This topic started in another thread, but got a little convoluted.

We’re on the right track now, and I think this method/approach may

be of interest to others.

So, you want a winning system that has the potential to be profitable

forever? Try the following:

First, let’s apply common sense.

If a million people are looking at the same market aspects you are, what

are the odds of any of those aspects providing you with *substantial*

profit? The best you can hope for is some small profit for a little while.

Books and systems out there can offer general education, and some basic

ideas on where to start, but if any of the aspects of such showed strong

profit, do you think their creators would have disseminated that information

for any amount of money?

Bearing this in mind, we can see that aspects of the market that are

unknown or known by few, have much more potential for profit.

But how to go about it…

First, you will need a minimum of general knowledge.

- Elliot Wave theory
- Candlestick theory
- Mathematical logics

With the Elliot, don’t concern yourself with the overall pattern. Study the

Characteristics(how they act) and logic of the waves (swings) themselves.

With candles, familiarize yourself with the basic patterns, and study the

logic behind those patterns.

With mathematics, there are market logics such as indicators and other

mathematical interpretations of the market, and then there are logics

outside the realm of markets but still applicable. Chaos theory and

Probability Theory are a few examples. Familiarize yourself with the math behind each logic, but focus mainly on the *logic* the math is supposed to represent.

Now that we have our minimum general knowledge, let’s turn to the "base"

of the market: the AB pattern.

The AB pattern is simply an upswing followed by a downswing, or a

downswing followed by an upswing.

Consider the aspects of each bar in the swings:

- Position in swing
- Relationships of High and Low (individually and in groups)
- Relationships of Open and Close (individually and in groups)
- Relationships of bar range (individually and in groups)

Next, consider the relationships of the swings:

- Size of swing
- Average number of bars in swing

When studying this, try to work out the logic behind what you are seeing.

Now that you’ve done this, it’s time to consider the logics.

The trick is to think about the logics you have accumulated, and how they

go together. Play with it. Move the logics around. Compare and contrast

them. Add them and subtract them. Find new ways to put them together.

Your time will be well spent. If you can isolate just *one* pattern, you

will do very well.

As an example, the price pattern I use began with the logic behind Chaos

theory. From that single logic, I extrapolated a single market aspect that

proved to have a powerfull confluence with other market aspects.

In closing, I assert that, based on reason common sense and personal

experience, the patterns you find with this method will yield results far

superior to any known approaches. Further, these patterns should

continue to yield profit for many years. I have used 1 or 2 patterns for

over a decade.

The logics of the market and math are diverse and many. So, Let’s talk

about logics traders use. Give the specs of your logic and it’s uses…etc.