6/8/12

Children of the Journey Sangha: Teachings on the use of the Sangha Trading System
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Teachings on the use of the Sangha Trading System

Home Funding your Journey - Trading the Futures Market with STS Resources for your Spiritual Journey of Discovery and Enrichment ~O~ Teachings on the use of the Sangha Trading System What Financial Instruments are Traded Online? The STS Dance Manual

PLAIN LANGUAGE DISCLAIMER:

1. The Sangha will never ask you for money. 2. The info IS PROVIDED FREELY with "no strings attached". 3. The Sangha will provide answers and guidance pertinent only to The Sangha Trading System. 4. The Sangha WILL NOT defend, justify, provide proof of effectiveness nor ANY guarantee of FITNESS of use. Prove the VERACITY of what the Sangha says to yourself! 5. You are FREE to profit from The Sangha Trading System in any way you choose, with only ONE RESTRICTION Give credit to The Children of the Journey Sangha as the original creator.

Sangha Gold Layout

Save Money and use SierraChart Package 1, if you will not play with spreadsheet alerts.

~O~ 201200608: Learnings on the COMBOs and DELTA lines...

Learnings on the COMBO lines:
The COMBO lines are...

Right-click on link and "Save Link As... or Download Linked File As..." Please place the following files in c:\SierraChart\Data: CopyrightNotice.dll Sangha Gold - Awesome.cht Sangha Gold - Awesome.stdycollct Sangha Gold - Awesome.scwbf Please place the following file in c:\SierraChart\ASC_Source: CopyrightNotice.cpp

COMBO_A = PRIME + JERK with an offset of 5 (current PRIME + JERK 5 bars back). COMBO_B = JERK + PRIME with offset of 9 (current JERK + PRIME 9 bars back).

Blog Archive
2012 (1)

How the COMBO lines help...

About Me
Using the COMBO lines bring certainty and confidence into knowing how the market is "Dancing".

The COMBO lines A and B fulfills the role of knowing when to enter a position and when to enter on a sustained trend. When the COMBO line crosses the JERK or creates a "V" or inverted "V" on or by the JERK, see if it is a place to take a position.

Children of the Journey Sangha (@TradingSangha) This is the public blog of The Children of the Journey Sangha. A Sangha is a word in Pali or Sanskrit that can be translated roughly as "association" or "assembly," "company" or "community" with common goal, vision or purpose. Our vision is simply to provide a means for every being to fulfill their passion.

Learnings on the DELTA line:

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The DELTA line is...

Children of the Journey Sangha: Teachings on the use of the Sangha Trading System
View my complete profile

DELTA = PRIME - JERK

The DELTA gives us the phases of the Sustained Trend. DELTA goes through the PULL and SUPPORT phases of a Sustained trend cycle.

When DELTA is Beyond the Upper or Lower NARROWS, the trend continues until the DELTA drops back into the NARROWS and/or Mid-NARROWS, with the Combo crossing thru the JERK.

The DELTA also tells us the rhythm of the market.

Are we in FOXTROT or JITTERBUG?

FOXTROT is when the market is doing a Sustained trend - DELTA goes through its phases of GRAB, PULL, SUPPORT. The DELTA is far from the PRIME, in other words, the PRIME and JERK contribute to the price action.

JITTERBUG is when the market is Sideways or Pivoting - DELTA is right next to PRIME or is copying PRIME with some separation. PRIME is the only one moving the price action, generally while the JERK is flat or stays in the Quarter-NARROWS.

Make your profit doing the FOXTROT and stay away from the JITTERBUG!

Here is a picture to help explain:

The behavior of the COMBO and DELTA lines when crossings happen, gives the STS practitioner that edge in confidence to remain in a Sustained Trend or to take a new Pivot.

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The COMBO and DELTA lines are now an essential part of our Sangha Awesome Layout.

~O~ 201200607: Arnie's Layout using the COMBO and Fast JERK...
Arnie's Layout...

~O~ 201200607: "Dance" the COMBO...

We discovered a new useful tool and it is called the COMBO! The COMBO is PRIME plus the JERK, but with an Offset ranging from 3 to 9 (using 5). COMBO Characteristics: 1. Gives us timing for Entries/Exits, when COMBO crosses the JERK. 2. Shows when in a Sustained Trend; COMBO above Zero - UP trend, below Zero - DOWN trend. Here is a Picture to explain further...

Please see this

video of the PJDC.

~O~

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20120530: DELTA is our Friend...

The DELTA is an extremely IMPORTANT tool for telling us when "Dancing with the Market" goes from FOXTROT - Sustained Trends to JITTERBUG - Sideways-Pivoting. The DELTA tells us very plainly what the market rhythm is! As an STS Practitioner, we encourage you to take SURE PROFITS when a FOXTROT has begun and REFRAIN from the Dance when the market is doing the JITTERBUG, to preserve those profits. Here is a picture of what we mean...

~O~ 20120514: When the Lines get Hot - COLD - Hot...

Andrea, my youngest, commented on the PJD (PRIME-JERK-DELTA) lines that Kurt noticed a week ago involving the angle color gradient coloring of these lines. When these lines weaken in strength and flattens, Andrea called the line coloration changes as going from HOT to COLD to HOT (HCH). I liked her terminology and therefore have adopted it in STS. When PJD lines go HCH, you may either have a continuation or a trend change. The PRIME governs what will manifest! Therefore, pay attention to the PRIME and Bias indicator.

~O~ 20120511: Trading with Discipline...

Want Trading Discipline? Kurt discovered the PZX (PRIME ZERO CROSSING) Strategy! The SIMPLE PZX strategy:
1. PRIME Zero Crossing? YES; Check the JERK, Jack! 2. JERK looks good by it's position within the NARROWS for an ENTRY or EXIT? YES; then EXECUTE. NO; DO NOT click that mouse! Remember... When JERK is within the Quarter-NARROWS, going sideways or flat, DO NOT click that mouse! Follow the PZX strategy and you enhance your DISCIPLINE, as well as, PROFITS!

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~O~ 20120502: Consistent DELTA DIVERGENCECONVERGENCE Behavior...

DELTA Divergence-Convergence Behavior: As I was doing Market Replays over the weekend, I discovered the following rule... 1. DELTA Crossing - ENTER a position. 2. DELTA DIVERGENT with price action - STAY in the position. 3. DELTA CONVERGENT with price action - EXIT old position and ENTER a new position. I was able to trade well with the above behavior, but too many trades racked-up because I end up taking every pivot. Here is the picture...

Before practicing with just the DELTA and the price action, please learn the following... 1. The different market cycles. 2. The phases (Brake, Grab, Pull, Support) of the Sustained Long-trend cycle. 3. The Roles of PJD. 4. The DELTA DIVCON Behavior above. 5. The Price Action Behavior (Higher Lows - uptrend, Lower Lows - downtrend). Then practice with just DELTA and price action, relating all of what you have learned in how it affects the DELTA. Do Market Replays, at 10 to 20 speed, to hone your skill in following the pivots of the market. Employ the DELTA DIVCON Behavior above and the following DELTA behaviors... KNOW whether you are in a Pivoting market (JERK in Mid-NARROWS with PRIME going from Upper to Lower NARROWS) or going through the phases of the Sustained Long-term Cycle. ENTER or EXIT positions, when in a Pivoting market, at DELTA Crossings of Zero or depending on what phase of the the Sustained Long-Term Cycle you are in, the Upper or Lower NARROWS. If you miss a pivot, find out the REASON for the pivot and redo the replay to catch it.

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Children of the Journey Sangha: Teachings on the use of the Sangha Trading System
After a session using just the DELTA, throw in the PRIME and JERK over the same market time period you practiced with the DELTA. See how the PRIME and JERK provide the reason for the Pivots. Then go practice in another area with just the DELTA once again.

~O~

20120503: The Principles for Profitability...

Principles and Tactics for Safe Profitability:
1. ALWAYS KNOW the PRIME Bias (the Strong side or Weak side) of the price action. This makes sure you always enter a position for a Strong side as the PRIME crosses through the Zero and prevent you from taking the Weak side of the PRIME as it crosses Zero or weak counter-trend (retrace). When in a Sustained trend, the WEAK side of the market is shown by where the DELTA is, above Zero - UP is weak; below Zero - DOWN is weak. 2. ALWAYS KNOW when the JERK is not following the price action. You are in DIVERGENCE and the price action will eventually follow the JERK. 3. ALWAYS ENTER a position on the Strong side of a PRIME UP Window for a LONG or on the Strong side of a PRIME DOWN Window for a SHORT. 4. ALWAYS SECURE your profits; when the JERK is headed towards Upper or Lower MidNARROWS, exit your position either when the PRIME heads for and crosses through the Zero or the DELTA crosses through the Zero.

~O~ 20120502: The Market Cycles...

So far, we know of Three Market Cycles exhibited by the JERK-PRIME indicators. Short-term cycle (Pivoting Market) - PRIME - Useful when the PRIME just goes from Upper NARROWS to Lower NARROWS or when JERK is in Mid-NARROWS, then use the PRIME to take positions on the STRONG side of the market. Long-term cycle (Trending Market) - JERK - Useful when the market is in a trend. Exit the trend when the JERK crosses through the Zero and re-enter a sustained trend when JERK crosses back again. Extreme Long-term cycle (Sustained Trending Market) - DELTA/COMBO (DELTA is PRIME JERK; COMBO is PRIME + JERK) - Useful when you want to maximize your profitability. A Sustained Trending Market goes through the following phases with the DELTA: BRAKE Phase - PRIME does its best to slow the current sustained trend; market goes sideways or we have a Pivoting Market. GRAB Phase - PRIME and JERK criss-cross each other; BE ALERT for DIVERGENCE between price action and the PRIME or JERK! The DIVERGENCE starts the PULL phase! PULL phase - PRIME either pulls UP or pulls DOWN the JERK; SUPPORT phase - for a Sustained UP, PRIME goes Below the JERK, while JERK remains Above the Zero - for a Sustained DOWN, PRIME goes Above the JERK, while JERK remains Below the Zero. Please see this

video on the Foundational Principle of Extreme Long-term cycle..

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Children of the Journey Sangha: Teachings on the use of the Sangha Trading System

Here is a picture to explain...

For the COMBO please see 201200607: "Dance" the COMBO..., above

~O~ 20120501: Our Tactics for Dancing with the Market...

1. Use Jerk, Prime, Delta - 3 STS Foundational Principles. 2. Only take a position that are Safe and Sure. 3. Secure your profit as the price action goes against you as DELTA, PRIME or JERK goes
through the Zero, when in a trend.

4. Enter again as the trend continues or as the trend reverses. 5. ALWAYS protect yourself (with a Trailing Stop). 6. DO NOT take a position, when JERK, PRIME or DELTA are sideways. 7. ALWAYS KNOW the PRIME Bias (see 20120425 entry below) and DO NOT take a position on
the WEAK side (counter-trend) of the market (PRIME moves much, but price action hardly moves).

~O~ 20120501: Preparing to Dance with the Market...

1. Clear and Quiet your mind by doing deep breathing 2. Review the 3 STS Foundational Principles. 3. Do a warm-up Market Replay.

exercises.

~O~ 20120430: The 3 STS Foundational Principles...

When you want to "Dance" with the Market safely and profitably, ALWAYS REMEMBER the 3 principles below:
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Children of the Journey Sangha: Teachings on the use of the Sangha Trading System

FIRST: Know WHERE the market is! The JERK will always tell you where the market is! JAZ - JERK Above Zero - the market is in an uptrend. JBZ - JERK Below Zero - the market is in a downtrend. JON(AZ or BZ) - JERK Outside NARROWS (Above or Below Zero) - sustained trend (AZ - UP or BZ - DOWN) or trend change if DELTA is also Outside the NARROWS. JS(AZ or BZ) - JERK Sideways (Above or Below Zero) - sustained (UP or DOWN) trend. JOMN(AZ or BZ) - JERK Outside Mid-NARROWS (Above or Below Zero) - sustained (UP or DOWN) trend. (For JS and JOMN - wait until JERK crosses the Zero before entering/exiting a position.) JIMN - JERK stays in Mid-NARROWS - price action is Sideways, trade using the PRIME.

SECOND: Know HOW the market will move! The PRIME will always tell you how the market will move!
PAZ - PRIME Above Zero - DOWN window is created as PRIME creates Bear Flags - if the price action moves strongly, then DOWN is the STRONG SIDE of the market. PBZ - Prime Below Zero - UP window is created as PRIME creates Bull Flags - if the price action moves strongly, then UP is the STRONG SIDE of the market. Always know the STRONG and WEAK side of the market by watching HOW the PRIME is able to move the price action. When the PRIME moves and the price action moves with strength, that is the Strong side of the Market. DO NOT take a position for the WEAK side (counter-trend), UNTIL PRIME CROSSES the ZERO. PIN or PS - PRIME IN the NARROWS or Sideways - sustained trend - WAIT until PRIME crosses through the Zero before taking a position. When JERK is in Mid-NARROWS, trade the PRIME.

THIRD: Know WHEN to enter/exit a position! The DELTA will always tell you when to enter/exit a position!
DAZ - DELTA crossed the Zero from Below - enter a LONG. DBZ - DELTA crossed the Zero from Above - enter a SHORT. DW (AZ or BZ) - DELTA widest - AZ - exit a LONG - BZ - exit a SHORT. DS - DELTA Sideways - price action is sideways or sustained trend. In a sustained UP trend, when DELTA crosses the Lower NARROWS and JERK crosses Below Zero, the UPtrend ENDS. If JERK fails to stay Below the Zero, the UPtrend continues. In a sustained DOWN trend, when DELTA crosses the Upper NARROWS and JERK crosses Above the Zero, the DOWNtrend ENDS. If JERK fails to stay Above the Zero, the DOWNtrend continues. All the other minor STS principles we have learned fall into one of these Three categories!

Always review these principles before "Dancing" with the market.

~O~ 20120427: The Roles of PJD...

The Universe let us know, with utmost certainty, that The PRIME, Jerk and The DELTA are the ONLY 3

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Children of the Journey Sangha: Teachings on the use of the Sangha Trading System
lines needed to "Dance" with the market Safely and profitably! The picture below shows you why...

Commit the PJD Behaviors to memory and use it to your advantage.

~O~ 20120426: The PRIME Windows Concept...

As the PRIME cycles up and down through the Zero, PRIME creates an UP Window - when BELOW the Zero and a DOWN Window - when ABOVE the Zero. You do not want to take a SHORT when an UP window is being made! You do not want to take a LONG when a DOWN window is being made! Here is a picture to make the concept clear...

~O~ 20120425: The Importance of PRIME BIAS...

What is PRIME Bias (pressure gauge)? The PRIME BIAS has 3 values; NO Bias UP Bias DOWN bias PRIME is NO Bias; when PRIME moves up or down - price action also moves equally up or down.

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Children of the Journey Sangha: Teachings on the use of the Sangha Trading System
PRIME is UP Bias; when PRIME moves up - price action moves up nicely, but when PRIME moves down - price action hardly moves down. Up is the STRONG side of the market and Down the WEAK side. PRIME is DOWN Bias; when PRIME moves down - price action moves down nicely, but when PRIME moves up - price action hardly moves up. Down is the STRONG side of the market and Up the WEAK side. You MUST KNOW the PRIME BIAS at all times! Generally, when JERK is Above Zero, the PRIME BIAS is UP (UP is the STRONG side) and when JERK is Below Zero, the PRIME BIAS is DOWN (DOWN is the STRONG side). But this JERK rule does NOT HOLD, when a trend change has occurred, a Pivoting Market or when JERK stays in the Mid-NARROWS.

Do Not enter a position on the WEAK side of the market!

~O~ 20120424: The Importance of The Narrows...

Through your Market Replays...Please learn, the significance of the NARROWS and how the PRIME (P), The JERK (J) and the DELTA (D) behaves against it.
The NARROWS are horizontal lines that must be calibrated for whichever financial instrument you are trading. Every financial instrument will have a different NARROWS. NARROW's calibration is a very easy process. The scalers (multipliers) used for the PJD are manpulated so the PJD crossings of the various NARROWs sub-areas reflects a significant change in the price action.

What are the NARROWS sub-areas:

The NARROWS are the CYAN dashed lines above and below the Zero. These lines demarcate an area that the PRIME will traverse at it naturally cycles up and down through the Zero. The NARROWS gives meaning to the PRIME Behavior (See Pathfinder Guidance Teaching Manual) - "When the PRIME is in the NARROWS, you have a continued trend."

The Mid-NARROWS are the GREY dashed lines above and below the Zero. These lines demarcate an area which gives meaning to the Jerk Behavior - "When the Jerk is Outsid the Mid-NARROWS, it may take time to wind back to the Zero - causing the existing trend to continue."

The Quarter-NARROWS are an imaginary line between the mid-NARROWS and the Zero. The Jerk crossing through the Quarter-NARROWS generally confirms a change in the price action.

As they say, a picture gives clarity...

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Future Post ideas: 1. Roles of PJD 2. The PRIME Behavior 3. The JERK Behavior 4. The DELTA Behavior 5. Our Tactic for trade management 6. Our Account Management Strategy Please leave a comment, when you have other topics you wished discussed.

~O~ 20120423: As a Newbie to STS...

Always take the SAFE and SURE... Just use the PRIME, JERK and DELTA Lines. Turn off the Alerts and MacdRateSmooth_6. The SS Strategy: Is there a crossing of PRIME and JERK (PJ)? - YES... 1. Is DELTA (D) also crossing the Zero? - YES... 2. Is JERK in mid-NARROWS? - YES... 3. Is the PRIME Bias in your favor? - YES... ENTER position. 4. Getting another crossing of PJ or D is at its widest? - YES... EXIT position. It is that simple! Practice this for the first 10 days of your 90 Days Countdown to LIVE. A picture of S cubed in action...

Blessings...

~O~
DISCLAIMER: Online trading involves substantial risk of loss and is not suitable for everyone. The valuation of the contracts does fluctuate and as a result, you may lose more than your original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of online trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the
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trading systems you are using. You should not engage in live trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial adviser. All trading strategies are used at your own risk. This mentoring should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence and coaching be construed as an express or implied promise, guarantee or implication from Children of the Journey Sangha that you will profit or that losses can or will be limited in any manner whatsoever. Children of the Journey Sangha is not responsible for any losses incurred as a result of using any of our trading strategies and mentoring. The Trading software should never be left unattended due to the possibility of events out of your control, such as computer or data failure, power outages, position mismatches, and/or network problems. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technological issues may make itimpossible to execute such orders. Likewise, strategies using combinations of trading positions such as spread or straddle trades may be just as risky as simple long and short positions. Information provided in this correspondence and coaching is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no wayguaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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