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Last Post: 2/10/2022 11:29:22 AM - Followers: 11 - Board type: Free - Posts Today: 0

Study of (Ken Goodrich's)Magic Box theory

Workbench chart: Make timeframes 1,2 or 3 month, drop log scale to linear to watch the MA 2 & 5 cross, Williams crossing above -50% means bulls are in control.
 Important: use indicators with fast parameters if you want to use other plug-ins
 RSI 5
 MACD 5,15,10
 Full STO 5,3
 Williams 5
 ADX 5
 CMF 15


Workbench wirh Thumbnail

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                                                                                                                                                                              Compound chart
 #1. AROON- 8 You watch as the AROON DOWN crosses the 75 down and the AROON UP comes up from zero. Most important. (\0/)
 #2.WILLIAMS%R- 9 You watch the line cross the 50.
 #3.CMF- 15 You will usually only see growth when the CMF is in the negative.
 #4.ADX/DMI-5 You watch as the D+ line either crosses the D-, or crosses above the 20.
 #5.MACD histogram- 5,15,10 You watch the negative bars register -50% smaller then the bar before it, or -50% smaller then the largest in the grouping.
 #6.Full Stoch- 5,3 You watch the fast line cross the slow line while the AROON DOWN(8) crosses the 87.50. Crossing the 20 would be best, when the Williams agrees.
 #7.Bollinger Band 20,2 You watch for the Magic Box to occur when the negative close touches above the lower bolly and the next day’s close to it is positive growth in a white candle.
 #8.RSI 5 you watch as the indicator crosses above the 50 for a quick pop.
 #9.MA(2) Watch the 2 day MA cross above the 5 day MA. That’s helpful.
 #10.MA(2)To sell it just watch the 2 day MA kiss the bottom center of the red candle body.


 (A) The Magic Box is a pure two-day pattern. Basically the "close" of a red candle printing on or near lower Bollinger Band with the next day printing an "open white candle."

 A gift from The Seasonality Stock Reports Board
 The reason that I named this setup the Magic Box was so that you could relate to it and remember it faster. Without relationship to something, it is nothing to us. It must be something memorable to you before you can set it into your subconscious mind and see it always.
(A1) On day one the Aroon Down is setting at 100 on the indicator and price is near the lower Bollinger Band. The Candlestick is dark-shadowed.
 (A2) On day two, to form the Magic Box, the Aroon Down must drop to 87.50, and price to form a white candle, to complete the box. No other indicator is watched until this occurs for this setup, just the Bollinger Band and the Aroon Down.

 If you see a Magic Box develop, that being, on the first day the Aroon Down going from 100.00 while the close is either on or just above the lower Bollinger Band and the second day the Aroon Down is now 87.50, you have a Magic Box.

 (B) The buy opportunity occurs when the confirmation of two things happens: on day three or few days later the Aroon Down goes to 75.00 and the Williams%R comes above the -50%. That is the buy. The Williams must come through the -50%. It may take more than three days but you must wait for the confirmation of the William%R. I have seen again and again, the Aroon Down come down from 100.00 to zero without the Williams ever crossing the -50%, those are the ones you pass on. There will be no growth when this happens. At most there is consolidation or a small drop. During this process the Aroon Up can rise slowly but without the Williams you have nothing.

 There are other Magic Boxes that develop in a stock's life cycle, too, and they, too, can give great growth. These are the supported median, the floating, and the rising Magic Boxes. The buy-in criteria, though, will remain the same for all of them. The Aroon Down comes to the 75.00 and the Williams crosses the -50%. June 7th, 8th, and 9th accomplish this in the 2007 HGR chart, though the William%R took until June 13th to confirm. You must wait.

 Trading: It is highly recommended that you paper trade the system to familiarize yourself with it thoroughly. As with anything in life nothing is guaranteed, so, always use appropriate stop loss according to your risk tolerance.

 Kenneth J. Goodrich
Sell trigger

The main focus here is to compound our gains. Too many people enter the stock market with the intent of trying to hit a home run. Swinging for the fences also gives you a high strike out ratio. It is important to compound your gains and go for the singles and doubles and you will find that you eventually hit triples and home runs as well. The chart below shows how you can turn only 3k into 1 million dollars in 200 steps. So join me in moving up the steps of our compounding gains chart. Compound those gains!


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#182   As a Mod on the ZNOG board you tothe 12/10/20 11:41:49 PM
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#179   Thanks tothe.. BahamaPete 07/19/20 03:41:31 PM
#178   Good job. You are board MODERATOR and I tothe 07/19/20 11:06:46 AM
#177   Tothe, what a finish Friday for INQD. I BahamaPete 07/18/20 01:13:24 PM
#176   Ok, will do... BahamaPete 07/14/20 12:32:57 PM
#175   Welcome to the board. Yes, I forgot about tothe 07/12/20 03:26:53 PM
#174   You would think I learned by now, been BahamaPete 07/12/20 12:40:39 PM
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#172   Tothe, I was also banned back in 2018, BahamaPete 07/12/20 08:17:10 AM
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#168   As you know, I can not post there, JRyan 04/10/20 12:33:00 PM
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#166   Good morning Gents! Jackleg1 02/14/20 07:29:34 AM
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