Trading Lessons: Most Precise Way to Find Bounce & Termination Points


Jeff Greenblatt Image Jeff Greenblatt Director, Lucas Wave International, LLC

The Kairos method of squaring price and time can be used for stocks, commodities, futures, and forex. It works for intraday, swing or long term, asserts Jeff Greenblatt, director of Lucas Wave International and editor of The Fibonacci Forecaster. Our every Friday Trading Lessons.

Kairos is defined as the supreme moment. Many traders don’t realize it but markets are a zero-sum game which means for every winner there is a loser.

To get paid, the money must slip from another trader’s account into yours. Most don’t think about it this way because they know there is a broker which is a gigantic institution and it's very impersonal.

However, for any trader to succeed, that person must have an edge to identify when the pattern is likely to turn in their favor with the best possible risk-reward ratio.

To understand your edge, you need to know what may be coming against you, avoid it and instead get into a flow state with it. The question becomes, how do you do that? Approximately one hundred years ago, W. D. Gann taught when price and time squared, the pattern changed direction.

In the same era, a man named Bernard Baruch famously said he wasn’t interested in the first or last 10% of a move but he was very interested in that middle 80%. Baruch was the Warren Buffett of his times. You can imagine how important he viewed the trend and how it was his friend. It’s vitally important to be able to recognize the termination points of bounces in bear phases and pullbacks in bull phases.

There are many ways to play pullbacks and bounces.