For those whose tuition is fully paid we show a weekly price range chart for Winnipeg Berley nearest Futures, and the 3 steps in practical analysis of such a chart to assist in realising gains.
(1) we begin to wonder about the orderliness of price movements in stocks or in commodities, we note that whenever there is a sudden drop or rally, it is a signal that a series of 10 degree T.L.s (Trend Lines) can be generated as drawn in on this chart, each a “Horn of Plenty”
(2) Gathering data and taking measurements on numerous active charts shows that these drawn in T.L.’s are frequently helpful in determining the pivots (buy and sell points).
(3) To find out just how orderly and useful these relationships are, we note that the rise can go on without any concern to those with a “long position”, provided the price movement stays within the first two 10 degree lines as shown.
Upon crossing the 20′ (degree) line, prices frequently drop to the 30′ line, giving opportunity to add to one’s long position, or “pyramid” for possible resumption of the rise along or within the 40′ line. Frequently, crossing the 40′ up-trend line, or UTL means beginning a substantial DTL (Down Trend Line). This is very frequently true if this downward counter move is preceded by a sharp vertical peak. The top of the price movement shown here is a rounding top, as named by Chartists.
Obviously the slope of the TLs depends upon the relative proportions of the coordinates used by the maker of the chart. But by counting how frequently these pivots occur, and the exactness of fit for each particular stock or commodity charted, indicates the reliability of the probability for their reoccurrence. And action can be taken when the odds are strongly in your favor.
The words above that are underlined are all terms used in the study of Probability. Reference to the chapters dealing with Frequency, Reliability, Exactness of Fit, in Monroney’s “Facts from Figures”, go into their meaning and application in detail.
Upon request you will be supplied with Stephen ???? Stocks or Horsey’s Stock Picture if you wish to apply the various aids provided by this course to particular stocks that you own or are interested in. Also you will be supplied with Dupont’s Chronoflex if you wish to fasten this transparent drawing paper over your charts in order to avoid drawing-in the various lines and measurements on the charts directly.
We have also designed several devices or tools, in the use of which protection is provided through the US Patent Office, which will make it easy for you to apply the principles of probability which we have developed relative to price movements. These methods will enable you to continue to make gains similar to those made by others in this course who followed the indications properly.
Alan H. Andrews, Director
copyright 1963 by
Alan N. Andrews