The Unified Theory of Markets

1. Introduction .................................................................................................................... 4

2. Cycles, Fact and Fiction ................................................................................................... 9

3. The Market's Fingerprint .............................................................................................. 17

4. Market Structure ........................................................................................................... 33

5. Projection and Confirmation Tools ............................................................................... 49

6. Momentum Oscillator ................................................................................................... 74

7. Scaling According to Bertha .......................................................................................... 81

8. Examples ..................................................................................................................... 105

9. The Bertha Files ........................................................................................................... 140

10. Conclusion ................................................................................................................. 163

Appendix 1- Scripts ........................................................................................................ 1 65

Appendix 2 - Discussion Forum ...................................................................................... 187

Welcome to the Big Bertha book-the manual that I wasn't sure I'd ever write. I've been

sitting on this material for a number of years now, and although I had thought about

releasing it from time to time, I could just never bring myself to sit down and actually

write it. I've shared a chart here or there on the forum, or answered an odd email or

two about these techniques, but there's a huge difference between posting a mystery

forecast chart on the Internet and writing a manual that details exactly how that

forecast was arrived at.

As traders, it's a natural thing to keep secrets. Trading is a zero-sum game, and there is

always a fear that somehow by sharing your own methods, they will lose their

effectiveness. On top of that, there are always critics who will disparage your work, and

pirates who will steal it. So, if you have material that really does work and has value,

sometimes it's just much easier to trade quietly by yourself, enjoy your profits and stay

out of the shark-infested waters of the trading education industry.

Given that, I think it's important to take moment and describe what exactly the material

is that I'm sharing, and why I've decided to go public with this information rather than

just keep it to myself.

First, I'll describe my motivations. I've been sharing my material publicly since 1998,

which means I've been involved in this industry for 13 years as of this writing. The very

first tool that I offered for sale was a TradeStation indicator that plotted Exhaustion

Bars. These are blue and red dots that appear over likely turning points, and now come

as canned indicators in the Wave59 package.

At the time I released them, I went through a whole period of uncertainty about

whether or not to make them public. I was using them myself, I knew they worked and I

just hated the idea that someone would crack the protection and distribute those tools

across the Internet. In fact, I knew with 100% certainty that this would be the fate of my

Exhaustion Bars and the hundreds of hours of work that I had put into developing them.

But I bit the bullet, set up a homegrown website and opened the doors as a software

vendor.