STO - The STO Quick Learning Manual

Aug.
6, 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$or network prolems. %oss&limiting strategies such as stop loss
orders may not e e'ective ecause market conditions or technological issues may make it
impossile to execute such orders. %ikewise, strategies using cominations of trading positions
such as (spread) or (straddle) trades may e *ust as risky as simple long and short positions.
Information provided in this correspondence and coaching is intended solely for informational
purposes and is otained from sources elieved to e reliale. Information is in no way
guaranteed. No guarantee of any kind is implied or possible where proections of future
conditions are attempted.
1 of 26 The STO Qui! Le"#$i$g M"$u"%
A%% Righ&' Re'e#(e)*
The Chi%)#e$ of &he +ou#$e, S"$gh" of &he E"'& Co"'&. Co-,#igh&, 2011.2014
Aug. 6, 2014
+evision %og,
-./0.1.2.//.. 3 A.!e4alo5a 3 added revised 67&89T timeframe to -:... ticks, no longer using Alpha;89T and
#6+<;89T.
-./0.=>../0.. 3 A.!e4alo5a 3 added revised %9T and 89T Trading !lan.
-./0.=/:./0-: 3 A.!e4alo5a 3 added revised "ycle "oncept to use ?! and @9AB Clocks.
-./0.=//..D0- 3 A.!e4alo5a 3 added revised "ycle "oncept and the Awesome&89T Trading !lan.
-./0.=/../>.. 3 A.!e4alo5a 3 Total +evision to use the Awesome %ayout and Trading !lan.
-./>/./2./->> 3 A.!e4alo5a 3 added the 7T9 3 +osa"han %ayout and Trading !lan.
-./>.0>..-... 3 A.!e4alo5a 3 added practice replay from the middle of a sustained downtrend.
-./>.0-:./-.. 3 A.!e4alo5a 3 ma*or revision to the 7T9 9Ecial Trading !lan.
-./>.0.:./>>. 3 A.!e4alo5a 3 added the 7T9 9Ecial Trading !lan.
-./>.0.>./1.. 3 A.!e4alo5a 3 added running marathons and market profle.
-./>.0.>./-.. 3 A.!e4alo5a 3 revised the Trading Fethod and added <urtGs Trading !lan.
-./>.>/0./0>. 3 A.!e4alo5a 3 added the !laygrounds and sprint vs marathons.
-./>.>././0.. 3 A.!e4alo5a 3 added mention of (The !erfect !icture Cook).
-./>.--=./:>. 3 A.!e4alo5a 3 created the 7angha Hold & Ama5ing %ayout and >&Aay @I7"I!%IB6 Trading Fethod.
-./>.-/>..1>. 3 A.!e4alo5a 3 renamed the Centley to the Awe7im Trading Fethod and removed the @elta teachings.
-./-//-D.-/>. & A.!e4alo5a 3 added minor additions and formatting.
-./-//-D./>.. 3 A.!e4alo5a 3 added the (8eart)I
-./-//-...2.. 3 A.!e4alo5a 3 initial revision.
+elated @ocuments,
Ae, http,$$childrenofthe*ourneysangha.logspot.com$
Ae, http,$$sanghatrading.logspot.com$
Aug. 6, 2014
"ontents
Fission 7tatement......................................................................................................................................................../
Fastery /
!%AIB %ABH?AH6 @I7"%AIF6+, 6
T86 7ABH8A !+IB"I!%67, 6
The 7T9 Juick %earning Fanual......................................................................................................................................0
!urpose, 0
7AK6TY, 0
7?+6TY, 1
!+9KITACI%ITY, 1
7T9 allows us to know the two types of Farket @ance Cehavior,....................................................................................1
The 7T9 Findset,....................................................................................................................................................1
7T9 Cenefts...........................................................................................................................................................1
"onLuer the Kear,....................................................................................................................................................2
<nown Kacts aout 7T9,...........................................................................................................................................2
The L",ou& 10
The %9T Trading !lan, MKor trading the :... tick chart as your FAIBN 12
The 89T Trading !lan, MKor trading the -:... tick chart as your FAIBN 12
Aug. 6, 2014
7T9 9Ecial Hoals, %imits and Fantras... 13
FABT+A7, 14
Cegin your 2. @ay "ountdown to %ive,......................................................................................................................1/
Teachings,..................................................................................................................................................................16
This is the 86A+T of O%9T Trading !lanO.....................................................................................................................16
Ahat are the BA++9A7..........................................................................................................................................11
The "ycle concept,.................................................................................................................................................20
The !+IF6 & #6+< & @6%TA lines,................................................................................................................................22
The Three Farket "ycles,........................................................................................................................................23
The IB and 7!IB lines,.............................................................................................................................................24
The A%!8A;A%% line and "9FC9;A ars,...................................................................................................................2/
6nd of Teachings....................................................................................................................................................26
"onclusion,.................................................................................................................................................................26
This page intentionally lank.
Aug. 6, 2014
Purpose
This is the collective Aisdom our 7piritual "ommunity of Traders was made privy to
y the ?niversal 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 @ivine and the ?niverse. Ae are eternally Hrateful and ever Thankful for the Hift of the 7angha Trading
9scillators.
Ae are continually given the most ama5ing insights aout this HiftP which allowed us to create a usiness that takes little of our
time to run during the day. This Hift enales us to spend Luality time helping others as the @ivine wishes. This is the reason we
teach this Hift to others for free. Ae depend on the @ivine and the %ove of the ?niverse to lead others to us.

!astery
It is what OisO, you are seeing what you (see).
It is A%% in the techniLue and your eEciencies.
You canGt predict the future trends of the market,
you are ut a mere follower, so act like itQ
You must only develop the aility to see what is efore your eyes.
The ?niverse is asking for little more in this endeavor.
!ractice eing eEcientQ
!oints per trade, get it up.
%ike @irk Bowit5ki in the BCA at -.: points per hoop.
MThe est average near him is /.>N.
Bot like Fonica %ewinsky, who swallowed many a shot, ut didnGt get credit for one.
?sing the least time and e'ort, a skilled performance R 6KKI"I6BTQ
Ae will ecome (Fadly) skilled in this area. <urt @uerodI
/ of 26 The STO Qui! Le"#$i$g M"$u"%
Aug. 6, 2014
"#$%N #$N&'$&( )%*+#$%!(,-
/. The 7angha will never ask you for money.
-. The info I7 !+9SI@6@ K+66%Y with Ono strings attachedO.
>. The 7angha will provided answers and guidance pertinent only to (The 7angha Trading 9scillators M7T9N).
0. The 7angha AI%% B9T provide proof of e'ectiveness nor ABY guarantee of KITB677 of use. !rove it to yourselfQ
:. You are K+66 to proft from (The 7angha Trading 9scillators) in any way you choose, with only 9B6 +67T+I"TI9B 3
Hive credit to (The "hildren of the #ourney 7angha) as the original creator.
T.( *$N&.$ ",%N+%"#(*-
/. Those that have the passion and perseverance, on their own volition, will prove the merits of OThe HiftO for
themselves and acLuire the necessary skills y their 9AB e'ort.
-. As OThe HiftO was freely given to the 7angha, we K+66%Y give the gift from our heart to those who ask us. The
7angha will freely answer Luestions and provide the foundational knowledge to those who seek to use OThe 7angha
Trading 9scillators) e'ectively.
>. The Hift of OThe 7angha Trading 9scillatorsO is 9pen 7ource and will adhere to the O= Huiding !rinciplesO of 9pen
7ource.
Aug. 6, 2014
The STO Quick Learning Manual
"urpose-
This document is the 7angha Trading 9scillator TeamTs latest understanding on how to use OThe 7angha Trading 9scillators)
proftaly. 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 7T9 tools used in the %ayout Mused only on the 7ierra"hart Trading !latformN, please do B9T
e overwhelmed y all the lines. You will learn their function as you execute the trading plan descried in this manual. !lease
learn aout the BA++9A7, which is foundationalP we need the BA++9A7 to clearly see the rhythm of the market dance and to
alert us when the 7T9 lines are ready for the next market cycle.
*$/(TY-
Protect our tra!ing account, we employ the following tactics...
/. "se a Stop and move it to the last (ounce) of the price&action Mwhere the price&action created a peak or valleyN.
-. #E O#EDIE$T to the trading plan.
>. ?se only 9B6 contract and <eep your ma% !ail loss to less than &'() M%oss %imitN.
0. <eep your max daily *lle! tra!es to less than '+ M9ver Trading %imitN.
,AR$I$-: Doing .usiness /ith the Market is 0inherently0 )$N&(,O'*0 Market price1
action ma sharpl go up or !o/n2 PRE3E$TI$- our Stop 4rom acti5ating in a timel
manner6 Please reali7e ou ,ILL LOSE mone /hen this happens an! this is a 8normal8
.eha5ior o4 the market6
As a ne/ STO practitioner2 ou are encourage! to use O$L9 one contract at a time2 to
minimi7e this possi.le loss6
Aug. 6, 2014
*',(TY-
%ook for and wait for (The Trade 7etup).
",O/%T$1%#%TY-
/. E:IT your position when you have (The Trade 6xit).
-. #E,ARE ; STA9 A,A9 when the price&action is sideways and 7T9 lines *ust stay in the @ABH6+ U9B6.
>. ,AIT ; for the #6+< to enter into the FI@s.
STO allo/s us to kno/ the t/o tpes o4 Market Dance #eha5ior:
/. Sustaine! Tren!s <=o%trot> 3 Cegins when !+IF6 and IB lines cross Uero together, then the IB line stays
in the @ABH6+ U9B6 as #6+< remains 9?T7I@6 the FI@ BA++9As and !+IF6 cycles up and down through
the @ABH6+ U9B6.
-. Si!e/as an! Pi5oting <?itter.ug> 3 is also a sign of continuation of a current trend. The IB line remains
in the @ABH6+ U9B6 and #6+< is K%AT, while !+IF6 cycles up and down through the @ABH6+ U9B6.
The STO Min!set:
/. O@AB"6O with the marketP we DO $OT PREDICT where it is going.
-. (89!6) will not move the price&action to where we want it to go, !+IF6 crossing Uero doesQ
>. Farket direction is always known through the 7T9 lines. Ae @9 B9T pay attention to the B6A7Q Ae
(@AB"6) with the market.
STO #ene*ts666
/. gives us the K+66@9F of sight and awareness.
-. gives us the 6B6+HY to trade for a long time Mif we want toN & due to %ess Krustrations.
>. K+66 for everyone to use Mexcept for the monthly cost of a 7ierra "hart suscription & V-= per monthN.
Aug. 6, 2014
Con@uer the =ear:
/. =ear o4 Missing an Entr & when entering a position, 7T9 does Farket Cuy and 7ell.
-. =ear o4 the Retrace taking you out & ecause with 7T9 we know when to open up the 7top. The !+IF6 and
#6+< tells us to B9T worry.
>. =ear o4 the Si!e/as & going in and out of positions & ecause with 7T9 we know trend continuation
Msideways$fat means continued trendN.
0. =ear o4 #a! Risk Management & 7top too tight or loose & ecause with 7T9 we know the market dance.
:. =ear o4 $ot Ano/ing where the market is & ecause with 7T9 we know where the market will go. The IB line
and Alpha Clocks tells us direction.
2. =ear o4 Losing 3 ecause with 7T9 we know when to take a position, when to hold and when to exit.
Ano/n =acts a.out STO:
/. All 7T9 lines cycle through Uero. Ahen a line goes aove the Uero, it will go elow the Uero and vice&versa.
The cycle has an MAlpha;89TN ?! Clock, when price&action moves ?! and a @9AB Clock, when price&action
moves @9AB.
Take 9B%Y an ?!, when ?! Clocks are present. Take 9B%Y a @9AB, when MAlpha;89TN @9AB Clocks are present.
-. Ahen !+IF6 and #6+< are AC9S6 Uero, market tends to dance ?!.
>. Ahen !+IF6 and #6+< are C6%9A Uero, market tends to dance @9AB.
0. !rice&action will not mo5e Luickly until !+IF6 or #6+< crosses the Uero.
:. Ahen #6+< is sideways AC9S6 the ?!!6+ FI@s, the market will continue to dance ?!.
2. Ahen #6+< is sideways C6%9A the %9A6+ FI@s, the market will continue to dance @9AB.
=. Ahen 7T9 lines are in the @ABH6+ U9B6, the market continues its current trend.
1. An 7T9 line Uero Counce is strong. Any 7T9 line ouncing o' the Uero completes their cycle.
D. An 7T9 line OcheckmarkO pattern is strong.
/.. 7T9 lines are together during Uero crossing is strong, ut short&lived M#itterugN.
//. Ahen 7T9 lines, especially Alpha;89T, do not match price&action direction, you have @IS6+H6B"6.
/-. Any 7T9 lines crossing Uero or each other has signifcance.
/>. Any (%6A!) of the 7T9 lines will cause price&action to go sideways.
Aug. 6, 2014
The Layout
Aug. 6, 2014
*TO 2 O3cial Trading "lans...
There are TA9 Trading !lans.
The %9T Trading !lan is for trading the :... tick chart as your FAIB chart.
The 89T Trading !lan is for trading the -:... tick chart as your FAIB chart.
Pre1Plan:
+eLuirements,
/. ?nderstand the +I7< of 9nline @ay&Trading M+isks, @ay&TradingN
-. Ce Kamiliar with the 7ierra"hart Trading !latform M7ierra"hart InstructionN
>. "alirate the 7T9 BA++9As to the fnancial instrument traded M"alirating the BarrowsN
0. ?nderstand the BA++9As and the concept of "ycles with MAlpha;89TN ?! C%9"<s and MAlpha;89TN @9AB
C%9"<s M"alirating the BarrowsN
:. ?se the 67 M e&mini 7 W ! :..N for your fnancial instrument, with the FAIB chart at :... ticks and the 89T chart
at -:... ticks.
!re&reLuisites,
/. 7erene, 8ealthy and Alert
-. "omputer, Internet and Trading !latform are well
>. Hoals, %imits and Fantras reviewed MHoals, %imits, FantrasN
0. In isolation & no distractions
Aug. 6, 2014
The #OT Trading "lan- MKor trading the :... tick chart as your FAIBN
!lan 6xecution,
/. ,AIT0 & AAIT for #6+< to e in your direction and IB line to already e at the correct side of Uero as !+IF6 crosses
Uero. IB line and !+IF6 F?7T C6 fairly "%976 together as you cross Uero.
-. The Tra!e Setup 1 E$TER0 3 when !+IF6 crosses Uero and leaves the @ABH6+;U9B6, with "9FC9;A and #6+< going
your direction.
>. The Tra!e E%it 1 E:IT0 3 when !+IF6 crosses #6+< or enters the @ABH6+;U9B6, as IB line crosses Uero.
a. Ahen more than negative V/...
. Ahen price&action is sideways.
c. Ahen you have met your production goal for proft.
Questions to ask 4or E:IT2 as STO lines cross Bero:
/. As IB line crosses Uero, what is !+IF6 doingX
iN Is !+IF6 fat 9?T7I@6 FI@s, then 7TAY.
iiN Is !+IF6 going into then FI@s, towards the @ABH6+;U9B6, then 6YIT.
-. As !+IF6 line crosses Uero, what is #6+<;89T doingX
MiN Is #6+< fat 9?T7I@6 FI@s, then 7TAY.
MiiN Is #6+< going into the FI@s, then 6YIT.
The .OT Trading "lan- MKor trading the -:... tick chart as your FAIBN
/. ,AIT0 & AAIT for Alpha;89T and #6+<;89T to e in your direction.
-. The Tra!e Setup ; LO$- 3 E$TER LO$- 3 when you have M"9FC9;AN ?! Clocks, #6+<;89T, !+IF6 and IB are A%%
with you.
>. The Tra!e E%it ; LO$- ; E:IT LO$- 3 when you have M"9FC9;AN @9AB Clocks and #6+<;89T is @9AB.
0. The Tra!e Setup ; SCORT 3 E$TER SCORT 3 when you have M"9FC9;AN @9AB Clocks, #6+<;89T, !+IF6 and IB are
A%% with you.
:. The Tra!e E%it ; SCORT ; E:IT SCORT 3 when you have M"9FC9;AN ?! Clocks and #6+<;89T is ?!.
Aug. 6, 2014
Post1Plan:
?pdate your Trade #ournal log site
/. +ecord goals reached
-. +ecord limits and mantras roken
>. +ecord Luality of 9C6@I6B"6 to the Trading !lan
0. +ecord things learned
:. +ecord proft or loss and numer of flls
@o re&capP Sideo and$or 7creenshot the charts and add to log site
*TO O3cial &oals, #imits and !antras...
-OALS:
You are an 6F!%9Y66 of the Farket and M"ST #E O#EDIE$T to the 8The Tra!ing Plan8
You trade only one contract at a time
You AL,A9S ,AIT 4or DThe Tra!e SetupE
You AL,A9S e%ecute DThe Tra!e E%itE
LIMITS:
Faximum daily flls, /-
Faximum daily %977, V/:.
Trailing 7top, /1 ticks
RISA MA$A-EME$T: 1 #est to Skpe an! tra!e /ith a Tra!ing #u!!6 Your Trading Cuddy will manage your risk
and you will manage theirs.
Ahen you have no Trading Cuddy, 7T9! after two losses in a row or you have reached your daily loss limit or you have
reached your daily proft goal.
Aug. 6, 2014
!$NT,$*-
/N The market pays you to C6 9C6@I6BT to The Trading !lan.
-N @o not claim to e oedient, if that is not the case /..Z.
>N 8alve the numer of contracts you trade when trading poorly.
0N Bever turn a winner into a loser.
:N Your iggest loser cannot exceed your iggest winner.
2N 7tick with the plan, do not change it.
=N Ce yourself, do not try to e someone else. MI am personally a %9T Trader, not a 89T TraderN
1N You always want to e ale to come ack the next day.
DN 6arn the right to trade more contracts at one time.
/.N Het out of your losers.
//N The frst loss is the est loss.
/-N @o not hope and pray. Ahen you do, you will lose.
/>N @o not worry aout news its history. Ae (@AB"6) with the market.
/0N @o not speculate$predict. Ahen you do, you will lose.
/:N %ove to lose money.
/2N If your trade is not going anywhere in a given timeframe, then exit.
/=N Bever take a ig loss. 9nly a ig loss can hurt you.
/1N Fake a little it each day. @ig your ditches. @o not fll them.
/DN 8it singles not home runs.
-.N "onsistency uilds confdence and control.
-/N %earn to sweat out M7cale outN your winners Mwhen using multiple contractsN.
--N Fake the same type of trades, repeatedly. Ce a ricklayer.
->N @o not over analy5e. @o not procrastinate. @o not hesitate. Ahen you do, you will lose. Ce AlertQ Train to Trade instinctivelyQ
-0N All traders are created eLual in the eyes of the market.
-:N It is the market itself that wields the ultimate scale of *ustice.
Aug. 6, 2014
The Quick Learning Training program:
/. @o your 8istorical "hart studies.
a. %ook for The Trade 7etups, where !+IF6 starts at or from outside the FI@&BA++9As.
. %ook for The Trade 6xits, where !+IF6 enters the @ABH6+ U9B6, as IB line crosses the Uero and #6+< is against you.
-. @o %ive&@emo of the Farket, if you have no rokerage account, then use market replay.
>. Ce 9C6@I6BT to the trading plan.
0. %et the ?niverse teach you the details as you do your 2. @ay countdown to %IS6.
#egin our F) Da Count!o/n to Li5e:
/. Ce 9C6@I6BT to the trading plan
-. ?se only / contract at frst, as your weeks go y proftaly, doule your contracts. Ahen not proftale, go ack to /.
>. Faintain a trade *ournal and video recap your daily countdown.
0. Ahy videoX Cecause you need to record your thinking on why you did that action.
:. After taking a Creak, do your 8istorical 7tudies of recogni5ing when the est Trade 7etups happen and when was the est
Trade 6xit.
2. @o Farket +eplay. <eep replaying the scene until you maximi5e your proft.
Sh"#e ,ou# i$'igh&' 4i&h o&he# STO -#"&i&io$e#'. I$ f#ee%, 'h"#i$g ou# )i'o(e#ie', 4e h"(e 5")e 'uh 4o$)e#fu% -#og#e''6
OBEDIENCE to the trading plan is paramount and staying within your Loss and Filled Trade Limits!
'6 Tra!e TICAS $OT MO$E90
+6 TRAI$2 TRAI$2 TRAI$ ; 9ou ha5e to act on The Tra!e Setups an! E%its DInstinctuallE0
G6 PRO3E e5erthing to oursel40
H6 Tra!e ,ITCO"T emotions0
1/ of 26 The STO Qui! Le"#$i$g M"$u"%
Aug. 6, 2014
Teachings,
This is the CEART o4 8LOT Tra!ing Plan8666
#ust study this section and practice, practice, practice, always practiceI
Aug. 6, 2014
Quick PRIMER on the STO lines an! /hat the are:
/. The Bero Line <Bero> & is foundational to 7T9. Aithout the OUeroO, we will not know the various cycles the
market goes through. 7T9 essentially places a Uero line on the price&action & this is the source of power for
7T9.
-. The I$ <I$> 3 is the fastest speed 7T9 line, predicts where the !+IF6 will go next.
>. The SPI$ 3 is the IB line of the 8igh&9rder Timeframe, when The Trade 7etup is present, use 7!IB to confrm
the strength of the direction.
0. The PRIME <P> 3 is the medium speed 7T9 line, tells us the marketTs short term cycle. ,hen 8P8 crosses
the Bero line2 it /ill mo5e the price.
:. The ?ERA <?> 3 is the slowest speed 7T9 line, tells us the marketTs medium term cycle. Ahen O#O crosses the
Uero line to go ?p, you are in an uptrend. The reverse is true for downtrends. #6+< is essentially the price&
action with a Uero line.
2. The ALPCAIALL <ALL> & tells us when The Trade 7etup$6xit is coming to time our entries$exits as
OA%!8A;A%%) crosses the (A%!8A;89T) ?!$@9AB C%9"<s.
=. The COM#OIA <COT an! LOT> 3 tells us the %ong&Siew 3 (%ooking down the +oad), when the market dance
will change, go from ?! C%9"<s to @9AB C%9"<s Msee The "ycle conceptN.
In the laout2 /e use the SPI$2 I$2 PRIME2 ?ERA an! COM#OIA6 Ae may not use A%!8A;A%%.
Aug. 6, 2014
,hat are the $ARRO,S666
6arly in our development of 7T9, the ?BIS6+76 taught us the importance of !+IF6 and the signifcance of the BA++9As. The
use of the BA++9As is 5er important in allowing us to know the cycles of the market dance. The BA++9As allowed us to
have a Uero line, where the most exciting part of the market dance happens.
,ith the $ARRO,s2 /e kno/J
/. "ontinuation as the price&action goes sideways or we are in (#itterug) Ma pivoting marketN. The IB line stays in the
@ABH6+ U9B6.
-. +eliale (Trade 7etups and Trade 6xits) as 7T9 lines cross the Uero, together.
>. 7ustained trends, as #6+< is fat outside the FI@&Barrows or outside the ?!!6+ or %9A6+ BA++9As.
The $ARRO,s !e*ne an area a.o5e an! .elo/ the 5er important Bero line6
Ae oserved that we can Ocali.rate8 the BA++9As to a specifc fnancial product or instrument.
Cali.rating the $ARRO,s to a *nancial instrument:
/. Kind a True Trend "hange for ?!.
-. Kind a True Trend "hange for @9AB.
>. 7et the ?pper BA++9As M?pper is aove the Uero lineN aout where the #6+< starts a @owntrend.
0. 7et the %ower BA++9As M%ower is elow the Uero lineN aout where the #6+< starts an ?ptrend.
:. 7ince we want the BA++9As symmetric around the Uero line the values for the ?pper and %ower Barrows are the
same.
Kor the TK$+%F Memini&+ussell -<N, H"% M%ight "rudeN, HH" MHoldN and 67 Memini&7 and ! :..N the Barrows is set to
[..= and &..=.
Ae then divide the ?pper Barrows in half and call it the ?pper FI@&Barrows.
Ae then divide the ?pper FI@&Barrows in half and call it the ?pper J?A+T6+&Barrows.
The same is done for the %ower Barrows.
The area marked&out y the ?pper and %ower FI@&Barrows aout the Uero line & we call the MIDs.
Aug. 6, 2014
The area marked&out y the ?pper and %ower J?A+T6+&Barrows aout the Uero line & we call the )$N&(,24ON(.
!lease see the cali.ration 5i!eo at this location or email childrenofthe*ourney\gmail.com for help,
https,$$dl.dropoxusercontent.com$u$:/:1D:=>$TheZ-.7anghaZ-.TradingZ-.7ystem$Sideos$7T7Z-.&Z-."alirating
Z-.!+IF6Z-.andZ-.#6+<Z-.toZ-.theZ-.Barrows.K%S
Aug. 6, 2014
The Ccle concept:
As any of the 7T9 lines cycle up and down through the Uero line, they create two phases.
The Phases o4 a CcleJ
The 7COM8O9A: UP BLOCs . "' &he -#ie."&io$ 5o(e' U;.
The 7COM8O9A: DO!N BLOCs < "' &he -#ie."&io$ 5o(e' =O>N.
>he$ COM8O9A )oe' NOT fo%%o4 -#ie."&io$ 4e h"(e 4h"& i' "%%e) =I?ERGENCE.
Use the Cy"le phase to your ad#antage$
ONL% ma&e a LON' trade when ,ou h"(e U; 8LOCK' "$) +ERK i' goi$g U;.
ONL% ma&e a ()O*T trade when ,ou h"(e =O>N 8LOCK' "$) +ERK i' goi$g =O>N.
(T+% +!+% when the ,E* i' NOT in phase with the UP-DO!N BLOCs.
1ut keep in mind that strong trends 5%## 1(&%N at "eaks67alleys when the *TO lines 87ees6'pside2down
7ees9 from outside the !%)s as $## the *TO lines 8.($)* TO5$,)*9 the 4ero together.
Aug. 6, 2014
8ere is a picture to make the "ycle concept clear...
Aug. 6, 2014
The PRIME 1 ?ERA 1 DELTA lines:
The ?niverse let us know, with utmost certainty, that The !+IF6, #6+< and The @6%TA are the 9B%Y > lines needed to
O@anceO with the market 7afely and proftaly 3 ut we needed the detailed insight provided y the IB, 7!IB and
"9FC9;A.
The IB and 7!IB lines lets us know where the !+IF6 will go next.
The picture elow shows you why...
Aug. 6, 2014
The Three Market Ccles:
A%% the 7T9 tools are lines that represent the inherent cycles in the market.
7o far, we know of Three Farket "ycles exhiited y the !+IF6&#6+<& @6%TA ehaviors.
Short1term ccle <Pi5oting Market> 1 PRIME & ?seful when the !+IF6 *ust goes from ?pper BA++9A7 to %ower
BA++9A7 or when #6+< is in the @ABH6+ U9B6, then use the !+IF6 to take positions on the 7T+9BH side of the
market. The price&action moves as !+IF6 crosses Uero.
Me!ium1term ccle <Tren!ing Market> 1 ?ERA & ?seful when the market is in a trend. 6xit the trend when the #6+<
crosses through the Uero and re&enter a sustained trend when #6+< crosses ack again. The #6+< goes sideways,
outside the FI@s, to sustain a trend and the !+IF6 will then e in @IS6+H6B"6 to the price&action.
Long1term ccle <Sustaine! Tren!ing Market> ; DELTA </hich is PRIME minus ?ERA> & ?seful when you want to
maximi5e your proftaility. Ae do not trade with @6%TA, ut instead use A%!8A;89T.
ALL these lines ccle up an! !o/n through the 7ero as the market 8Dances along86 A cycle started from the
Uero, F?7T complete, y going through the Uero again in the opposite direction or y ouncing o' the Uero.
Aug. 6, 2014
The I$ an! SPI$ lines:
The I$ an! SPI$ lines are666
I$ R !+IF6Mcurrent;arN 3 !+IF6Mprevious;ar : to /. ars ackN
SPI$ R !+IF6;89TMcurrent;arN 3 !+IF6;89TMprevious;ar : to /. ars ackN ]89T is 8igh&9rder Timeframe
chart^
The 7!IB line is derived from the 8igh&9rder Timeframe chart, which gives us (a look down the road)&the market may
travel, and is plotted on the FAIB chart, using a %ow&9rder Timeframe&focusing on the short&term&(looking at the hood
ornament)&instead of looking down the road.
Ae do our trading o' of the FAIB chart M%9TN and the 89T chart gives us the long&term view of the market dance.
Co/ the I$ an! SPI$ lines helps666
?sing the IB and 7!IB lines gives us confrmation of market direction and surety of trend continuation.
The IB line is reacts faster than !+IF6 and predicts where the !+IF6 will go and we need to know if the !+IF6 will e
going away from the Uero Mexpansion phase of the cycleN or will the !+IF6 e going towards the Uero Mcontraction
phase of the cycleN. Ae F?7T take positions when the !+IF6 *ust crossed Uero and is doing an 6xpansionQ
The 7!IB line is the fastest reacting line and confrms the market direction and strength. Ahen 7!IB is elow Uero, the
price&action is still @9AB. Ahen 7!IB is aove Uero, the price&action is still ?!. The distance the 7!IB is from Uero is
the strength of the market in that direction.
Aug. 6, 2014
The ALPCAIALL line an! COM#OIA .ars:
The ALPCAIALL an! ALPCAICOT are666
ALPCAIALL R "9FC9;AM%9TN [ "9FC9;A M89TN
o COM#OIA R !+IF6 [ #6+<
"9FC9;A is an 7T9 line derived from the addition of !+IF6 with #6+< for a specifc timeframe. Ahen "9FC9;A
crosses #6+<, going the same direction, it is usually a good place to take a trade.
The COM#OIA makes ovious the phase changes o4 the market ccle. The ars will step in height and change
color as the cycle phase change.
The ALPCAIALL gives us con*rmation o4 the 5ali!it o4 the Tra!e Setup Mwe do not use it in the %9T Trading
!lanN. Ahen the IB and !+IF6 lines cross the Uero, the A%!8A;A%% must cross the "9FC9;A.
He#e i' " -i&u#e &o e@-%"i$ fu#&he#...

2/ of 26 The STO Qui! Le"#$i$g M"$u"%
Aug. 6, 2014
En! o4 Teachings666
"onclusion,
There is no 8oly Hrail of technical indicators. The est an 7T9 practitioner can do is to O@anceO with the market.
The (TO Tools is a MIRACLE!
!e than& the UNI/E*(E 0or gi#ing us the !I(DO1 to use (TO pro0ita2ly.
>he$ 4e "#e NOT ;#ofi&"A%e...
i& i' Ae"u'e of ou# LACK of T#u'& i$ &he &oo%' "$) ou# LACK of OAe)ie$e &o &he &#")i$g -%"$.
#lessings Al/asJ
Arnul4o PeKalo7a an! Aurt Duero! o4 the STO De5elopment Team

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