sto - the sto quick learning manual

Jul. 11, 2014 THE STO QUICK LEARNING MANUAL

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 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 advisor. 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 that you will profit or that losses can or will be limited in any manner whatsoever. Children of the Journey 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 it impossible 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 way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

1 of 25 The STO Quick Learning ManualAll Rights Reserved;The Children of the Journey Sangha of the East Coast. Copyright, 2011-2014


Revision Log:20140711.0942 – A.Peñaloza – added revised Cycle Concept and the Awesome-HOT Trading Plan.20140710.1300 – A.Peñaloza – Total Revision to use the Awesome Layout and Trading Plan.20131016.1233 – A.Peñaloza – added the STO – RosaChan Layout and Trading Plan.20130430.2000 – A.Peñaloza – added practice replay from the middle of a sustained downtrend.20130425.1200 – A.Peñaloza – major revision to the STO Official Trading Plan.20130405.1330 – A.Peñaloza – added the STO Official Trading Plan.20130403.1800 – A.Peñaloza – added running marathons and market profile.20130403.1200 – A.Peñaloza – revised the Trading Method and added Kurt’s Trading Plan. 20130314.1430 – A.Peñaloza – added the Playgrounds and sprint vs marathons.20130301.1400 – A.Peñaloza – added mention of “The Perfect Picture Book”.20130227.1530 – A.Peñaloza – created the Sangha Gold - Amazing Layout and 3-Way DISCIPLINE Trading Method.20130213.0830 – A.Peñaloza – renamed the Bentley to the AweSim Trading Method and removed the Delta teachings.20121129.2130 - A.Peñaloza – added minor additions and formatting.20121129.1300 – A.Peñaloza – added the “Heart”…20121120.0600 – A.Peñaloza – initial revision.

Related Documents:

Web: http://childrenofthejourneysangha.blogspot.com/Web: http://sanghatrading.blogspot.com/


http://sanghatrading.blogspot.com/

http://childrenofthejourneysangha.blogspot.com/


Contents

Mission Statement................................................................................................................................................................................... 5

Mastery 5

PLAIN LANGUAGE DISCLAIMER: 6

THE SANGHA PRINCIPLES: 6

The STO Quick Learning Manual.................................................................................................................................................................. 7

Purpose: 7

SAFETY: 7

SURETY: 8

PROFITABILITY: 8

STO allows us to know the two types of Market Dance Behavior:...................................................................................................................8

The STO Mindset:.............................................................................................................................................................................. 8

STO Benefits..................................................................................................................................................................................... 8

Conquer the Fear:.............................................................................................................................................................................. 9

Known Facts about STO:...................................................................................................................................................................... 9

The Awesome Layout 10

The AWESOME-LOT Trading Plan: (For trading the 1000 tick chart as your MAIN) 11

The AWESOME-HOT Trading Plan: (For trading the 5000 tick chart as your MAIN) 123 of 25 The STO Quick Learning Manual

All Rights Reserved;The Children of the Journey Sangha of the East Coast. Copyright, 2011-2014


STO Official Goals, Limits and Mantras... 12

MANTRAS: 13

Begin your 60 Day Countdown to Live:.................................................................................................................................................. 14

Teachings:............................................................................................................................................................................................ 15

This is the HEART of "The Awesome Trading Plan".................................................................................................................................... 15

What are the NARROWS.................................................................................................................................................................... 17

The Cycle concept:........................................................................................................................................................................... 19

The PRIME - JERK - DELTA lines:........................................................................................................................................................... 21

The Three Market Cycles:.................................................................................................................................................................. 22

The IN and SPIN lines:....................................................................................................................................................................... 23

The ALPHA_ALL line and ALPHA_HOT bars:............................................................................................................................................ 24

End of Teachings.............................................................................................................................................................................. 25

Conclusion:.......................................................................................................................................................................................... 25

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Purpose

This is the collective Wisdom our Spiritual Community of Traders had been made privy to by the Universal Intelligence of Love.

This manual is a compendium of knowledge we as individuals and as a community continue to learn with appreciation and gratitude.

Mission StatementWe believe in the Divine and the Universe. We are eternally Grateful and ever Thankful for the Gift given.

We are continually given the most amazing insights about this Gift; which allowed us to create a business that takes little of our time to run during the day. This Gift enables us to spend quality time helping others as the Divine wishes. This is the reason we teach this Gift to others. We depend on the Divine and the Love

of the Universe to lead others to us.

MasteryIt is what "is", you are seeing what you “see”. It is ALL in the technique and your efficiencies.

You can’t predict the future trends of the market, you are but a mere follower, so act like it!

You must only develop the ability to see what is before your eyes. The Universe is asking for little more in this endeavor.

Practice being efficient! Points per trade, get it up.

Like Dirk Nowitzki in the NBA at 2.5 points per hoop. (The best average near him is 1.3).

Not like Monica Lewinsky, who swallowed many a shot, but didn’t get credit for one.

Using the least time and effort, a skilled performance = EFFICIENT!We will become “Madly” skilled in this area. Kurt Duerod…



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 provided answers and guidance pertinent only to “The Sangha Trading Oscillators (STO)”.4. The Sangha WILL NOT provide proof of effectiveness nor ANY guarantee of FITNESS of use. Prove it to yourself!5. You are FREE to profit from “The Sangha Trading Oscillators” in any way you choose, with only ONE RESTRICTION – Give credit to “The Children

of the Journey Sangha” as the original creator.

THE SANGHA PRINCIPLES:

1. Those that have the passion and perseverance, on their own volition, will prove the merits of "The Gift" for themselves and acquire the necessary skills by their OWN effort.

2. As "The Gift" was freely given to the Sangha, we FREELY give the gift from our heart to those who ask us. The Sangha will freely answer questions and provide the foundational knowledge to those who seek to use "The Sangha Trading Oscillators” effectively.

3. The Gift of "The Sangha Trading Oscillators" is Open Source and will adhere to the "7 Guiding Principles" of Open Source.


http://www.academia.edu/1234243/The_7_principles_of_successful_open_source_communities


The STO Quick Learning Manual

Purpose:This document is the Sangha Trading Oscillator Team's latest understanding on how to use "The Sangha Trading Oscillators” profitably using “The Awesome Layout and Trading Plan”. We include all the Tactics and Strategy, we currently know of, for Safe and Sure – profitability.

When you have your first-look at the STO tools used in the Awesome Layout (on the SierraChart Trading Platform), please do NOT be overwhelmed by all the lines. You will learn their function as you execute “The Awesome Trading plan”. Please learn about the NARROWS, which is foundational; we need NARROWS to clearly see the rhythm of the market dance and to alert us when the STO lines are ready for the next market cycle.

SAFETY:Protect your trading account, we employ the following tactics...

1. Use a Stop and move it to the last “bounce” of the price-action (where the price-action created a peak or valley).2. BE OBEDIENT to the trading plan.3. Use only ONE contract and Keep your max daily loss to less than $150 (Loss Limit).4. Keep your max daily filled trades to less than 12 (Over Trading Limit).

WARNING: Doing business with the Market is "inherently" DANGEROUS! Market price-action may sharply go up or down, PREVENTING your Stop from activating in a timely manner. Please realize you WILL LOSE money when this happens and this is a "normal" behavior of the market.

As a new STO practitioner, you are encouraged to use ONLY one contract at a time, to minimize this possible loss.



SURETY:Look for and wait for “The Trade Setup”.

PROFITABILITY:1. EXIT your position when you have “The Trade Exit”.2. BEWARE – STAY AWAY when the market is sideways and STO lines just stay in the DANGER ZONE.

STO allows us to know the two types of Market Dance Behavior:1. Sustained Trends (Foxtrot) – Begins when PRIME and IN lines cross Zero together, then the IN line stays in the DANGER ZONE as

JERK remains OUTSIDE the MID NARROWs and PRIME cycles up and down through the Zero.2. Sideways and Pivoting (Jitterbug) – is a sign of continuation of a current trend. The IN line remains in the DANGER ZONE and JERK is

FLAT.

The STO Mindset:1. "DANCE" with the market; we DO NOT PREDICT where it is going. 2. “HOPE” will not move the price-action to where we want it to go!3. Market direction is always known through the STO lines.

STO Benefits...1. gives us the FREEDOM of sight and awareness.2. gives us the ENERGY to trade for a long time (if we want to) - due to Less Frustrations.3. FREE for everyone to use (except for the monthly cost of a Sierra Chart subscription - $27 per month).



Conquer the Fear:1. Fear of Missing an Entry - when entering a position, STO does Market Buy and Sell.2. Fear of the Retrace taking you out - because with STO we know when to open up the Stop.3. Fear of the Sideways - going in and out of positions - because with STO we know trend continuation (flat means continued).4. Fear of Bad Risk Management - Stop too tight or loose - because with STO we know the market dance.5. Fear of Not Knowing where the market is - because with STO we know where the market will go.6. Fear of Losing – because with STO we know when to take a position, when to hold and when to exit.

Known Facts about STO:1. All STO lines cycle through Zero. When a line goes above the Zero, it will go below the Zero and vice-versa.

The cycle has an Expansion phase, when it moves away from Zero and a Contraction phase, when it moves back towards Zero.Take a position when ALL the STO line cycles are in Expansion or take an opposite position when ALL the STO line cycles are in Contraction.

2. When PRIME and JERK are ABOVE Zero, market tends to dance UP.3. When PRIME and JERK are BELOW Zero, market tends to dance DOWN.4. Price-action will not move quickly until PRIME or JERK crosses the Zero.5. When JERK is sideways ABOVE the UPPER MIDs, the market will continue to dance UP.6. When JERK is sideways BELOW the LOWER MIDs, the market will continue to dance DOWN.7. When STO lines are in the DANGER ZONE, the market continues its current trend. 8. An STO line Zero Bounce is strong.9. An STO line "checkmark" pattern is strong.10. STO lines are together during Zero crossing is strong, but short-lived (Jitterbug).11. When STO lines do not match price-action direction, you have DIVERGENCE.12. Any STO lines crossing Zero or each other has significance.13. Any “LEAP” of the STO lines will cause price-action to go sideways.



The Awesome Layout



STO - Official Trading Plans...

There are TWO Awesome Trading Plans. The AWESOME-LOT Trading Plan is for trading the 1000 tick chart as your MAIN chart. The AWESOME-HOT Trading Plan is for trading the 5000 tick chart as your MAIN chart.

Pre-Plan:

Requirements:1. Understand the RISK of Online Day-Trading (Risks, Day-Trading)2. Be Familiar with the SierraChart Trading Platform (SierraChart Instruction)3. Calibrate the STO NARROWs to the financial instrument traded (Calibrating the Narrows)4. Understand the NARROWs and the concept of Cycles with Expansion phase and Contraction phase (Calibrating the Narrows)

Pre-requisites: 1. Serene, Healthy and Alert 2. Computer, Internet and Trading Platform are well 3. Goals, Limits and Mantras reviewed (Goals, Limits, Mantras) 4. In isolation - no distractions

The AWESOME-LOT Trading Plan: (For trading the 1000 tick chart as your MAIN)Plan Execution:

1. WAIT! - WAIT for JERK to be in your direction and IN line to already be at the correct side of Zero as PRIME crosses Zero. IN line and PRIME MUST BE fairly CLOSE together as you cross Zero.

2. ENTER! – when PRIME crosses Zero and ALPHA_ALL crosses ALPHA_HOT, with JERK going your direction. (The Trade Setup)

3. EXIT! – when PRIME enters the DANGER ZONE as IN line crosses Zero. (The Trade Exit)a. When more than negative 5 ticks.b. When price-action is sideways.


http://childrenofthejourneysangha.blogspot.com/2013/04/sts-official-goals-limits-and-mantras.html

http://www.youtube.com/watch?v=B-G2WETh4P0

http://www.youtube.com/watch?v=B-G2WETh4P0

http://www.sierrachart.com/index.php?l=doc/doc_Contents.php

http://en.wikipedia.org/wiki/Day_trading

https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?ad=day_trading_risk_disclosure.jsp


The AWESOME-HOT Trading Plan: (For trading the 5000 tick chart as your MAIN)1. WAIT! - WAIT for SPIN and JERK_HOT to be in your direction.2. The Trade Setup – LONG – ENTER LONG – when ALPHA_ALL creates a BULL flag or crosses Zero or crosses a BLUE ALPHA_HOT. 3. The Trade Exit – LONG – EXIT LONG – when ALPHA_ALL crosses the Price-Action or runs into a RED ALPHA_HOT.4. The Trade Setup – SHORT – ENTER SHORT – when ALPHA_ALL creates a BEAR flag or crosses Zero or crosses a RED ALPHA_HOT. 5. The Trade Exit – SHORT – EXIT SHORT – when ALPHA_ALL crosses the Price-Action or runs into a BLUE ALPHA_HOT.

Post-Plan:

Update Trade Journal blog site 1. Record goals reached 2. Record limits and mantras broken 3. Record quality of OBEDIENCE to the Trading Plan 4. Record things learned 5. Record profit or loss and number of fills

Do re-cap; Video or Screenshot the charts and add to blog site

STO Official Goals, Limits and Mantras...GOALS:

You are an EMPLOYEE and MUST BE OBEDIENT to the "The Trading Plan" You trade only one contract at a time You ALWAYS WAIT for “The Trade Setup” You ALWAYS execute “The Trade Exit”

LIMITS: Maximum daily fills: 12 Maximum daily LOSS: 25 ticks Trailing Stop: 18 ticks



RISK MANAGEMENT: - Best to Skype and trade with a Trading Buddy. Your Trading Buddy will manage your risk and you will manage theirs. STOP after two losses in a row or you’ve reached your daily loss limit, when you have no Trading Buddy.

MANTRAS:

1) The market pays you to BE OBEDIENT to The Trading Plan. 2) Don’t claim to be obedient, if that is not the case 100%. 3) Halve the number of contracts you trade when trading poorly. 4) Never turn a winner into a loser. 5) Your biggest loser can’t exceed your biggest winner. 6) Stick with the plan, do not change it. 7) Be yourself, do not try to be someone else. 8) You always want to be able to come back the next day. 9) Earn the right to trade more contracts at one time. 10) Get out of your losers. 11) The first loss is the best loss. 12) Don’t hope and pray. When you do, you will lose. 13) Don’t worry about news its history. 14) Don’t speculate/predict. When you do, you will lose. 15) Love to lose money. 16) If your trade is not going anywhere in a given timeframe, then exit. 17) Never take a big loss. Only a big loss can hurt you. 18) Make a little bit each day. Dig your ditches. Do not fill them. 19) Hit singles not home runs. 20) Consistency builds confidence and control. 21) Learn to sweat out (Scale out) your winners (when using multiple contracts). 22) Make the same type of trades, repeatedly. Be a bricklayer. 23) Do not over analyze. Do not procrastinate. Do not hesitate. When you do, you will lose. Be Alert! 24) All traders are created equal in the eyes of the market. 25) It is the market itself that wields the ultimate scale of justice.



The Quick Learning Training program:

1. Do your Historical Chart studies. a. Look for The Trade Setups, where PRIME starts from outside the MID-NARROWs.b. Look for The Trade Exits, where PRIME enters the DANGER ZONE, as IN line crosses the Zero.

2. Do Live-Demo of the Market and be OBEDIENT to the trading plan. 3. Let the Universe teach you the details as you do your 60 Day countdown to LIVE.

Begin your 60 Day Countdown to Live:

1. Be OBEDIENT to the trading plan2. Use only 1 contract at first, as your weeks go by profitably, double your contracts. When not profitable, go back to 1.3. Maintain a trade journal and video recap your daily countdown. 4. Why video? Because you need to record your thinking on why you did that action.5. After taking a Break, do your Historical Studies of recognizing when the RED-GREEN lines are FLATTISH and when they are outside the NARROWs.6. Do Market Replay, catching at least 3 RED-GREEN lines entering the NARROWs, profitably. Keep replaying the scene until you maximize your profit.

Share your insights with other STO practitioners. In freely sharing our discoveries, we have made such wonderful progress!

OBEDIENCE to the trading plan is paramount and staying within your Loss and Filled Trade Limits!

1. Trade TICKS NOT MONEY!2. TRAIN, TRAIN, TRAIN – You have to act on The Trade Setups and Exits “Instinctually”!3. PROVE everything to yourself!4. Trade WITHOUT emotions!



Teachings:

This is the HEART of "The Awesome Trading Plan"...Just study this section and practice, practice, practice, always practice…



Quick PRIMER on the STO lines and what they are:

1. The Zero Line (Zero) - is foundational to STO. Without the "Zero", we will not know the various cycles the market goes through. STO essentially places a Zero line on the price-action - this is the source of power for STO.

2. The IN (IN) – is the fastest speed STO line, predicts where the PRIME will go next.3. The SPIN – is the IN line of the High-Order Timeframe, when The Trade Setup is present, use SPIN to confirm the strength of the

direction.4. The PRIME (P) – is the medium speed STO line, tells us the market's short term cycle. When "P" crosses the Zero line, it will move the

price.5. The JERK (J) – is the slowest speed STO line, tells us the market's medium term cycle. When "J" crosses the Zero line to go Up, you are in

an uptrend. The reverse is true for downtrends. JERK is essentially the price-action with a Zero line.6. The ALPHA_ALL (ALL) - tells us when The Trade Setup/Exit is coming to time our entries/exits as "ALPHA_ALL” crosses the “ALPHA_HOT”

bars.7. The ALPHA_HOT (HOT) – tells us the Long-View – “Looking down the Road”, when the market dance will change, go from an Expansion

phase to a Contraction phase (see The Cycle concept).

In the Awesome layout, we use the IN, PRIME, JERK-HOT, ALPHA_ALL, ALPHA_HOT and SPIN.



What are the NARROWS...

Early in our development of STO,the UNIVERSE taught us the importance of PRIME and the significance of the NARROWs. The use of the NARROWs is very important in allowing us to know the cycles of the market dance. The NARROWs allowed us to have a Zero line, where the most exciting part of the market dance happens.

With the NARROWs, we know…1. Continuation as the price-action goes sideways or we are in “Jitterbug” (a pivoting market). The IN line stays in the DANGER ZONE.2. Reliable “Trade Setups and Exits” as STO lines cross the Zero, together.3. Sustained trends, as JERK is flat outside the MID-Narrows.

The NARROWs define an area above and below the very important Zero line.

We observed that we can "calibrate" the NARROWs to a specific financial product or instrument.

Calibrating the NARROWs to a financial instrument:1. Find a True Trend Change for UP.2. Find a True Trend Change for DOWN.3. Set the Upper NARROWs (Upper is above the Zero line) about where the JERK starts a Downtrend.4. Set the Lower NARROWs (Lower is below the Zero line) about where the JERK starts an Uptrend.5. Since we want the NARROWs symmetric around the Zero line the values for the Upper and Lower Narrows are the same.

For the TF (emini-Russell 2K), GCL (Light Crude), GGC (Gold) and ES (emini-S and P 500) the Narrows is set to +0.7 and -0.7.

We then divide the Upper Narrows in half and call it the Upper MID-Narrows.We then divide the Upper MID-Narrows in half and call it the Upper QUARTER-Narrows.The same is done for the Lower Narrows.

The area marked-out by the Upper and Lower MID-Narrows about the Zero line - we call the MIDs.



The area marked-out by the Upper and Lower QUARTER-Narrows about the Zero line - we call the DANGER-ZONE.

Please see the calibration video at this location or email [email protected] for help:

https://dl.dropboxusercontent.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20-%20Calibrating%20PRIME%20and%20JERK%20to%20the%20Narrows.FLV




mailto:[email protected]


The Cycle concept:As any of the STO lines cycle up and down through the Zero line, they create two phases.

The Phases of a Cycle…

The EXPANSION Phase - as the STO line crosses Zero and pulls away from the Zero. The CONTRACTION Phase – as the STO line reaches a peak/valley and heads towards the Zero.

Use the Cycle phase to your advantage… ONLY make a trade when ALL the STO lines enter “CONTRACTION – HEADS BACK” toward the Zero. Make a SURE trade when the PRIME crosses Zero and ALL the STO lines are in “EXPANSION - PULLING AWAY” from

the Zero. STAY AWAY when the JERK_HOT is NOT in phase with the other STO lines.

But keep in mind that strong trends WILL BEGIN at Peaks/Valleys when the STO lines “Vees/Upside-down Vees” from outside the MIDs as ALL the STO lines enter their Contraction Phase together.



Here is a picture to make the Cycle concept clear...



The PRIME - JERK - DELTA lines:

The Universe let us know, with utmost certainty, that The PRIME, JERK and The DELTA are the ONLY 3 lines needed to "Dance" with the market Safely and profitably – but we needed the detail sight provided by the IN line and ALPHA_ALL.The IN and SPIN lines lets us know where the PRIME will go next.

The picture below shows you why...


http://dl.dropbox.com/u/74471053/Pictures/STS%20-%20Roles%20of%20PJD.jpg


The Three Market Cycles:ALL the STO tools are lines that represent the inherent cycles in the market.So far, we know of Three Market Cycles exhibited by the PRIME-JERK- DELTA behaviors.

Short-term cycle (Pivoting Market) - PRIME - Useful when the PRIME just goes from Upper NARROWS to Lower NARROWS or when JERK is in the DANGER ZONE, then use the PRIME to take positions on the STRONG side of the market.

Medium-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. The JERK goes sideways, usually outside the MIDs, to sustain a trend and the PRIME will then be in DIVERGENCE to the price-action.

Long-term cycle (Sustained Trending Market) – DELTA (which is PRIME minus JERK) - Useful when you want to maximize your profitability. We do not trade with DELTA, but instead use ALPHA_ALL with ALPHA_HOT.

ALL these lines cycle up and down through the zero as the market "Dances along".


http://www.investopedia.com/terms/d/divergence.asp


The IN and SPIN lines:

The IN and SPIN lines are... IN = PRIME(current_bar) – PRIME(previous_bar 5 to 10 bars back) SPIN = PRIME_HOT(current_bar) – PRIME_HOT(previous_bar 5 to 10 bars back) [HOT is High-Order Timeframe chart]

The SPIN line is derived from the High-Order Timeframe chart, which gives us “a look down the road”-the market may travel, and is plotted on the MAIN chart, using a Low-Order Timeframe-focusing on the short-term-“looking at the hood ornament”-instead of looking down the road.

We do our trading off of the MAIN chart (LOT) and the HOT chart gives us the long-term view of the market dance.

How the IN and SPIN lines helps...Using the IN and SPIN lines gives us confirmation of market direction and surety of trend continuation.

The IN line predicts where the PRIME will go and we need to know if the PRIME will be going away from the Zero (expansion phase of the cycle) or is the PRIME going towards the Zero (contraction phase of the cycle). We MUST take positions when the PRIME just crossed Zero and is doing an Expansion!

The SPIN line confirms the market direction and strength. When SPIN is below Zero, the price-action is still DOWN. When SPIN is above Zero, the price-action is still UP. The distance the SPIN is from Zero is the strength of the market in that direction.



The ALPHA_ALL line and ALPHA_HOT bars:

The ALPHA_ALL and ALPHA_HOT are... ALPHA_ALL = COMBO_A(LOT) + COMBO_A (HOT)

o COMBO_A = PRIME + JERK ALPHA_HOT = COMBO_A(HOT)

COMBO_A is an STO line derived from the addition of PRIME with JERK for a specific timeframe. When COMBO_A crosses JERK going the same direction, it is usually a good place to take a trade.

The ALPHA_HOT makes obvious the phase changes of the market cycle. The bars will step in height and change color as the cycle phase change.The ALPHA_ALL gives us confirmation of the validity of the Trade Setup (when using the Awesome-LOT Trading Plan). When the IN and PRIME lines cross the Zero, the ALPHA_ALL must cross the ALPHA_HOT.

Here is a picture to explain further...



End of Teachings...

Conclusion:

There is no Holy Grail of technical indicators. The best an STO practitioner can do is to "Dance" with the market.

The STO Tools given to us by the Universe is a MIRACLE!

When we are NOT Profitable...it is because of our LACK of Trust in the tools and our LACK of Obedience to the trading plan.

Blessings Always…

Arnulfo Peñaloza and Kurt Duerod of the STO Development Team
