Newsletter Overview

The Pattern Trapper is a daily commodities newsletter which combines pattern recognition techniques, tape reading skills and a few simple indicators to trade only those markets with the highest potential setups. The newsletter shows subscribers how to create "templates" for interpreting market behavior and spotting opportunity. Every trading principle discussed throughout the report is applicable to any freely traded, liquid market.

Each issue of the newsletter is offered on two web pages: (1) the Market Commentary Page, and (2) the Pattern Signal Firings Page.

Page 1: Market Commentaries

The Market Commentary Page offers detailed analysis of the S&P 500, Nasdaq 100, and 30 year Treasury Bond futures markets. These market observations are used to explore the concepts advocated by The Pattern Trapper Trading Methodology. This daily investigation serves as an example of how creating structure out of market behavior can aid in their interpretation and understanding. The analysis is a day-by-day exploration of the way in which this can be accomplished, and the difference that it can make in one's trading.

Each commentary begins with a review of Pattern Signals, Pivot System Support and Resistance Levels, and Range Projections for that day's trading. It then goes into a detailed discussion of each Pattern Signal triggered, the specific parameters in place that caused their firing, and the market information that it offers for that day of trading. Also included is a discussion of short-term cyclical characteristics as evidenced by Half Day Charts, any economic reports due out during the trading day, and any directional biases implied by Pattern Signals or Cycle Indicators. The section is concluded with specific setup recommendations and any other helpful hints that might make the trading day flow a bit more smoothly. Below each commentary are 20 period EMA and 14 period ADX charts for the 5, 15, 30, 60, and 120 minute timeframes. This feature helps subscribers more easily recognize trending timeframes and potential trading setups.

The bottom of each T-Bond Commentary contains an intraday chart detailing the previous day's price action. By examining this activity, the subscriber not only learns how to identify the trading principles advocated by the report, but also serves as a review of the technical parameters in place for the next day of trading.

Page 2 - Pattern Signal Firings

Each Pattern Signal Firings Page begins with two Highest Potential Setups for that day of trading. These picks are made based on each contract's (1) Pattern Signal firings, (2) apparent chart formations, and (3) short term cyclical positioning. Each setup description is followed by a recommended trading approach. It is suggested that the reader fully understand Pattern Trapper Trading Techniques before attempting to act on these recommendations.
Shown below is the Highest Potential Setup for the Swiss Franc, which appeared in the January 27, 2000, issue.

Swiss Franc - Mar Swiss Franc has fired NR7 and Inside Day signals for today. The NR7 signal tells us to expect range expansion and a pickup in volatility. The Inside Day signal is fired when the day's trading occurs within the range of the prior day. A subsequent breakout of an inside day's range typically points the way of the next trend move. Cycle Indicators have moved into a region where short term cyclical bottoms often form, but if Tuesday's .6227 low is broken we could see a significant move to the downside. Trade the break of yesterday's .6255 high to .6230 low range with a stop and reverse on the opposite side as the entry. Price action relative to today's .6243 Daily Pivot level may provide clues for earlier entry. Strength above implies a topside breakout while weakness below implies a break to the downside.

Directly beneath the Highest Potential Setups section is a listing of the Pattern Signals, Pivot System Levels, and Range Projections for each of the 30 commodity markets analyzed by the Pattern Trapper. Presented in an easy-to-read (and print) table format, this listing provides links to an extensive network of web-based interactive learning tools designed to help the reader understand and put to use the Pattern Signals and trading techniques advocated by The Pattern Trapper.

Shown below is a section from the Pattern Signals, Pivot System Levels, and Range Projections table which appeared in the January 28, 2000, issue.

Statement of disclaimer: This information was compiled from sources believed to be reliable, but its accuracy cannot be guaranteed. There is substantial risk of loss in stock and futures trading. There is no warranty, express or implied, in regards to the fitness of this information for any particular purpose. Past performance is not a guarantee of future results.