The logic with our trading rules is pretty simple. Here are the trading rules for each of the two main types of market conditions that may exist on any given day:

1. In sideways, “Trading Range” market conditions, when all three of the main indicators (Jupiter, Mars and Uranus) move into harmony, all going in the same direction, we enter a new trade. When any one of the three main indicators falls out of agreement with the position, we exit the trade.

2. In “Trending” market conditions, we enter a new trade when both the Mars line and the Uranus line are moving in the same direction. When either one of the two (usually the Mars line) falls out of agreement with the position, we exit.

Interestingly, it is very common to enter the market with Trading Range rules and exit the market with Trending rules as you see in the price chart below. Likewise, it is possible to enter the market with Trending rules and exit with Trading Range rules. To know what to do in any given situation, all you have to do is keep your eye on the Trending/Trading Range Detector indicator at the bottom of the chart!

Successful "Trading Range" entries and "Trend" mode exits.

In "Trends", I pay NO attention to the blue Jupiter line.

There is only one minor challenge with my trading system, but I have found a dependable solution that almost always helps to keep me on track for consistent success. Please allow me to explain...

The main challenge of the trading system is that we are working with very slow, 90-minute price bars. Sometimes the market moves against our position during those 90 minutes. Sometimes this unwanted move is enough to cause one of the indicators to fall out of agreement with the position. If this condition were to last until the end of the price bar, it would trigger a definite exit signal.

So, when this condition is happening in real time, we have to stop and ask ourselves, “What are the odds of this move against my position being permanent or only temporary? If the move against me is permanent, I better exit right now. However, if this is a whipsaw and is only temporary, I need to remain in the trade.”

In other words, if that price move against us was actually only a temporary whipsaw, but if we had interpreted it as a valid, permanent market movement, we would have exited from our position prematurely and thus, missed out on a very likely, important profit opportunity. Unfortunately, this whipsaw condition can happen once or twice on any given day, and it can happen several times per week. How can we make a good decision when this happens? We need a good solution!

Here is the simple solution...

The simple solution is to briefly analyze a shorter time frame! Any significant, developing price move will first show up on a 30-minute price chart and then it will finally spread to and become visible on the 90-minute price chart. This is similar to a row of dominos lined up to fall in a progressive sequence. On my live trading screen in NASDAQ LIVE! , I post a 30-minute price chart right beside my 90-minute price chart. The 30-minute price chart has The Golden Path and my three main indicators (Jupiter, Mars and Uranus) plotted on it. All I have to do when the whipsaw condition arises on my 90-minute chart is to quickly check my 30-minute chart and indicators.

Here is what you look for...

First, let's assume you are in a long position in an uptrend. The market looks like it may be topping out soon. Finally, you see your Mars line begin to go flat sideways and teeter up and down. Will it end up as a valid sell signal or not by the end of the 90-minute price bar?

Here is the key...

If a valid short entry signal has already been confirmed on the 30-minute chart, you can be about 88% sure that the Mars line on the 90-minute chart will be confirming an exit from your long position at the end of the 90-minute price bar. Grab this advantage and exit now! This same strategy works successfully almost every time in any potential whipsaw situation. You can use this strategy for both entries and exits, and for both long and short situations.

I will soon be posting some 30/90-minute price chart combos with examples of this solution so that you will be able to clearly see it working.

Title Page and Preface

Introduction

Table of Contents

Chapter 1 My Discovery

Chapter 2 Going Public With My Discovery

Chapter 3 Some Background

Chapter 4 The Two Indicators

Chapter 5 The MARKET MATRIX 2.0

Chapter 6 Our Strategy

Chapter 7 Trading Rules

Chapter 8 Secret FOREX Code - Cracked!

Chapter 9 Automatic e-mail Alerts

Chapter 10 Conclusion