Thank you for spending this hour with me and I hope that I can live up to your expectations in sharing this incredible tool I discovered for the application of trading in the financial markets.
I also wanted to thank Global Futures for sponsoring this event and hopefully we can capture some informative quality time. I hope you had a chance to read how the Vedic Code Price Momentum Indicator came about. It was through meeting, a chance meeting with Swami Ram Charran, a physicist, mathematician and experienced consultant in Vedic mathematics.
In sharing this information I was able to take this mathematical formula - that is basically an ancient formula that uses Vedic mathematics, and applies the basic Hindu Arabic mathematical system of 1 to 9. This form of mathematics is the basis of western mathematics, enabling me to integrate it with Elliot Wave principles and Fibonacci sequences, thus creating a proprietary algorithm for trading in the financial markets.
In using this formula I was able to essentially make an incredible discovery. The application of this formula for the financial markets increased the standard deviation ratio from 50% to anywhere from 85 to 90%, which is phenomenal.
Let's move on to taking a look at the beginning of the long-term cycle which started back in the 2008. Basically what we're looking at is a nine year cycle. The basis of this mathematical formula uses the nine year cycle you see on the chart below.
At the bottom of 2008, we experienced this massive financial meltdown, causing all class assets to collapse in value during the month of September of 2008.
I remember clearly… I've never had a gut feeling such as the one that I experienced in 2008, and that told me as a trader that we were beginning to experience something really unusual. Since then, basically the market has followed through with the bullish energy pattern into 2009, as expected and as we look at the acceleration pattern in 2010, it exceeded the objective of 1,800 in 2011.
Now, what you need to understand is that this information is produced twelve months in advance on the yearly charts. On the long-term charts it is produced nine years in advance. And on the thirty day chart it is produced thirty days in advance. So, this information is prospective information that you would have been able to have access to before 2008, recommending you hold onto your position all the way till you met your objective and target of 1,800 in 2011.
This is where we are right now. If we take a look at the long-term chart pattern in 2011, this is a second wave corrective pattern by integrating Elliot Wave formulas. We have gone into a second wave ABC correction which according to this chart appears to be completed by the end of 2014. We are in this first leg down from the 2011 highs above 1,800 made on September 6, and within this corrective pattern ever since.
Obviously in following this pattern, what I can say to you is that I have really some serious doubts, based on the recent resolution of the energy of this leg whether we will be able to get down to 1,300 level as opposed to what it appears to be developing, is possibly one of the strongest moves for this particular wave cycle year.
We will take a look at the yearly chart in a minute, but in completing this nine wave cycle gives us an idea in terms of the wave pattern that this code is following and it's indicating that the completion of this corrective wave pattern should take place sometime in 2014, from which we are going to experience probably the biggest and the longest rally in this market prior to the culmination of what could be the completion of this long term wave cycle top in 2020 above 3,200. We are looking at prices in 2016 to reach minimum levels of more than 2,500 dollars an ounce.
As you can see, the chart pattern in 2016 completes wave number IV, which is essentially setting the market up for what I believe to be a massive correction to the downside, very similar like the one we saw in 2008.
Let's move on to basically a comparison of the Gold Vedic Code Price Momentum indicator for 2011, with the real-time chart comparison below and you can see that the actual energy of the real time chart is very accurate or similar to the Vedic Code energy chart that was anticipated twelve months in advance.
Here you can take a look at the top in April… the end of April, and in fact silver got up to about fifty dollars an ounce. Look at the double top formation that gold made as of September 6, at 1,923.70, before the major downturn unfolded the rest of September. What we see here basically is that the correction that we saw in April, 2011, was not as deep for gold as it was for silver. Silver came down about 8% while gold was down about 30%, then we saw this massive rally from around late June, early July lasting all the way to September.
I hope that most of you were able to capture this up move and were also able to capture the top of the market that was made on September 6, at 1,923.70.
In fact we documented this trade on our first YouTube tape posted on September 7. You can follow the recommendations, confirmations that documented what this phenomenal code has produced since.
I want to move on to the next chart above and compare the chart to the real thirty days cycles that we use to capture tops or bottoms in the market as well as the acceleration patterns daily.
If we use the index which is the 1 to 9 axis on the left of chart, anything above 9 is completely overbought. As the momentum indicator shows anything at 1 is oversold.
So, if you're taking a look at the 9 year cycle and you are buying long term you would be buying into the corrections. If you see the previous chart again, the long-term chart for a second, and the yearly chart, I want to point out to you that from this correction that ended December 15, it is the ABC completion of the 5 wave pattern in 2011, and essentially picks the bottom or the beginning of the wave currently unfolding as the first wave pattern for 2012.
Okay. So let's go back to the 30 day daily action chart above and I want to point out to you how accurate this was in today's action. If everybody was watching we saw a massive move to the upside today. In fact we are looking at the 25th of January and the code is saying to cover short and reverse to long. So if you are trading the long side of the market, use the low entry points or the lows of these cycles to buy into your positions. If you are selling to take some profits use the high points in the chart to shave some profits. Or if you want to add to your position based on the trend use the acceleration mode patterns.
I want to the move on to the real-time chart above, the weekly Gold Fibonacci Retracement that we published in Seeking Alpha Jan 22, which essentially reflects the Vedic Code Price Momentum chart using a line chart. And you can see here just on the surface the first impression is very similar to the Vedic Code Chart produced twelve months in advance for the yearly charts.
So, it is pointing to us that here on this chart for example, using Fibonacci Retracements and breaking out of this pattern which seems to be a descending wedge, is a very bullish formation on the bigger picture. Here from the high made in September to the low made on December 29, we have a bearish flag formation which is a highly technical indicator anticipating the market is about to break out to the upside with the 2011 high as a short term target.
Ladies and Gentlemen, this is indicating to us that we're about to experience the most historical part of the gold market. This is a historical buying opportunity and we are beginning to see the price and charts aligning themselves to the energy that has been prospectively forecasted months in advance.
Let's take a look at the silver market in comparison to the gold Vedic chart above. Now here let me show you how I am personally using the Vedic Code gold price momentum indicator to trade in the silver market.
Additional disclosure: Additional disclosure: PRECIOUS METALS PRODUCTS TRADING INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS