STS - The STS Quick Learning Manual

Jul.
11, 2014
THE STO QUICK LEARNING MANUAL
DISCLAIMER: Online trading involves substantial risk of loss and is not suitable for everyone.
The valuation of the contracts does fuctuate, and, as a result, you may lose more than your
original investment. The impact of seasonal and geopolitical events is already factored into
market prices. The highly leveraged nature of online trading means that small market
movements will have a great impact on your trading account and this can work against you,
leading to large losses or can work for you, leading to large gains. If the market moves against
you, you may sustain a total loss greater than the amount you deposited into your account.

You are responsible for all the risks and fnancial resources you use and for the trading
systems you are using. You should not engage in live trading unless you fully understand the
nature of the transactions you are entering into and the extent of your exposure to loss. If you
do not fully understand these risks you must seek independent advice from your fnancial
advisor. All trading strategies are used at your own risk. This mentoring should not e relied
upon as advice or construed as providing recommendations of any kind. It is your
responsiility to confrm and decide which trades to make. Trade only with risk capital; that
is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to
meet your fnancial obligations.

!ast results are no indication of future performance.

In no event should the content of this correspondence and coaching e construed as an
express or implied promise, guarantee or implication from "hildren of the #ourney that you
will proft or that losses can or will e limited in any manner whatsoever. "hildren of the
#ourney is not responsile for any losses incurred as a result of using any of our trading
strategies and mentoring. The Trading software should never e left unattended due to the
possiility of events out of your control, such as computer or data failure, power outages,
position mismatches, and$or network prolems. %oss&limiting strategies such as stop loss
orders may not e e'ective ecause market conditions or technological issues may make it
impossile to execute such orders. %ikewise, strategies using cominations of trading positions
such as (spread) or (straddle) trades may e *ust as risky as simple long and short positions.
Information provided in this correspondence and coaching is intended solely for informational
purposes and is otained from sources elieved to e reliale. Information is in no way
guaranteed. No guarantee of any kind is implied or possible where proections of future
conditions are attempted.
1 of 26 The STO Qu!" Le#$%%& M#%u#l
All R&h'( Re(e$)e*+
The Chl*$e% of 'he Jou$%e, S#%&h# of 'he E#(' Co#('. Co-,$&h', 2011.2014
Jul. 11, 2014
+evision %og,
-./0.1//./2.. 3 A.!e4alo5a 3 Total +evision to use the Awesome %ayout and Trading !lan.
-./2/./6./-22 3 A.!e4alo5a 3 added the 7T8 3 +osa"han %ayout and Trading !lan.
-./2.02..-... 3 A.!e4alo5a 3 added practice replay from the middle of a sustained downtrend.
-./2.0-9./-.. 3 A.!e4alo5a 3 ma*or revision to the 7T7 8:cial Trading !lan.
-./2.0.9./22. 3 A.!e4alo5a 3 added the 7T7 8:cial Trading !lan.
-./2.0.2./;.. 3 A.!e4alo5a 3 added running marathons and market profle.
-./2.0.2./-.. 3 A.!e4alo5a 3 revised the Trading <ethod and added =urt>s Trading !lan.
-./2.2/0./02. 3 A.!e4alo5a 3 added the !laygrounds and sprint vs marathons.
-./2.2././0.. 3 A.!e4alo5a 3 added mention of (The !erfect !icture ?ook).
-./2.--1./92. 3 A.!e4alo5a 3 created the 7angha @old & Ama5ing %ayout and 2&Aay BI7"I!%ICD Trading <ethod.
-./2.-/2..;2. 3 A.!e4alo5a 3 renamed the ?entley to the Awe7im Trading <ethod and removed the Belta teachings.
-./-//-E.-/2. & A.!e4alo5a 3 added minor additions and formatting.
-./-//-E./2.. 3 A.!e4alo5a 3 added the (Feart)G
-./-//-...6.. 3 A.!e4alo5a 3 initial revision.
+elated Bocuments,
Ae, http,$$childrenofthe*ourneysangha.logspot.com$
Ae, http,$$sanghatrading.logspot.com$
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"ontents
<ission 7tatement......................................................................................................................................................../
<astery /
!%AIC %AC@HA@D BI7"%AI<D+, 6
TFD 7AC@FA !+IC"I!%D7, 6
The 7T8 Iuick %earning <anual......................................................................................................................................0
!urpose, 0
7AJDTY, 0
7H+DTY, 1
!+8JITA?I%ITY, 1
7T8 allows us to know the two types of <arket Bance ?ehavior,....................................................................................1
The 7T8 <indset,....................................................................................................................................................1
7T8 ?enefts...........................................................................................................................................................1
"onKuer the Jear,....................................................................................................................................................2
=nown Jacts aout 7T8,...........................................................................................................................................2
The A3e(o4e L#,ou' 10
The Awesome Trading !lan, 11
7T7 8:cial @oals, %imits and <antras... 12
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<ACT+A7, 15
The Iuick %earning Training program, 14
?egin your 6. Bay "ountdown to %ive, 14
Teachings,..................................................................................................................................................................1/
This is the FDA+T of LThe Awesome Trading !lanL........................................................................................................1/
Ahat are the CA++8A7..........................................................................................................................................10
The "ycle concept,.................................................................................................................................................12
The !+I<D & #D+= & BD%TA lines,................................................................................................................................20
The Three <arket "ycles,........................................................................................................................................21
The IC and 7!IC lines,.............................................................................................................................................22
The A%!FAMA%% line and A%!FAMF8T ars,.................................................................................................................25
Dnd of Teachings....................................................................................................................................................24
"onclusion,.................................................................................................................................................................24
This page intentionally lank.
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Purpose
This is the collective Aisdom our 7piritual "ommunity of Traders had een made privy to
y the Hniversal Intelligence of %ove.
This manual is a compendium of knowledge we as individuals and as a community continue to learn with appreciation
and gratitude.
Mission Statement
Ae elieve in the Bivine and the Hniverse. Ae are eternally @rateful and ever Thankful for the @ift given.
Ae are continually given the most ama5ing insights aout this @iftN which allowed us to create a usiness that takes little of our
time to run during the day. This @ift enales us to spend Kuality time helping others as the Bivine wishes. This is the reason we
teach this @ift to others. Ae depend on the Bivine and the %ove of the Hniverse to lead others to us.

!astery
It is what LisL, you are seeing what you (see).
It is A%% in the techniKue and your e:ciencies.
You can>t predict the future trends of the market,
you are ut a mere follower, so act like itO
You must only develop the aility to see what is efore your eyes.
The Hniverse is asking for little more in this endeavor.
!ractice eing e:cientO
!oints per trade, get it up.
%ike Birk Cowit5ki in the C?A at -.9 points per hoop.
PThe est average near him is /.2Q.
Cot like <onica %ewinsky, who swallowed many a shot, ut didn>t get credit for one.
Hsing the least time and e'ort, a skilled performance R DJJI"IDCTO
Ae will ecome (<adly) skilled in this area. =urt BuerodG
/ of 26 The STO Qu!" Le#$%%& M#%u#l
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"#$%N #$N&'$&( )%*+#$%!(,-
/. The 7angha will never ask you for money.
-. The info I7 !+8SIBDB J+DD%Y with Lno strings attachedL.
2. The 7angha will provided answers and guidance pertinent only to (The 7angha Trading 8scillators P7T8Q).
0. The 7angha AI%% C8T provide proof of e'ectiveness nor ACY guarantee of JITCD77 of use. !rove it to yourselfO
9. You are J+DD to proft from (The 7angha Trading 8scillators) in any way you choose, with only 8CD +D7T+I"TI8C 3
@ive credit to (The "hildren of the #ourney 7angha) as the original creator.
T.( *$N&.$ ",%N+%"#(*-
/. Those that have the passion and perseverance, on their own volition, will prove the merits of LThe @iftL for
themselves and acKuire the necessary skills y their 8AC e'ort.
-. As LThe @iftL was freely given to the 7angha, we J+DD%Y give the gift from our heart to those who ask us. The
7angha will freely answer Kuestions and provide the foundational knowledge to those who seek to use LThe 7angha
Trading 8scillators) e'ectively.
2. The @ift of LThe 7angha Trading 8scillatorsL is 8pen 7ource and will adhere to the L1 @uiding !rinciplesL of 8pen
7ource.
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Jul. 11, 2014
The STO Quick Learning Manual
"urpose-
This document is the 7angha Trading 8scillator TeamTs latest understanding on how to use LThe 7angha Trading 8scillators)
proftaly using (The Awesome %ayout and Trading !lan). Ae include all the Tactics and 7trategy, we currently know of, for 7afe
and 7ure 3 proftaility.
Ahen you have your frst&look at the 7T8 tools used in the Awesome %ayout Pon the 7ierra"hart Trading !latformQ, please do C8T
e overwhelmed y all the lines. You will learn their function as you execute (The Awesome Trading plan). !lease learn aout the
CA++8A7, which is foundationalN we need CA++8A7 to clearly see the rhythm of the market dance and to alert us when the 7T8
lines are ready for the next market cycle.
*$/(TY-
Protect our tra!ing account, we employ the following tactics...
/. Hse a 7top and move it to the last (ounce) of the price&action Pwhere the price&action created a peak or valleyQ.
-. ?D 8?DBIDCT to the trading plan.
2. Hse only 8CD contract and =eep your max daily loss to less than U/9. P%oss %imitQ.
0. =eep your max daily flled trades to less than /- P8ver Trading %imitQ.
"AR#I#$: Doing %usiness &ith the Market is 0inherently0 )$N&(,O'*' Market price(
action ma sharpl go up or !o&n) PRE*E#TI#$ our Stop +rom acti,ating in a timel
manner- Please reali.e ou "ILL LOSE mone &hen this happens an! this is a /normal/
%eha,ior o+ the market-
As a ne& STO practitioner) ou are encourage! to use O#L0 one contract at a time) to
minimi.e this possi%le loss-
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Jul. 11, 2014
*',(TY-
%ook for and wait for (The Trade 7etup).
",O/%T$1%#%TY-
/. E1IT your position when you have (The Trade Dxit).
-. 2E"ARE 3 STA0 A"A0 when the market is sideways and 7T8 lines *ust stay in the BAC@D+ V8CD.
STO allo&s us to kno& the t&o tpes o+ Market Dance 2eha,ior:
/. Sustaine! Tren!s 45o6trot7 3 ?egins when !+I<D and IC lines cross Vero together, then the IC line stays
in the BAC@D+ V8CD as #D+= remains 8HT7IBD the <IB CA++8As and !+I<D cycles up and down through
the Vero.
-. Si!e&as an! Pi,oting 48itter%ug7 3 is a sign of continuation of a current trend. The IC line remains in
the BAC@D+ V8CD and #D+= is J%AT.
The STO Min!set:
/. LBAC"DL with the marketN we DO #OT PREDICT where it is going.
-. (F8!D) will not move the price&action to where we want it to goO
2. <arket direction is always known through the 7T8 lines.
STO 2ene9ts---
/. gives us the J+DDB8< of sight and awareness.
-. gives us the DCD+@Y to trade for a long time Pif we want toQ & due to %ess Jrustrations.
2. J+DD for everyone to use Pexcept for the monthly cost of a 7ierra "hart suscription & U-1 per monthQ.
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Con:uer the 5ear:
1. 5ear o+ Missing an Entr & when entering a position, 7T8 does <arket ?uy and 7ell.
2. /ear of the ,etrace taking you out - because with STO we know when to open up the Stop.
3. 5ear o+ the Si!e&as & going in and out of positions & ecause with 7T8 we know trend continuation Pfat means
continuedQ.
4. 5ear o+ 2a! Risk Management & 7top too tight or loose & ecause with 7T8 we know the market dance.
5. 5ear o+ #ot ;no&ing where the market is & ecause with 7T8 we know where the market will go.
6. 5ear o+ Losing 3 ecause with 7T8 we know when to take a position, when to hold and when to exit.
;no&n 5acts a%out STO:
/. All 7T8 lines cycle through Vero. Ahen a line goes aove the Vero, it will go elow the Vero and vice&versa.
The cycle has an Dxpansion phase, when it moves away from Vero and a "ontraction phase, when it moves ack towards
Vero.
Take a position when A%% the 7T8 line cycles are in Dxpansion or take an opposite position when A%% the 7T8 line cycles
are in "ontraction.
-. Ahen !+I<D and #D+= are A?8SD Vero, market tends to dance H!.
2. Ahen !+I<D and #D+= are ?D%8A Vero, market tends to dance B8AC.
0. !rice&action will not mo,e Kuickly until !+I<D or #D+= crosses the Vero.
9. Ahen #D+= is sideways A?8SD the H!!D+ <IBs, the market will continue to dance H!.
6. Ahen #D+= is sideways ?D%8A the %8AD+ <IBs, the market will continue to dance B8AC.
1. Ahen 7T8 lines are in the BAC@D+ V8CD, the market continues its current trend.
;. An 7T8 line Vero ?ounce is strong.
E. An 7T8 line LcheckmarkL pattern is strong.
/..7T8 lines are together during Vero crossing is strong, ut short&lived P#itterugQ.
//.Ahen 7T8 lines do not match price&action direction, you have BISD+@DC"D.
/-.Any 7T8 lines crossing Vero or each other has signifcance.
/2.Any (%DA!) of the 7T8 lines will cause price&action to go sideways.
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The Awesome Layout
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*TO 2 O3cial Trading "lan...
Pre(Plan:
+eKuirements,
/. Hnderstand the +I7= of 8nline Bay&Trading P+isks, Bay&TradingQ
-. ?e Jamiliar with the 7ierra"hart Trading !latform P7ierra"hart InstructionQ
2. "alirate the 7T8 CA++8As to the fnancial instrument traded P"alirating the CarrowsQ
0. Hnderstand the CA++8As and the concept of "ycles with Dxpansion phase and "ontraction phase P"alirating the
CarrowsQ
The $wesome Trading "lan-
!re&reKuisites,
/. 7erene, Fealthy and Alert
-. "omputer, Internet and Trading !latform are well
2. @oals, %imits and <antras reviewed P@oals, %imits, <antrasQ
0. In isolation & no distractions
!lan Dxecution,
/. "AIT' & AAIT for #D+= to e in your direction and IC line to already e at the correct side of Vero as !+I<D crosses Vero.
IC line and !+I<D <H7T ?D fairly "%87D together as you cross Vero.

-. E#TER' 3 when !+I<D crosses Vero and A%!FAMA%% crosses A%!FAMF8T, with #D+= going your direction. 4The Tra!e
Setup7
<- E1IT' 3 when !+I<D enters the BAC@D+ V8CD as IC line crosses Vero. 4The Tra!e E6it7
a. Ahen more than negative 9 ticks.
. Ahen price&action is sideways.
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Post(Plan:
Hpdate Trade #ournal log site
/. +ecord goals reached
-. +ecord limits and mantras roken
2. +ecord Kuality of 8?DBIDC"D to the Trading !lan
0. +ecord things learned
9. +ecord proft or loss and numer of flls
Bo re&capN Sideo or 7creenshot the charts and add to log site
*T* O3cial &oals, #imits and !antras...
$OALS:
You are an D<!%8YDD and <H7T ?D 8?DBIDCT to the LThe Trading !lanL
You trade only one contract at a time
You A%AAY7 AAIT for (The Trade 7etup)
You A%AAY7 execute (The Trade Dxit)
LIMITS:
<aximum daily flls, /-
<aximum daily %877, -9 ticks
Trailing 7top, /; ticks
RIS; MA#A$EME#T: ( 2est to Skpe an! tra!e &ith a Tra!ing 2u!!- Your Trading ?uddy will manage your risk
and you will manage theirs.
7T8! after two losses in a row or you>ve reached your daily loss limit, when you have no Trading ?uddy.
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!$NT,$*-
/Q The market pays you to ?D 8?DBIDCT to The Trading !lan.
-Q Bon>t claim to e oedient, if that is not the case /..W.
2Q Falve the numer of contracts you trade when trading poorly.
0Q Cever turn a winner into a loser.
9Q Your iggest loser can>t exceed your iggest winner.
6Q 7tick with the plan, do not change it.
1Q ?e yourself, do not try to e someone else.
;Q You always want to e ale to come ack the next day.
EQ Darn the right to trade more contracts at one time.
/.Q @et out of your losers.
//Q The frst loss is the est loss.
/-Q Bon>t hope and pray. Ahen you do, you will lose.
/2Q Bon>t worry aout news its history.
/0Q Bon>t speculate$predict. Ahen you do, you will lose.
/9Q %ove to lose money.
/6Q If your trade is not going anywhere in a given timeframe, then exit.
/1Q Cever take a ig loss. 8nly a ig loss can hurt you.
/;Q <ake a little it each day. Big your ditches. Bo not fll them.
/EQ Fit singles not home runs.
-.Q "onsistency uilds confdence and control.
-/Q %earn to sweat out P7cale outQ your winners Pwhen using multiple contractsQ.
--Q <ake the same type of trades, repeatedly. ?e a ricklayer.
-2Q Bo not over analy5e. Bo not procrastinate. Bo not hesitate. Ahen you do, you will lose. ?e AlertO
-0Q All traders are created eKual in the eyes of the market.
-9Q It is the market itself that wields the ultimate scale of *ustice.
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The 4uick #earning Training program-
/. Bo your Fistorical "hart studies.
a. %ook for The Trade 7etups, where !+I<D starts from outside the <IB&CA++8As.
. %ook for The Trade Dxits, where !+I<D enters the BAC@D+ V8CD, as IC line crosses the Vero.
-. Bo %ive&Bemo of the <arket and e 8?DBIDCT to the trading plan.
2. %et the Hniverse teach you the details as you do your 6. Bay countdown to %ISD.
1egin your 56 )ay +ountdown to #ive-
/. ?e 8?DBIDCT to the trading plan
-. Hse only / contract at frst, as your weeks go y proftaly, doule your contracts. Ahen not proftale, go ack to /.
2. <aintain a trade *ournal and video recap your daily countdown.
0. Ahy videoX ?ecause you need to record your thinking on why you did that action.
9. After taking a ?reak, do your Fistorical 7tudies of recogni5ing when the +DB&@+DDC lines are J%ATTI7F and when they are
outside the CA++8As.
6. Bo <arket +eplay, catching at least 2 +DB&@+DDC lines entering the CA++8As, proftaly. =eep replaying the scene until
you maximi5e your proft.
Share our insights &ith other STO practitioners- In +reel sharing our !isco,eries) &e ha,e ma!e such
&on!er+ul progress'
O2EDIE#CE to the tra!ing plan is paramount an! staing &ithin our Loss an! 5ille! Tra!e
Limits'
=- Tra!e TIC;S #OT MO#E0'
>- TRAI#) TRAI#) TRAI# 3 0ou ha,e to act on The Tra!e Setups an! E6its ?Instinctuall@'
<- PRO*E e,erthing to oursel+'
A- Tra!e "ITBOCT emotions'
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1/ of 26 The STO Qu!" Le#$%%& M#%u#l
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Teachings,
This is the BEART o+ /The A&esome Tra!ing Plan/---
#ust study this section and practice, practice, practice, always practiceG
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Quick PRIMER on the STO lines an! &hat the are:
/. The Dero Line 4Dero7 & is foundational to 7T8. Aithout the LVeroL, we will not know the various cycles the
market goes through. 7T8 essentially places a Vero line on the price&action & this is the source of power for
7T8.
-. The I# 4I#7 3 is the fastest speed 7T8 line, predicts where the !+I<D will go next.
2. The SPI# 3 is the IC line of the Figh&8rder Timeframe, when The Trade 7etup is present, use 7!IC to confrm
the strength of the direction.
0. The PRIME 4P7 3 is the medium speed 7T8 line, tells us the marketTs short term cycle. "hen /P/ crosses
the Dero line) it &ill mo,e the price.
9. The 8ER; 487 3 is the slowest speed 7T8 line, tells us the marketTs medium term cycle. Ahen L#L crosses the
Vero line to go Hp, you are in an uptrend. The reverse is true for downtrends. #D+= is essentially the price&
action with a Vero line.
6. The ALPBAEALL 4ALL7 & tells us when The Trade 7etup$Dxit is coming to time our entries$exits as
LA%!FAMA%%) crosses the (A%!FAMF8T) ars.
1. The ALPBAEBOT 4BOT7 3 tells us the %ong&Siew 3 (%ooking down the +oad), when the market dance will
change, go from an Dxpansion phase to a "ontraction phase Psee The "ycle conceptQ.
In the A&esome laout) &e use the I#) PRIME) 8ER;(BOT) ALPBAEALL) ALPBAEBOT an! SPI#-
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"hat are the #ARRO"S---
Darly in our development of 7T8,
the HCISD+7D taught us the importance of !+I<D and the signifcance of the CA++8As. The use of the CA++8As is very
important in allowing us to know the cycles of the market dance. The CA++8As allowed us to have a Vero line, where the most
exciting part of the market dance happens.
"ith the #ARRO"s) &e kno&F
/. "ontinuation as the price&action goes sideways or we are in (#itterug) Pa pivoting marketQ. The IC line stays in the
BAC@D+ V8CD.
-. +eliale (Trade 7etups and Dxits) as 7T8 lines cross the Vero, together.
2. 7ustained trends, as #D+= is fat outside the <IB&Carrows.
The #ARRO"s !e9ne an area a%o,e an! %elo& the ,er important Dero line-
Ae oserved that we can Lcali%rate/ the CA++8As to a specifc fnancial product or instrument.
Cali%rating the #ARRO"s to a 9nancial instrument:
/. Jind a True Trend "hange for H!.
-. Jind a True Trend "hange for B8AC.
2. 7et the Hpper CA++8As PHpper is aove the Vero lineQ aout where the #D+= starts a Bowntrend.
0. 7et the %ower CA++8As P%ower is elow the Vero lineQ aout where the #D+= starts an Hptrend.
9. 7ince we want the CA++8As symmetric around the Vero line the values for the Hpper and %ower Carrows are the
same.
Jor the TJ Pemini&+ussell -=Q, @"% P%ight "rudeQ, @@" P@oldQ and D7 Pemini&7 and ! 9..Q the Carrows is set to Y..1 and
&..1.
Ae then divide the Hpper Carrows in half and call it the Hpper <IB&Carrows.
Ae then divide the Hpper <IB&Carrows in half and call it the Hpper IHA+TD+&Carrows.
The same is done for the %ower Carrows.
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The area marked&out y the Hpper and %ower <IB&Carrows aout the Vero line & we call the MIDs.
The area marked&out y the Hpper and %ower IHA+TD+&Carrows aout the Vero line & we call the )$N&(,27ON(.
!lease see the cali%ration ,i!eo at this location or email childrenofthe*ourneyZgmail.com for help,
https,$$dl.dropoxusercontent.com$u$9/9;E912$TheW-.7anghaW-.TradingW-.7ystem$Sideos$7T7W-.&W-."alirating
W-.!+I<DW-.andW-.#D+=W-.toW-.theW-.Carrows.J%S
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The Ccle concept:
As any of the 7T8 lines cycle up and down through the Vero line, they create two phases.
The Phases o+ a CcleF
The EXPANSION Phase . #( 'he STO l%e !$o((e( 6e$o #%* -ull( #3#, f$o4 'he 6e$o.
The CONTRACTION Phase 7 #( 'he STO l%e $e#!he( # -e#"8)#lle, #%* he#*( 9#!" 'o 'he 6e$o.
Use the Cycle phase to your advantage
ONL !a"e a trade #hen ALL 'he STO l%e( e%'e$ $CONTRACTION % &EA'S (AC)* 'o3#$* 'he 6e$o.
+a"e a SURE trade #hen 'he :RIME !$o((e( 6e$o #%* ALL 'he STO l%e( #$e % $EXPANSION , PULLIN- A.A* /ro! the 0ero.
STA A.A #hen the 1ER) ( NOT 2n phase #2th the other STO l2nes3
1ut keep in mind that strong trends 8%## 1(&%N at "eaks9:alleys when the *TO lines ;:ees9'pside2down
:ees< from outside the !%)s as $## the *TO lines enter their +ontraction "hase together.
Fere is a picture to make the "ycle concept clear...
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The PRIME ( 8ER; ( DELTA lines:
The Hniverse let us know, with utmost certainty, that The !+I<D, #D+= and The BD%TA are the 8C%Y 2 lines needed to
LBanceL with the market 7afely and proftaly 3 ut we needed the detail sight provided y the IC line and A%!FAMA%%.
The IC and 7!IC lines lets us know where the !+I<D will go next.
The picture elow shows you why...
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The Three Market Ccles:
A%% the 7T8 tools are lines that represent the inherent cycles in the market.
7o far, we know of Three <arket "ycles exhiited y the !+I<D&#D+=& BD%TA ehaviors.
Short(term ccle 4Pi,oting Market7 ( PRIME & Hseful when the !+I<D *ust goes from Hpper CA++8A7 to %ower
CA++8A7 or when #D+= is in the BAC@D+ V8CD, then use the !+I<D to take positions on the 7T+8C@ side of the
market.
Me!ium(term ccle 4Tren!ing Market7 ( 8ER; ( Cse+ul &hen the market is in a tren!- E6it the tren! &hen
the 8ER; crosses through the Dero an! re(enter a sustaine! tren! &hen 8ER; crosses %ack again- The
8ER; goes si!e&as) usuall outsi!e the MIDs) to sustain a tren!-
Long(term ccle 4Sustaine! Tren!ing Market7 3 DELTA 4&hich is PRIME minus 8ER;7 & Cse+ul &hen ou
&ant to ma6imi.e our pro9ta%ilit- "e !o not tra!e &ith DELTA) %ut instea! use ALPBAEALL &ith
ALPBAEBOT-
ALL these lines ccle up an! !o&n through the .ero as the market /Dances along/-
All R&h'( Re(e$)e*+
Jul. 11, 2014
The I# an! SPI# lines:
The I# an! SPI# lines are---
I# R !+I<DPcurrentMarQ 3 !+I<DPpreviousMar 9 to /. ars ackQ
SPI# R !+I<DMF8TPcurrentMarQ 3 !+I<DMF8TPpreviousMar 9 to /. ars ackQ [F8T is Figh&8rder Timeframe
chart\
The 7!IC line is derived from the Figh&8rder Timeframe chart, which gives us (a look down the road)&the market may
travel, and is plotted on the <AIC chart, using a %ow&8rder Timeframe&focusing on the short&term&(looking at the hood
ornament)&instead of looking down the road.
Ae do our trading o' of the <AIC chart P%8TQ and the F8T chart gives us the long&term view of the market dance.
Bo& the I# an! SPI# lines helps---
Hsing the IC and 7!IC lines gives us confrmation of market direction and surety of trend continuation.
The IC line predicts where the !+I<D will go and we need to know if the !+I<D will e going away from the Vero
Pexpansion phase of the cycleQ or is the !+I<D going towards the Vero Pcontraction phase of the cycleQ. Ae <H7T take
positions when the !+I<D *ust crossed Vero and is doing an DxpansionO
The 7!IC line confrms the market direction and strength. Ahen 7!IC is elow Vero, the price&action is still B8AC.
Ahen 7!IC is aove Vero, the price&action is still H!. The distance the 7!IC is from Vero is the strength of the market
in that direction.
All R&h'( Re(e$)e*+
Jul. 11, 2014
The ALPBAEALL line an! ALPBAEBOT %ars:
The ALPBAEALL an! ALPBAEBOT are---
ALPBAEALL R "8<?8MAP%8TQ Y "8<?8MA PF8TQ
o COM2OEA R !+I<D Y #D+=
ALPBAEBOT R "8<?8MAPF8TQ
"8<?8MA is an 7T8 line derived from the addition of !+I<D with #D+= for a specifc timeframe. Ahen "8<?8MA
crosses #D+= going the same direction, it is usually a good place to take a trade.
The ALPBAEBOT makes ovious the phase changes o+ the market ccle. The ars will step in height and change
color as the cycle phase change.
The ALPBAEALL gives us con9rmation o+ the ,ali!it o+ the Tra!e Setup. Ahen the IC and !+I<D lines cross the
Vero, the A%!FAMA%% must cross the A%!FAMF8T.
He$e ( # -!'u$e 'o e;-l#% fu$'he$...

2/ of 26 The STO Qu!" Le#$%%& M#%u#l
All R&h'( Re(e$)e*+
Jul. 11, 2014
En! o+ Teachings---
"onclusion,
There is no Foly @rail of technical indicators. The est an 7T8 practitioner can do is to LBanceL with the market.
The STO Tools gi,en to us % the Cni,erse is a !%,$+#('
"hen &e are #OT Pro9ta%le---
it is %ecause o+ our LAC; o+ Trust in the tools an! our LAC; o+ O%e!ience to the tra!ing plan-
2lessings Al&asF
Arnul+o PeGalo.a an! ;urt Duero! o+ the STO De,elopment Team
All R&h'( Re(e$)e*+

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