The 3Dimensional Trading Breakthrough

Brian Schad
Example #2:
Another yearly time frame (weekly bars) depicting momentum changes with
the S&P 500. Plenty of opportunity.
Higher Highs/Higher Lows? Or, Lower Highs/Lower Lows?
As you can see in the first chart, in an overall uptrending market the upward cycles
have produced generally good timing signals while the downward cycles were not
reliable money-making signals. This is basic Commodity Trading 101 – Trade with
the Trend. You certainly don’t need me to tell you this, but I just want to show you
that in an upward trend, an upward cycle will produce higher highs and generally
higher lows.
Just the opposite is true for a down-trending market. In an overall down trending
market, the downward cycles should produce generally better timing signals,
while the upward cycles should not be profitable signals. I am reiterating the fact
that when the trend is down, the downward cycles will produce lower lows and
generally lower highs. These higher highs or lower lows are a critical aspect of
what we will be looking for to catch major trends with our style of trading.
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