The market in simple terms reminds me of the sea. It goes up and it goes down; it has tides and swells that combine in vast combinations of smaller waves in between. The markets are stirred by a myriad of social, economic, and political forces. Like the sea, its up and down movements appear to be random. But they are not. The market even more than the sea goes up and down in distinct patterns.

In the first half of the 20th century, Ralph Nelson Elliott concluded that financial markets have a striking resemblance to a basic harmony found in nature (i.e. the sea) and postulated that price movements in financial markets follow patterns but not necessarily in time or amplitude. Elliott set up the Wave Principle on empirically derived rules for interpreting the price action. Elliott postulated that financial prices unfold according to a basic rhythm or pattern which he numbered and gave names to. Ironically, few traders actually apply any type of pattern finding Analysis software to their trading methods. This is because many are unsure about the intricacies of converting theories to real life mathematical trading techniques.

Analysis Software is code or algorithms that combine technical analysis with artificial intelligence (AI) technologies which hopefully allows the user to make sense of large amounts of complex data. The theory behind the technique is that there is too much data for a human to analyze on one's own. Evaluating 20 years of tick by tick data (waves) would certainly eat up a large chunk of your life, while neural networks and genetic algorithms learn patterns from historical data in a fraction of the time and optimize system parameters on very subtle variables. Good software should allow you to profit from the consistencies in the market place without making you have to get a PhD in statistics.

Think of the profits waiting for those who have the mathematical insight to ride each wave up and then back down over and over again. Herein lies the key to low risk long term success in the markets. "Riding the Waves" every day, "scalping" little gains consistently. In addition, rule based quantitative systems like our FMS; give traders automated buy and sell signals allowing you to be in complete control of each trade, and your emotions.

Lastly take note that there is no charge for the FMS Daily Forecast subscription. We do ask however that you not attempt to sell, or post publicly the forecasts; otherwise you can use the system however you like. I will leave you with this final warning. Having 70% to 80% accurate forecasts does not make you profit, it is knowing how to act on the information that locks in a profit. Please take some time to review the rest of this site to learn more.    <Previous Topic | Next Topic>