You will find enclosed the first study of
the Course concerning the ML (median line) Method. This enables you to
know where the trend of anything that fluctuates at random is headed.
What everyone wants to know is where the latest trend is headed, and
where the next pivot (P) will be from which the reverse trend will
start.
The probability of the next P being at the
latest ML seems to be about 80%, and even without any additional rules
that enable you to be constantly either long or short , the profit
potential of this simple rule is tremendous for you.
Although Marechal never left us exactly
how he was able to predict twenty years in advance what his copyrighted
chart showed the Dow Jones Industrial Averages would do, you can draw
in the MLs from each P bisecting the distance between the 2 latest
alternate Ps, and see that nearly every time the new P occurred when
prices met that latest ML. You’ll also see that on the right hand side
of his chart prices were too strong to drop to the ML that started from
the high in 1945, which always signals that a big rise is ahead unless
the next trend fails to reach the new ML. This cancels out the prior
signal and signals a big move contrary to the big move previously
signaled. And as there was no contrary signal after prices failed to
drop to reach the ML from the high in 1945, you could be confident of
realising a big gain from your long position taken as soon as prices
crossed the parallel to the ML from the high of 1945. You draw this
parallel from the third top that the ML was drawn half way below on the
distance to Previous P.
You can now tell from the enclosed
Glossary what the abbreviations mean, in the right hand column of each
weekly letter. This enables you to understand the scientific reason for
each new position taken based on simple geometry. When you change a
position your new methods enable you to be one of the few persons who
knows how to be constantly either long or short, in this way you make
profits after each rise and fall that follows the rise. You may be
whip-sawed a few times but if you get you order in before the market
opens the next day, should prices move against the position you have
just taken, your losses will be small and often show a small profit.
You will see all this after you’ve done
some “paper trading” which you should start on right away showing on
your chart where each position was taken. You should concentrate on the
ML method applying that even if you have had experience with other
methods. For we learn best by concentrating on one thing at a time.
When you have a question mark where the question arose and send me a
copy of your chart that should also list our profits from the two
contracts you take each time you change position. When you write out
your question leave a space where my answer can be written and mailed
back to you.
After you see that your paper trading has
made well over the 100% profit rate, it will indicate you are ready to
learn the Action and Reaction Method to which my friend the late Roger
Babson attributed his fortune of over $50,000,000. Then after that let
us know and you will be sent the rest of the Course Studies.
Sincerely. |