old o ar en Oy wkly plOOf . . . kfp ye on dJy plOOf
.
*0

D9
, + ..@qy_ .,, @@g.

mm
Now " notice In thiS how ' g: O1 oanem: Ilalry 59IJnl OO\. ( mchantc ) @ ,wnat ttls
oanem means \ the KN mP.. notng '."e nave Ca|h 1)ICot IOv!ec, DO pldots Cie energy,
ICDDCEIUBl.. thus, the dlOnd IOtraoav ** sA. e fI.. I I dally IS yes. !hen mtl"0ay will have
ves paners
Now tllS exerCise. If Oone !alt before O ooens. ana OMO aven wntten down". cud do
some gO0d` 8|Cc d60m tne yes ur no ., ar.o wtlh (Ime, the concualaatl \|l m mech.nlc.'aed.
BDO oone more SWlnt: lkel WUd take WK >N MN 3 W A V , :are a advanCed
P&Ler. 1hen u have son1 montns CeveloDlng the Dellel system of P&L. concptu4lIZtIon
g tMn sWlnlv bOtn
22