OLD Version - The STS Quick Learning Manual

7/30/2019 OLD Version - The STS Quick Learning Manual

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Dec. 13, 2012THE STS 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 youroriginal investment. The impact of seasonal and geopolitical events is already factored intomarket prices. The highly leveraged nature of online trading means that small marketmovements 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 againstyou, 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 tradingsystems you are using.You should not engage in live trading unless you fully understand thenature of the transactions you are entering into and the extent of your exposure to loss. If youdo not fully understand these risks you must seek independent advice from your financialadvisor. All trading strategies are used at your own risk. This mentoring should not be reliedupon as advice or construed as providing recommendations of any kind. It is yourresponsibility to confirm and decide which trades to make. Trade only with risk capital; thatis, trade with money that, if lost, will not adversely impact your lifestyle and your ability tomeet 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 anexpress or implied promise, guarantee or implication from Children of the Journey that youwill profit or that losses can or will be limited in any manner whatsoever. Children of theJourney is not responsible for any losses incurred as a result of using any of our tradingstrategies and mentoring. The Trading software should never be left unattended due to thepossibility 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 lossorders may not be effective because market conditions or technological issues may make itimpossible to execute such orders. Likewise, strategies using combinations of trading positionssuch 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 informationalpurposes and is obtained from sources believed to be reliable. Information is in no wayguaranteed. No guarantee of any kind is implied or possible where projections of futureconditions are attempted.

1 of 41 The STS Quick Learning ManualAll Rights Reserved;

The Children of the Journey Sangha of the East Coast. Copyright, 2011-2013


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Revision Log:20121129.2130 - A.Pealoza added minor additions and formatting.20121129.1300 A.Pealoza added the Heart20121120.0600 A.Pealoza initial revision.

Related Documents:

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


http://childrenofthejourneysangha.blogspot.com/http://childrenofthejourneysangha.blogspot.com/


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Contents

Mission Statement ............................................................................................................................................................6

Mastery ......................................................................................................................................................................6

PLAIN LANGUAGE DISCLAIMER: .......................................................................................................................................... 7

THE SANGHA PRINCIPLES: ................................................................................................................................................ 7

The STS Quick Learning Manual............................................................................................................................................ 8

Purpose: .....................................................................................................................................................................8

Methods: ....................................................................................................................................................................8

SAFETY: ...................................................................................................................................................................8

SURETY: ..................................................................................................................................................................9

PROFITABILITY: ..........................................................................................................................................................9

Trading Strategies: ........................................................................................................................................................9

This is the HEART of "The Bentley Trading Method"... .......................................................................................................... 11

The Benefits of STS and The Bentley Trading Method: ...................................................................................................... 12

NOTE: The sections BELOW are only for filling in the fine details, for the sake of completeness. Otherwise, if you understand how to use

The Bentley Trading Method, you need not study the finer details. ...................................................................................... 14

What are the NARROWS.... .......................................................................................................................................... 14

The PRIME Window concept: ........................................................................................................................................ 17

The Three Market Cycles: ............................................................................................................................................ 19




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

The DELTA line: ....................................................................................................................................................... 22

DELTA is Pivotal... .................................................................................................................................................... 24

The COMBO lines A and B: ........................................................................................................................................... 25

Behavior of COMBO_A: ............................................................................................................................................... 25

Behavior of COMBO_B: ............................................................................................................................................... 25

........................................................................................................................................................................25

Recognizing PULL and SUPPORT: ................................................................................................................................... 27

Recognizing a PULL UP: ........................................................................................................................................... 28

Recognizing a PULL DOWN: ....................................................................................................................................... 29

Recognizing a SUPPORT UP: ...................................................................................................................................... 30

Recognizing a SUPPORT DOWN: .................................................................................................................................. 31

How Trend Starts from Sideways: .................................................................................................................................. 32

The Jerk Cycle: ........................................................................................................................................................33

The STS Stacking Theory... .......................................................................................................................................... 34

Additions to the STS Stacking Theory... ........................................................................................................................... 36

Taming your mind... with DELTA! .................................................................................................................................. 37

The DELTA Secret! .................................................................................................................................................... 39




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Purpose

This is the collective Wisdom our Spiritual Community of Traders had been gratefully made privy toby 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 Statement

We 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 ourtime 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.

Mastery

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

You cant 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 didnt get credit for one.

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




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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 System.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 System 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" to themselves and acquirethe 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 freelyanswer questions and provide the foundational knowledge to those who seek.

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




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The STS Quick Learning Manual

Purpose:

This document is the Sangha Trading System Team's latest understanding on how to use the PRIME-DELTA-COMBO_A and COMBO_B-JERK STS tools profitably using The Bentley Trading Method with the COMBO_B Behavior, Stacking, Leap and Delta Floor-Ceilingtheories. We include all the Tactics and Strategy, we currently know of, for Safe and Sure - profitability.

When you have your first-look at the STS tools used in the Sangha Gold - Bentley Layout, please do NOT be overwhelmed by all thelines. There are ONLY 3 indicator lines you need to be concerned with, the PRIME, JERK and COMBO_B. However, the NARROWS arefoundational; without them you would not see clearly the rhythm of the market dance.

Methods:

SAFETY:

To protect our trading account, we employ the following Tactics...

1. Use a trailing Stop and let the trailing Stop work for you.

2. Use only ONE contract.

WARNING: Doing business with the Market is "inherently" DANGEROUS! Market priceaction may sharply go up or down, PREVENTING your trailing Stop from activating ina timely manner. Please realize you will LOSE money when this happens and this isa "normal" behavior of the market.




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As a new STS practitioner, you are encouraged to use one contract at a time, tominimize this possible loss.

SURETY:

1. Use The Bentley Trading Method to identify Trade Setups for your ENTRIES and EXITS.

2. Use the DELTA to know where the market is.

PROFITABILITY:

1. BEWARE when the market is in JITTERBUG (PRIME is together with either DELTA, COMBO_A or B) or going sideways (whenJERK is in the Quarter NARROWS - DANGER ZONE).

2. BEWARE of entering positions when the JERK is NOT following the price action (JERK DIVERGENT with price action).

Trading Strategies:

We "DANCE" with the market; we DO NOT PREDICT where it is going.We realize HOPE will not move the price action where we want!We accept the fact that we will make wrong decisions on the direction of the market!

Our STS tools allow us to know the two types of market Dance Behavior...

1. Sustained Trends - market doing the FOXTROT - PRIME and COMBO doing PULL, SUPPORT phases of a trend.

2. Sideways and Pivoting - market doing the JITTERBUG - COMBO_A or B or DELTA and PRIME together and/or moving alike.




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The Bentley Method, in a nutshell, is...

1. Watch the Tick Counter and wait until the count is around 20.

2. Watch what STS lines are doing - JERK , DELTA, PRIME, COMBO_A and COMBO_B for the trade setups to time your Entries and

Exits.

3. Use the High Order tick timeframes, when you are confused or need supporting evidence the pivot is only a retrace - allowsyou to stay in the trade longer and minimize your number of trades.

The Quick Learning Training program:

1. Do your Historical Chart studies from SUPPORT (DELTA is going sideways above or below Zero) and work them back, so youspot the PULL that began the SUPPORT. Pay close attention to what the COMBO_B, PRIME, DELTA, COMBO_A and JERK and are

doing!2. Do Market Replays to take ONLY the PULL trends, when you get a CLEAN Stacking of lines, after COMBO_B crosses ALL the STS

lines.3. Let the Universe teach you the details as you do your 90 Day countdown to LIVE.

Begin your 90 Day Countdown to Live.

1. Catch at least two PULL trends per day, as you see CLEAN Stacking of lines, while using The Bentley Method.2. 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.

Why video? Because you need to record your thinking on why you did that action.4. After taking a long Break, do your Historical Studies of recognizing CLEAN Stacks at PULL starts and SUPPORT ends

and Market Replay catching at least two PULL trends profitably.Keep replaying the same PULL trends until you maximize your profit for the trends youcatch.




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We encourage you to share your insights with other STS practitioners.It is through freely sharing our discoveries that we have made such wonderful progress!

Most importantly, realize that there will be losing days and there will be immensely profitable days.Be extremely grateful and joyful for wins AND losses.

It is when we lose that the UNIVERSE cares enough to teach us something new, we have yet to understand!Be thankful that the UNIVERSE cares enough to teach us.

Teachings:

This is the HEART of "The Bentley Trading Method"...Just study this section and practice, practice, practice, always practice

The following write up is from STS practitioner; Jorge Gomez. Thanks... much appreciate the generous help!

Quick PRIMER on the STS lines and what they are:

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

2. The PRIME (P) - is the market's short term cycle. When "P" crosses the Zero line, it will move the price.

3. The JERK (J) - is the market's medium term cycle. When "J" crosses the Zero line to go Up, you are in an uptrend. Thereverse is true for downtrends. JERK is essentially the price action with a Zero line.

4. The DELTA (D) - is the market's long term cycle. When "D" is going sideways above the Zero line, we have sustaineddowntrend. The reverse is true for sustained uptrends, "D" is sideways below the Zero line.

5. The COMBO_A (A) - tells us when to time our entries as "A" crosses the JERK when trending Up or Down,

6. The COMBO_B (B) - tells us when a Trade Setup is coming. When "B" crosses ALL the STS lines, except Zero, startlooking for conditions described in the next section, on when to take a position.




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The Benefits of STS and The Bentley Trading Method:

1. Fear of Missing an Entry - when entering a position, we just do Market Buy and Sell.

2. Fear of the Retrace taking you out - because we know when to open up the Stop.

3. Fear of the Sideways - going in and out of positions - because we know trend continuation.

4. Fear of Bad Risk Management - Stop too tight or lose - because we know the market dance.

5. Fear of Not Knowing where the market is - because we know where the market will go.

6. Fear of Losing - because we know when to take a position and when to hold.

STS Benefits...1. STS gives us the FREEDOM of sight and awareness.

2. STS gives us the ENERGY to trade for a long time - due to Less Frustrations.

3. STS is FREE for everyone to use.

Spotting Trade Setups - Using COMBO_B, which we call

"The Bentley Trading Method":

First realize the CROSSING Order of STS lines with one another...

As the STS Lines begin to turn and approach the Zero line, it will happen in the following order;

1. DELTA will cross through the JERK.

2. PRIME cross through the JERK.

3. DELTA will go through the Zero line

4. PRIME will go through the Zero line.

5. COMBO_A will cross through the JERK.

6. JERK will finally cross through the Zero line.




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Observe what COMBO_B (B) is doing :

1. "B" must cross ALL the other STS lines in the opposite direction of the possible entry.

2. "B" must get separated from the other STS lines right away after crossing ALL of them.

3. At the second or third bar formed after the "B" crossing of the other STS lines, check the position of "A" and "J" lines, if they havean appropriate position then take the trade, otherwise do not take it and wait for a better setup, which will occur on what we callas an "Invisible Crossing of 'B'".

Here are the conditions that MUST be MET

before taking a position :

1. "D" must have crossed the Zero line towards the direction of the trade.

2. "P" may also have crossed the Zero line, if not, it should be at least in the Quarter-NARROWS

pointing towards the Zero line.

3. "A" must have crossed the "J" or it should be about to cross it, going towards the direction of the trade.

4. "J" must go clearly into the direction of the trade. It is fine for "B" to NOT support your trade direction.

5. If the third (3) step is not met ("A" not going in the direction of the trade), you must wait for a better setup

and this will be with an invisible crossing of "B". This invisible crossing may take place with a "CLEAN STACKING"

of all the lines, except for "B" or with a PRIME bounce off the Zero line.

Here are the conditions, where you MUST-TAKE a position:

1. PRIME is in JITTERBUG or has a Z or checkmark pattern before or after crossing the Zero line.

2. MOST of the STS lines will CROSS the JERK at the same time as JERK is close to the Zero line.

3. JERK will cross through the Zero line. (BEWARE - there are times when JERK will bounce off the Zero,

but this is somewhat rare.)

Please see this video for The Bentley Trading Method.


http://childrenofthejourneysangha.blogspot.com/2012/11/how-pulls-begin.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/09/the-sts-stacking-theory.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/08/what-we-learned-today.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/08/dont-get-stuck-and-confused-in.htmlhttp://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Trade%20Charts/Arnie/Arnie-CountUP-Day005-20121129.0930.FLVhttp://childrenofthejourneysangha.blogspot.com/2012/11/how-pulls-begin.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/09/the-sts-stacking-theory.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/08/what-we-learned-today.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/08/dont-get-stuck-and-confused-in.htmlhttp://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Trade%20Charts/Arnie/Arnie-CountUP-Day005-20121129.0930.FLV


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NOTE: The sections BELOW are only for filling in the fine details, for the sake of completeness. Otherwise, if you

understand how to use The Bentley Trading Method, you need not study the finer details.

~ O ~

What are the NARROWS....

Early in our development of STS,

the UNIVERSE taught us the importance of PRIME and the significance of the NARROWs.

Oddly enough, we have no blog post that describes the NARROWs.

So here is the gist...

The NARROWs define an area on both side of the Zero line.

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




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How?

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) and ES (emini-S and P 500) the Narrows is set to +0.3 and -0.3.

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 MID-Narrows.

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

Why?

When JERK is in the DANGER-ZONE, price action may decide to just go sideways and JERK may just wiggle within the DANGER-ZONE.

We stay away from taking a position when JERK is in the DANGER-ZONE.

However, the MID-Narrows is very fruitful for JERK to start a small to medium trend.But be careful when JERK is outside the MID-Narrows (above the Upper-MID or below the Lower-MID), because JERK may go flat for

sustained trends or be divergent with the price action.

This is why the NARROWs are important in STS!




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Please review the picture below...

There is a Reason why we call the PRIME "The PRIME":16 of 41 The STS Quick Learning Manual

All Rights Reserved;

http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20What%20is%20the%20Narrows.jpg


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1. The Market is Cyclic in Nature! The PRIME, which is the Rate of change of Macd_1 (Fast constant: 5 Slow constant: 10Length: 3), told us that. The PRIME must always complete its cycle when above the Zero and when Below the Zero.

2. Nothing significant happens to the price action, until the PRIME crosses through the Zero Line!

3. How well the PRIME moves the price action as The PRIME goes through the Zero is very important. When the priceaction moves well as the PRIME moves in the same direction, then we have a STRONG or positive BIAS for the PRIME tomove the price action.

The PRIME behavior is the foundation we must fully understand to be profitable when "Dancing" with the market!

~o~

The PRIME Window concept:

As the PRIME cycles up and down through the Zero, PRIME creates an UP Window - when BELOW the Zero and a DOWN Window -when ABOVE the Zero.

You do not want to take a SHORT when an UP window is being made!You do not want to take a LONG when a DOWN window is being made!




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

~o~


http://dl.dropbox.com/u/74471053/Pictures/STS%20-%20PRIME%20Windows%20Concept.jpg


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The Three Market Cycles:

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

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

Long-term cycle (Trending Market) - JERK - Useful when the market is in a trend. Exit the trend when the JERK crossesthrough the Zero and re-enter a sustained trend when JERK crosses back again.

Extreme Trend cycle (Sustained Trending Market) DELTA (PRIME - JERK) - Useful when you want to maximize yourprofitability (PULL and SUPPORT phases).

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

Let us take the PRIME as an example...

As the PRIME cycles up and down through the Zero,PRIME creates an UP Window - when BELOW the Zero and a DOWN Window - when ABOVE the Zero.

You do not want to take a SHORT when an UP window is being made!

You do not want to take a LONG when a DOWN window is being made!




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

Use this inherent NATURE of market cycles to your trading advantage.

~o~


http://dl.dropbox.com/u/74471053/Pictures/STS%20-%20PRIME%20Windows%20Concept.jpg


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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 COMBO_B. COMBO_B lets us know if a pivot will justbe a retrace.We will cover the behavior of COMBO_B in a separate teaching section.

The picture below shows you why...


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


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The DELTA line:

The DELTA line is... DELTA = PRIME - JERK

The DELTA gives us the phases of the Sustained Trend. DELTA goes through the PULL and SUPPORT phases of a Sustained trendcycle.

When DELTA is Beyond the Upper or Lower NARROWS, the trend continues until the DELTA drops back into the NARROWS and/or Mid-NARROWS, with the Combo crossing thru the JERK.

The DELTA also tells us the rhythm of the market.

Are we in FOXTROT or JITTERBUG?

FOXTROT is when the market is doing a Sustained trend - DELTA goes through its phases of PULL and SUPPORT. The DELTA is farfrom the PRIME, in other words, the PRIME and JERK contribute to the price action.

JITTERBUG is when the market is Sideways or Pivoting - DELTA is right next to PRIME or is copying PRIME with some separation.PRIME is the only one moving the price action, generally while the JERK is flat or stays in the DANGER ZONE (Quarter-NARROWS).

Make your profit doing the FOXTROT and stay away from the JITTERBUG!




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Here is a picture to help explain:


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20Learnings%20on%20COMBO%20and%20DELTA.jpg


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DELTA is Pivotal...

When taking trends, only watch DELTA crossings at 3 areas of the NARROWS...

Uptrends:

1. Starts - DELTA crosses UP thru the Zero or LOWER NARROWS.2. Ends - DELTA crosses DOWN thru the Zero or DOWN thru the LOWER NARROWS.

Downtrends:

1. Starts - DELTA crosses DOWN thru the Zero or LOWER NARROWS.2. Ends - DELTA crosses UP thru the Zero or UP thru the UPPER NARROWS.

For Safety... make sure to coordinate with the price action, any divergences, location of the JERK and the COMBO-JERK crossing.Please see this video for clarity.

What a tremendous gift we have been given!Now it is possible to load up more contracts on these SAFE and SURE trends!

Why is this so important?

1. Easier to teach for new practitioners - more mechanical.

2. Likelihood of consistent profitability encourages confidence.3. Easier to create a disciplined trading habit, which we always do.


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20-%20DELTA%20is%20Pivotal%20for%20Trend%20Starts%20and%20Ends.mp4http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20-%20DELTA%20is%20Pivotal%20for%20Trend%20Starts%20and%20Ends.mp4


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The COMBO lines A and B:

The COMBO lines are...

COMBO_A (which we will call A) = PRIME + JERK with an offset of 5 (current PRIME + JERK 5 bars back).COMBO_B (which we will call B) = JERK + PRIME with an offset of 5 (current JERK + PRIME 5 bars back).

How the COMBO lines helps...Using the COMBO lines brings a measure of certainty and confidence into knowing how the market is "Dancing".

The COMBO lines lets us know when to enter a position (PULL) and when to keep a position on a sustained trend (SUPPORT).When the COMBO lines crosses the JERK or creates a "V" or inverted "V" on or by the JERK, see if it is a good place to take a position.

Behavior of COMBO_A:

1. COMBO_A will cross and quickly separate from the JERK on a PULL phase of a trend.2. COMBO_A will give you other opportunities to time your Entries as it creates peaks for a PULL down or valleys for a PULL up,

when the market is doing the PULL phase of the dance.3. COMBO_A will indicate JITTERBUG when it is close or with the PRIME.

Behavior of COMBO_B:

1. COMBO_B will cross ALL the STS lines and quickly separate from the JERK on a PULL phase of a trend. When ALL STS lines are

crossed, use the Bentley Trading Method, on when to take a position.

General COMBO Characteristics:

1. Gives us timing for Entries/Exits of PULLs, when COMBO crosses the JERK.2. Shows when in a Sustained Trend (SUPPORT); COMBO above Zero - UP trend, below Zero - DOWN trend.




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Here is a picture to explain further...

Please see this video of the PCJ.~o~


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20-%20PJDC%20tools.mp4http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20The%20COMBO.jpghttp://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20-%20PJDC%20tools.mp4


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Recognizing PULL and SUPPORT:

Your job as a Sangha Trading System (STS) Practitioner is to be able to recognize PULLS for ups and downs early enough to get a

favorable fill price and then be able to recognize SUPPORT for the trend, in order to hold the position for maximum profit.

PULLS may begin from a PRIME INVISIBLE CROSSING (when PRIME and COMBO are separated) or with PRIME and COMBO crossing theJERK together.

SUPPORT always begins with PRIME crossing the JERK.

Who is who...

PRIME RED line, COMBO BLACK line, JERK GREEN Stairsteps

~o~




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Recognizing a PULL UP:

When PRIME and COMBO creates a W pattern or an INVISIBLE CROSSING with PRIME or COMBO crossing UP through the JERK, while

PRIME and COMBO creates BULL Flags before and/or after crossing UP through the JERK.

See #4 and #6 below. You can also see the BULL flags in the PULL up after #2. "W" pattern at #6. INVISIBLE CROSSING at #4.

Recognizing a PULL UP (in simple words):

1. PRIME or COMBO are doing a W pattern or INVISIBLE CROSSING below JERK.2. PRIME and COMBO are doing BULL FLAGS above JERK.3. JERK is going up BELOW PRIME and COMBO.

~o~


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Studies/MindMaps/PRIMExCOMBO/PxC-20120613-WU-MD-20.png


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Recognizing a PULL DOWN:

When PRIME and COMBO creates a M pattern or an INVISIBLE CROSSING with PRIME or COMBO both Outside the UPPER-NARROWS

and above the JERK, while PRIME and COMBO creates BEAR Flags, before and/or after crossing DOWN through the JERK.

See numbers 1, 4, 6, 8 and 10 below. You can see clearly the BEAR flags in the PULL downs between #1 and #2. "M" patterns are #1and #6. INVISIBLE CROSSINGS are #4 and #8.

Recognizing a PULL DOWN (in simple words):

1. PRIME or COMBO are doing an M pattern or INVISIBLE CROSSING above JERK.2. PRIME or COMBO are doing BEAR Flags as it comes down through the JERK from ABOVE.3. JERK is going down, while PRIME and COMBO are BELOW the JERK.


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Studies/MindMaps/PRIMExCOMBO/PxC-20120607-MD-13.png


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Recognizing a SUPPORT UP:

When PRIME and COMBO cross DOWN through the JERK, while the JERK is going UP, DOWN or SIDEWAYS. The COMBO will remainABOVE the PRIME and the PRIME will remain BELOW COMBO and the JERK.

See #1 through #4 and #5 through #7 below. You see SUPPORT starts and ends when PRIME crosses DOWN, then UP through theJERK.

Recognizing a SUPPORT UP (in simple words):

1. PRIME and COMBO crosses DOWN through the JERK.2. JERK is going SIDEWAYS, UP or DOWN, ABOVE Zero.3. COMBO is ABOVE the PRIME and ABOVE the Lower Quarter-NARROWS.4. PRIME is BELOW COMBO and the JERK.

~o~


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Studies/MindMaps/PRIMExCOMBO/PXC-20120619-WU-11.png


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Recognizing a SUPPORT DOWN:

When PRIME and COMBO cross UP through the JERK, while the JERK is going DOWN, UP or SIDEWAYS. The PRIME will remain ABOVEthe COMBO and the COMBO will remain BELOW the PRIME.

See #4 to #5, #6 to #7 and #10 to #11 below. You see SUPPORT starts and ends when PRIME crosses UP and then DOWN through theJERK.

Recognizing a SUPPORT DOWN (in simple words):

1. PRIME and COMBO crosses UP through the JERK.2. JERK is going SIDEWAYS, DOWN or UP, BELOW Zero.3. COMBO is BELOW the PRIME and BELOW the Upper Quarter-NARROWS.4. PRIME is ABOVE COMBO and the JERK.

~o~


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Studies/MindMaps/PRIMExCOMBO/PxC-20120611-MD-14.png


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How Trend Starts from Sideways:

1. 68% of trends start with either a "W" pattern for UP or a "M" pattern for DOWN.

2. Rate_6 is 72% accurate in predicting the trend direction that will be after the sideways.

3. 96% of downtrends starts with a "M" pattern.

~o~


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20Sideways%20Market%20Study.jpg


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The Jerk Cycle:

The JERK cycle begins and ends as it crosses the ZERO...

1. If the Jerk is running FLAT, use the Rule of Threes starting your count from the Lowest JERK Valley or from the Highest JERK

Peak. The PULL begins at the 3rd.2. If the JERK only creates Two Valleys ("W"s - Fesses) or Two Peaks ("M"s - Tetons), the PULL begins after the second.3. If the JERK has many peaks - you have a sustained trend UP; find the Highest Peak and the 2nd or 3rd peak after that willstart a PULL DOWN. Use the PRIME and how it approaches the Zero with strength and how the PRIME is close to the Zero as yourclue to take a LONG.4. If the JERK has many valleys - you have a sustained trend DOWN; find the Lowest Valley and the 2nd or 3rd valley after thatwill start a PULL UP. Use the PRIME and how it approaches the Zero with strength and how the PRIME is close to the Zero as yourclue to take a SHORT.5. If ever the COMBO or PRIME creates a "CHECKMARK" pattern as it crosses or after it crossed the JERK or the PRIME bounces offthe Zero, DO NOT HESITATE -- go take a position, just be on guard that on LOW VOLUME - slow market days, the PULL will be less

than 2 points.

Please see this video for the details.

With the JERK SECRETS above, you will never be at a loss when the market may turn in its "DANCE"!


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Videos/STS%20Secrets%20of%20the%20JERK%20Cycle.mp4


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The STS Stacking Theory...

The UNIVERSE may have given us a means to TAME the MIND and be profitable!

HOW? Through the use of a weakening DELTA and the STACKING of the STS lines, we may now know, with confidence, the turns in

the "Dance of the Market".

WHY? Our lack of profitability was mostly due to the UNCERTAINTY of whether a pivot will be a Trend Change or just a retrace

going to Trend Continuation.

WHAT? The STS Stacking Theory may make trading even simpler and easier on the mind! All we do is when the DELTA weakens or

"cools" (with angle-based gradient the color lightens) or you have a pivot in the price action, start looking for an orderly stacking ofSTS lines. If you have ALL the lines stacked well, except for the JERK, then take a position or reverse, if you are already in a

position.

WHO? We use only the PRIME, JERK, DELTA and COMBO_A and B when employing the STS Stacking Theory.

WHERE? The STS Stacking theory is used whenever a PULL starts and ends. We also use it when SUPPORT finally ends.

WHEN? Use the STS Stacking theory as you trade. Look for "L", "7" or "Checkmark" patterns on any of the STS lines at pivots. When

you see these patterns immediately enter or reverse your position. When you see an Orderly Stacking of STS lines with a "V" or "Cup"

pattern on ALL the lines except JERK, then enter a position or reverse.


http://childrenofthejourneysangha.blogspot.com/2012/09/the-sts-stacking-theory.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/09/the-sts-stacking-theory.html


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Please see the picture below for clarity...


https://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20%20-%20Stacking%20Theory%20-%20Now%20we%20keep%20step%20with%20the%20turns%20of%20the%20market%20dance.jpg


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Additions to the STS Stacking Theory...

More on the STS Stacking Theory:

1. We made the STS lines more jagged by turning down the smoothing. This will allow us to easily see "Orderly" stacking much more

easily. We went from 13 to 9 for smoothing on MacdRateSmooth_1 and to 5 for MacdRateSmooth_6.

2. When you get a "BOWL" pattern - it is continuation of trend, similar to "SAWTOOTH" patterns of "V"s or inverted "V"'s, when in

SUPPORT.

3. Open"V"'s stacking can be taken as an early entry of trend change, otherwise, just wait for an "Orderly" stack.

Please see this picture for clarity...


http://childrenofthejourneysangha.blogspot.com/2012/10/refinements-to-sts-stacking-theory.htmlhttps://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20Stack%20Theory%20-%20Bowl.jpghttp://childrenofthejourneysangha.blogspot.com/2012/10/refinements-to-sts-stacking-theory.html


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Taming your mind... with DELTA!

Use the DELTA to "Tame your Mind" and ease trading anxiety!

HOW?

By only looking for a clean STS stacking of lines when DELTA is opposite the JERK on the other side of the Zero.

WHY?

Because PULLs (Trend Changes) 80% of the time occur when the DELTA is on the other side of the Zero opposite from the JERK.

WHEN?

Before looking for a clean stacking of STS lines, which indicates a new Trend Change...

1. wait until PULL end or SUPPORT start, as the DELTA crosses to the opposite side of the Zero.2. wait until DELTA reaches towards and beyond the UPPER or LOWER NARROWS at SUPPORT end.


http://childrenofthejourneysangha.blogspot.com/2012/10/taming-your-mind-with-delta.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/10/taming-your-mind-with-delta.html


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http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20Stack%20Theory%20-%20DELTA%20Use.jpg


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The DELTA Secret!

Thank you Gary Suer for noticing what Kurt and I obviously did not see about the DELTA.

Trading the STS lines became simpler still...Begin looking for a CLEAN Stacking of STS lines as the DELTA is about to be rejoined by the other STS lines.

Known Facts about the DELTA:

1. When DELTA is sideways ABOVE Zero, sustained DOWN Trend.

2. When DELTA is sideways BELOW Zero, sustained UP Trend.

3. When DELTA crosses ABOVE the UPPER NARROWS, it signals END of DOWN SUPPORT.

4. When DELTA crosses BELOW the LOWER NARROWS, it signals END of UP SUPPORT.

5. When DELTA is ABOVE (DELTA CEILING) ALL the STS lines, we have SUPPORT for DOWN until the STS lines meet with the DELTA

again ABOVE the Zero, signaling end of DOWN SUPPORT and UP Trend begins.

6. When DELTA is BELOW (DELTA FLOOR) ALL the STS lines, we have SUPPORT for UP until theSTS lines meet with the DELTA

again BELOW the Zero, signaling end of UP SUPPORT and DOWN Trend begins.

Points 5 and 6 gives our minds the utmost peace, because we know we stay in position until DELTA meets ALL the STS lines

again after a PULL had been taken!

As Kurt said,"We just sit back on our Lazy Boy, while in the Lion's Den, watching the Lion clean his teeth and saying 'You missed a

spot!'".


http://childrenofthejourneysangha.blogspot.com/2012/10/the-delta-secret.htmlhttp://childrenofthejourneysangha.blogspot.com/2012/10/the-delta-secret.html


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Please do your Market Replays at a fast speed to prove out the DELTA secret of points 5 and 6 above.

You also do not need to use COMBO_B. PRIME-DELTA-JERK and COMBO_A are enough STS lines.

NOTE WHERE the DELTA meets the other STS lines within the NARROWS...

1. DELTA meets the lines at the UPPER or LOWER NARROWS, the trend reversal runs a very short distance or is nonexistent.

2. DELTA meets at the MID-NARROWS or near Zero, the trend reversal runs a long distance!


http://dl.dropbox.com/u/51589573/The%20Sangha%20Trading%20System/Pictures/STS%20-%20DELTA%20Secret.jpg


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End of Teachings...

Results:

This paragraph will be updated with how well our trading strategy does for our profitability.

Conclusion:

There is no Holy Grail of technical indicators. The best an STS practitioner can do is to "Dance" with the market and know when themarket is doing the FOXTROT (PULL sure profitability) or the JITTERBUG (destroyer of trading account).

Stay away when the market does the JITTERBUG, JERK is in the DANGER-ZONE or JERK in DIVERGENCE with price action!

The STS 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 Discipline.

Blessings Always

Arnulfo Pealoza and Kurt Duerod of the STS Development Team

