Trading with Seleneís Chariot


By Sean Erikson

Authorís Explanation of Seleneís Trading Tools


WHATíS IN THE BOOK?

So, what is this course about? First of all, itís a practical course. Yes, thereís some theory, and yes, if you want to take that theory and fly down one of Gannís rabbit holes with it, youíll be more than able to do that. But ultimately, I gave up going down rabbit holes long ago. Nowadays, Iím more interested in actually using a tool on charts to find trades. So, Iím going to skip the bullshit, and get right to the nuts and bolts. Obviously, Iím not going to show the whole thing, but Iíll go as close to it as Iím comfortable doing given the public nature of this page.


PRACTICAL TRADING APPLICATIONS

††††††† Hereís an 8 minute chart of the Emini that Iíve been watching for a couple weeks. On Thursday, the ES made a low. Check it out:

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†††††††††††††††††††††††††††† As soon as that low was in, I was able to draw the following:

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††††††† This is a channel, but not just any channel. The lines are not arbitrary. They are fixed, and they were fixed at the low of the move down from the 13th. These are invisible lines of force that will govern the market in the move up. They are very different from typical channel lines or trendlines you may have seen before, because they are not set by the market. These lines come from natural law. Itís a tunnel! A tunnel through the air! Do you see where Iím going with this?

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Again, these lines were not placed after the swing. They were placed BEFORE it! Thatís why theyíre special. The market will run up through this channel, until itís done, at which point it will enter into a downward facing channel.Thatís actually one of the ways we knew about the importance of the low on the 14th. There was another channel that the market was working through to the downside back then. Iíll add it so you know what Iím talking about:

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††††††† The ultimate confirmation that the trend was up and that the low on the 14th was the final move of the previous down swing was the fact that the market broke out of that red channel. There is no way we would have been anything other than long when that happened on the afternoon of the 14th. And yes, those red lines were fixed and drawn on the chart right at the time of the previous top on the 13th, when the market was working through yet another channel.

††††††† So thatís the first thing youíll learn how to do, draw in those channels. You can think of them as tubes. The market enters one end, and rattles around inside the tube until it comes out the other side. But how do we know when it will come out? Do we have to wait for a break of one of the channel lines as in the chart above? There are more to these tubes than just those two lines. One cool feature is that there is a time for making a turning point, and there is a time for trending. When the market finds itself up against the edge of the tube, and itís time for a turning point, then thatís when the market bounces.

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††††††† Iíve boxed in those special times on the chart. It looks like I just went through and circled the market each time it pressed up against one of the blue lines, doesnít it? I didnít! The time of those boxed was known in advance too, just like the channel lines. We were expecting the market to be bouncing at the time of those boxes! We also had some price targets to work with, two of them in this case:

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††††††† Like the times and the channels, those green lines were placed at the time of the low and gave us the levels when to expect the move to terminate. Usually swings turn over at the closer line, and if that one doesnít hold (as in this case), then the market gets an extra push up into the extended line.

††††††† So, what Iím saying is that everything Iíve drawn on the chart just now Ė channels, the pink boxes, and the green target lines Ė was actually available to me as the low came in on the 14th. The width between those two lines is over 15 points. The practical applications of having all that on the chart and ready to go should be obvious.

††††††† So once the market breaks out, like it did on the 19th, then what? Then we do it again:

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††††††† Now weíve got a new tube to work with, with another set of expected places where the market will bounce, as well as another set of price targets for the entire move.

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††††††† And it continues again, over and over, as new turning points come in, and new channels are set up.

††††††† So practically speaking, that gives you an idea of what youíll know how to do after you go through this material. Youíll be able to replicate these examples on your own, in any market, and on any time frame. This is how markets work!


SOME THEORETICAL BACKGROUND

Now letís get into the theory a little and talk about where all of this is coming from, although you should have guessed it from the title of the course, and since youíre reading this at CosmoEconomics.com.

††††††† Everything Iíve drawn here is based on astro, and not in some abstract, obscure way. Many traders have used planets to find potential turning points in the future, but thatís only the tip of the iceberg. Planets are much more involved in markets than most people realize. See those channel lines that the market follows back and forth? The planets put those there! Thereís no technical analysis in a traditional sense at play here. One point on a chart and the entire thing is laid bare! And it goes deeper than thatÖ Weíve looked at one big channel running up over the last four days. But within that channel, there are numerous other channels that make up the small stuff. Theyíre also not random:

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††††††† Iíve done my best to solve and draw them in, but in the real world youíd be watching a 4min or 2min chart and would be following along with all the minor channels as well. If youíre conservative, youíd be buying all the way up the blue tube as those minor channels broke to the upside, taking profits at the upper channel line.

But more to the point, those red channels are not random, and are also set by the planets! And see the squiggles within the red channels themselves? Yes, those miniscule uptrends and downtrends are also following their own little tubes. All market action, from the smallest twists and turns on a minute chart up to the gigantic turns on a monthly chart follow the same rules.

Iíve been saying planets, but thatís not correct. Itís just one planet. One planet that completely rules markets! Every twist and turn youíve ever seen on any chart of any freely traded market happened because of this one planet. Thereís some interesting theory for you! and it has some deep implications for many of the tools that Gann left lying around for the rest of us to figure out. Thatís not what this book is about, but after you go through this material, I guarantee youíll look at your Gann squares differently. Almost no one is using them properly.

Hopefully that gives you a taste of what the course is about, and what you can expect to learn from it. Thereís plenty more than what Iíve covered here, but this should be enough. If youíre looking to be an astrotrader, this book was written for you.

 

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