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How Kenison Counting Numbers Work
It has now been over thirty years ago since I discovered Kenison Counting Numbers, a popular market timing method now used by traders around the world.
At the time, I had just suffered a series of devastating trading losses and was desperately searching for a simple yet totally reliable way to time the markets. I was absolutely convinced there was an underlying and identifiable pattern or rhythm in the markets.I could sense it. I just knew it was there. But, I had no idea what it was.I wrestled with questions of how such a thing could be. Or more to the point, since I saw evidence of it's actualexistence, how could Iprove it was really there? Even though initially I even questioned my own perceptions, I knew in my bones it existed. I was determined to do whateverit took to identify it, pick it apart and ultimately find out exactly what made it tick.
It was then that I realized if you could discover any sort of regular or consistentpattern in market movements, you would have the key to successful trading! Why? Because you could then trade in sync with the timing patterns controllingmarket movement.This was certainly a goal worth devoting a lifetime of research to. And, as it turns out, I did.
I started my search by going to the source which was the markets themselves. I studied charts from every market I could get my hands on. Some charts were constructed from data going back to the start of the Chicago Board of Trade in 1848. I knew that if there was a pattern thatrepeated itself in the markets, I couldfind it. That is, I could find it if I was given enough time, effort and stacks of charts to look at.
After night after night of painstaking study, a bit of inspiration arrived from somewhere. I surmised that by simply using a daily futures chart where each vertical bar represents a single trading day, I could possibly detect tradable patterns as reversal points occurred in normal ongoing markets. Specifically, I was looking for reversals that tended to happen on the samenumber counts over and over again when counting bars on a price chart forwardin time from any recognizable high or low point in the past.
It was about this time that a fellow trader related to me that W. D. Gann, the world famous market timer, was purported to have said"if you want to know how to time the markets, read the Bible three times."
I had generally studied the writings of Gann and was frankly never able to get much out of his cryptic and obscure ramblings other than to note his focus ontimeas opposed to price pattern analysis. Nevertheless, this got me to thinking. Was it in fact possible for specific number counts to spotlight points in time where reversal energy would be demonstrably exposed in the future? My research indicated that was indeed the case with the number counts I had already identified in my relentless search through endless chart examples. But now, this new wrinkle presented itself. Was it possible as some sort of confirmingdevice that these same numbers are also numbers prominently mentioned in the sacred texts?
Since it was my custom to regularly read in the Bible, I decided to keep a notebook handy to jot down specific numbers mentioned in the Bible as I came across them. I had no real expectations one way or the other, but I was looking forward to comparing the numbers my private research was turning up with the numbers prominently mentioned in the Bible.
So what did I find? Actually, it was a head scratching puzzle. What I noticed right away after collecting months of references was that there were an amazing number of near misses. That is, numbers from the Bible were in most cases off by just one number count from the numbers I had already identified through research.
This wasn't the only thing that bothered me. I'd been in a quandary for years over a quotation from Jesus found in Luke 24:46 which said "Thus it is written, and thus it behooved Christ to suffer, and to rise from the dead the third day."
With my persistent mindset, I just couldn't see how Sunday was the thirdday. It seemed to me that if Christ was crucified on Friday, then Monday should be the third day. It had been a long running and seemingly irreconcilable question in my mind.
Then out of the blue it struck me. To make the biblical order work, you would have to count Friday as day numberone. Why this had been so hard for me to see was I suppose understandable. Counting that way was just not how we were taught to count since grade school. Nevertheless, this was a critical breakthrough. I had now learned how God counts.
The next step was obvious. I would use this newly learned counting method on the charts I was studying and see how the number counts compared with what I was doing before. I picked up one of my trusty old charts and started counting daysforward from a prominent top reversal point on the chart using the top day as count number one.
Immediately, it jumped off the page at me. By adjusting the number count by just one day to reflect the new counting method, the correlation between Bible numbers and specific number counts I had already collected was now almost perfectly...in sync.
I say almostperfectly because what showed up was a pattern ofso called hits where actualreversal days occurring on the chart would tend tohit (1) on the day just before, (2) right on or (3) the day justafter the counting number day.
This was heady stuff.Clearly, by using the 40 different and proven counting numbers so painstakingly identified through research and confirmed in most cases by biblical references, I could now exactly pinpoint into the future perfectly defined and extremely powerful 3 day reversal zones. Or, put another way, I could spotlight identifiable timing windows.And, all this on any chart for any market in the world at any time.
It's important to note that thestrongest reversal energy always resides in the center day of the 3 day zone or window. I don't know why, but the image of Christ crucified between 2 malefactors came to mind as I worked with this material. And, as it turns out, the idea of a 3unit zone or window with the most powerful reversal energy focused on the center unit became over time an even more powerful research concept.
And, here's another curiosity. Apparently, there's no way to determine or foretell whether anticipated reversals will be up or downreversals until you get there. As the market starts toactually trade up or down intothe zone or window, then and only then does the market tip it's hand to us.
And, here's the really great part. This happens exactly at the critical moment to do something from a market timing standpoint. That is, just before the market reverses. And, only those that know the specific number sequence which is in essence the language of the markets understand what the markets are saying when they speak.
Amazingly, the markets literally hand us top secret timing information at the critical moment for us to use it forpositioningtrades in the rightdirection. This is precisely the right time to betotally in sync with the flow of market movement.
Now, here's how it works.If a market isinitiallytrading down into a 3 day reversal zone, then we should expect a reversal of some consequence to occur to the upside during the period of that reversal zone. The anticipated reversal up is thenconfirmed and a buy signal is generated on any subsequent day that sees a rally above a previous day's high. It could not be more simple.
And conversely, if a marketinitially trades up into a 3 day reversal zone, we should expect a reversal to the downside. The anticipated reversal is then confirmed and a sell signal is generated by any subsequent dropbelow a previous day's low.
Another major plus is that this strategy automatically generates close-in stops and or stop/reverse points just on the other side of these recently anticipated and confirmed reversals. This cuts our risk to the bone while at the same time maximizing profit potential.
It was at this point that it suddenly occurred to me that what was really happening here in this march of black bars across price charts was the ongoing record in time of an unbelievable projection process. This counting progression appears to be tracking some hitherto unknown energy ripples that radiate forward in time from high and low reversal points in the past.
My research proved this process is indeed ongoing. It's constantly radiating energy off reversal points in the past which consequently projects three daytiming windows or reversal zones into the future. This amazing reversal energy generates future reversal points in reliable interval patterns falling precisely on certain specific number counts which I had now painstakingly identified.
But, how could this be? All I could imagine was some kind of mysterious wave energy must be radiating like a beacon off top or bottom reversal points in the past. These waves are continually moving out into the future in varying degrees of intensity, set in irregular yet constant intervals and with enough structured energy to dramatically affect directional turns in any market in exactly the same manner and timing count sequence. And all this, at precisely andobjectivelyprojected points in time in the future. Wow!
Sit back for a moment and think about this. The magnitude of this discovery or literal revelation is mind boggling in it's implication and absolutely astounding in it's import. It's almost as if the curtain has been ripped back and we're now privileged to look lingeringly at the fabric of space and time. We are now witness to the framework God employs to organize time and event progressions. Shockingly, it would appear that nothing happens by chance.
Instinctively, I realized this method of market timing could not be called fundamental or technical analysis. It is rather an entirely new and unique method of market timing analysis which I dubbed temporal analysis since it is based on time instead of price.Indeed, I could now see that one of the greatest hallmarksof the newly named Kenison Counting Numbers was thetotal lack of subjectivity in producing such valuable timing projections.
No guesswork is ever involved. The Kenison Counting Numbers sequence is easy to use and understand. It even appeals to those who have never traded before and need someone to show them the ropes. You don't need a calculator, computer program or any kind of specialized foreknowledge. The signals projected are very precise and completely objective. It's all right there on the chart. Remember, this is purely eyeball to chart analysis. The counting numbers pinpoint exactly where the next reversal energy in the market will be exposed. And correspondingly, you then know exactly where the next projected reversal should be expected. It's that simple. And, where do you get the charts you need? They're free on the internet.
And, here's another thing. Kenison Counting Numbers will never become obsolete. A trader will be able to pinpoint exactly within one day of specificfuture number counts where market reversals of varying degrees of magnitude should appear.
How do we know this? Simply because years of exhaustive historical research has proven that whether you're looking at constructed charts from the last two centuries, the 1970's or last week, the analysis would have worked exactlythe same in each era and with exactly the same results. After learning the Kenison Counting Numbers market timing method, it is impossible to look at a price chart the same ever again.
I was also extremely gratified to learn through decades of ongoing research that Kenison Counting Numbers work equally well in projecting future reversal points in any market worldwide, irregardless of whether it's a futures, options, stock, forex or cash market.
So, exactly how do Kenison Counting Numbers work?
This totally unique and extremely powerful method's ability to project important market highs and lows in the future is uncanny. How does it do it? After decades of personal research, I have identified the irregular number sequence the market itself observes. Just count the bars on a price chart forward from any market high or low point in the past and the Kenison Counting Numbers will tell you exactly on which numbers in the sequence you should expect powerful reversal energy to be exposedin the future. And, all this is accomplished with a very high degree of reliability. This allows traders to anticipate, confirm and then act on potentially profitable trading turns that the uninformed don't even see comingor have the slightest idea can be detected in advance.
With this new life long knowledge, you can spend just moments with a price chart and know with total confidence what your course of action should be and with absolute clarity what the potential risks are. There's no need to check with anyone first. You're the expert! Why? Because when you understand this market timing method you'll know with quiet confidence what the market itselfis telling you about current trends and potentially explosive turning points and exactly when to expect them. Your broker will start asking you for advice. Believe me, I know.
And now another amazing fact concerning the Kenison Counting Numbers method. It works exactly the same no matter what time frame chart you're looking at! As we already know if you apply the counting numbers to a daily chart, you will project daily reversals into the future. But surprisingly, If you also apply it to a weekly chart, you will project weekly reversal points into the future. In fact, the same Kenison Counting Numbers sequence works equally well when applied to monthly, weekly, daily or intra-day charts.
At this point another phenomenal discovery was made. I discovered you could determine the most likely actual future reversal day, week or month within each projected reversal zone by using the Kenison Counting Numbers to count backward in time from each of the three days, weeks or months within each reversal zone. How does this work? Quite simply, when you count backwards in the fashion mentioned above, you will notice that significant high and low points in the pastfall exactly on specific number counts in the Kenison Counting Number sequence. But this happens only if you are counting backwards from the most likely actual future day, week or month where the market will in fact reverse!As I witnessed this mirror image or echo effect in action, I realized this is truly a miracle.
It is astounding to realize by counting forward or backwards in timethat reversal energy is exposed on the samenumber counts in the Kenison Counting Numbers sequence irregardless of whether you're counting on monthly, weekly, daily, 60 minute, 30 minute or 15 minute price charts. The magnitude of this discovery is truly amazing.
Copyright (c) 2006 Bruce Kenison. All rights reserved.
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Bruce Kenison is the founder of several market timing advisory services employing the Kenison Counting Numbers precision market timing method and is the Editor of Bruce Kenison's Market Timing Signals ezine and newsletter available FREE to investors and hedgers. He is also president of a publishing and seminar company that recently published the 5th Edition ofBruce Kenison's Market Timing Home Study Course.For a FREE subscription to the ezine or newsletter and information on products and services, send a blank e-mail with "Subscribe" in the subject line to: brucekenison1@yahoo.com
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