|  FEB 1988

Wave Market Analysis Part I by Bryce T. Gilmore

Wave Market Analysis Part I by Bryce T. Gilmore As Perry J. Kaufman says in his book Commodity Trading Systems and Methods: ""Speculation is a sophisticated business, and to be successful at it you must make it your business. To compete with a professional speculator you must anticipate the next move better or be more accurate in predicting prices from current news—not the one printed in today's newspaper but the one that has yet to be published. ""Pattern recognition over short intervals is a study of behavioral science. Within the commodities markets speculators and commercial traders will react in a similar manner over and over again given similar circumstances. After many years these patterns may vary or become more complex, but they exist and can be used to anticipate subsequent price moves. The exclusive use of patterns will divorce you from any long-term supply-and-demand factors, since the short-term move may be contrary to the ultimate direction of prices."" My philosophy for trading relies on these words of wisdom. To be successful we must study the past and determine which patterns were reliable in most cases to cause a reaction or complete change of trend to the prices of a particular option.

by Bryce T. Gilmore