Boot Camp #2 – Knees and Toes

Warming up comes next.

Use your head, which of the following is true?

  • The market exists to transfer wealth from those in the know of of the mechanism to those who don’t know.
  • Trader / Day Trader are synonyms of looser / donor.
  • Feeling good is part of the appeal for wanting to come back; you can win any fight (trade) –  and be happy temporarily, but you will always end up losing the war.

Transferring wealth starts with entrapment and squeeze the trader until their bet / capital is taken.

It is all in the head!

You can find the modified Stochastic Bars in the downloads, but all you really need is a plain ol’ RSI 8.


The first head with the lengthy divergence is easy to spot.


Would you have found the second one?

For the left shoulder you need an oversold RSI (<30) and for the HEAD you would need one that is just out of oversold with price close to matching or exceeding the measuring low.

In order to start making money:

You need to find the trap (jefe/téte) and bet that the market is going to be running away from the area.

You need to stop making multiple trades per day, in fact, most of your trades should be more than a few days long.

The 36 would plot some of the heads (butterflies) for you (based on stochastic divergences), and now there is a boosted version (V1.3R) with RSI divergences added.